Who are the named beneficiaries of a trust?
A trust is a legal document that governs how the grantor’s assets pass to the named beneficiaries upon the grantor’s death. When a grantor establishes a trust, a single trustee manages the trust’s assets on behalf of the named beneficiaries.
When do you become a co-trustee of a family trust?
You are happy to help. You are later added as co-trustee when Aunt Joan falls ill. Sadly she passes away and a couple of months later Uncle Dan moves the funds into his own trust and starts spending them. You don’t concern yourself too much but something is gnawing at you.
Can a settlor change the beneficiary of a trust?
If the trust is a revocable trust—meaning the person who set up the trust can change it or revoke it at any time–the trust beneficiaries other than the settlor have very few rights. Because the settlor can change the trust at any time, he or she can also change the beneficiaries at any time.
What happens when a grantor names multiple trustees?
When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets. It is important to know what and how much power each co-trustee has over the management of the trust’s assets.
Are there problems when siblings act as co-trustees?
On the face of it, yes. But as an experienced estate planning attorney I invariably find myself cautioning these parents. Problems almost certainly will arise whenever siblings act as co-trustees. The challenges begin with hassles such as having to co-sign bank, mortgage and escrow documents relating to the trust.
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.
A trust is a legal document that governs how the grantor’s assets pass to the named beneficiaries upon the grantor’s death. When a grantor establishes a trust, a single trustee manages the trust’s assets on behalf of the named beneficiaries.
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?)
Can a trust have more than one trustee?
However, there is no requirement for a trust to have only one trustee. When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets.
Can a trustee be sued by a beneficiary?
Now you are in a predicament – a legal one. When you are a trustee you are held to a standard of a fiduciary which means you must act in the best interest of the beneficiaries. If all of the trust funds are spent, you could be sued by the beneficiaries for what they think they should have received.
Why are siblings not allowed to be trustees?
No matter what they do they can’t win. If they are lenient with what their sibling wants they don’t uphold the original intent of the trust. If they adhere to the rules of the trust the other sibling is often offended. No one wants to have to write to their brother or sister to ask for money.
Who is the beneficiary of a trust in Illinois?
The trustee holds legal title to the assets for another person, called a “beneficiary.” The rights of a trust beneficiary depend on the type of trust and the type of beneficiary. Adam Stern has been a licensed attorney in the State of Illinois since 1994.
Can a person be named as a beneficiary of a trust?
Being named as a beneficiary of a trust is indeed a welcome event, but not without its complications and, if handled improperly, unfortunate consequences. For help understanding your rights and protecting your inheritance, it may be wise to engage the services of an experienced trust attorney.
Who are the beneficiaries of an irrevocable trust?
Beneficiaries of an irrevocable trust have rights to information about the trust and to make sure the trustee is acting properly. The scope of those rights depends on the type of beneficiary. Current beneficiaries are beneficiaries who are currently entitled to income from the trust.