Irrrevocable Trust

[b .mccann]

New York

Is it permissible to be both the trustee and a beneficiary in an Irrevocable Trust?

 

[curb1]

Yes. It becomes more sticky when a person is trustee and the only beneficiary. Why do you ask the question? Any more information?

 

[tranquility]

You cannot be both the trustee and SOLE beneficiary.

But, you can be the trustee and A beneficiary.

 

[b .mccann]

The IT has 3 beneficiaries. One is both trustee and beneficiary. My concern was that this person is precluded from the benefits because of their role as trustee. One other question: Can beneficiaries be designated in any way the grantor chooses without restriction as to "per stripes" or "per capita"? (If they are outside the "blood" family.)

 

[curb1]

1) You said, "My concern was that this person is precluded from the benefits because of their role as trustee." Your concerns are not valid. The trust documents will lay out the direction of the trustee. The trustee cannot "shoot from the hip" just because s/he is the trustee. It is very common for a trustee to be one of the beneficiaries. The key is for the other beneficiaries to stay in touch with the process.

2) You asked, "Can beneficiaries be designated in any way the grantor chooses without restriction as to "per stripes" or "per capita"? (If they are outside the "blood" family.)"

Yes.

 

[tranquility]

My concern was that this person is precluded from the benefits because of their role as trustee.

No. But, you need your attorney to describe things to you. If the trustee has unfettered discretion to give money, creditors can get at all a beneficiary can get at.

Can beneficiaries be designated in any way the grantor chooses without restriction as to "per stripes" or "per capita"? (If they are outside the "blood" family.)

The trust can give any benefit it wants.

It seems the OP is planning on writing up his own trust. I suggest an attorney. A trust changes things and the OP does not seem to understand basic ramifications.