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O, who has several very young grandchildren, creates an irrevocable spendthrift trust for their higher education and funds it generously at her death. The trust
O, who has several very young grandchildren, creates an irrevocable spendthrift trust for their higher education and funds it generously at her death. The trust terms provide that the trustee is to make distributions for a grandchild's higher education in amounts the trustee deems advisable to pay tuition, room, and board, but in no event more than $50,000 per year for any particular grandchild. Many years after O's death, as the grandchildren begin to reach college age, it becomes apparent that while the trust likely has enough money to pay for the education of all the grandchildren, the $50,000 annual limit is too restrictive given the substantial increase in the cost of education since O's death. The trustee seeks your advice: Can the trust terms be modified to increase the annual limit for distributions to an amount more in line with the current costs of higher education
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