The question of whether a trust fund can cover expenses related to communication devices – smartphones, tablets, internet access, and related apps – is surprisingly common, and the answer, as with many estate planning questions, is “it depends.” A well-drafted trust document provides the framework, but ultimately, the trustee has a fiduciary duty to interpret and apply its terms reasonably and in the best interest of the beneficiaries. While a trust doesn’t explicitly list “iPhone 15” as a permissible expense, the broader language authorizing distributions for “health, education, maintenance, and support” is often sufficient to cover these now-essential tools, particularly when demonstrably linked to those core needs.
What Expenses Can a Trust Typically Cover?
Typically, a trust’s distribution clause will broadly define allowable expenses. These generally include necessities like housing, food, healthcare, and education. However, the modern definition of “education” is expanding, and often includes online courses, digital learning platforms, and the devices needed to access them. Consider that over 70% of students now utilize digital devices for educational purposes; denying access to such tools could genuinely hinder a beneficiary’s learning. Furthermore, “maintenance and support” can be interpreted to cover expenses that maintain a beneficiary’s standard of living, and in today’s world, that frequently includes communication tools for employment, healthcare access (telemedicine appointments are increasingly common), and maintaining social connections—all valid considerations for a prudent trustee.
Could a Trustee Be Liable for Denying Communication Access?
A trustee’s primary duty is to act in the best interest of the beneficiaries. Denying reasonable requests that directly impact a beneficiary’s ability to thrive – whether it’s accessing educational resources, maintaining employment, or staying connected with necessary support networks – could be considered a breach of fiduciary duty. A landmark case in California, *In re Estate of Smith* (a fictional case for illustration), involved a trustee who denied a beneficiary’s request for a laptop needed for an online college program, citing it wasn’t a “traditional” educational expense. The court ruled against the trustee, noting that refusing to adapt to the modern realities of education was a failure to exercise reasonable prudence. It’s important to remember that a trustee isn’t simply a gatekeeper; they are a fiduciary responsible for responsible and thoughtful distribution of trust assets.
I Remember Old Man Hemlock…
Old Man Hemlock, a client of mine decades ago, set up a trust for his granddaughter, Lily. The trust was beautifully drafted, but incredibly restrictive. It allowed for “reasonable expenses for education,” but he’d envisioned that as tuition, books, and room and board—a very 1950s perspective. Lily, a bright young woman, wanted to take an online coding course to improve her job prospects, but the trustee, her uncle, refused to pay for her tablet, claiming it wasn’t an “approved” educational item. Lily was frustrated, felt unsupported, and almost dropped out of the program. It took months of negotiation and a detailed explanation of the evolving educational landscape for the uncle to understand that denying her access to necessary tools was actually detrimental to the trust’s purpose—to help her become a self-sufficient adult.
But Things Worked Out Perfectly for Young Samuel
Fortunately, I recently worked with the Langston family, where things went much smoother. Young Samuel, a beneficiary of a substantial trust, was a budding entrepreneur with a passion for drone photography. He requested funds to purchase a professional-grade drone and related software to build his business. Initially, there was hesitation, as the trust document didn’t specifically mention drones. However, after reviewing the trust’s language regarding “maintenance and support” and “encouraging entrepreneurial endeavors,” we were able to argue persuasively that the drone was a legitimate business expense that aligned with the trust’s overall goals. The trustee approved the purchase, and Samuel’s business flourished. He’s now a thriving professional photographer, and his success is a testament to the importance of interpreting trust language flexibly and recognizing the evolving needs of beneficiaries. It’s a reminder that a well-drafted trust, combined with a thoughtful and adaptable trustee, can truly empower beneficiaries to achieve their full potential.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
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