Trusts: Assigning a Conditional Value to an Item in a Trust

jeudi 19 mars 2015

My Florida trust includes both my investments and my property, and has seven beneficiaries (5 children and 2 spouses). The trust stipulates that the value of my investments should be distributed in varied percentages among all 7 beneficiaries, however the value of my property should be distributed only to the 5 children (and not the 2 spouses), whom I want to receive the greatest benefit.



The assumption is that the value of my property will always be greater than the value of my investments, however should global climate change reduce the value of my property then the two spouses would benefit more by receiving a percentage of the investments which would have a greater value than my property.



Is it possible to specify a generic or variable “Value A” that represents the lower valued asset and a “Value B” that represents the higher valued? This way I can stipulate the spouses get a percentage of “Value A” to ensure that they don't benefit more?



Example text from the trust:



“Value A shall equal the value of my investments or the value of my property, whichever is lower.



The trustee shall distribute Value A as follows:



a) The trustee shall distribute Twenty-Five Percent (25%) of Value A to my son, JOHN DOE.

1. In the event that JOHN DOE predeceases me, his share shall be distributed to my son, JAMES DOE.”





Trusts: Assigning a Conditional Value to an Item in a Trust

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