Trust Grantor Definition

A beneficiary is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often happens in sophisticated commercial transaction structures.

In a Revocable Living Trust, the grantor and the trustee are usually the same person.Beneficiaries: the people who will receive the benefit of the trust's assets. The Grantor (you) is the original beneficiary, and those who receive benefits after your passing are known as "remainder beneficiaries".

The short answer is yes, a trustee can also be a trust beneficiary. One of the most common types of trust is the revocable living trust, which states the person's wishes for how their assets should be distributed after they die.

The Revocable Trust tax implications, following the death of the Grantor, impact both the Grantor's Estate and the Beneficiaries'.However, any income earned by the Trust assets or principal after the date of the Grantor's death is reported in a separate tax return for the Trust.

The grantor (as an individual or couple) transfers their assets to an irrevocable trust. However, unlike other irrevocable trusts, the grantor can be the income beneficiary. Their children or spouse would be the residual beneficiaries.

The person or people benefiting from the trust are the beneficiaries. Because a revocable trust lists one or more beneficiaries, the trust avoids probate, which is the legal process of distributing assets of a will.

Beneficiaries of a trust typically pay taxes on the distributions they receive from the trust's income, rather than the trust itself paying the tax. However, such beneficiaries are not subject to taxes on distributions from the trust's principal.

Someone who inherits money from a revocable trust receives it tax-free, but the estate might have to pay estate tax on everything that it contains before distributing it.

If you are talking about an irrevocable trust, then no, the grantor should not be the trustee. One of the purposes behind an irrevocable trust is to typical get assets OUT of the grantor's estate, for various reasons. Having the grantor as a trustee (or beneficiary) would defeat that purpose.