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Start →D. SUPPORT TRUSTS A support trust is one a) where the trustee is required i) to pay or ii) apply (a) only so much of (i) the income or (ii) principal (iii) (or both) (A) as is necessary (I) for the support of the beneficiary. 1. All Income for Support A trust to "pay a) all of the income (i.e., more than necessary) i) to A ii) for his support“ 1) is not a support trust. When the whole of the income is a) to be paid to A i) for his support, 1) the words "for his support" merely state the motive for the transfer. The beneficiary is not limited to amounts a) necessary for his support. (i.e., he can give out more than necessary support) 2. Not Assignable Even without a spendthrift clause, (i.e., spendthrift trust by implication ) 1) the character of a) a beneficiary's interest i) in a support trust is such that a) no one but the beneficiary can enjoy it; 2) his interest is not assignable by definition. 3) His creditors cannot reach it; a) that would defeat the purpose of the trust. 3. Effect of Other Resources Available to Beneficiary Whether the beneficiary of a support trust a) who has other income or resources i) that can be used for his support is entitled to support a) out of the trust fund b) without taking into account such other resources 1) is a question of the settlor's intention. The cases are fairly evenly divided, a) some inferring that i) the beneficiary should receive his support from the trust (a) regardless of other resources, and b) others inferring the opposite. Example: T bequeaths a fund in trust to pay such income to B as is necessary to support B. It requires $25,000 a year to support B. B has $5,000 of income from other sources. The cases are split as to whether B gets $25,000 from the trust or only $20,000. V. MODIFICATION AND TERMINATION OF TRUSTS A. TERMINATION OF TRUST BY ITS OWN TERMS A trust terminates 1) when the duration of the trust a) as specified by the settlor has expired, or 2) if the instrument specifies no termination time, a) when the settlor's purposes have been accomplished. ← End
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