The beneficiary trust is an irrevocable trust, because once the grantor has created it, he accepted to give away any of his rights to control the trust. Once a trust can’t be controlled, it becomes irrevocable, and the beneficiaries are the entitled persons to have access to its advantages.
The beneficiaries can be the owner’s children, grandchildren or his/her spouse. Also the grantor can establish as a beneficiary an organisation. In most cases the grantor leaves his/hers welfare to his /hers children, in order to assure them a wealthy life. Also the grantor can establish a beneficiary trust for his/hers unborn child if he/she wishes, or he/she can transfer his/hers estate to a minor also.
When thinking of hiring a living trust attorney, you should take into account the fact that he/ she is the right person who can legally advise you about the process you are willing to follow in order to have you legacy protected. You should know that there are tow kinds of beneficiaries: fixed beneficiaries and discretionary beneficiaries.
Use your living trust attorneys` advices and collect as much information as you need. You’ll find out that the fixed beneficiaries, rather than the discretionary beneficiaries have the right to receive a specific amount from the trust. The other category is subject to the owner’s wishes. Their trust is not an irrevocable one as the grantor can control their assets.
Also the living trust attorneys describe the first category as being the actually owners of the policy, therefore it can’t be revocable. The discretionary beneficiaries on the other hand, are subject to the owner’s wishes as he/she is able to control when and how they are entitled to the trust.
Some providers look to skip some taxes therefore they establish a beneficiary trust. This could be done as the wealth is not part of the owner’s belongings, using it to transfer the proceeds taxes. Although some taxes are needed as trust is considered to be the “owner”.
The trust’s belongings can also be transferred from a generation to another, and the beneficiaries can decide whether thy want to transfer it to a third person and so on.
Any person should take into account the idea of building a beneficiary trust as he/she does it only for protecting his legacy on his/hers successors behalf. If you think to do it yourself, you should know that you have the legal right to use these trusts for their future whether is an educational one or a wealthy life, after you are no longer beside him/her/them.
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