Current through the 2024 Legislative Session
Section 55-1-40 - Language resulting in classification of distribution interestAlthough not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:
(1) Mandatory interest: (a) "All income shall be distributed to (named beneficiary)"; or(b) "One hundred thousand dollars a year shall be distributed to (named beneficiary)";(2) Support interest:(a) "The trustee shall make distributions for health, education, maintenance, and support";(3) Discretionary interest:(a) "The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";(b) "The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";(c) "The trustee may make distributions for health, education, maintenance, and support";(d) "The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";(e) "The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.SL 2007, ch 280, §17; SL 2008, ch 257, §7.