View source for Beneficiary Of Trust

In the trust law, '''beneficiary of trust''' is an individual (e.g. a spous or minor), a group of individuals (e.g. relatives) or an [[organization]] (e.g. corporation, governmental institution, charity) profiting from a trust. A trust may concern more than one beneficiary<ref> Goldstone H., Hughes J., Whitaker K. (2015)., pp. 30 </ref>. 

The creation and operation of a trust involves the following three parties<ref> Goldstone H., Hughes J., Whitaker K. (2015)., pp. 30 </ref>: 
* '''grantor''' (creator/ settlor), an individual transferring a property which is concerned the body or corpus of a trust. Grantor names the beneficiaries of the trust. 
* '''trustee''', a person who administers a trust in accordance with pertinent local regulations and the terms and conditions of the trust. A trustee coordinates distribution of benefits to the beneficiary of the trust..
* '''beneficiary''', a receiver of the income or property from the trust.

==Basic Rights of Beneficiaries==
A beneficiary is entitled to<ref> Webb Ch., Akkouh T. (2007)., pp. 20-27 </ref><ref> Goldstone H., Hughes J., Whitaker K. (2015)., pp. 218-220 </ref>:
* a copy of a trust
* challenge the terms of a trust within 120 days from when one received a notice about the trust 
* receive a fiduciary accounting every year or upon a request
* sue the trustee for breach of trust or malpractice
* obtain the sufficient [[information]] about the trust and its [[management]]
* use profits from the trust to fulfil purposes named in the trust (e.g. education, funeral expenses), if any. Otherwise, the beneficiary is free to utilize profits to their liking. Once a particular purpose is achieved, the trust  terminates. Sometimes, lifelong trusts are established as well.

==Legal Title vs. Beneficial Title==
Trusts are a special type of property [[holding]]. A holder of '''the legal title''' to a property under trust, '''a trustee''' does not hold the absolute ownership. The trustee is obliged to govern the property for the benefit of a beneficiary. Thus, it is '''the beneficiary''' that holds '''the equitable (beneficial) title''' to trust property<ref> Webb Ch., Akkouh T. (2007)., pp. 16 & 17 </ref><ref> Brown G., Myers S. (2008)., pp. 215 </ref>.

Sometimes, a sole beneficiary may become a co-trustee. However, when a sole beneficiary turns out to be a sole trustee and therefore holds both the legal and equitable title, the trust fails. This is due to the fact that these two titles give the absolute ownership<ref> Webb Ch., Akkouh T. (2007)., pp. 2-4 </ref>.

==Footnotes==
<references/> 

{{infobox5|list1={{i5link|a=[[Mandatory disclosure]]}} &mdash; {{i5link|a=[[Vesting order]]}} &mdash; {{i5link|a=[[Confession Of Judgment]]}} &mdash; {{i5link|a=[[Fiduciary bond]]}} &mdash; {{i5link|a=[[Absolute assignment]]}} &mdash; {{i5link|a=[[Adverse Action]]}} &mdash; {{i5link|a=[[Nominee shareholder]]}} &mdash; {{i5link|a=[[Good faith bargaining]]}} &mdash; {{i5link|a=[[Liabilities of directors]]}} }}

==References==
* Brown G., Myers S. (2008)., [https://books.google.pl/books?id=2-TtzVLWuqUC&printsec=frontcover&dq=BrownG.,+Myers+S.+(2008)+%27%27Administration+of+Wills,+Trusts,+and+Estate%27%27+Cengage+Learning&hl=pl&sa=X&ved=0ahUKEwjNj_ag6e_lAhWxM-wKHYZqBCwQ6AEIKjAA#v=onepage&q=grantor&f=false''Administration of Wills, Trusts, and Estate''] Cengage Learning
* Goldstone H., Hughes J., Whitaker K. (2015)., [https://books.google.pl/books?id=NR6JCgAAQBAJ&pg=PA280&dq=Goldstone+H.,+Hughes+J.,+Whitaker+K.+Family+Trusts:+A+Guide+for+Beneficiaries,+Trustees,+Trust+Protectors,+and+Trust+Creators&hl=pl&sa=X&ved=0ahUKEwjZ0IvP7O_lAhVMK5oKHfJFDQkQ6AEIKzAA#v=onepage&q=%22beneficiary%20trust%22&f=false''Family Trusts: A Guide for Beneficiaries, Trustees, Trust Protectors, and Trust Creators''] John Wiley & Sons. Suffolk
* Hoffman W., Raabe W., Smith J., Maloney D. (2012)., [https://books.google.pl/books?id=qnkPAQAAQBAJ&pg=SA20-PA1&dq=Hoffman+W.,+Raabe+W.,+Smith+J.,+Maloney+D+Study+Guide&hl=pl&sa=X&ved=0ahUKEwjO5rvz7O_lAhUoyaYKHbxFBZUQ6AEIKDAA#v=onepage&q=%22trust%22&f=false''Study Guide''] Cengage Learning 
* Van der Merwe C., Du Plessis J. (2004)., [https://books.google.pl/books?id=ggxAhLBuOegC&pg=PA187&dq=Beneficiary+Of+Trust&hl=pl&sa=X&ved=0ahUKEwjzv6L3wPHlAhUH2aQKHcLzCzoQ6AEIPjAC#v=onepage&q=Beneficiary%20Of%20Trust&f=false''Introduction to the Law of South Africa''] Kluwer Law International
* Webb Ch., Akkouh T. (2007)., [https://books.google.pl/books?id=lBp5CgAAQBAJ&pg=PA245&dq=Webb+Ch.,+Akkouh+Trusts+Law+5th+Edition&hl=pl&sa=X&ved=0ahUKEwiDxbOn7-_lAhXLYlAKHc5ACMoQ6AEINDAB#v=onepage&q&f=false''Trusts Law''] Macmillan International Higher [[Education]]

{{a|Piotr Łabuz}}
[[Category:Economics]]