Yes, a trust can often pay for career counseling or resume development, but it depends heavily on the terms outlined in the trust document and the beneficiary’s circumstances. Trusts are versatile tools in estate planning, allowing for distributions to beneficiaries for a wide range of needs, including education and self-improvement, but those needs must be permissible under the trust’s guidelines. It’s not as simple as a beneficiary deciding they want career help and the trustee automatically approving the expense; careful consideration must be given to the trust’s intent and applicable laws.
What Expenses Can My Trust Actually Cover?
Generally, trusts allow for distributions that benefit the beneficiary, and this can be broadly interpreted. However, most trust documents specifically list permissible expenses, often categorized as health, education, maintenance, and support (HEMS). Career counseling and resume development fall into a gray area; it’s not traditional education, but it can certainly *facilitate* future earning potential, which aligns with the concept of support. According to a recent study by the Bureau of Labor Statistics, individuals who invest in career development services experience a 15-20% increase in their job search success rate. The trustee has a fiduciary duty to act in the best interests of the beneficiary, and if career counseling demonstrably helps the beneficiary become self-sufficient or maintain their standard of living, it’s a strong argument for approval. However, if the trust language is very specific and only allows for distributions for “formal education,” a trustee might hesitate, even if they believe it’s a worthwhile expense.
What Happens if the Trust Doesn’t Specifically Mention Career Services?
When a trust document is silent on a specific expense like career counseling, the trustee must look to the overall intent of the trust. Was the trust designed to provide for the beneficiary’s basic needs, or was it intended to be more expansive in supporting their personal and professional growth? This is where things get complex. I once worked with a client, Eleanor, whose trust was established by her grandfather. The trust provided for her “education and general welfare.” Eleanor had a master’s degree but felt stuck in a dead-end job. She requested funds for a career coach to help her transition into a more fulfilling career. The initial trustee denied the request, arguing that “education” meant formal schooling, not career development. We had to petition the court, demonstrating that enabling Eleanor to reach her full earning potential was *consistent* with the overall goal of providing for her welfare. It was a costly and time-consuming process, but we ultimately prevailed because the judge recognized the value of supporting her long-term self-sufficiency. It underscores the importance of clear and comprehensive trust drafting.
How Can I Ensure My Trust Covers Future Career Needs?
If you are creating a trust, it’s crucial to anticipate potential future needs, including career-related expenses. Don’t rely on vague language; specifically include provisions for “professional development,” “career counseling,” or “skill enhancement.” This provides the trustee with clear guidance and reduces the likelihood of disputes. Furthermore, consider including a clause that allows the trustee to exercise discretion in determining what constitutes a reasonable expense for professional development, based on the beneficiary’s circumstances and the prevailing market rates. For instance, the cost of a career coach can vary significantly depending on their experience and expertise, ranging from $100 to $500+ per hour. A well-drafted trust should account for this variability. It’s also wise to discuss your intentions with your trustee during the trust creation process to ensure they understand your vision.
What If My Beneficiary Needs Career Help, But the Trustee Is Hesitant?
Sometimes, even with a seemingly permissive trust document, a trustee may be hesitant to approve an expense they deem unusual. Recently, I was approached by a young man, David, whose trust provided for his “maintenance and support.” He wanted to attend a week-long workshop to improve his interviewing skills, but the trustee felt it was an unnecessary expense. We worked with the trustee to demonstrate the value of the workshop, highlighting its potential to significantly improve David’s job prospects and reduce his reliance on trust funds in the long run. We gathered testimonials from past participants and showed how the skills learned in the workshop directly translated to increased job offers and higher salaries. Ultimately, the trustee approved the expense, recognizing that investing in David’s career development was a prudent use of trust funds. Open communication and a willingness to provide supporting documentation are key to resolving disputes and ensuring that trust funds are used effectively.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning Law, APC, a trust lawyer near me: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
| best estate planning lawyer near ocean beach | best estate planning lawyer near ocean beach |
| best estate planning attorney near ocean beach | best estate planning attorney near ocean beach |
| best estate planning help near ocean beach | best estate planning help near ocean beach |
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning Law, APC.
Feeling overwhelmed by estate planning? You’re not alone. With 27 years of proven experience – crafting over 25,000 personalized plans and trusts – we transform complexity into clarity.
Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
Discover peace of mind with our compassionate guidance.
Claim your exclusive 30-minute consultation today!
If you have any questions about: Does a Financial Power of Attorney help with long-term care planning?
OR
Why is a will important for charitable giving?
and or:
What are the potential consequences of failing to appoint an executor?
Oh and please consider:
How does legal and financial compliance impact the work of executors and trustees?
Please Call or visit the address above. Thank you.