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Simple English definitions for legal terms

pot trust

Read a random definition: termination-for-convenience clause

A quick definition of pot trust:

A pot trust is a special type of trust that parents create for their children in case something happens to them before their children finish college. The trust allows the trustee to give money to the children based on their needs, like medical bills or college tuition. This means that one child might get more money than another child from the trust. However, it's important to choose the right trustee and make sure the parents' intentions are clear. The trust usually doesn't end until the youngest child turns 18 or another age set by the trust, so older children might not be able to access the money until later in life unless the trust allows for it.

A more thorough explanation:

Pot Trust

A pot trust is a type of trust created by parents for their children, usually in case something were to happen to them before the children make it through college. The trustee is allowed to give funds to the beneficiaries according to their relative needs. Unlike many trusts where the trustee must follow strict instructions from the creator of the trust, pot trusts allow parents to grant almost unlimited flexibility for the trustee to give funds to their children as needed, sometimes only to one beneficiary. Pot trusts have great advantages for flexibly allocating trust assets, but they come with the disadvantage of possibly allowing a trustee to manage the trust against the interests of the trust creator. Given the level of discretion given to the trustee, it is extremely important to choose the right trustee and define the intentions of the parents. Also, the trust typically does not end until the youngest child reaches the age of 18 or another age set by the trust. So, older children who might need the money in the trust might not be able to access it until late in life unless the trust specifically allows for older children to receive a portion of their share for expenses like buying a home.

Parents may want their children to receive different amounts from the trust as expenses arise such as medical bills or college tuition. For example, if one child is attending an expensive private university, they may need more money from the trust than a sibling attending a less expensive public university. Pot trusts allow the trustee to allocate funds accordingly.

Another example is if one child has a medical emergency and requires expensive treatment, the trustee can use funds from the trust to pay for the medical bills without having to follow strict instructions from the trust creator.

These examples illustrate how pot trusts allow for flexibility in allocating trust assets based on the needs of the beneficiaries, rather than following strict instructions from the trust creator. This can be especially helpful in situations where unexpected expenses arise, such as medical emergencies or changes in educational plans.

pot | pour-over will

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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