Can a family trust have a corporate beneficiary?
A corporate beneficiary is a company that receives a distribution from a discretionary trust (a.k.a. family trust). The use of a corporate beneficiary also helps to protect the wealth generated where family members are exposed to business and investment risk.
Who are the beneficiaries of a family trust?
The benefits may include a distribution of capital, a distribution of the income from the investments, or the use of the assets (e.g. a house). A family trust is where the beneficiaries are primarily family members. The beneficiaries may include:
Who are the siblings in the trust lawsuit?
This trust lawsuit, decided a few days ago, involved three siblings and three trusts created by their parents. A brother and sister sued their brother Kevin, as trustee, to remove him as trustee and for their #trust inheritance. This case involves nine family members involved in two estates, one guardianship and three trusts:
What happens if a brother or sister becomes a trustee?
Depending on the way the trust is set, there can be a situation, where the person that’s the trustee overseeing the money for their brother or their sister, will receive a windfall if that money is not actually given to that brother or sister. Imagine a situation where the bad brother passes away and the trustee receives the balance that’s left.
Why are siblings denied distributions from a trust?
Distributions being denied because the sibling believes (rightly or wrongly) that any money held by the trust when the other siblings die will pass on to the trustee’s direct family. 3.
Who is the beneficiary of a family trust?
The trustee manages the assets on behalf of the recipient. For example, this includes investing assets, paying taxes on specific assets, and creating written records. For family trusts, the beneficiary is a relative of the grantor. Most are revocable unless the arrangement states otherwise.
Who is the successor trustee of a family trust?
The surviving spouse, for example, is almost always the successor trustee and beneficiary of a family trust. And it’s quite common for one adult child to be the trustee and all the siblings to be beneficiaries of their parents’ trusts.
Can a trustee get along with the beneficiaries?
Your job as trustee will be infinitely easier (and you’ll be far more effective) if, right from the start, you have cordial dealings with the trust beneficiaries — the people who benefit from the trust money. Here are some tips. (For basic information on serving as a trustee, see Nolo’s article Trusts: Should You Serve as Trustee?)
Who is the beneficiary of an irrevocable trust?
For family trusts, the beneficiary is a relative of the grantor. Most are revocable unless the arrangement states otherwise. With this, the grantor can modify the terms, terminate it altogether, or even change beneficiaries. An irrevocable trust cannot be changed or terminated unless by court order.