Define: Definite Trust Beneficiaries

A definite trust beneficiary is an individual or entity specifically named in a trust document to receive the trust’s assets or benefits.

Definite trust beneficiaries are typically designated by the settlor (the person creating the trust) in the trust document. The settlor has the authority to name specific individuals or organisations as beneficiaries.

In most cases, the settlor has the power to modify or revoke the trust, including changing the designated beneficiaries. However, once the settlor passes away, the beneficiaries become fixed and cannot be changed.

Definite trust beneficiaries have the right to receive distributions or benefits as outlined in the trust document. They also have the right to be informed about the trust’s administration and to challenge any actions that may be detrimental to their interests.

In certain circumstances, a definite trust beneficiary may be removed if there is a valid reason, such as misconduct or a change in circumstances. However, this typically requires court approval and must be supported by strong evidence.

Yes, a definite trust beneficiary can contest the trust if they believe there are grounds for doing so. Common reasons for contesting a trust include lack of capacity, undue influence, fraud, or improper execution of the trust document.

In some cases, a definite trust beneficiary may have the ability to sell or transfer their interest in the trust. However, this is subject to the terms of the trust document and any applicable laws or restrictions.

The timing of distributions to definite trust beneficiaries depends on the terms of the trust. Some trusts may provide for immediate distributions, while others may specify certain conditions or age requirements before beneficiaries can receive their inheritance.

Yes, a definite trust beneficiary can be a minor. In such cases, the trust document may include provisions for managing and distributing the trust assets on behalf of the minor until they reach a certain age or milestone.

Generally, after the settlor’s death, the beneficiaries become fixed and cannot be changed. However, there may be exceptional circumstances where a court may allow for changes to the beneficiaries, such as if there was a mistake or ambiguity in the trust document.