Each and every beneficiary to a family trust should enjoy these rights:
- The beneficiary should have the trust explained to her in understandable written English.
- Knowing what benefits her, the beneficiary should have active input in creating the vision, mission and goals of how the trust will be administered for her benefit.
- Given that the benefits of a trust flow from how its assets are spent, the beneficiary should have a voice in setting the trust’s policy for distributions and expenses, including its budgets.
- A beneficiary should have significant input in devising a trust investment policy that supports its goals and asset outflows.
- A beneficiary should have a trustee who treats her with due respect and also demonstrates the highest intentions to serve the beneficiary’s interests.
- A beneficiary should have recourse for any disloyalty of the trustee.
- A beneficiary should receive full and prudent disclosure of the trust’s administration.
- A beneficiary should not have to sue to remove or constrain a trustee who violates her rights.
- A trust’s success should be measured by how it has enhanced the beneficiary’s life.
These rights are limited only by the trust document, by the trust laws, and by the specific resources available and other practical realities.
These rights live alongside the grantor’s vision and terms. In my experience, the grantor’s rights often need greater advocacy than the beneficiaries!
Photo by Esther Ann on Unsplash© 2015 – 2023 Daniel P. Felix, all rights reserved.
