What Are Universal Will and Trust Provisions?

Universal Will Provisions (the “UWPs”) and Universal Trust Provisions (the “UTPs”) are documents you can incorporate by reference into the Will or Trust you are drafting to address common contingencies and issues that arise in estate and trust administration. 

These provisions are not "one-size-fits-all" boilerplate, but rather additional documentation and protections you can attach to your Will and/or Trust documents to align with client-specific goals, no matter the familial situation or net worth of the client. 

The “Magic” of the UWPs & UTPs

These provisions work for both taxable and non-taxable estates, as well as many different family structures and situations. The UWPs and UTPs allow your estate planning client to give their Executors and Trustees maximum power to account for many different circumstances while still making sure there are proper checks and balances on all powers your client grants to them, and meet an estate planning client’s objectives while ensuring compliance with applicable laws. The UWPs and UTPs empower fiduciaries to act efficiently, flexibly, and strategically.

In addition to expertly-drafted content, the UWPs & UTPs intentionally avoid numbered/lettered article, section, and paragraph references to prevent issues with renumbering or cross-referencing as provisions are added, amended, or reorganized. This ensures seamless updates and consistent interpretation.

Finally, a key differentiator is the avoidance of redundancy. Repetition of the same clauses, even with slight variations, weakens the document, causes confusion, and leads to litigation. In estate planning, this is especially problematic as redundancy can confuse interested parties and lead to costly litigation to clarify the meaning of such clauses. This can create risk for the scrivener, which damages their reputation at best and can cause a malpractice suit at worst. By avoiding redundancy, the UWPs and UTPs ensure clarity, minimize confusion, and reduce the risk of costly litigation, making them a valuable tool for attorneys seeking to provide their clients with comprehensive and efficient estate planning solutions.

Key highlights include:

• Asset Management: Fiduciaries can buy, sell, retain, and manage investments, real estate, businesses, digital assets (like cryptocurrency), and collectibles without restriction or liability.
• Trust Division and Consolidation: Trustees can merge trusts with similar terms, divide trusts for tax purposes, and allocate assets equitably among beneficiaries.
• Distributions: Trustees can make discretionary distributions tailored to beneficiaries’ needs, without impartiality between current and future beneficiaries, and manage spendthrift protections to safeguard assets.
• Environmental and Business Management: Fiduciaries can address environmental hazards, manage mineral rights, operate farms/ranches, and reorganize or participate in closely-held businesses.
• Tax Flexibility: Trustees can make strategic tax elections (e.g., QTIP, S Corporation status, retirement plans) and allocate income or expenses to minimize tax burdens.
• Administrative Efficiency: Fiduciaries can hire agents and professionals, delegate powers, and settle claims without court involvement. They can also provide accounting reports as requested while avoiding formal court filings.
• Retirement Benefits: Trustees must manage retirement assets as separate shares, ensuring tax efficiency and proper distributions to marital and non-marital beneficiaries.
• Non-Judicial Settlement Agreements (NJSAs): Trustees and beneficiaries can resolve issues outside of court, preserving time and resources.
• Powers to Amend: Independent Trustees can amend trust provisions for tax efficiency, administrative practicality, or to achieve the Grantor’s intent.
• Beneficiary Safeguards: Trustees can create Supplemental Needs Trusts (SNTs) that automatically “turn on” to protect a beneficiary’s eligibility for Government Benefits while enhancing their quality of life.
• Marital Deduction Protections: Trustees ensure compliance with QTIP elections, maximize marital deductions, and prioritize the Grantor’s spouse’s interests.

