So, a Trustee can be the beneficiary and an heir of the estate. The legal document provides authority for that person to distribute assets to the beneficiaries. From a legal standpoint, beneficiaries are certainly eligible to serve as the trustee of an estate. Further, the Trustor should have extremely limited rights within the Irrevocable Trust. This is the case in a trust or other situation such as this. Yes - the trustee and beneficiary may be the same person in an irrevocable trust. The information provided herein is not meant to serve as legal advice and there no attorney/client relationship is meant to be created hereby. In fact, choosing the same person for both roles can streamline how your estate and trust are administered and ensure your wishes are carried out on both fronts. The settlor appoints the trustee and the beneficiary. The trustor is the trustee. If a sole trustee were also the sole beneficiary, then this would be an agreement that a person had with themselves. It is therefore clear that there could not only be one trustee and one beneficiary, who is the same person, as the principle makes it clear that the beneficiary has to be a third party. When the Beneficiary and Trustee are the Same Person. The specific instructions for a Trustee should be clearly drafted in a trust by a qualified estate planning attorney. The trustee of an irrevocable trust must give each “qualified beneficiary” of the trust an annual report, unless a beneficiary states in writing that he or she does not wish to receive the report. In the law of trusts the term "doctrine of merger" refers to the fusing of legal and equitable title in the event the same person becomes both the sole trustee and the sole beneficiary of a trust. Can the same person be the settlor, a trustee and a beneficiary? If they are one and the same person there really is no deed of trust but there's essentially just … The sole trustee cannot be the sole beneficiary because a trust is a legal relationship between a trustee and the beneficiary or beneficiaries. This is typically the purchaser or owner. But can a trustor also be a beneficiary or a trustee? The sole trustee cannot be the sole beneficiary because a trust is a legal relationship between a trustee and the beneficiary or beneficiaries. When you have a trustee who’s also a beneficiary, there’s an inherent potential conflict of interest. An executor manages a deceased person’s estate and a beneficiary is an individual who will inherit that property. If a sole trustee were also the sole beneficiary, then this would be an agreement that a person had with themselves. A trustee is a person or entity that manages a trust according to its terms. However, by having one person control similar but distinct situations, that person may not serve the beneficiary's best interest. Trustee If one individual is a trustee, that one individual cannot be the only Appointor. A successor refers to the person who receives the life insurance payment if the beneficiary dies before the insured individual dies. The settlor may appoint multiple trustees. The same person can generally serve as both estate executor and trustee so long as the appointed individual meets the independent legal capacity requirements to act as an executor and as trustee. The beneficiary or beneficiaries are those whom the trust is intended to benefit. As with a personal representative, the trustee can be a person, an institution, or both may serve as co-trustees. In fact, appointing the same individual to both positions is a fairly common estate planning technique. Relevant provisions – Section 68, of the Indian Trusts Act, 1882. In that case, the Trust Property would no longer be held on trust. When you are creating a will and a trust as part of your estate planning, you need to name an executor as well as a trustee, which can both be the same person, if you wish. The beneficiary is the person who directly derives advantage from the situation. If the trust is revocable, the trustee is obligated to give the annual report only to the trustmaker, i.e., the person who created the trust. Appointor The Appointors role is to appoint and dismiss the trustee. The individual names a successor when he purchases the policy. With that said, at the passing of the settlor/grantor, all trusts straightaway convert to an irrevocable status. An irrevocable trust is a complicated estate planning tool and should be used with extreme caution. In such a case, the trust is sometimes deemed to have terminated (with the result that the beneficiary owns the trust property outright). Let’s take a look at a couple of scenarios. First, the terms of the trust itself may provide procedures for the removal of a trustee. (Note: It doesn't matter if the trust is revocable or irrevocable, because a revocable trust will become irrevocable, upon the Grantor's death, anyway.) Definition as given under Section 3 – Defines beneficiary as the person for whose benefit the confidence is accepted, is called the beneficiary. The settlor may also be a trustee (but not the sole trustee) and they may also be a beneficiary. Though not the case in most instances, there are times when a trust's beneficiary is also named the trustee. You can’t have the trustee and Appointor as the same person… The reason is that a person cannot hold an asset on trust for his/her own benefit. In most situations, in order to accomplish the objectives of the Irrevocable Trust, the Trustor should not be the same person as the Trustee. Depending on the language of the trust, there could be several ways. 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