Instead of making mandatory distributions when the beneficiary reaches a particular age (unless you plan on having your spouse, ex-spouse, creditors and the Internal Revenue Service to take away your assets), the trust should continue with the beneficiary as the controlling trustee once reaching the selected age. This is known as a Beneficiary Controlled trust. This trust gives the beneficiary the functional equivalent of absolute ownership, but without divorce, creditor and estate tax problems.

This approach should not be taken for beneficiaries who should not be allowed to retain control over the gift or bequest due of their lack of ability to manage their own assets. For such people, an independent party should serve as trustee with the built-in flexibility for the beneficiary to become a trustee by the written appointment of a trusted party.

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