What is a trustor trustee and beneficiary?
Trustee: a person or persons designated by a trust document to hold and manage the property in the trust. Beneficiary: a person or entity for whom the trust was established, most often the trustor, a child or other relative of the trustor, or a charitable organization.
Are trustees and beneficiaries the same?
The beneficiary refers to whoever receives the property that is part of a trust, while the trustee is whoever controls that property and distributes it according to the trust deed.
What is the difference between a trustor and a trustee?
The trustor/grantor/settlor is the person who creates the trust. The trustee is the person who manages the assets in the trust. In some instances, the currently acting trustee may not be the original trustor.
Is successor trustee and beneficiary same person?
It’s perfectly legal to name a beneficiary of the trust (someone who will receive trust property after your death) as successor trustee. In fact, it’s common. EXAMPLE: Mildred names her only child, Allison, as both sole beneficiary of her living trust and successor trustee of the living trust.
What is the commonality of trustor trustee and beneficiary?
Trustors are also sometimes referred to as settlors and trust makers. The trustor also states who shall receive the benefit of that property, a person known as a beneficiary, and who shall manage the property for the trust, known as the trustee. In some trust situations, it’s common for the trustor to serve as trustee.
Can a trustor also be a beneficiary?
The simple answer is yes, a Trustee can also be a Trust beneficiary. Nearly every revocable, living Trust created in California starts with the settlor naming themselves as Trustee and beneficiary.
Who has more power a trustee or beneficiary?
The trustee has the power to make management decisions regarding the trust, but the beneficiaries do not wield such power. However, the law gives beneficiaries certain rights, like requesting a trust accounting and receiving assets from the trustee in a timely manner.
What does a trustee have to disclose to beneficiaries?
A trustee has a duty to report and account to the trust beneficiaries. If you are a trust beneficiary, you have a right to information about the trust, your interest in the trust, and the various assets of the trust and how they are being administered, invested and distributed.
What is a successor beneficiary?
Successor Beneficiaries Are A Beneficiary’s Beneficiary. At its core, a Successor Beneficiary is simply the beneficiary of a previous beneficiary. More specifically, when an individual inherits a retirement account from the original owner, they become a beneficiary.
What is the difference between a trustee and a successor trustee?
A trustee, who can either be the trustor or another responsible party, may be appointed while the trustor is still alive; a successor trustee is charged with administering a trust after the trustor or the appointed trustee (if they are different from the trustor) becomes incapacitated or dies.
What does a co-trustee mean?
co-trustee. n. a trustee of a trust when there is more than one trustee serving at the same time, usually with the same powers and obligations. Occasionally a co-trustee may be a temporary fill-in, as when the original trustee is ill but recovers.
Can a beneficiary remove a trustee?
Removal by Beneficiaries Trust agreements commonly have provisions that allow beneficiaries to remove or replace a trustee. Usually a majority vote of the beneficiaries is required. Often the trust agreement provides that a trustee may only be removed for cause.
What’s the difference between a beneficiary and a trustee?
What’s the Difference Between a Beneficiary and a Trustee? A Trust beneficiary is the person who will enjoy the assets of the Trust. In legal jargon, trust and will attorneys refer to Trust beneficiaries as the “equitable owners” of the Trust.
Who is the Trustor of a trust?
The first one we will talk about is the “trustor”. A trustor is an individual that creates the trust. They are the person who is contributing to the trust to build the monetary value of the trust in question. This can be in terms of property or money.
Who is the successor trustee of a trust?
Often, the person who creates the Trust is the Trustee until they can no longer fill the role due to incapacitation or death. At that point, a Successor Trustee takes over.
Who can be a trustee of a will?
Almost anyone you trust, who is over the age of 18, can be your Trustee. Friends/Family – This is a common route, but also comes with the potential for family drama and even resentment. However, if you have a friend or family member whom you trust, the peace of mind this option offers can be worth it.