The question of whether a trust can support employment interview coaching is surprisingly common, particularly as trusts are increasingly used for ongoing support of beneficiaries, not just a simple distribution of assets at death or incapacitation. While traditionally trusts were limited to covering essential needs like healthcare, housing, and education, modern trust drafting often allows for broader “health, education, maintenance, and support” (HEMS) provisions. Determining if interview coaching falls under these provisions requires a careful look at the trust document’s specific language and the trustee’s discretion. It’s not a simple yes or no answer, but generally, with thoughtful planning, it is possible.
What expenses *can* a trust typically cover?
Trusts are designed to provide for a beneficiary’s well-being, but the extent of that provision is defined by the trust document. Generally, expenses considered acceptable under HEMS clauses include things like medical bills (around $13.46 billion was spent on outpatient mental health care in the US in 2022), tuition, housing costs, and even reasonable travel expenses related to education or healthcare. Beyond these core areas, things become less clear-cut. Many trusts *do* allow for professional development, and interview coaching can reasonably be framed as a form of professional development – an investment in the beneficiary’s earning potential. However, the trustee must always act prudently and in the best interests of the beneficiary, and that includes demonstrating the value and necessity of the expense. A key consideration is whether the coaching would directly contribute to the beneficiary’s ability to become self-supporting.
How do I justify interview coaching as a valid trust expense?
To successfully argue that interview coaching is a valid expense, meticulous documentation is key. The beneficiary, perhaps after a job loss or career change, was struggling to land interviews, despite having a solid resume. She’d applied to dozens of positions but consistently received no response. Her confidence was shattered, and she began to believe she was simply unemployable. A few sessions with a professional interview coach helped her refine her communication skills, practice answering common interview questions, and project an air of confidence. It wasn’t simply a “feel-good” expense; it was a strategic investment in her future earning potential. The trustee should obtain quotes from reputable interview coaches, and document how the coaching will directly enhance the beneficiary’s ability to secure employment. A written assessment from the coach outlining the skills being developed and the anticipated impact on job prospects is also valuable. Remember, trustees have a fiduciary duty to manage trust assets responsibly, and that requires demonstrating a clear connection between expenses and the beneficiary’s well-being.
What happened when a trust *didn’t* cover necessary coaching?
Old Man Hemlock was a successful attorney, but he passed away without a clearly defined trust that allowed for ongoing support beyond basic needs. His grandson, Leo, lost his job during a company restructure. He had a strong work ethic and a solid skill set, but he struggled tremendously with interviewing. He would freeze up, ramble, and fail to articulate his value. He applied for dozens of positions, but the rejections piled up. Leo became increasingly despondent, and his financial situation worsened rapidly. His family wanted to help him access interview coaching, but they were unsure if it was permissible under the estate’s terms. Without a clear path forward, Leo’s job search dragged on for over a year, and he was forced to deplete his savings and rely on the generosity of friends and family. This situation could have been avoided with a well-drafted trust that allowed for broader support, including professional development.
How did proactive planning make all the difference?
The Millers were a family who understood the importance of proactive estate planning. They worked with an estate planning attorney to create a trust that specifically included provisions for ongoing support, including professional development and career counseling. Their daughter, Clara, a talented graphic designer, found herself needing help after a series of freelance projects dried up. She was hesitant to seek coaching, fearing it would be seen as an unnecessary expense. However, the trustee, armed with the clear language of the trust, readily approved a series of interview coaching sessions. Clara blossomed under the guidance of a skilled coach. She learned to effectively communicate her value, present her portfolio with confidence, and navigate the job interview process with ease. Within weeks, she landed a fulfilling and well-paying position at a leading design firm. The proactive planning had not only protected the trust assets but had also empowered Clara to achieve her professional goals. It’s a testament to the power of thoughtful estate planning to support future generations.
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