How Can a Beneficiary Become Trustee in an Irrevocable Trust?
There are a variety of different types of trust agreements including the irrevocable trust. Every trust, however, requires a trustee. Many times, the grantor of the trust wishes to make a beneficiary under the trust agreement the trustee as well.
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Function
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A trust is a legal mechanism for gifting property or money. Trusts are frequently created to avoid the time, expense and tax consequences of probate when the grantor dies and/or for the tax benefits created by a trust. As a general rule, the property gifted in a trust passes directly to the beneficiaries upon the death of the grantor without the need to go through the probate process.
Irrevocable Trust
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An irrevocable trust is just that -- irrevocable. The grantor of an irrevocable trust cannot change his mind once he has created the trust and take the gift back.
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Parties to an Irrevocable Trust
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An irrevocable trust requires a grantor (the person gifting the money or property), at least one beneficiary (person receiving the property or money) and a trustee (the person that holds the property and administers the trust until the property passes to the beneficiaries). A beneficiary under an irrevocable trust agreement may also be the trustee. The grantor decides who the trustee will be when she creates the trust and may appoint a beneficiary if she chooses.
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References
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