Can a trustee also be a beneficiary?

Note: An Individual Trustee Cannot Benefit from the Trust

Within our trust deed, no income or capital of the Trust may be paid, transferred beneficially to, or applied for the benefit of an individual trustee. This excludes standard remuneration, such as Trustee’s fees.

If this poses a concern, and you still require a beneficiary to benefit from the trust, consider one of the following options:

• Register a corporate trustee, which may benefit from the trust.
• Appoint an individual trustee who will not benefit from the trust.

Understanding Trustee and Beneficiary Roles

While a trustee can also be a beneficiary under general trust law, our specific deed prohibits an individual trustee from benefiting directly from the trust, except for receiving legitimate fees for their service. This is to avoid any potential conflicts of interest and to uphold the trust’s purpose.

In some cases it may be ideal to nominate more than one trustee, regardless of the type. This approach helps mitigate risks associated with the incapacity or death of a single trustee, ensuring continuity and stability in the management of the trust.

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Updated — Jul 1, 2024