One pooled trust for a class (e.g., all grandchildren). Trustee distributes by need among class members — not equal shares by default. May divide into separate shares when youngest reaches a set age.
| Facet | Detail |
|---|
| Also called | Family pot trust, common pot, sprinkling trust, one-pot trust |
| A-B / A-B-C role | None |
| When created | Testamentary or lifetime |
| Revocable | No once funded irrevocably |
| Inter vivos / testamentary | Either |
| Typical beneficiaries | Class — "all grandchildren" |
| Beneficiary pool | Pooled — single fund; may divide into separate shares at a milestone |
| Primary purpose | Flexible fairness as family grows; simpler than many separate trusts early on |
| Marital deduction | No |
| Uses estate exclusion | At funding |
| In survivor's estate | No |
| Basis step-up | At grantor death if testamentary |
| Income tax | Single 1041 for the pool |
| Crummey powers | Common for lifetime grandchild gifting |
| GST / dynasty | GST allocation often used |
| Spendthrift | Yes |
| See-through (IRA) | Unusual as IRA trust |
| Key tradeoff | Flexibility vs disputes over unequal needs |
Configure this vessel in the explorer
One pooled fund for a class; the trustee pays by need until the class may split into separate shares. Often a remainder of an RLT, not a standalone tax vehicle.
One pool the trustee can spray among children or grandchildren by need.
Locked core
| Clause | Why |
|---|
| Pot / spray / sprinkle | Shared pool with trustee allocation — that is the identity of a pot. |
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What you can add
| Clause | Why |
|---|
| Spendthrift clause | Protects the pool from a beneficiary’s creditors. |
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| HEMS / ascertainable standard | HEMS is the usual standard while the pot is open. |
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| Trustee removal / replacement | Someone can replace a trustee who plays favorites. |
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| GST exemption allocation | If grandchildren are in the class, consider GST status. |
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| Dynasty / perpetual | Keep the pot open across generations, or split at a milestone. |
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| Decanting provision | Decant later if the class or law changes. |
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Do not mix
| Clause | Why |
|---|
| Separate share | Fixed slices cannot be a pot — pick one structure. |
|---|
| Crummey withdrawal rights | Annual-exclusion gifts want per-donee shares, not a spray pool as the gift vehicle. |
|---|
Type attributes
| Item | Typical for this trust |
|---|
| Grantor-trust income tax status | no |
|---|
| Revocable vs irrevocable | no |
|---|
| Inter vivos vs testamentary | optional |
|---|
| When created | optional |
|---|
| Beneficiary pool structure | typical |
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Clauses and provisions
| Item | Typical for this trust |
|---|
| Crummey withdrawal rights | optional |
|---|
| Pot / spray / sprinkle | typical |
|---|
| Separate share | optional |
|---|
| Spendthrift clause | typical |
|---|
| HEMS / ascertainable standard | typical |
|---|
| Pure discretionary distributions | optional |
|---|
| Power of appointment | optional |
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| Decanting provision | optional |
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| Incentive clauses | optional |
|---|
| Trustee removal / replacement | typical |
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| In terrorem / no-contest | optional |
|---|
| GST exemption allocation | typical |
|---|
| QTIP / marital deduction | no |
|---|
| Tax apportionment | optional |
|---|
| Dynasty / perpetual | optional |
|---|
| See-through / conduit / accumulation | no |
|---|
| Special / supplemental needs | no |
|---|
| Distribution standard taxonomy | typical |
|---|
| Bypass / exemption funding formula | no |
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