What Are the Different Types of Trust Beneficiaries?
When a trustor dies, his or her trust beneficiaries are entitled to receive their shares of trust assets in accordance with the trustor’s instructions. The manner in which assets are distributed depends on the various rights that have been given to each of the beneficiaries. A key factor in determining possession rights is whether each of the beneficiaries has a vested interest or a contingent interest in trust assets. Fixed trust beneficiaries and discretionary beneficiaries are other categories of trust asset recipients. Most trust beneficiaries are people, although an entity, such as a school or charitable organization, may also be a named beneficiary.
