Alvin's spouse is a trustee of a trust established by Henrietta Flood, which directs income from the trust be paid to Alvin, for as long as he lives. Alvin's son, Floyd, will receive the principal upon Alvin's death. Floyd would like to receive some of the principal before Alvin's death and Alvin does not object. How should his spouse, the trustee, act in this situation?

Alvin's spouse is a trustee of a trust established by Henrietta Flood, which directs income from the trust be paid to Alvin, for as long as he lives. Alvin's son, Floyd, will receive the principal upon Alvin's death. Floyd would like to receive some of the principal before Alvin's death and Alvin does not object. How should his spouse, the trustee, act in this situation?




A) Distribute part of the income to Floyd.

B) Follow the trust terms, continuing to distribute the income to Alvin and the principal to Floyd upon Alvin's death.

C) Distribute part of the principal to Floyd.

D) Distribute all of the principal to Floyd.



Answer: B) Follow the trust terms, continuing to distribute the income to Alvin and the principal to Floyd upon Alvin's death.


Learn More :