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I'm not sure that I agree with the previous respondents. This looks like a variation on a typical first-to-die bypass trust. In that situation, the surviving spouse gets the income from the trust and other beneficiaries (typically children) get the assets (corpus) upon the surviving spouse's death.

If this is created as a formal trust with you as trustee and income beneficiary and the great grandchildren as the corpus beneficiaries, then you are free to manage the account as you wish without interference from the future beneficiaries. On the other hand, if she just wants you to manage the existing account as owned by her with an understanding as to how the income/corpus will be disbursed, I would run away.

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