MyAdvocate allows a number of common distribution options which operate through a trust that is created for each of your beneficiaries at the time of your death. The trustee you named will manage your beneficiary's inheritance for them until the option you select below occurs. This selection describes when the trustee will no longer manage the trust and the beneficiary will take control or directly receive the asset. With MyAdvocate's beneficiary inheritance divorce protection feature the beneficiary will gain control of the asset in a trust they control while isolated from a current or future spouse.
Under all of the following options, the trustee will have the discretion to make distributions to the beneficiary for the beneficiary's health, education, maintenance, or support. Assets distributed to the beneficiary from the trust will no longer be protected by the trust.
- When the beneficiary reaches a certain age. For example, when the beneficiary turns 25. Select this option if you would like the beneficiary to take control of their trust when they reach a certain age. For example: When the beneficiary turns 25.
- In stages as the beneficiary reaches different ages. For example, the beneficiary takes control over 1/3 of their trust when the beneficiary turns 25, 1/2 of the rest of the trust at age 30, and the rest of the trust at age 35.
Select this option if you would like the beneficiary to take control of their trust in equal intervals after your death as the beneficiary reaches certain ages. For example: 1/2 when the beneficiary turns 25 and the other 1/2 when the beneficiary turns 30. - In stages at intervals after your death. For example, the beneficiary takes control over 1/2 of their trust immediately after your death and the rest five years later.
Select this option if you would like the beneficiary to take control of their trust in intervals after your death. For example: 1/4 immediately after your death, 1/3 of the remainder five years after your death, 1/2 of the remainder ten years after your death, and the remainder fifteen years after your death. - Annual percentage distributions. For example, 4% per year until their portion is depleted. Select this option if you would like the trust for the beneficiary to be distributed to them in percentages each year until all the money has all been distributed. For example: 4% per year until the trust is depleted.
- Monthly distributions until depleted. For example, $3,000 per month until their trust is depleted.
Select this option if you would like the beneficiary to receive monthly distributions from the trust until the money has all been distributed. For example: $3,000 per month until the trust is depleted. Please note that funds distributed from the trust are no longer under the protection of the trust. - Trustee discretion. For example, when the trustee you select decides it is best for the beneficiary to take control.
Select this option if you would like the trustee to have discretion in deciding when the beneficiary will take control of their trust. The trustee will take all relevant factors into account when making this decision, including the beneficiary's ability to handle money wisely and the beneficiary's judgment. - Beneficiary never takes control over their trust. Beneficiary is limited only to distributions the trustee makes for the beneficiary's welfare.
Select this option if you never want the beneficiary to take control of their trust. The trustee will manage the trust assets for the beneficiary for their lifetime. At no time will the trustee be required to transfer control of the trust to the beneficiary, but the trustee will be permitted to make distributions to the beneficiary as needed. - Special Needs Trust (SNT).
This trust specifically does not allow for distributions of cash, or paying for the special needs beneficiary's food, shelter, medical care, or other essentials that the government benefits are covering. SNT is designed to supplement rather than supplant what the government provides to the special needs beneficiary.