How do trust distributions work?
A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes.
When one spouse passes, the trust will continue in effect for the benefit of the surviving spouse. The surviving spouse will have the power to direct the distribution of all trust assets. If the surviving spouse becomes incapacitated or disabled, the trustee may distribute trust funds for the benefit of the surviving spouse and/or his/her dependents.
In the event both spouses become disabled and unable to manage the trust assets, your trustee may make distributions from the trust assets to provide for the health, education, support, or maintenance of any person(s) that are dependent upon you.