We often hear of a family setting up a trust to distribute property or money. A trust is an arrangement where the creator places their assets in the care of a trustee. There are many different styles of trust; one is called a Sprinkling or Spray Trust.
This type of trust allows the trustee a wide range of discretion in determining trust distribution. The trustee releases the assets or money in smaller distributions – or sprinkles the funds over time. A sprinkling or spray trust gives the trustee complete discretion in deciding trust distributions.
The creator must hold great faith in the trustee with this broad range of discretion. But with this trust comes responsibility.
As with any type of trust, the trustee is held to a strong set of responsibilities. Some duties a trustee has when working with a sprinkling or spray trust are:
Being a trustee is not an easy job. And it’s a decision the creator must make carefully.
Having a trust as part of your estate plan allows you to dictate specific terms and conditions. Trusts are used to avoid probate courts and also have special tax breaks associated with them. And an estate planning attorney will help you establish the right trust for your unique situation.
Learn More About Different Types of Trusts
Setting up a sprinkling or spray trust may be best for you and your loved ones. Talk to an experienced estate planning attorney to prepare for your future and the future of your beneficiaries. Contact us at the Estate and Probate Legal Group today at 630-864-5835.
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