Discharge of Support Obligations Forbidden Clause
(CA)

Summary

This clause may be used in a trust to prevent the use of trust income or principal from being applied to discharge support obligations. It is intended for use in California. This template includes practical guidance, drafting notes, and alternate clauses. The provision serves mainly as a tax-planning tool to prevent adverse tax consequences under I.R.C. § 678(c). Under that section, trust income is typically considered taxable to the trustee (or other individual) if they hold the power to apply income to support a beneficiary whom they are legally obligated to support. By including this clause, practitioners to prevent the IRS from attributing taxable income to the trustee when distributions might otherwise fulfill the trustee's personal support duties. It is important to distinguish this tax-centric provision from other trust-related "support" concepts. While this clause governs voluntary fiduciary conduct and their tax implications, California's creditor access rules and the judicial enforcement of support obligations, particularly under Cal. Prob. Code § 15305, are governed by distinct legal principles and, in some cases, may override the clause in limited circumstances. The first alternate clause contains a broad prohibition on the trustee's power to discharge any person's support obligation. In contrast, the second alternate clause applies only to the trustee's own legal support obligations. For information about creating valid trusts, see Requirements and Restrictions on Trust Purposes and Administration (CA)