Part III: An Introduction to Lesser Known But Useful Trusts

Editor's Note: This is the third in a six-part series by Wendy Goffe of Graham & Dunn that will be published weekly through September.*





Purpose Trusts.

A purpose trust is established for a specific purpose rather than for the benefit of individual beneficiaries.  These may include trusts for a non-charitable purpose (most frequently for pets), and trusts for charitable purposes (notably, private foundations organized as trusts and charitable land banks), discussed in a later installment of this article.

A noncharitable purpose trust violates a number of basic tenets of trust law:  (i) it violates the rule against perpetuities because it lacks a measuring life; (ii) it has no ascertainable beneficiary whose identity can be established; and (iii) it lacks someone with standing to enforce it.  Charitable trusts are permitted in spite of the fact that they have no ascertainable beneficiaries (although individuals may benefit through scholarships or grants FN1), because the attorney general of the applicable jurisdiction has the authority to enforce their terms. FN2.

The Uniform Trust Code and the Uniform Probate Code promulgated by the National Conference of Commissioners on Uniform State Laws specifically permit purpose trusts.  UTC §409 permits the creation of "a trust for a non-charitable purpose without a definite or definitely ascertainable beneficiary or for a non-charitable but otherwise valid purpose to be selected by the trustee."  Trusts for animals, which are allowed under both the Uniform Trust Code and the Uniform Probate Code, are discussed below.

Several countries have enacted legislation specifically to promote the use of non-charitable purpose trusts and serve as noncharitable purpose trust havens. FN3. 

A. Taxation of Purpose Trusts.

Because a purpose trust lacks an individual beneficiary, the federal tax consequences are complex and not clearly defined. FN4. Typically, IRC §651 and §661 would allow a deduction to the trust for distributions to an individual beneficiary carrying out income.  And, the beneficiary recipient would then be required to pay income tax on that distribution under IRC §652 or §662.  But different rules apply when the beneficiary is not a "person" as defined by IRC §7701(a) (and thus a taxpayer) but is instead a family cabin or a pet.

A purpose trust may be taxed as a grantor trust or a non-grantor trust, depending upon how it is drafted.  If the purpose trust is a grantor trust, then the taxation is relatively straightforward.  All incidents of taxation pass through to the grantor.  But, if the gift to the grantor trust was incomplete at funding, then the grantor will be deemed to have made taxable gifts, not eligible for annual exclusion treatment, as funds are distributed. FN5. When a distribution is made to an entity where the gift to the trust was incomplete, there is a look-through to the shareholders or owners who are considered the recipients of the gifts, in proportion to their interests. FN6.

On the other hand, a non-grantor trust typically creates a tax liability for its beneficiaries, to the extent of distributions received.  If the trust is a non-grantor trust and the funding of the trust was a completed gift, no additional gifts would result when trust distributions are made in furtherance of its purpose.  But, if a distribution is made to an entity, the entity would pay income tax and the trust would be able to take a distribution deduction. FN7.

Where the recipient is not an individual or an entity, income tax may be payable by the "U.S. persons connected with or benefiting from the object or purpose of the trust." FN8. In other words, a distribution to a caretaker for the family cabin or the family pet would be treated as taxable income to the caretaker and entitle the trust to a distribution deduction, but there is no clear authority for this position. FN9. Another approach would be to have the trustee pay the tax without taking a deduction for distributions.  

Distributions may also be subject to generation-skipping transfer tax. FN10. If the purpose trust has no individual beneficiaries, there should be no GST consequences of a distribution, since it has no skip-person. FN11. On the other hand, if the purpose of the trust permits distributions to or for the benefit of a non-charitable entity, distributions may be treated as if passed through to individuals.  For example, if the purpose is to maintain a family corporation, distributions from the trust would be deemed to be for the benefit of its shareholders. FN12.  Accordingly, if a distribution attributable to a shareholder who is a skip-person, it could be construed as a taxable distribution for GST tax purposes. FN13.

Below is a discussion of specific purpose trusts, some of which are highly regulated.

