The dispositive clause states the trustee shall distribute all of the net income of the trust to X for X's lifetime. What does this language indicate about X's entitlement?

• A. Distributions are mandatory to X.
• B. The trustee has absolute discretion to distribute income to X.
• C. There is no discretion; distributions are fixed.
• D. Distributions are to be shared equally with Y.

Answer: (B)

The key idea is that this clause creates a mandatory life-income interest for X. The word “shall” imposes a duty on the trustee to pay out all of the net income to X as it is earned, and there’s no room to withhold or divert income to others. Since the entitlement lasts for X’s lifetime, X has a definite, ongoing right to the income, not a discretionary payout or a fixed, unchangeable amount. The trustee cannot accumulate income or decide not to distribute; the income must go to X. The notion of the trustee having “absolute discretion” doesn’t fit because the language denies discretion—it requires distribution of all net income to X.