More specifically, each section of the Universal Provisions does the following (a more detailed article on every clause in each section can be found in our resources library: 

• Paragraph A - Definitions: Well-drafted and clearly defined terms that enable you to use the Universal Will/Trust Provisions and are cross-referenced in your Will or Trust.
• Paragraph B - Powers of Trustees: This section grants Trustees broad authority and flexibility to manage all types of assets and operations effectively.
• Paragraph C - General Administrative Provisions: This section outlines comprehensive administrative powers for Trustees to efficiently manage, allocate, and adapt trust assets while addressing beneficiaries’ needs.
• Paragraph D - The Office of Fiduciary: This section provides flexibility, oversight, and mechanisms for seamless trustee and trust protector management.‍
• Paragraph E - Self-Dealing: This section prevents Trustees from favoring themselves as beneficiaries but allows them and affiliated entities to provide services, manage investments, and receive reasonable compensation, ensuring proper oversight and flexibility in trust administration.‍
• Paragraph F - Marital Deduction: This section ensures marital deductions are maximized, tax efficiency is achieved, and the Grantor's spouse is prioritized.‍
• Paragraph G - GST Tax: This section ensures GST tax efficiency through trust division and prioritization of distributions.‍
• Paragraph H - Supplemental Needs Trusts: This section serves as a safeguard, “turning on” an SNT automatically when a beneficiary becomes eligible for or receives Government Benefits. By holding assets in a separate SNT, the trust ensures the beneficiary maintains access to essential Government Benefits while providing supplemental care and quality-of-life enhancements.‍
• Paragraph I - Charitable Split Interest Trusts: This section ensures charitable split-interest trusts comply with the Code.‍
• Paragraph J - Life Insurance: This section ensures Trustees can manage life insurance policies flexibly while avoiding estate tax issues in irrevocable trusts.
• ‍Paragraph K - Contributions and Withdrawal Provisions: This provision ensures clear rules for withdrawal rights, notices, lapses, and handling of life estates.
• ‍Paragraph L - Rules of Construction: This section ensures clarity, flexibility, and consistency in trust interpretation, administration, and application.
• ‍Paragraph M - Retirement Benefits: This ensures that Retirement Benefits are managed in compliance with tax laws while meeting trust-specific distribution requirements.

When to Incorporate Universal Will and Trust Provisions

While these provisions offer versatility, their use must be tailored to the client’s unique circumstances, and in accordance with state code (see reference chart below). Below are some considerations for determining when to incorporate them:

Clients with Diverse Asset Portfolios

• Universal provisions streamline the management of complex estates involving business interests, real estate, or digital assets.
• Provisions can clarify fiduciary powers, ensuring smooth transitions and operational continuity.

Planning for Families with Unique Needs

• If a client has minor children, special needs beneficiaries, or blended family dynamics, universal provisions provide a framework for protecting these vulnerable individuals.
• Include tailored distribution standards and guardianship contingencies.

Uncertain Tax Environments

• In times of legislative uncertainty (e.g., sunset provisions in tax laws), universal tax-saving provisions offer flexibility.
• Clauses like disclaimer trusts or formula allocations can adapt to changing tax thresholds without requiring extensive amendments.

Cost-Efficient Estate Administration‍

• For clients concerned with minimizing probate or administrative delays, universal provisions streamline fiduciary decision-making.
• They help reduce ambiguity in trustee and executor duties, minimizing disputes.

Future-Proofing the Estate Plan

• Clients with long-term goals, such as charitable giving or multi-generational wealth transfer, benefit from incorporating adaptability into their documents.
• Provisions allowing trust decanting or modification ensure the plan evolves with unforeseen circumstances.

Incorporation by State

The following chart includes the state code that references the use of Universal Will and Trust provisions:

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Conclusion

Universal Will and Trust provisions are invaluable in equipping trusts and estates professionals to create robust, adaptable documents. By proactively addressing common contingencies and tailoring these provisions to fit specific client goals, attorneys can provide comprehensive plans that stand the test of time.

Understanding when and how to incorporate these provisions requires a combination of technical knowledge, foresight, and creativity. When executed well, these tools not only fulfill the client’s immediate wishes but also ensure their legacy endures.

If you haven’t reviewed the Universal Provisions in your drafting templates recently, now might be a good time to revisit and refine them. Your clients—and their beneficiaries—will thank you.

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