A fixed income trust is a type of trust where the trustee has no discretionary power over the trust or the distribution of the assets of the trust. Unlike a discretionary trust, a fixed income trust predetermines all aspects of the distribution of wealth from the trust. The trustee has no power to make decisions or use discretion in dividing the assets of the trust.

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

1. Control how the trustee distributes all trust assets, including principal and interest.

2. Provide for the needs of loved ones with a disability who need a fixed income trust for continued care.

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

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

Find fixed income trust information from fixed income trust specialists

A fixed income 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 fixed income trust advice means better fixed income trust management and appropriate control over trust assets for the benefit of your loved ones.

I recommend: Use Attorneyfind.com by clicking on your state and trusts and estates in the practice area field to find trust experts near you. Try Legalmatch.com by clicking on estate lawyers and answering the prescreening questions to find an estate planning attorney in your area.

Create fixed income trust documents with online tools and resources

Because a fixed income trust can be both an irrevocable living trust or revocable, depending your type of trust, 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 Docstock.com and 10minutelegalforms.com offer a variety of free and fee based trust documents and estate planning packages. You can use these living trust documents to create a trust with fixed income trust language.

Work with a fixed income trust expert to determine if an fixed income trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Fixed income 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: Husch Blackwell Sanders and Baker, Donelson, Bearman, Caldwell & Berkowitz 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 fixed income trust, in case it needs recording with the Register of Deeds.