A controlled trust is a type of trust that controls the rights of the beneficiaries of the trust. This usually means that certain limits, restrictions and expectations come with being a beneficiary. Spendthrift trusts, in which the trust keeps the beneficiary from wasting trust assets and principal, special needs trusts, designed to help persons with disabilities and sprinkling trust, trusts that determine the distribution of assets between beneficiaries, are all types of controlled trusts.

Use controlled trusts whenever a beneficiary needs added restrictions or requirements. Controlled trusts provide peace of mind for those with special needs beneficiary or a beneficiary who lacks the ability or experience to make good financial decisions. Create controlled trust documents to:

1. Control how the beneficiary uses all or some trust assets, including principal and interest.

2. Provide for the needs of loved ones with a disability who need a special needs trust.

3. Maintain a level of control of how beneficiaries share the assets of a controlled trust.

Action Steps
The best contacts and resources to help you get it done

Find controlled trust information from controlled trust specialists

A controlled trust is a complex estate planning tool. To get the most benefit from this type of trust requires the right trust language. Getting the right controlled trust advice means more appropriate control over trust assets for the benefit of your loved ones.

I recommend: Use NOLO by keying in the words "Trust and Estate" in the legal issue field and then your state to find trust experts near you. Try AttorneyLocate.com by clicking on your country, state, city and then "Trusts and Estates," "Estate Planning" or "Wills" in the practice area field.

Create controlled trust documents with online tools and resources

Because a controlled trust can be both an irrevocable living trust or revocable, depending on what type of trust you have, they are relatively easy to produce with the right online tools and forms. Do it yourself trusts are a great resource when time is an issue and a trip to the attorneys office isn't possible.

I recommend: Both Easy Legal Forms and Public Legal Forms offer a variety of single trust documents and estate planning packages for a fee. With these documents, you can create your living trust that contains a controlled trust.

Work with a controlled trust expert to determine if a controlled trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Controlled trust management can be confusing without the right expert services on your side. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.

I recommend: Davis Polk & Wardwell and Debevoise & Plimpton are global law firms with large estate planning and trust divisions to meet all your trust planning needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Any type of trust requires a higher level of capacity than that of 'sound mind' applicable to wills. The required capacity is similar to contractual capacity such as that needed to sign a deed.
• •  Notarize any type of trust, including a controlled trust, in case it needs recording with the Register of Deeds.