question.jpgIn Trusts and Estates

What are the requirements for a trust beneficiary?

There are generally not many requirements one must meet to qualify as a beneficiary, aside from the fact that the beneficiary must have legal capacity to hold title to property (because as beneficiary, the person receives the trust property’s equitable title). This means that any living person can generally be a beneficiary, as can any corporation or business entity which is legally capable of holding property. The beneficiary can be, and often is, the person who actually created the trust (the settlor), and this is fine as long as part or all of the legal title is given to someone other than the settlor. Similarly, a trustee can also be a beneficiary of the trust, as long as there is at least another beneficiary or trustee (so that one person does not have all of the equitable and legal title).