Legal Question in Wills and Trusts in New Jersey
interpretation of testimentary trust
My mother left 1 share of her estate in a trust for my sister. This sister is disabled. My mother was concerned with her health needs, her money management skills, and this sisters son having access to the money. My other sister and I are the trustees. We are in disagreement over the interpretation of the trust clause. The clause reads as follows: 1 share to my Trustees, herinafter named, in trust nevertheless, for the following purposes: (1)During the period when my daughter, ___ shall be living, the Trustees shall pay to and/or apply for the support, maintenance, general welfare and medical care and treatment of my said daughter, ___, according to her individual needs, all or so much of the income from the trust and all or do much of the principal of the trust as the Trustees may deem best, it is my intent and purpose that all of the monies , both income and principal, may be made available to or be used for my said daughter. In using the words ''general welfare'' herein, it is my intent that my Trustees shall have the right to use the income and/or principal of the trust for the general benefit of my daughter.
Do the Trustees have discretion and/or powers of decision over what will and will not be paid out of the trust?
3 Answers from Attorneys
Re: interpretation of testimentary trust
Interpreting the meaning of trust requires a review of more than just a quoted portion of a trust provision.
The lawyer who prepared this document for your mother may be able to interpret it and advise you.
You should consult an estates lawyer who also has experience with trusts for the disabled. Such trusts have very specific restrictions on how the trust may be used for the beneficiary. Using such funds in some ways may jeopardize rights that your disabled sister would otherwise have.
Re: interpretation of testimentary trust
Based on the quoted language, it would appear that the trustees have virtually complete discretion to pay out as much income and/or principal of the trust as they deem appropriate.
Re: interpretation of testimentary trust
It appears that the language used provides for vast discretion in the trustees as to what constitutes "general welfare". You do not say what is the disagreement between the trustees? Benefits to your nephew are not contemplated, although he may indirectly benefit from such things as cable television, Internet availability, etc. More specific examples of where there is disagreement are needed to provide a better answer.
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