The beneficiaries of an asset are on the receiving end of rights and assets, according to a will. However, your rights can vary – depending on the type of trust you are part of.
Your Rights as A Beneficiary for a Revocable Trust
If you are included as a beneficiary in a revocable trust, you don’t have as many rights as you think you do. That’s because the Trustor has the right to change, alter and even terminate the trust any time without giving a reason for it.
Plus, he/she can also remove or add beneficiaries any time without giving notice. However, as a beneficiary you have the right to disbursements that are mentioned in the trust for you and you can also get in touch with the Trustor for business-related issues pertaining to the trust.
Your Rights as a Beneficiary For an Irrevocable Trust
If you are a beneficiary of an irrevocable trust, you have more rights than beneficiaries of a revocable trust. Some of those rights may be unique to you. Some of the rights you are likely to get include the following:
- You can request information from the Trustee, if required.
- You can receive an accounting each year.
- You have the right to receive disbursements from the trust fund, according to the terms in the trust.
- You have the right to ask that a Trustee be removed if he/she is not doing his/her job properly. This has to be done in court.
- You can petition the court to terminate a trust under certain conditions. However, only a judge can decide on this.
If you have been a beneficiary in a trust fund before, you know how beneficial estate planning can be. It isn’t only meant for the affluent. Without a plan in place, your family members may not get the financial support they need after you pass away, especially if you are the main breadwinner. Whether you want to pass on a stock portfolio or real estate, an estate plan can ensure they are taken care of.
However, the laws can differ from one state to another. To eliminate costly errors, you should get in touch with an estate planning attorney at Jackson Abdalla Law Group. We can help you set up a trust and provide the assistance you need with other estate planning considerations. Get in touch with us in Elgin, IL, today.