Can you be a trustee and a beneficiary of a trust

You can provide it if a beneficiary asks you for it. It's quite common to be both a trustee and a beneficiary of a trust. The surviving spouse, for example, is almost always the successor trustee and beneficiary of a family trust. And it's quite common for one adult child to be the trustee and all the siblings to be beneficiaries of their parents' trusts.

This can be a difficult position because, as the trustee, it's your job to be fair to everyone and never to benefit yourself at another beneficiary's expense.

If you're in this position, don't be sloppy just because everything's in the family. When it comes to record keeping and decision making, pretend you don't know the beneficiaries -- treat them as you would strangers, not your siblings or children. That means being sure to:. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.

The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. A trustee's job easier is made easier by a friendly relationship with beneficiaries. Communicate Well and Often With Beneficiaries Most beneficiaries are unfamiliar with the trust administration process and anxious about their lack of control.

The best way to relieve beneficiaries' concerns is to: get in touch with the beneficiaries early educate them about your role help them to form realistic expectations of how long it will take to administer the trust treat their questions as opportunities to engage them rather than as annoying intrusions , and don't hide the trust document or assets from them.

Get in Touch Early With Beneficiaries If the beneficiaries all live nearby, a good way to start might be to call a family meeting and sit down together to go over the process of trust administration. Stay in Touch With Beneficiaries Whenever you take an action as trustee or discover information that affects the beneficiaries, be sure to let the beneficiaries know about it. Show Beneficiaries the Trust Terms In some states, beneficiaries have the right to see a copy of the trust document itself.

That means being sure to: keep very good records never use trust assets for your own use, and if you pay yourself compensation, be prepared to justify what you've charged and what services you provided to the trust. Wills, Trusts, and Estates. Estate Planning Basics. Living Trusts. A trustee-beneficiary can successfully navigate these potential pitfalls by following a few simple guidelines.

First, a trustee should be transparent. This means that the trustee should communicate openly and regularly with the other beneficiaries about what the trustee is doing and why. Beneficiaries who do not know what a trustee is doing will often jump to the worst possible conclusion.

A trustee who is a beneficiary can avoid conflict with the other beneficiaries by being up-front and open about their actions. Second, a trustee-beneficiary should precisely follow the terms of the trust and avoid the appearance of any preference to themselves. This may seem fairly obvious, but many trustees have the mistaken notion that being trustee means that they are in charge and can do whatever they like with the money and property in the trust. This is never true, but a trustee-beneficiary should take particular care to offer the other beneficiaries the same privileges they take for themselves.

For example, if the trustee is going to make a loan from the trust to themselves as beneficiary, the trustee should let the other beneficiaries know that they may also take advantage of this possibility.

This communication will avoid the appearance of inappropriate self-dealing by the trustee-beneficiary. Valid reasons for trust beneficiaries suing a trustee include:.

As the beneficiary of a trust , you generally have standing to bring something known as a trust contest to try to have the trust invalidated if you believe a compelling reason exists for doing so.

It is important to keep in mind that disliking the terms of a trust is not considered a valid reason for bringing a contest, nor can a contest be brought by someone who does not have financial stake in the outcome of the trust contest.

If you believe you have valid grounds for bringing a trust contest, get in touch with a trust contest lawyer as soon as possible. The deadlines to contest a trust are typically very short.

Contexts in which trust property disputes can occur include:. However, trust beneficiaries are also entitled to sue if the trustee is refusing to bring a valid property claim or if the property claim is against the trustee.

Trust beneficiaries who bring a property claim can seek to have the opposing party return the property to the trust or compensate the trust for the property. They may even be able to seek punitive damages. In trust litigation, something known as an Petition can be filed to transfer property into or out of a trust.

When there is a dispute over trust property, it is recommended trust beneficiaries hire a probate lawyer to help them recover the property they believe belongs to the trust.

Disputes can arise when certain payable-on-death or transfer-on-death assets with designated beneficiaries are included in a trust. Disputes can also arise when it comes to light that a designated beneficiary may have engaged in misconduct against the asset owner to have themselves designated. Payable-on-death and transfer-on-death assets include bank accounts, retirement accounts, life insurance policies and pensions.

If it can be proven, for example, that the designated beneficiary committed fraud against the decedent in order to be named as the beneficiary of that asset, then the trust might be able to claim it for distribution. It may also be possible for the trust to claim the asset if the trustee has proof that the decedent wished for the asset to be distributed through their trust.

Both trust beneficiaries and trustees are permitted to bring a claim to invalidate a beneficiary designation if they believe compelling reasons exist for doing so. A beneficiary lawyer can help with bringing a claim. If errors or red flags i. Trust beneficiaries are likewise entitled to utilize the courts to compel the trustee to provide a formal accounting if they have failed to do so. To ensure favorable results, it is best to involve a beneficiary lawyer both when inspecting accountings and challenging them.

Our experienced probate attorneys assist trust beneficiaries every day with their trustee disputes. Schedule a free consultation today with one of our beneficiary representation lawyers to learn how we can help. Stay up to date with what is happening in the exciting world of probate law through our quarterly newsletters. They provide insight into the latest probate developments, discuss some of the more interesting cases Keystone attorneys have worked on, and provide updates about our firm.

They are a must-read. If you like what you see, be sure to scroll down and subscribe. As a beneficiary of a trust, one of the biggest mistakes you can make is to sit idly by while administration takes place. Select a Category. What Is a Trust Beneficiary? Drop files here or Select files.