What does a “5 by 5” power in a trust document mean?

It is not uncommon that wealthy individuals are concerned with leaving large sums of money to specific beneficiaries for the fear of those individuals acting irresponsibly with access to such a massive chunk of cash. To resolve this dilemma and to provide access to funds if income for a given year was low, trusts can include a “5 by 5 Power” to allow greater flexibility.A majority of trusts are established to protect assets, and to provide for the ongoing well being of a specific loved one.