Distributions Commencing Prior To Death Clause Samples
The "Distributions Commencing Prior To Death" clause defines the rules and conditions under which distributions from a trust, estate, or retirement account may begin before the death of the individual involved. Typically, this clause outlines eligibility criteria, timing, and the manner in which such distributions are to be made, such as periodic payments to beneficiaries or the account holder themselves. Its core practical function is to provide clear guidance on early access to funds, ensuring that distributions are handled in accordance with the grantor's intentions and applicable laws, and preventing disputes or confusion among beneficiaries.
Distributions Commencing Prior To Death. An Individual may direct the Trustee or Insurer to commence payments in the form of a lump sum or installments at any time without regard to the minimum distribution requirements under Code Section 401(a)(9). Installment payments may be set up over any period selected by the Individual provided that such period is acceptable to the Trustee or Insurer. Installment payments will continue only so long as amounts remain in the Individual’s ▇▇▇▇ ▇▇▇. The Individual shall have the right at any time to request a lump sum payment of the balance remaining in his or her account.