Beneficiary Of Trust


DEFINITION of 'Beneficiary Of Trust'

A beneficiary of trust is a person for whom a trust was created, and who receives the benefits of that trust. In many instances a trust is established to prevent the exhaustion of an estate. A trust for the benefit of a child, for example, may include specifications that would guarantee the parent's estate will not be carelessly diminished and that funds will be available for the benefit of the child.

BREAKING DOWN 'Beneficiary Of Trust'

There are two basic categories of a beneficiary of trust. The first form is where the beneficiary is entitled to take ownership and control of the trust and has the right to the income and capital.The second form is where the trustee is given additional duties and powers assigned in the trust deed.

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  1. Can I put my IRA in a trust?

    You cannot put your IRA in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and ... Read Full Answer >>
  2. How does the trust maker transfer funds into a revocable trust?

    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>
  3. What is the difference between a revocable trust and a living trust?

    A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed ... Read Full Answer >>
  4. How exactly does one go about revoking a revocable trust?

    The basic steps involved in revoking a revocable trust are fairly simple, and include transfer of assets and an official ... Read Full Answer >>
  5. What is the difference between a revocable trust and an irrevocable trust?

    An irrevocable trust and a revocable trust are differentiated through the ability to change the trust. With an irrevocable ... Read Full Answer >>
  6. What is a family Limited Liability Company (LLC)?

    A family limited liability company (LLC) is formed by family members to conduct business in a state that permits such form ... Read Full Answer >>

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