Trust Advice

PPLdude

PPLdude

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Hey guys,

So my dad wants to open up a trust where I am the beneficiary. This will be 1% of the business. Say if a 3rd party sues the company or if there was illegal activity involving the trust, can I be liable for anything? Can they (3rd party) sue me because i'm a beneficiary?

Not sure if im making any sense.
 
static_sa said:
Hey guys,



So my dad wants to open up a trust where I am the beneficiary. This will be 1% of the business. Say if a 3rd party sues the company or if there was illegal activity involving the trust, can I be liable for anything? Can they (3rd party) sue me because i'm a beneficiary?



Not sure if im making any sense.
Click to expand...


Short answer, no. Depending on what the illegal activity is, the trustees of the trust could however be liable. It could however affect what you are entitled to get out as a beneficiary though.
 
Trusts are wonderful tools for managing wealth and ensuring that your 'wishes' or will gets executed properly. They are expensive to setup and maintain and they do get taxed heavily. They offer a lot of protection to the beneficiaries, which is hard to find anywhere else.

I would suggest you contact the legal advisers whom your dad is using to setup the trust and ask them regarding the legal implications that you speak of. They will handle the queries as confidential and probably have dealt with similar situations before.
 
Trustees will or should be held responsible for any actions of the trust. Beneficiaries usually only feel the pain of their dubious actions
 
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