TRUST
Feb 2, 2023
Table of Contents
I am a trust beneficiary, what should I know?
Key Takeaways
Your Role – As a beneficiary, you are the person meant to receive benefits from the trust.
Trustee’s Duty – Trustees have a fiduciary obligation to act in your best interest and manage the trust according to its terms.
Distribution of Assets – Assets are distributed as directed in the trust deed after the settlor’s death; often equally if multiple beneficiaries.
Tax Implications – Tax depends on your residency and trust type; seek advice for efficient planning.
Practical Tips – Keep your trust documents, review statements, and stay in contact with your trustee.
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
1. Your role in a 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
2. Roles of the trustee
Your trustee has a fiduciary duty to you and takes direction solely from the terms of the trust.
Fiduciary duty means the trustee is expected to act in the best interest of the beneficiaries (i.e. you).
The trustee must act objectively in the management of the trust.
The settlor may specify an individual or company to handle specific duties, such as investing trust assets.
Read your trust document thoroughly and review it with your trustee.
3. When will I receive the trust assets?
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 UTGL'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.
4. Do I have to pay income tax on the money I receive from the trust?
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.
UTGL 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.
5. Tips you should know
Keep a copy of the trust document
Review the account and investment statements you receive
Have meetings with your trustee
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