Legal Question in Wills and Trusts in California

In what situations is it good to include a five or five power in a trust?


Asked on 8/13/10, 12:20 pm

1 Answer from Attorneys

When you are concerned that income from the trust will not be sufficient to pay out as much as desired to the beneficiaries, but you do not want unlimited invasion of the trust principal. There are, however, tax consequences if the beneficiary does not draw under the 5x5. So if you do not want the trust principal to be invaded on a regular basis, the 5x5 may not be a good idea.

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Answered on 8/18/10, 12:29 pm


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