how does a beneficiary attorney work with trust attorney family trust

What rights do you have as a beneficiary of an irrevocable trust?

As a beneficiary of this type of arrangement, though, you have specific rights under state estate planning laws . A trust is a legal document where the grantor transfers assets to a trustee, ...

Who manages the assets of a trust?

The trustee manages the assets on behalf of the recipient. For example, this includes investing assets, paying taxes on specific assets, and creating written records. For family trusts, the beneficiary is a relative of the grantor. Most are revocable unless the arrangement states otherwise.

Can an irrevocable trust be changed?

With this, the grantor can modify the terms, terminate it altogether, or even change beneficiaries. An irrevocable trust cannot be changed or terminated unless by court order. However, beneficiaries have greater rights here since the recipient designations cannot typically be altered.

What is a trust in estate planning?

A trust is a legal document where the grantor transfers assets to a trustee, which is the person or entity that acts as the manager of the assets.

Do beneficiaries have a right to information?

Beneficiaries also have a right to information. For example, they should understand what the trust provides, such as educational expenses, and how it's administered. In other words, recipients must understand how the trust works so that they can enforce their rights.

Can a trustee be removed from a trust?

Ability to Remove the Trustee. Under specific circumstances, this person can be removed from their duties. To do so, they must petition the court for the removal. This can be done if they believe that the individual is not properly managing the trust in the best interest of the recipients.

Can a beneficiary terminate a trust?

Additionally, a beneficiary may terminate it, with the court's permission. If all of them agree to end it, then they can petition the court for the trust's termination. For example, if the trustee fulfills the legal document's purpose, such as providing college tuition, then the court may grant the termination request.

What is contingency fee?

In a contingency fee arrangement, the attorney handles your trust litigation, and the attorney’s fee is a portion of any settlement or court award obtained in the case. The arrangement allows people to obtain legal representation without paying any upfront costs.

Can a trustee sue a trust?

At least not in the beginning of your trust lawsuit. Trustees are in a position of power at the beginning of any lawsuit. In theory, the trustee has a right to use trust assets to conduct trust business including hiring a lawyer for a lawsuit.

How to contact Frank and Kraft?

If you have additional questions or concerns about administering a trust, contact the experienced Indianapolis trust administration attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

What is a trust relationship?

Trust Fundamentals. A trust is a relationship whereby property is held by one party for the benefit of another. A trust is created by a Settlor, also called a Maker or a Grantor, who transfers property to a Trustee. The Trustee holds that property for the trust beneficiaries.

How many beneficiaries can a trust have?

A trust must have at least one beneficiary but may have an unlimited number of beneficiaries. A trust may have both current and future beneficiaries. If the trust is a testamentary trust, it means the trust will not activate until the Settlor’s death.

Who is Paul Kraft?

Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.

Is a trustee a fiduciary?

A Trustee is in a fiduciary role. Therefore, guarding the principal should always be the primary focus with a return on investments secondary. Mediating conflicts among beneficiaries . Conflicts and disputes among beneficiaries can occur during the administration of a trust.

What are the duties of a trustee?

Among the most common specific duties and responsibilities of a Trustee are the following: Protecting the trust assets. A Trustee is responsible for managing and protecting all assets held by the trust. This could include anything from reconciling bank statements to maintaining real property.

What happens if you make a mistake in a trust?

Mistakes made during the administration of a trust are frequently the result of a Trustee’s failure to understand what is expected of him/her and/or failing to have a clear understanding of the trust terms. Moreover, you could be held personally liable for mistakes made during the administration of the trust.

Why do you need a trust for your family?

Most importantly, a family trust can help to minimize estate taxes once the trust grantor passes away. Estate and gift taxes could take a significant bite out of your wealth but trusts can be helpful for minimizing the tax burden for wealthier investors.

What is a family trust?

A family trust is a specific type of trust that families can use to create a financial legacy for years to come. There are several benefits to creating one, including ensuring your family members receive your wealth.

How to create a trust for a family?

The first step in creating a family trust is typically talking with an estate planning attorney to make sure this type of trust is right for you. There are a variety of trust options you can use in estate planning, something with very specific purposes and others that are more general.

Who manages the assets in a trust?

The trustee is the person who manages the assets in the trust on behalf of the beneficiaries. The beneficiaries are the individuals who receive some type of financial benefit from the trust, similar to a beneficiary for a life insurance policy. A family trust has just your family members as the beneficiaries.

Is a trust revocable?

A living trust is a type of trust that takes effect during your lifetime. A revocable trust can be altered or terminated at any time. An irrevocable trust is permanent. With a revocable family trust, you can act as your own trustee, ...

What is irrevocable trust?

An irrevocable trust is permanent. With a revocable family trust, you can act as your own trustee, naming successor trustees to take over the reins if you become incapacitated or pass away. With an irrevocable trust, you’d have to name someone else to act as the trustee.

What is a trust for surviving spouse?

Overview of Different Types of Trusts. Marital Trusts (“A” Trust) Established by one spouse for the benefit of the other. The surviving spouse gets assets in the trust along with any income. This allows surviving spouses to avoid paying taxes on assets during their lifetimes.

What are the benefits of a trust?

Establishing a trust can have many benefits, like: 1 Establishing conditions on how and when assets are distributed after death 2 Reducing estate taxes 3 Helps to better protect assets from creditors 4 Helps to avoid probate

What is the purpose of a trust in Pennsylvania?

When a Trust is established in Pennsylvania, the goal is usually to place as many assets into the Trust as possible. This allows the assets to both be used for the Grantor's benefit during their life and to help the assets pass to named beneficiaries upon death. The creation of a trust also allows most of the assets to skip Pennsylvania's probate ...

Why do you need an irrevocable trust?

An irrevocable trust is usually preferred if the Grantor has a goal of reducing estate taxes as well as taxes against property held within the trust that continues to generate income.

What is a trustee in a trust?

The Trustee is either an individual or corporation that is named as having the ability to take title to any property on behalf of a beneficiary. The trustee is usually responsible for managing and maintaining any property held within the Trust. Further, the Trustee is usually charged with overseeing any investments that are held within the Trust.

How long does probate take?

However, the probate process can be cumbersome and can take months to complete. Once a Trust is established, it serves to supplement a Will and allows assets to bypass probate entirely and be distributed to named beneficiaries immediately ...

Who is the beneficiary of a trust?

The Beneficiary is the person that benefits from the establishment of the Trust. It is not uncommon for there to be more than one beneficiary named in a Trust and the named Beneficiary (s) can be anyone from siblings to employees and anyone in between.

What is the difference between a revocable trust and an irrevocable trust?

A revocable trust allows for maximum flexibility in that the property held within the Trust may be revoked at any time. This means that the terms that helped to establish the Trust may be changed and the assets that were placed into the Trust may be returned to ...

How long do you have to sue a trustee?

Finally, the accounting must inform the beneficiaries that they have only three years to sue the trustee if they think the trustee is acting improperly. If a trust beneficiary wants to challenge the legal sufficiency of a trust in court, the beneficiary has only a limited time to do so.

Who is the trustee of a trust?

The Trustee, who is also a beneficiary, has hired attorneys for the trust. The Trustee says all questions from the beneficiaries must go through him and is denying the beneficiaries any access to correspondence with the attorneys. The Trustee also claims to be named as the sole beneficiary to a few of the larger accounts ...

Can a trustee sue a beneficiary?

The trustee must either personally deliver a copy of the notice to the beneficiaries or mail the notice to them. If the trustee does not provide the required notice, the beneficiaries can sue the trustee. The trustee must usually provide an accounting to the beneficiaries at least one time every year.