Can a trustee be a relative?
The other choice is to name a family member to serve as trustee, such as a sibling of the trust beneficiary or some other trusted family member. The law imposes a “fiduciary duty” on trustees–the duty to act in the best interests of the beneficiary (the person for whose benefit the trust was established).
Can I put my niece as a beneficiary?
If you name your niece or nephew as the “beneficiary” of the 529 plan as a gift, you must add one or both of the child’s parents as the Participant or Owner. This gives them actual control over the 529 account. And the executor and beneficiary of your estate would be well within their legal rights to refuse.
Can I put my niece on my taxes?
You may be eligible to claim both your niece and her son as dependents on your return. In order to claim someone as your dependent, the person must be: Either your qualifying child or qualifying relative.
Can a trustee use trust money for personal use?
The trustee might be paid for their services, but they should not take, borrow, or lend the trust funds or trust income for their own personal use. The trustee can use trust funds to pay filing fees, registration fees, title fees as necessary when transferring assets into the trust’s name.
How do you distribute money from a trust?
Distribute trust assets outright The grantor can opt to have the beneficiaries receive trust property directly without any restrictions. The trustee can write the beneficiary a check, give them cash, and transfer real estate by drawing up a new deed or selling the house and giving them the proceeds.
What are the terms of a trust?
As used in this article, “terms of the trust” means the written trust instrument of an irrevocable trust or those provisions of a written trust instrument in effect at the settlor’s death that describe or affect that portion of a trust that has become irrevocable at the death of the settlor.
What are the four conditions of trust?
In this article, the author discusses the four elements of trust: (1) consistency; (2) compassion; (3) communication; and (4) competency. Each of these four factors is necessary in a trusting relationship but insufficient in isolation. The four factors together develop trust.
Yes, you can claim a relative on your return if you meet the requirements for claiming a qualified relative.
What are the guidelines for serving as a trustee?
If you’ve been named to serve as trustee, these guidelines provide an overview of some of the duties you would generally be expected to perform. You can also use these guidelines to determine if you don’t have the skill, will, or time to administer the trust properly.
What happens if a trustee breaches the trust?
If trustees breach their duties, the beneficiaries may make a claim for all property wrongfully paid away to be restored, and may trace and follow what was trust property and claim restitution from any third party who ought to have known of the breach of trust .
Who is the legal owner of a trust?
The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust.
How are trusts used in the Court of Chancery?
On the King’s behalf, the Lord Chancellor developed a parallel justice system in the Court of Chancery, commonly referred as equity. Historically, trusts were mostly used where people left money in a will, created family settlements, created charities, or some types of business venture.