Tuesday, December 14, 2010 NEET Tips
NEET Tips answers questions posed online to the NEET website.
Can a beneficiary of a trust also be a Trustee?
Yes, trust beneficiaries are often also a Trustee of the trust. However, it takes careful drafting to avoid various tax traps that can inadvertently include the trust assets in the taxable estate of a trustee, among other potential problems. Selecting beneficiaries and trustees requires balancing many factors, including tax ramifications, the suitability of a particular person to take on the trustee’s responsibilities, and asset protection, among other considerations.
See the article: Choosing a Successor Trustee
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