Are trusts valid beneficiaries?
Trust deeds often include as a beneficiary, any trust of which one or more of the beneficiaries of the trust is a beneficiary. This is not possible, as a trust is not a person. A trust cannot come into being without a valid beneficiary.
Who are the beneficiaries of a trust in Illinois?
Under the ITC, a trustee must provide accountings, at least annually to (a) all current beneficiaries, that is any beneficiary who could receive a distribution at that time or any beneficiary who holds a presently exercisable general power of appointment, and (b) all presumptive remainder beneficiaries (which is a term defined by the ITC).
Who is the first beneficiary of a living trust?
While the grantor is still living, he is usually the first and only beneficiary. Contingent beneficiaries are those named individuals or entities that receive the trust’s contents upon the grantor’s death. Generally, these beneficiaries only have the right to see the trust when the grantor dies and the trust is no longer revocable.
Who is the grantor in a living trust?
With a living trust, the grantor is able to assign exactly what assets he wants distributed to which beneficiary on his own terms. A trustee is the person who manages the trust on behalf of the beneficiary. Oftentimes, the grantor and trustee are the same person.
When does the Illinois Trust Code go into effect?
Last week, Governor Pritzker signed HB 1471, giving Illinois new trust laws as of January 1, 2020. This Alert is the first installment in a six-part series on the new Illinois Trust Code (“ ITC ”), a version of the Uniform Trust Code (“ UTC ”).
Can a beneficiary of a living trust revoke it?
Typically, even if someone else is acting as trustee, you will be the beneficiary of the trust and can amend or revoke the trust during your lifetime. As long as you are acting as trustee of a living trust that you created, no income tax returns nor accountings are required.
Can a person be the sole beneficiary of a trust?
You can also name co-trustees, even if you are one of them. Similarly, you may be the sole beneficiary of the trust during your lifetime, or you may name others, such as your spouse and children, as additional beneficiaries.
What happens when you set up a living trust?
When you set up and transfer your assets to a living trust, the trust is considered the owner of your assets. When you die, there is no probate because the trust already owns your assets and not you. The assets are then distributed according to the instructions in the trust.
Can a successor trustee use the assets of a trust?
The successor trustee cannot use the assets for his or her own benefit, although he or she may receive compensation (if allowed under the terms of the trust). Additionally, the trust avoids the necessity of having a family member or other person named as a guardian by the probate court to manage your assets.