The Use and Misuse of Ascertainable Standards in Trusts

Gallo, Jon J.
December 2009
Journal of Financial Planning;Dec2009, Vol. 22 Issue 12, p32
Academic Journal
The article discusses the aspects of ascertainable standards and its impact on several beneficiaries in the U.S. It is stated that the standards which are used by trustees, limits the distribution of amount towards beneficiaries needs for their education, health, support and maintenance. It stresses that the use and misuse of the standards also has a gift, income and estate tax consequences to beneficiaries. It also examines the broader concepts of tax consequences which was developed from the use of ascertainable standards. It concludes that trustee could reassess to whom income distributions would be made each year.


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