B. Funeral and Cemetery Trusts.

Funeral and pre-need cemetery trusts are considered purpose trusts. FN14. A funeral trust is an arrangement between the grantor and funeral home or cemetery to allow for the prepayment of funeral expenses prior to death.  In addition to the funeral trust, there are also two types of cemetery trusts:  (i) an endowment care cemetery trust, and (ii) a service and merchandise trust.  The endowment care cemetery trust is essentially a pooled income fund for ongoing maintenance of cemetery grounds, which is held in the name of the cemetery, and earnings, but not principal, may be used for its stated purpose.  The service and merchandise trust is like a funeral trust, but for merchandise such as a gravesite market or mausoleum, and for the burial service.  This latter type is equivalent, for tax purposes, to the funeral trust, and will not be discussed here.

The Taxpayer Relief Act of 1997 enacted IRC §685 to simplify the taxation and reporting of earnings of funeral trusts. FN15. Prior to 1997, pre-need funeral trusts were taxed as grantor trusts FN16 with the grantor responsible for reporting income, unless the trustee elected against grantor trust treatment, in which case the tax was paid by the trustee.  

IRC §685 allows the trustee to elect qualified funeral trust status, which allows the trustee to file one aggregate return reporting all of the income on the funds administered by the trustee on Form 1041 QFT, U.S. Income Tax Return for Qualified Funeral Trusts. FN17. It also defines a qualified funeral trust as one that meets the following requirements:

• The trust arises as a result of a contract with a person engaged in the trade or business of providing funeral or burial services or property necessary to provide such services,
• Its sole purpose is to hold, invest, and reinvest funds in the trust and to use such funds solely to make payments for such services or property for the benefit of the beneficiaries of the trust,
• The only beneficiaries are individuals with respect to whom such services or property are to be provided at their death under contracts described in paragraph (1),
• The only contributions to the trust are contributions by or for the benefit of such beneficiaries,
• The trustee elects the application of this subsection, and
• The trust would (but for the election described above) be treated as a grantor trust by the purchasers of the contracts. FN18.

Notice 98-6 FN19 provides guidance on how to make the election, reporting rules, eligibility requirements, and how payments received by the seller are to be treated.  Until recently there was a $9,000 contribution limit for qualified funeral trusts.  H.R. 6580, known as "The Hubbard Act," repealed the dollar limitation. FN20.  

C. Gun Trusts.

When an estate has firearms, the executor must be careful to avoid violating federal (and state and local) firearms laws.  These laws strictly regulate possession of, and access to, certain weapons, the transfer of permissible weapons, and bar certain persons from owning or having any access to firearms.  Failure to comply with these laws may result in criminal liability, including stiff punishments and fines, and forfeiture of any weapons involved. FN21. Careful estate planning can help with compliance with some of these laws.

First, an understanding of the basic regulatory scheme under federal and state laws is helpful.  Federal firearms laws distinguish among weapons. There are two kinds of firearms under federal law:  Title I firearms and Title II firearms.  Title I of the 1968 Gun Control Act, FN22 includes, but is not limited to, rifles, shotguns, and handguns.  The transfer of Title I firearms is generally regulated by state law.  

Title II of the 1968 Gun Control Act reenacted the National Firearms Act of 1934 ("NFA"). FN23.  Title II weapons are also referred to as Class 3 firearms or "NFA" weapons, and include machine guns, silencers, short or short-barreled (i.e., sawed-off) shotguns, short or short-barreled rifles, destructive devices (i.e., grenades or bombs), and "any other weapon." FN24. The NFA Branch of the Bureau of Alcohol, Tobacco, Firearms and Explosives ("BATFE") administers the National Firearms Registration and Transfer Record.  

Under Title II, certain weapons are subject to strict registration, transfer, and tax requirements. FN25. It is illegal for any person to possess FN26 an NFA weapon that is not registered to that person in the NFA Registry. FN27. It is also illegal to transfer an NFA weapon without complying with several NFA transfer rules, FN28 or to possess such a weapon. FN29. For example, when individuals transfer or purchase an NFA weapon, the Chief Law Enforcement Officer (CLEO) of the city or county where the individual resides is required to sign a document called a Form 4, "Application for Tax Paid Transfer and Registration of Firearm."  Any transfer is also subject to a transfer tax, and the transferor must submit and attach to the form a photo of the transferee as well as the transferee's fingerprints in duplicate. FN30.

Title II has a broad definition of "transfer".  Under the law, "transfer" "include[s] selling, assigning, pledging, leasing, loaning, giving away, or otherwise disposing of..." an NFA weapon. FN31.

