What is a complex trust?

A complex trust is a type of trust that has additional features beyond those of a simple trust. It can provide more flexibility and control for the creator of the trust (known as the grantor), but it may also come with more complexities and expenses.

Some features of a complex trust may include:

1. Multiple beneficiaries: A complex trust can have more than one beneficiary, and the grantor can specify how the assets are distributed among them.

2. Non-charitable purposes: A complex trust can be created for non-charitable purposes, such as to provide for the care of a disabled family member or to support a business venture.

3. Income and principal distributions: A complex trust can allow for distributions of both income and principal, which can be useful for managing taxes or providing for the long-term needs of the beneficiaries.

4. Discretionary powers: A complex trust may allow the trustee to have discretion in making distributions to the beneficiaries, even if the grantor has specified certain conditions.

5. Spendthrift provisions: A complex trust can contain provisions that limit the ability of beneficiaries to use trust assets for creditors or personal debts.

Overall, a complex trust can be a powerful tool for estate planning, but it is important to work with experienced professionals to ensure that it is structured properly and meets the grantor's goals and needs.