Also known as: fixed or ascertainable standards · ascertainable standard
Written by attorneys · grounded in primary & secondary sources — see below
A distribution standard relating to an individual's health, education, support, or maintenance within the meaning of the Internal Revenue Code provisions on powers of appointment. The standard guides a trustee's discretionary distributions and determines whether a beneficiary's interest remains protected from creditors or constitutes a power of withdrawal.
Fernando Farrell serves as trustee of a trust for his own benefit. The instrument permits distributions only as needed for Fernando's health and education. A creditor attempts to reach the trust assets. Because the power is limited by an ascertainable standard, the creditor cannot compel distributions beyond what the standard allows.
Felix Franco holds a right to withdraw trust principal on demand. The instrument contains no reference to health, education, support, or maintenance. Because the right is not limited by an ascertainable standard, it qualifies as a power of withdrawal that creditors may reach.
Select any source to read its text and confirm it supports the definition.
A standard qualifies when it is tied to health, education, support, or maintenance. Courts and statutes treat these categories as enforceable benchmarks that a beneficiary can invoke to review trustee action.
Supporting sources
No. Creditors generally cannot force distributions from a discretionary trust even when the trustee's power is expressed through an ascertainable standard. Only certain family-support creditors may obtain court-ordered payments in limited circumstances.
Supporting sources
A power exercisable by a trustee and limited by an ascertainable standard is excluded from the definition of a power of withdrawal. A beneficiary's personal right to withdraw without such a limit remains a power of withdrawal.
Supporting sources