55-1-40. Language resulting in classification of distribution interest.
Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:
(1)Mandatory interest:
(a)"All income shall be distributed to (named beneficiary)"; or
(b)"One hundred thousand dollars a year shall be distributed to (named beneficiary)";
(2)Support interest:
(a)"The trustee shall make distributions for health, education, maintenance, and support";
(3)Discretionary interest:
(a)"The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";
(b)"The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";
(c)"The trustee may make distributions for health, education, maintenance, and support";
(d)"The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";
(e)"The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.
Source: SL 2007, ch 280, §17; SL 2008, ch 257, §7.