Finally, under federal law certain persons can't possess FN32 or receive FN33 any firearms (whether Title I or Title II).  Nine different categories of persons are excluded.  These include convicted felons, persons either adjudicated a "mental defective" or committed to a mental institution, and persons convicted of misdemeanor domestic violence offenses.  But the list also includes categories that may not be so self-evident, including any user of an illegal drug, dishonorably discharged veterans, and persons who have renounced their U.S. citizenship. FN34.

These laws affect how executors carry out everyday tasks.  Simple transfers of firearms to satisfy bequests could subject the executor, the heir, or both to criminal penalties.  If an NFA weapon is transferred to an heir, this is considered a "transfer" for NFA purposes.  Life gets worse for both the executor and heir if the executor unlawfully transfers an NFA weapon to an out-of-state heir. FN35. Appraisals can also be tricky.  Appraisers are usually licensed gun dealers.  Before returning a weapon, an appraiser may ask the executor to confirm that the executor himself is lawfully able to possess a firearm.  If the executor is not, then the appraiser may not return the weapon.

And state and local weapons laws can make an executor's job even more complicated.  Several states have "assault weapons" bans that make it illegal to own some Title I weapons (mostly certain semi-automatic rifles, pistols, and shotguns) which would be legal to possess under federal law. FN36. NFA weapons may also be further regulated by states or localities, and again, while some of these weapons can be legally owned under federal law, some states and localities further regulate or prohibit ownership.  

So, what can be done during estate planning to lower the risk of criminal violations?  Individuals may purchase NFA weapons in, or transfer NFA weapons to, an entity, such as a corporation, LLC, or revocable trust, to avoid some of the rules that otherwise regulate such transfers.  Trusts are often opted for because they avoid annual filing fees, public disclosure, or a separate tax return.  A revocable trust designed specifically for the ownership, transfer, and possession of a NFA weapon may be known as a gun trust, NFA Trust, Firearm Trust, or Title II Trust.

A carefully drafted gun trust can make it easier to comply with the NFA laws.  As its name implies, a gun trust can used as the "owner" of firearms.  Each trust must be carefully drafted to account for the different types of firearms that may be in the estate.  The trust can name numerous trustees, each of whom may lawfully possess the weapon without triggering transfer requirements.  Once it becomes an asset of a trust, any beneficiary may use the NFA weapon, whereas one individual owner allowing another individual owner to use an NFA weapon not held in a trust could be considered an unlawful transfer subject to criminal penalties.  Minor children can be named as beneficiaries of the trust.  Moreover, the grantor can be a life beneficiary (although not sole beneficiary).

Additionally, under federal law the NFA trust is not required to submit fingerprints or seek CLEO approval required for individual firearm purchases or transfers (state laws may differ).  Instead the federal government will verify and investigate the application. FN37.

Of course, to be used to hold a firearm, a revocable trust must include provisions that comply with the NFA.  It is best to consult with an attorney who is experienced in drafting NFA trusts. The NFA registration and transfer requirements that the gun trust must comply with are beyond the scope of this article, but be assured they are numerous.  Also, the trustee's power to change the trust name should be limited.  Since a firearm is registered by the trust's name in the National Firearm's Registration and Transfer Record, a change in trust name would require re-registration of the firearms and a transfer tax would be owed.

Gun trusts are not a panacea.  They are most effective with respect to compliance with the NFA.  Persons who are not allowed to buy or own firearms (felons, etc.) cannot serve as trustee.  The trust may not transfer a firearm to a person who is not lawfully allowed to buy or own firearms.  A transfer of an NFA firearm into a trust (or other entity) will be subject to a transfer fee.  Accordingly, NFA weapons are often purchased directly by a trustee to avoid a second transfer fee when an individual purchaser then transfers it to the trust.  Also, while a transfer of an NFA weapon to an heir to satisfy a bequest is exempt from the transfer tax, a transfer of an NFA weapon to the trust is not.

Even with a gun trust, it is the responsibility of the trustee to determine the capacity of the beneficiary, and what federal, state and local laws apply to the individual, before allowing a beneficiary to use a trust weapon or distributing an NFA weapon to a beneficiary.  Unlike a traditional revocable trust, which can be revoked at any time by the grantor, termination of the gun trust and distribution of its assets to its beneficiaries must be approved by the BATFE like any other transfer.  Nor may any of the assets be transported across state lines where registered without prior BATFE approval on Form 52320.20.

