Can I create a trust, serve as the trustee and be the trust beneficiary?
Yes, in most states. Historically courts concluded that there was no need for a Trust when the Trustee was also the beneficiary. (The legal and equitable titles were said to have “merged”.) However, now, in most states, if it is done right, a Trust Creator may establish a revocable Trust, serve as the initial Trustee and be able to obtain immediate benefits as a Beneficiary from Trust property.
The answer: it depends. Historically courts concluded that a trust was not necessary when the trustee was also the beneficiary. In most states now, a trust creator may establish a revocable trust, serve as the initial trustee, and be able to obtain immediate benefits as a beneficiary from trust property. In other states, courts find that the creator of the trust has not relinquished enough control over the trust property to create a valid trust. It is what courts commonly refer to as an ?illusory? trust. Do I Need a Lawyer to Draft a Will or Trust? If you choose to create a will or trust, consulting with an attorney experienced in estate planning is always a wise thing to do. The potential tax implications and legal formalities of will and trust drafting make a lawyer’s counsel indispensable. A lawyer can explain all your options and help you understand what types of wills or trusts are right for you and your family.
