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Who should be trustee of a trust?
In most cases, beneficiaries over 18 can decide who the trustee (i.e. the controller or manager) of their testamentary trust is. Usually, the beneficiary will choose to be the trustee of their own trust. Whether or not the beneficiary decides to be trustee, or enlists someone else to be trustee, the terms of the trust should ensure that the trust is for the benefit of the beneficiary only.
Wills from Will Wizard provide every beneficiary with the option to receive their inheritance in a testamentary trust that they control as trustee.
The beneficiary always has the option to receive their inheritance in a trust or not, or to elect someone else to act as trustee of their trust.
The terms of all Will Wizard testamentary trusts ensure that the trust is for the benefit of the beneficiary only.
All Wills from Will Wizard nominate a ‘controlling age’ that beneficiaries must obtain before they can act as trustee of their own trust. Prior to reaching the controlling age, the executor acts as trustee on behalf of the young beneficiary.
Beneficiaries under the controlling age still have access to funds for health, education, living and welfare purposes, but are prevented from spending their inheritance on immature purchases such as an exotic sports car.
Who becomes trustee for children?
All Wills from Will Wizard nominate a ‘controlling age’ that beneficiaries must obtain before they can act as trustee of their own trust. The age you nominate must be over 18 years of age.
Prior to reaching the controlling age, the executor acts as trustee on behalf of the young beneficiary.
Beneficiaries under the controlling age still have access to funds for health, education, living and welfare purposes, but are prevented from spending their inheritance on immature purchases such as an exotic sports car.
What happens when a trustee dies?
When the trustee dies who is not also the primary beneficiary, depending upon the trust terms, the primary beneficiary would usually simply nominate a new trustee.
When the primary beneficiary is also the trustee, and the primary beneficiary dies, what happens to the trust depends on the estate distribution terms and the terms of the trust as per the Will.
For instance, Wills from Will Wizard state on the death of the trustee/primary beneficiary, the testamentary trust is transferred to the primary beneficiary's lineal descendants, who would then have the option to act as trustee of their own trust or to nominate by deed someone else to act as trustee - such as a family member, friend, professional adviser or corporate trustee.