And, as stated above, each state has different state laws and local ordinances regulating firearms. FN38. So, unlike revocable trusts used for general estate planning purposes, trusts used to hold NFA firearms are not necessarily portable.

D. Pet Trusts.

Historically, gifts in trust for pet animals failed because, among other reasons, the gifts violated the rule against perpetuities since the measuring life was not human. FN39. Attempts to get around this problem by creating honorary trusts have also failed, because they lacked a human or legal entity as a beneficiary, with standing to enforce the trust.  Honorary trusts created great uncertainty for the grantor, who had no assurances that the trust corpus would be used for the trust's intended purpose, since the terms of the gift were precatory in nature and unenforceable.  

In 1990, NCCUSL recognized the importance of pets and the need of pet owners to have some confidence that their intent would be carried out with respect to the care of a pet.  As a result, the Commissioners added §2-907 to the Uniform Probate Code to validate a "trust for the care of a designated domestic or pet animal."  The original version allowed only a 21-year duration for the trust.  That limitation was modified in 1993 to allow a different duration to be added by the adopting state.

In 2000, NCCUSL adopted §408 of the Uniform Trust Code, which specifically allows trusts for animals.  The Uniform Trust Code provision is limited to care of animals alive during the grantor or testator's lifetime. FN40. It also allows for the appointment of a third-party (either a trust protector appointed in the instrument or a guardian ad litem appointed by the court), to enforce the terms of the trust. FN41. The Uniform Trust Code also addresses the problem of excess funds.  If the court determines that the trust property exceeds the amount needed for the intended purpose and that the terms of the trust do not direct the disposition, such funds are to be held for the benefit of the grantor or the grantor's successors in interest. FN42.

The Uniform Trust Code and the Uniform Probate Code contain default provisions which, depending upon how they are adopted in a particular state, govern the administration of a pet trust, in the absence of specific requirements in the governing instrument.  

To date, almost all states have adopted some form of pet trust legislation. FN43. In some states this provision has been adopted to apply only to a specific pet.  In others it applies to descendants as well.  

For example, Washington's Pet Trust Act, was passed in 2001 and permits trusts created for the benefit of non-human vertebrate animals. FN44. Washington's Act provides that unless otherwise provided in the trust document, the trust will terminate upon the death of all animals designated as a beneficiary of the trust, and the remaining trust property will be disposed of either as a part of the testator's residuary estate, if the trust constituted a pre-residuary bequest under a will, or if the trust itself consisted of the residuary estate, to the grantor's then living heirs. FN45. The Act permits a person named in the trust instrument, a person appointed by the court, or the person who has custody of the animal to enforce the purposes of the trust, for the benefit of the animal beneficiary. FN46.

The IRS ruled in Rev. Rul. 76-486 FN47 that if a pet trust is valid under applicable state law, then pursuant to IRC § 641, the income of such trust would be taxable under IRC §1(e).  As a result, income distributed to a caretaker for the care of a pet would be treated as the caretaker's taxable income to the extent of DNI.  Some practitioners have advocated for the trust to pay the income tax, and others advise trustees to gross up distributions to the caretaker to defray the tax consequence of having to include the distribution in taxable income. FN48.

The following are a few pet trust drafting recommendations:

Beneficiary of Trust.  Where substantial sums or valuable animals are involved, it is important to specifically identify the animal(s) for which the trust is to benefit, to avoid the possibility of a different pet benefiting from the trust.  This can be done with photos and a description of unique characteristics included in the document, veterinary records, a tattoo, a microchip, or DNA testing.

Trustee/Representative Payee/Caretaker of the Pet.  The grantor may want to bifurcate duties, and name a trustee to manage funds and a caretaker to take possession of the pet.  In some instances (such as where a prize racehorse with extraordinary expenses), a third-party will be named as representative payee to receive distributions on behalf of the pet and make disbursements, except for distributions directly to the caretaker for out-of-pocket expenses and/or compensation.  In some cases one individual will be named to fulfill all three roles.  Where substantial funds are involved it is recommend to have multiple individuals to divide the labor and allow for a system of checks and balances, in which cases, a mechanism for distributions to the caretaker and representative payee should be provided for.

