Substantial decisions definition
Substantial decisions means, all decisions other than ministerial decisions that any person, whether acting in a fiduciary capacity or not, is authorized or required to make under the terms of the trust instrument or applicable law. Such decisions include, but are not limited to:
Substantial decisions. The term substantial decisions means those decisions that persons are authorized or required to make under the terms of the trust instrument and applicable law and that are not ministerial. Decisions that are ministerial include decisions regarding details such as the bookkeeping, the collection of rents, and the execution of investment decisions. Domestic Trust - The Control Test Substantial decisions (Treas. Reg. §301.7701-7(d)(1)(ii)) include • whether and when to distribute income or corpus; • the amount of any distributions; • the selection of a beneficiary; • whether a receipt is allocable to income or principal; • whether to terminate the trust; • whether to compromise, arbitrate, or abandon claims of the trust; • whether to ▇▇▇ on behalf of the trust or to defend suits against the trust; • whether to remove, add, or replace a trustee; • whether to appoint a successor trustee to succeed a trustee who has died, resigned, or otherwise ceased to act unless decision cannot change the trust’s residency; and • investment decisions (but U.S. control if U.S. person who hires investment advisor can terminate investment advisor’s power to make decisions at will).