Common use of Termination by Trustee Clause in Contracts

Termination by Trustee. Every reasonable attempt will be made to continue the Trust for the purposes for which it is established. However, it is recognized that the Trustee does not and cannot know how future developments in the law, including administrative agency and judicial decisions, may affect the Trust or any Trust sub-account. If the Trustee has reasonable cause to believe that the income or principal in Trust sub-account maintained for any Beneficiary is or will become liable for basic maintenance, support, or care for that Beneficiary which has been or would otherwise be provided by local, state, or federal government, or an agency or department thereof, the Trustee, in its sole discretion, may: (a) terminate the Trust sub-account as to the affected Beneficiary as though he or she had died, and the Trustee shall then treat the property in the Trust sub-account according to the provisions of Article 6.2, 6.3, and 6.4; (b) determine that the Trust has become impossible to implement for the affected Beneficiary, and the Trustee shall then treat the property in the Trust sub-account according to the provisions of Article 6.5; or (c) continue to administer the Trust sub-account under separate arrangement with the affected Beneficiary or his or her guardian. Before making any distribution of amounts retained in any Trust sub-account, the Trustee may consider the tax and Medicaid and other public benefit consequences to the Beneficiary of any particular distribution.