Fiduciaries and Successors.  In addition to naming initial fiduciaries and successors, certain conditions might be placed on their appointment.  For example, the personal representative could be instructed to deliver the animal(s) into the caretaker's possession only after obtaining a written promise from the caretaker to provide proper care and an agreement to relinquish the animal(s) to a successor, if those promises are not met.  It is also recommended that a sanctuary or shelter of last resort be named if the pet outlives the caretakers or if none of the caretakers are able to serve. FN49.

Distributions for Proper Care and Reasonable Expenses.  The trust agreement should define what proper care means.  Proper care could include hiring a full-time caretaker in the case of certain animals, such as farm animals, race horses and other large and/or valuable animals.  Reasonable expenses could include food, housing, veterinary and dental care, toys, exercise routines, grooming, compensation for individuals involved in caring for the pet, including walkers, travel, and burial or cremation fees.  If acupuncture, aromatherapy, massage and other unusual expenses are regularly incurred and expected to be continued, they should be described in detail in the agreement.  

Liability Insurance.  The agreement may permit the purchase of property and casualty insurance to protect the fiduciaries for damage caused by the pet to property or individuals.

Trust Protector.  A trust protector, or a mechanism for the appointment of one, should be considered.  The trust protector could be given the power to remove and replace fiduciaries, periodically check on the animal, consult with the pet's health care providers, and review trust financial records.  The trust protector might also be given the authority to locate an appropriate animal sanctuary, if no suitable caretaker can be found. FN50. In the absence of a trust protector, both the UPC and the UTC allow for court-appointed oversight of a trust. FN51.

Termination of Trust.  The agreement should specify whether the trust will terminate upon the death of the named animals or their offspring (if permitted under the applicable state law).  Often one or more charities may be named.  Note, however, that in Rev. Rul. 78-105, FN52 the IRS stated that an otherwise qualified charitable remainder trust for the lifetime of a pet would not be permitted a charitable deduction for the value of the remainder passing to charity.  

Reimbursement for Taxes.  If the caretaker or representative payee will be subject to additional income taxes as a result of trust distributions, the agreement should specify whether distributions should be grossed-up to account for that additional tax liability.


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1. Jonathan Klick & Robert H. Sitkoff, Agency Costs, Charitable Trusts, and Corporate Control: Evidence from Hershey's Kiss-Off, 108 Colum. L.Rev. 749, 780 (May 2008).

2. The Restatement defines a charitable trust as "a fiduciary relationship with respect to property arising as a result of a manifestation of an intention to create it, and subjecting the person by whom the property is held to equitable duties to deal with the property for a charitable purpose."  Restatement (Second) of Trusts §348 (1959).  See Joshua C. Tate, Should Charitable Trust Enforcement Rights Be Assignable? (October 25, 2009). Chicago-Kent Law Review, forthcoming.  Draft available at SSRN: http://ssrn.com/abstract=1493967 (last accessed January 30, 2010) for a history of the charitable purpose trust and the inherent challenges of enforcement of its purpose

3. See Alexander A. Bove, Jr., The Purpose of Purpose Trusts, 18 Prob. & Prop. 34 (May/June 2004); Alexander A. Bove, Jr., Rise of the Purpose Trust, 144 Tr. & Est. 18 (August 2005).

4. See Beyer & Wilkerson, Max's Taxes: A Tax-Based Analysis of Pet Trusts, supra n.4 for an in-depth discussion of the federal tax consequences of purpose trusts and pet trusts in particular.  

5. Treas. Reg. § 25.2511-1(c)(1); IRS §2501.

6. Treas. Reg. § 25.2511-1(h)(1).

7. See Bove, Rise of the Purpose Trust, supra n.4, at 24-25, for a discussion of the income, gift, estate and GST tax implications of purpose trusts.  
 
8. Id.

9. Id.

10. See Bove, The Purpose of Purpose Trusts, supra n.4.

11. IRC § 2613(a). 

12. IRC § 2651(f)(2). 

13. IRC § 2612(b), Treas. Reg. § 25.2511-1(h)(1).
 
14. See 1 Gerald S. Sussman, Estate Planning:  Forms, Practice and Tax Analysis §3.06 (rev. 2003).

15. Pub. L. No. 105-34, §1309, 111 Stat. 788 (1997).
 
16. Rev. Rul. 87-127, 1987-2 C.B. 156.
 
17. IRC §685(a)(2).
 
18. IRC §685(b).
 
19. 1998-3 I.R.B. 52.
 
