A trust set up for children in which the trustee has the discretion to spend money as needed, rather then equally on all the children (for example, if one child has special needs, the money may be directed towards that child). The trust usually ends when the youngest child reaches 18 or 21.
Definition from Nolo’s Plain-English Law Dictionary
A trust for children in which the trustee decides how to spend money on each child, taking money out of the trust to meet each child's specific needs. 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. But a pot trust can also make the trustee's life difficult by requiring choices about disbursing funds to the various children. Most pot trusts end when the youngest child reaches a certain age, usually 18 or 21.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm