The settlor’s express preference for the income beneficiary governs trust administration

A husband’s lifetime trust divided into credit shelter and marital trusts at his death. His wife was the income beneficiary of both trusts. The trustees were not authorized to invade the principal for the wife, but the trust stated that the wife’s interests and desires are to be preferred to those of the remaindermen, the husband’s children. The interests of other potential beneficiaries are discretionary and the trustees are directed to take into account these beneficiaries’ other resources. The court held that the trust language made the wife’s other resources irrelevant to the administration of the trusts. Howard v. Howard, 156 P.3d 89 (Or. Ct. App. 2007).