20. Pub. L. No. 110-317, §9, 122 Stat. 3526 (2008).

21. 26 U.S.C. §5872; 27 C.F.R. § 479.182.
 
22. Gun Control Act of 1968, Pub. L. No. 90-618, 82 Stat. 1213 (codified as amended at 18 U.S.C. §§921-930).
 
23. National Firearms Act of 1934 (NFA), ch. 757, 48 Stat. 1236 (codified as amended at 26 U.S.C. §§5801-5872 (1996)).
 
24. See 26 U.S.C. §5845(e) and its implementing regulation, 27 C.F.R. §479.11.  The definition of "any other weapon" includes smooth-bore rifles, muzzle-loading cannon, and other somewhat exotic firearms.
 
25. 18 U.S.C. §5861(d) requires registration of certain particularly dangerous weapons under the National Firearms Act (the "NFA").  These weapons are listed in 18 U.S.C. §5845(a).
 
26. Under the NFA, constructive possession will be treated the same as actual possession.  U.S. v. Turnbough, Nos. 96-2531, 96-2677, 1997 WL 264475, at *2, 114 F.3d 1192 (7th Cir. 1997).
 
27. 26 U.S.C. §5861(d).  Other federal law prohibits possession of any machine gun not registered with BATFE by May 19, 1986.  18 U.S.C. §922(o).
 
28. 26 U.S.C. §5861(e).
 
29. 26 U.S.C. §5861(b).

30. 26 U.S.C. §5812; 27 C.F.R. § 479.84
 
31. 26 U.S.C. §5845(j).
 
32. 18 U.S.C. §922(d).
 
33. 18 U.S.C. §922(g).
 
34. 18 U.S.C. §922(d)(1)-(9); 18 U.S.C. §922(g)(1)-(9).
 
35. 26 U.S.C. §5861(j).
 
36. See, e.g., Cal. Penal Code §12280.

37. 18 U.S.C. §923; 28 C.F.R. pt. 25.
 
38. For a compilation of applicable state laws see http://www.guntrustlawyer.com/ (last accessed December 30, 2009).

39. See, e.g., Restatement (Second) of the Law of Trusts §112 (1957) ("A trust is not created unless there is a beneficiary who is definitely ascertained at the time of the creation of the trust or definitely ascertainable within the period of the rule against perpetuities."); Gerry W. Beyer & Jonathan P. Wilkerson, Max's Taxes: A Tax-Based Analysis of Pet Trusts, 43 U. Rich. L. Rev. 1219 (May 1, 2009), at http://ssrn.com/abstract=1409065 (last accessed December 30, 2009), for a comprehensive history of the pet trust.  See also Gerry W. Beyer, Pet Trusts: Fido with a Fortune? (December 6, 2009), Trusts and Estates Law Section, NY State Bar Association Annual Meeting, January 2010, at http://ssrn.com/abstract=1519123 for a comprehensive set of forms, links to all pet trust statutes, and an FAQ section that can be used as a client handout.
 
40. UTC §408(a).
 
41. UTC §408(b).
 
42. UTC §408(c).
 
43. 42 plus the District of Columbia as of January 2010.  See http://www.professorbeyer.com/ (last accessed July 24, 2010), the most comprehensive web site on pet trusts, which includes links to the statutory provisions of each state's pet trust legislation, links to many scholarly articles on the topic, sample provisions and many other useful resources.  This site also indicates whether a state's statute is based on the UPC, the UTC or neither.
 
44. RCW ch. 11.118. 
 
45. RCW §11.118.040.
 
46. RCW §11.118.050.
 
47. 1976-2 CB 192.
 
48. See Beyer & Wilkerson, Max's Taxes: A Tax-Based Analysis of Pet Trusts, supra n.40 for an in-depth discussion of the federal tax consequences of pet trusts.
 
49. Rachel A. Hirschfeld, Estate Planning Strategies for People Who Have Pets, 36 Est. Plan. 24, 30 (July 2009).
 
50. Stephanie B. Casteel, Estate Planning for Pets, 21 Prob. & Prop. 9, 10 (Nov./Dec. 2007).
 
51. UPC §2-907(c)(7); UTC §408(b).
 
52. 178-1 C.B. 295, 296.





*To read more in Wendy Goffe's series, "An Introduction to Lesser Known But Useful Trusts," please visit any one of the following links: Part I, Part II, Part IV, Part V and Part VI.