Beneficiaries

Question 1

Disclaimer of Trust

Answer 1

A beneficiary cannot be forced to accept interest in a trust

The beneficiary may disclaim an interest by filing a written instrument with trustee (or probate court if trust is created by will)

Question 2

Time For Making A Disclaimer

Answer 2

Some states require the beneficiary to disclaim interest within 9 months of creation (does not apply if under 21 years of age)

Other states do not impose a time limit and may disclaim as long as they’re not estopped

Question 3

Estoppel - Disclaimer

Answer 3

A beneficiary will be estopped from disclaiming interest if they have exercised any dominion or control over the interest or accepted any benefits under the trust.

Question 4

Definiteness of Beneficiaries

Answer 4

Beneficiaries may be unascertainable when the trust is created but must be ascertainable when they are to benefit.

Question 5

Unascertainable beneficiary Remedy

Answer 5

Resulting Trust - If a trust fails because of a lack of beneficiaries the trust will revert to settlor or his successors