Pot Trust

A pot trust or family pot trust is one in which the beneficiaries are children and the trustee has discretion over how to spend money on each child, based on each child’s specific needs. Family assets are generally made available to whatever child needs them. One important advantage of a pot trust over separate trusts is that it allows the trustee to provide for one child’s unforeseen need, such as a medical emergency. However, a disadvantage is that it may require difficult choices about unequal treatment of children. A pot trust typically ends when the youngest child reaches the age of 18 or 21.

Category: Trusts