Discretionary & Support Trusts
Trusts · Lesson 08
Discretionary & Support Trusts
這一課問的是：在裁量信託與扶養信託下，受託人義務與受益人權利為何？
ActorActObjectStandardConsequence
Issue · what this lesson is really about
What are the trustee's duties and beneficiary's rights under a discretionary or support trust?
這一課問的是：在裁量信託與扶養信託下，受託人義務與受益人權利為何？
Trigger words & phrases that should flag this issue:
discretionarysupportabsolute discretionhealth, educationcreditor
Core Terminology · 7 must-know
Tap a card to flip and reveal the meaning.
discretionary trust
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Trustee has discretion to distribute or accumulate.
裁量信託。
support trust
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Trustee must distribute for beneficiary's support.
扶養信託。
absolute discretion
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Even broad discretion is subject to good faith.
絕對裁量。
ascertainable standard
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"Health, education, maintenance, support" — HEMS.
可確定標準。
creditor reach
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Generally cannot reach discretionary interest until distributed.
債權人。
abuse of discretion
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Court may intervene if trustee abuses.
裁量濫用。
Rule Sentence · the workhorse
A discretionary trust gives the trustee discretion to determine whether and when to distribute; a support trust requires the trustee to distribute as needed for the beneficiary's support; even "absolute discretion" is subject to good-faith exercise.
Sentence Anatomy · 5 roles, 5 colors
Every rule sentence breaks into five visual roles.
Actor 行為人trustee受託人
Act 行為exercising discretion行使裁量
Object 對象trust distribution信託分配
Standard 法律標準good faith + ascertainable standard善意 + 可確定標準
Consequence 後果distribution made or withheld分配或保留
Casebook Snapshot · a real American case
Marsman v. Nasca (revisited)
Holding. Trustee with discretionary power to distribute for beneficiary's "comfortable support" must inquire into needs; passive failure to act is a breach of fiduciary duty.
Why it matters. Marsman extends good-faith duty: discretion includes affirmative inquiry.
Marsman：裁量含積極調查之善意義務。
Common Mistakes · what trips students
✗ absolute discretion 完全無拘束。
✓ Trustee always owes good faith.
受託人始終負善意。
Mini IRAC · build the Application
Issue. Did the trustee breach by refusing all distributions for over a decade to beneficiary B, despite B's documented financial need, where the trust gave trustee "absolute discretion"?
Rule. Even broad or absolute discretion is subject to the trustee's duty of good faith and reasonable exercise; passive failure to inquire into beneficiary's needs may breach the duty.
Application (model). The trustee refused all distributions for a decade despite B's documented need. Because even "absolute discretion" requires good-faith exercise and reasonable consideration of beneficiary's circumstances, the fact that the trustee passively refused distributions for over a decade without considering B's documented needs means the trustee breached the duty of good-faith discretion.
Pick the right element for each blank:
g1.
g2.
Conclusion. Therefore, the trustee breached fiduciary duty and may be removed or compelled to make appropriate distributions.
MBE Check · multiple choice
A trust gives trustee discretion to distribute. A creditor sues to attach beneficiary's discretionary interest. Result?
Practice Drill · tap to build the rule
Drop the chips here in correct order:
Tap chips to add → tap chips in the target to remove: