Pot Trust Law and Legal Definition
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.
Legal Definition list
- Pot [Underwriting]
- Pot
- Postsecondary Vocational Institution
- Postsecondary Educational Institution
- Postsecondary Education Tech Prep Student [Education]
- Pot Trust
- Potentia Inutilis Frustra Est
- Potential Biological Removal Level
- Potential Current Beneficiary
- Potential First-Generation College Student [Education]
- Potential Liquidation Value
Related Legal Terms
- 2503(C) Trust
- AB Trust
- Accident Potential Zone [HUD]
- Accumulation Trust
- Active Trust
- Actus Inceptus Cujus Perfectio Pendet Ex Voluntate Partium Revocari Potest, Si Autem Pendet Ex Voluntate Tertiae Personae, Vel Ex Contingenti, Revocar
- Administrative Deviation [Trust]
- Affidavit of Trust
- Alimony Trust
- All Inclusive Deed of Trust [AIDOT]
