Types of Beneficiaries in Irrevocable Trusts
Several types of beneficiaries can be named in an Irrevocable trust. An irrevocable trust's beneficiary can only be changed with the consent of the original beneficiary because the grantor (person creating the trust) has given up control of the assets.
Other People Are Reading
-
Function
-
A beneficiary is named on an irrevocable trust in order to ensure that the grantor's assets are disposed of according to his wishes.
Beneficiary
-
A beneficiary is any person (relative or friend) and/or organization (charitable or other) that will benefit after a person's death.
-
Types
-
A beneficiary is usually either an income or remainder beneficiary, named as a primary (main) or contingent (secondary) beneficiary. An income beneficiary receives the majority or all of the income from a trust. A remainder beneficiary would receive whatever is left at the termination of the trust, which is usually at the time of death of the original beneficiary.
Trust Beneficiary
-
A trust beneficiary is held by a trustee, who maintains control of the property for the beneficiary.
Benefits
-
A beneficiary will be immediately able to access the assets upon the grantor's death, depending upon the terms created in the irrevocable trust. An irrevocable trust is responsible for paying any and all taxes that may be levied upon it, including estate fees and taxes.
Warning
-
Since the grantor has given up control of his assets, he must think carefully before naming his beneficiaries.
-
