Who is the beneficiary of a trust
When a trust is set up, it must involve certain parties in order to be considered a legally recognized trust entity. In any trust set up, it is important to have a beneficiary or several beneficiaries, these are the nominated individuals as specified by the settlor, to benefit from the property held in the trust.
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Beneficiary of a trust explained
The beneficiary does not play a specific role in the formation or administration of a trust. The role of the beneficiary is simply to benefit from the property held in the trust, as a trust is set up for the sole advantage of the beneficiary. This means that the beneficiary will inherit some or all of the assets placed within the trust, as specified within the trust deed and with the discretion of the trustee.
Any natural person can become a beneficiary and the selection of a beneficiary in the formation of your trust is a very personal decision. Beneficiaries can be family members, friends or close acquaintances, however a company can also be selected as the beneficiary of a trust. There are generally no limitations in place with regards to who can be a beneficiary of a trust.
Although the trust beneficiary has little or no control over the formation and administration of the trust, in some circumstances, the beneficiary may take ownership and control of the trust if this has been specified within the trust deed. Additionally, it may be specified within the trust deed that the beneficiaries must satisfy certain criteria in order to receive the trust’s property.
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