2.  Trustee has an absolute and unqualified duty to pay the correct beneficiary.

3.  A trustee is not personally liable for a mistake of fact regarding a distribution which is made before the trustee has:  Actual knowledge, or  Written notice.  Trustee must seek return of improperly distributed property.

4.  1. As settlor directed in the trust.

5.  2. If beneficiary is a competent adult:  To beneficiary  Unless trust provides otherwise

6.  3. Beneficiaries with reduced capacity – § 113.021. Who?  Minors  Person who in judgment of trustee is incapacitated. ▪ Note: Judicial or medical determination not needed.

7.  3. Beneficiaries with reduced capacity -- § 113.021. Distribution options:  Beneficiary  Guardian of person or estate  Directly for HEMS  Custodian (TUTMA)  Reimburse person caring for beneficiary  Manage as separate fund on B’s behalf subject to B’s right to withdraw

8.  4. May trustee deviate from settlor’s instructions?  General rule = no  Seek court permission under § 112.054.