Yes, a trustee can be one of the beneficiaries of a trust. For example, an individual could set up a trust, appoint themselves as trustee and distribute income to their family. However, a trustee cannot be the sole beneficiary of a trust.
The Settlor cannot be a trustee and cannot be a beneficiary of the trust, and their spouse and children cannot be beneficiaries. A trustee or a beneficiary of a trust cannot act as the Settlor. The Settlor is usually a Lawyer or Accountant who helps the client to establish the Discretionary trust.
Who are the trustees of a family trust?
A family trust is set up by a legal document often known as a trust agreement, which usually designates an initial trustee or two or more initial co-trustees. The document also designates one or more successor trustees in the event the initial trustees can no longer serve, such as in cases of resignation, death, or removal.
How is a trust set up in a family?
If the trustor and the beneficiaries of a trust are members of the same family, it is known as a family trust, which can have one trustor or spouses acting as joint trustors. A family trust is set up by a legal document often known as a trust agreement, which usually designates an initial trustee or two or more initial co-trustees.
What does a grantor do in a family trust?
Family trusts are fiduciary relationships that are agreed to by two or more parties. A grantor gives another party called a trustee the right to hold the legal titles of the family’s assets or property for the benefit of the beneficiaries.
How can I remove a trustee from my trust?
Beneficiaries seeking removal of a trustee may also need to file a petition for removal, as discussed below. A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. This process can be further complicated if beneficiaries are also designated as trustees.
