A ________ is a trust that distributes income according to need,as determined by the discretion of the trustee rather than according to some preset formula.

Question

Quizplus · Accepted Answer

A sprinkling trust is a type of trust that allows the trustee to distribute income or assets among a group of beneficiaries, typically family members, in a manner that is flexible and discretionary. The trustee has the discretion to determine the amount and timing of distributions based on the needs of each individual beneficiary. Thus, a sprinkling trust can be used to provide targeted support to those who require it most, while also maximizing tax efficiency and minimizing administrative costs.

A ________ Is a Trust That Distributes Income According to Need,as