If you’re serving as a trustee, you may have seen language in the trust stating that you can distribute funds to beneficiaries for their “health, education, maintenance, and support.” This is often referred to as the HEMS standard. It’s one of the most common distribution guidelines in trusts, but it can sometimes feel vague.
To help clarify, here are examples of what each category usually includes.
Distributions for health generally cover medical and wellness expenses. Examples include:
Education distributions are designed to cover reasonable costs of schooling and related expenses. Examples include:
Maintenance generally refers to keeping the beneficiary at their accustomed standard of living. Examples include:
Support is broad and often overlaps with maintenance, but it usually means providing for the beneficiary’s overall well-being. Examples include:
The HEMS standard is commonly used because it gives trustees clear boundaries. It allows for flexibility to meet beneficiaries’ needs while also protecting trust assets from being used inappropriately. Importantly, limiting distributions to health, education, maintenance, and support can also help keep the trust from being considered part of the beneficiary’s taxable estate.
Serving as a trustee is an important responsibility. Understanding the HEMS standard—and what kinds of expenses fall under health, education, maintenance, and support—helps you make informed decisions that follow the trust’s instructions while also providing meaningful support to beneficiaries.
If you’re unsure about whether a particular expense qualifies, it’s always best to consult with an estate planning attorney for guidance.
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