Managing the Best Interests of Multiple Beneficiaries of Trusts

Winter 2017 – Managing the Best Interests of Multiple Beneficiaries of Trusts by Michael D. Kelly, CPA was published in the Winter 2017 issue of Delaware Banker (Delaware Bankers Association)

SEE ALSO >>> ESTATE & TRUST SERVICES

EXCERPT FROM ARTICLE…

Trusts are set up for many different reasons and in many different forms, but no matter the reason they will always have at least one beneficiary. In some cases, they will have multiple beneficiaries which will usually consist of an income and a remainder beneficiary. These two beneficiaries, who are likely benefiting from the trust at different points in time, may disagree over the type of assets with which the trust invests. Income beneficiaries usually prefer assets that produce income (i.e., dividends, interest, royalties, etc.) while remainder beneficiaries are probably more concerned with the growth of the principal assets. Investment choices that do not align with both parties’ interests or do not accurately reflect the intention of the trust documents could create potential disagreements in future years.

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