Accumulation Trust Clause Samples

An Accumulation Trust is a type of trust provision that allows the trustee to retain and reinvest income generated by the trust assets, rather than distributing it immediately to the beneficiaries. In practice, this means that any interest, dividends, or other earnings are added to the principal of the trust, potentially increasing its value over time. This clause is commonly used to delay distributions until beneficiaries reach a certain age or meet specific conditions, thereby providing asset protection and ensuring that funds are managed prudently until the appropriate time.