Unit Three (Key Info) Flashcards
1
Q
BENEFICIARY PRINCIPLE
A
In simple terms, the beneficiary principle is a legal concept that says when someone creates a trust , there must be a specific person or group who will benefit from it. This means that the trust can’t be set up for just any purpose; it has to be for the benefit of someone or something. For example, if you set up a trust fund for your child’s education, your child is the beneficiary because they will benefit from the money in the trust. The beneficiary principle ensures that trusts are created for a clear and valid reason, and that there’s someone who will actually benefit from them.
