I.   SIMPLE SURVIVAL REQUIREMENTS........................... 3

A.  Lapse and Anti-Lapse.................................... 3

B-C.(Special Situations).................................. 4-5

D.  Survival Requirements and the Marital Deduction......... 6

 

II.  BENEFICIARY AND FIDUCIARY POWERS....................... 7

A.  Drafting discretionary Powers........................... 7

B.  Drafting Powers of Appointment......................... 13

C.  Some Concluding Observations on Powers................. 15

 

III. DRAFTING CLASS GIFTS AND REMAINDER PROVISIONS......... 16

A.  Matters of Definition.................................  17

B.  Afterborn Members and the Closing of Classes........... 22

C.  Shares of "Issue" or "Descendants"..................... 23

D.  Remainders to "Heirs" and the Like..................... 24

E.  Requirements of Survival............................... 26

F.  Death "With" or "Without" Issue........................ 30

G.  General Suggestions: Drafting Future Interests......... 32

 

IV.  MARITAL DEDUCTION DRAFTING............................ 35

A.  Drafting of Formula Bequests........................... 35

B.  Formula Types and Characteristics...................... 36

C.  Funding the Marital Deduction:  What to Give........... 41

D.  Drafting QTIP and Other Marital Deduction Trusts....... 42

 

V.  SPECIAL PROBLEMS OF REVOCABLE TRUSTS................... 49

A.  Revocation and Amend: Multiple Settlors................ 49

B.  Revocable Trust and Pour-Over Will Combinations........ 50

 

VI.  FIDUCIARY SELECTION AND AUTHORITY..................... 52

A.  Nomination of Alternates and Successors ............... 52

B.  Co-Trusteeships:  Uses and Alternatives................ 57

C.  Tax-Sensitive Trusteeship ............................. 59

D.  Administrative Powers and "Sensitive" Trusts........... 66

 

VII. OTHER MATTERS......................................... 69

A.  Planning for Disclaimers............................... 69

B.  Spendthrift Clauses.................................... 72

C.  Anti-Contest Clauses................................... 73

D.  Authority to Divide Non-Prorata........................ 74

E. “Advancements”.......................................... 75

 

 

Appendix - SELECTED PROVISIONS FOR DISCUSSION.............. 76

 

MARITAL BEQUEST: SURVIVORSHIP ALTERNATIVES................. 76

 

SPECIAL SHARE FOR DISCLAIMED PROPERTY...................... 84

 

Generous “DOUBLE STANDARD” DISCRETION OVER DISTRIBUTIONS

Beneficiary is NOT trustee)................................ 85

 

SPECIAL POWER TO TERMINATE SON’S OR DAUGHTER’S TRUST ...... 86

 

POWERS OF APPOINTMENT – SHORT AND LONG FORMS............... 88

 

POUR-OVER TO INTER VIVOS TRUST (under Uniform Testamentary
Additions to Trusts Act)....................................................... 91

 

ARTICLE   . NOMINATION AND AUTHORITY OF TRUSTEES........... 92

 

ARTICLE   . NOMINATION AND AUTHORITY OF EXECUTORS.......... 94

 

[TRUST INVESTMENT AND P&I PROVISIONS, to protect MD]....... 96

 

>  SEQ CHAPTER \h \r 1[PROTECTIVE PROVISION FOR BENEFICIARY - TRUSTEE]................................................... 97

 

[TRANSACTIONS WITH BENEFICIARIES AND OTHER FIDUCIARIES..... 98

 

SAVING CLAUSE: RULE AGAINST PERPETUITIES................... 99

 

IMPORTANT DEFINITIONAL PROVISIONS [Include in General

Provisions of wills or revocable trusts].................. 100

 

[STAGGERED DISTRIBUTION OF CHILD’S

(*cf. GRANDCHILD’S*) TRUST]............................... 102

 

[FLEXIBILITY IN DEALING WITH ILLUSTRATIVE VARIATIONS IN

SHARES, CLASSES OR CONDITIONS............................. 103