Beneficiaries of a trust do not necessarily have to know about the trust details or its existence.
A potential way to avoid the problem of unintended consequences of a trust is by using a silent trust, according to Financial Advisor in “I Have a Trust?“
As the name implies, a silent trust keeps beneficiaries in the dark about the existence or some of the details of the trust, until a later specified time. This could be upon reaching a certain age or graduating from college.
It is not always a good idea to tell a young person that they can expect to receive large trust distributions in the future, because it can reduce their motivation for successful accomplishments.
However, beneficiaries cannot be negatively affected by a trust if they do not know about it.
However, there is a major drawback.
Beneficiaries who do not know about a trust, cannot monitor the trustee to make sure the trustee is not disregarding his or her fiduciary duty.
The rules concerning silent trusts vary greatly from state to state. Some states do not allow them.
A wills and trusts attorney can advise you on the creation of a trust that will fit your unique circumstances.
Do You Need To Speak With An Attorney About Estate Planning?
If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.