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What is the HEMS Standard?

What is the HEMS Standard?

What is the HEMS Standard?

HEMS is an acronym for Health, Education, Maintenance, and Support.  The HEMS standard is often used in trusts to give the trustee broad direction in determining how to provide funds to the beneficiary(ies).  Health covers the healthcare needs of the beneficiary.  Education covers tuition, room and board, and other relevant expenses of getting an education.  Maintenance and Support are to ensure the beneficiary receives the same standard of living as they had been accustomed to, which can vary depending on the situation.  For some people, Maintenance and Support may be basic such as food, clothing, and shelter.  Maintenance and Support may be travel, vacation, and other luxuries for others.  More specific instructions can be left for the trustee but care should be taken not to tie the hands of the trustee.  Good intentions today can have unintended consequences later on.  Having a Trustee who knows the beneficiary intimately, such as a friend or family member, who can apply the HEMS standard can oftentimes be the best scenario.  The trustee has broad latitude to make decisions for funding the beneficiary based on the HEMS standard and the knowledge of their family and lifestyle.  If you would like help with your estate planning, call the Law Office of Roy Neal Linnartz, PLLC at 830-625-9300.