Contingent Trusts Clause Samples
A Contingent Trusts clause establishes a trust that only comes into effect upon the occurrence of a specified event or condition, such as the death of a beneficiary or the attainment of a certain age. In practice, this means that assets are held or managed by a trustee until the triggering event happens, at which point the trust is activated and the assets are distributed according to the trust's terms. This clause is primarily used to ensure that assets are managed and distributed in a controlled manner, addressing uncertainties and providing for beneficiaries only when certain conditions are met.
Contingent Trusts. 4.1 If all or any portion of any trust created under this trust agreement is to be distributed upon termination of that trust, or any share of payments or proceeds payable to our trustee is otherwise provided to be distributed, to a beneficiary who has not attained age 30 or who, in the absolute judgment of our trustee, is incapacitated, with respect to that share, we direct our trustee either: To hold that share in custody as custodian under the Uniform Transfers to Minors Act of Texas, for a beneficiary under age 21 or other age of majority specified by applicable law; or To distribute that share to, or hold that share as, our trustee, in trust, in a separate trust for the benefit and use, and in the name of that beneficiary.
A. In creating any trust for a beneficiary under this Contingent Trust(s) subsection, our intention is to provide a gift of only the future distributions from that trust, and not of the undistributed trust corpus.
B. Any income or corpus not so distributed or used shall be separately accumulated for each beneficia,y. Upon attaining the age of twenty-two (22) years, each beneficiaiy shall have the option of withdrawing one-fourth (1/4) of the property then constituting his or her separate Trust Estate. Upon attaining the age of twenty-five (25) years or any time thereafter, each beneficiary shall have the option of withdrawing one-fourth (1/4) of the remaining property then constituting his or her separate Trust Estate. Upon attaining the age of twenty-eight (28) years or any time thereafter, each beneficiary shall have the option of withdrawing one-fourth ( l/4) of the remaining property then constituting his or her separate Trust Estate. Upon attaining the age of thirty (30) years or any time thereafter, each beneficiary shall have the option of withdrawing the remaining balance of the property then constituting his or her separate Trust Estate. Each beneficiary shall be advised of his or her options ninety (90) days prior to his or her respective birthdays when such options shall arise. Furthermore, any beneficiary intending to exercise any of his or her options to withdraw, shall give the Trustee at least sixty (60) days written notice of such intent. The Trustee may, in my Trustee's absolute discretion, waive all or any portion of such sixty (60) days notice. In the meantime, during the pendency of each trust, the Trustee shall have the same powers, discretions, duties and responsibilities it has with respect to this Trust gener...
Contingent Trusts