It’s not uncommon for parents or grandparents to establish trust for future generations. If you’re a trust beneficiary, you should know the terms and conditions, as well as the role of the trustee.
Losing a family member or a close friend is one of the hardest experiences you’ll ever have to face. It can also place you in a new legal position: being named in a will or trust
You are the person whom the settlor (i.e. the contributor of the trust assets) has given the assets to be cared for. Simply, you are the person who will ultimately benefit from the trust
Your trustee has a fiduciary duty to you and takes direction solely from the terms of the trust.
Read your trust document thoroughly and review it with your trustee.
In the event of the death of the principal, the trust company will strictly enforce the distribution of assets to the beneficiaries in accordance with the terms of the trust deed with reference to the wishes and proportions set by the Settlor during his lifetime.
The terms of UniTrust’s trust deed state that upon the death of a principal, the trustee has the discretion to liquidate the trust assets and distribute them to the beneficiaries. Unless otherwise stated, if there is more than one beneficiary, the trust assets shall be distributed equally to the beneficiaries.
It is subject to your tax residency and the type of trust. Talk to your tax advisor regarding how the trust and distributions will be taxed.
UniTrust may ask beneficiaries for a passport or ID copy to verify the beneficiaries’ identity and understand whether the beneficiaries reside in a high-tax country. UniTrust can assist in planning the allocation arrangement to achieve the most tax-efficient solution.
