Can the sole trustee be the sole beneficiary?

The sole trustee cannot be the sole beneficiary because a trust is a legal relationship between a trustee and the beneficiary or beneficiaries. The law says that no trust can exist in these circumstances. However, a trustee can be a beneficiary of the trust as long as there is at least one other beneficiary as well.

Who can be a beneficiary of a family trust?

The beneficiaries are the people entitled to the income and assets of the trust. The beneficiaries of the trust are usually members of a family (family group), as well as companies and trusts that are controlled by that family.

Is there an age limit for a trust?

In Alberta, a minor is someone under the age of 18. A minor’s trust may continue beyond the age of 18, depending on the wording of a: will. court order.

Can a person be sole beneficiary of a trust?

When there is only one individual trustee and the same person is the sole beneficiary of the trust, this will be an invalid trust. The reason is that a person cannot hold an asset on trust for his/her own benefit. In such a situation, a company can act as a trustee with a sole director and that same person can be the sole beneficiary of the trust.

Who are the beneficiaries of a family discretionary trust?

A Family Discretionary Trust is created by a legal document called a “trust deed”. identifies various parties such as initial Beneficiaries, Trustees & Appointor. The beneficiaries of a family discretionary trust are usually family or related members of the same family.

Can a corporate trustee be the beneficiary of a trust?

“A corporate trustee can be the beneficiary of the trust – as long as you include the trustee’s name and their capacity. For example, ‘ABC Pty Ltd in its capacity as the trustee of the ABC Family Trust’. In this case, the trustee is effectively a beneficiary of the discretionary trust for the beneficiaries of the trustee’s own trust.”

When does beneficial ownership of trust assets pass?

Due to this trustee’s discretion, the beneficial ownership of assets of the trust does not pass to any beneficiary till “vesting date”. The Trustee has legal ownership, but not the beneficial ownership of trust assets.