HEMS Standard

Understanding the HEMS Standard in Estate Planning
When a trust gives a trustee authority to make distributions for a beneficiary’s “health, education, maintenance, and support” (HEMS), this language follows an ascertainable standard recognized by the IRS. It provides clear guidance on what expenses can be covered while ensuring the trust remains protected from misuse or unnecessary tax risks.

The HEMS standard is especially valuable when planning for minor children. Since we cannot know what kind of adults they will grow up to be—their spending habits, financial discipline, or personal choices—this standard ensures that funds are available to meet their genuine needs, while also protecting the trust from being depleted on nonessential or inappropriate expenses.

By using HEMS, trustees can strike the right balance: providing for beneficiaries’ well-being, education, and everyday living needs, without giving them unlimited access to trust funds. The categories below outline what typically qualifies under Health, Education, Maintenance, and Support, with examples to make these concepts clearer in practice.