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In Case You Get Hit by a Bus: How to Organize Your Life Now for When You're Not Around Later

How Beneficiaries Reap The Reward Of A Trust

This article on Trusts is provided by Everplans — The web's leading resource for planning and organizing your life. Create, store and share important documents that your loved ones might need. Find out more about Everplans »

Beneficiaries of a Trust are the people or organization(s) who are named as the recipients of any benefits of the Trust. The beneficiaries can be anyone you like, but will usually depend on the goals of the Trust.

Choosing Beneficiaries Of A Trust

If you're setting up a Trust that's intended to avoid Probate and seamlessly transfer assets to your family, you'll likely want to name your family members as the beneficiaries. If you're setting up a Trust intended to hold assets for your grandchildren, you will likely name those grandchildren as the beneficiaries. A Trust that is intended to provide support for a charitable organization will likely name the charity as the beneficiary.

Beneficiary Distributions

Based on the goals of your Trust and the number of beneficiaries you name, you can decide how you would like those beneficiaries to receive distributions. For example, if you have three children you may name all three of your children as equal beneficiaries or you may name them as unequal beneficiaries, with each child receiving different distributions. 


You may also decide whether or not the beneficiary designation applies to linear descendants—that is, whether or not your children’s children would become beneficiaries in the event that one of your children should die before the assets in the Trust are fully depleted.

To learn about how to name trustees, see our article Trustees.

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