Can a trust be named after the beneficiary or must it include 'spendthrift'?

Full question:

Does the name of the trust have to be that of the grantor of the trust or can the name of the trust be that of the beneficiary of the trust? Also, if there is a spendthrift provision in the trust, does the name of the trust have to include the word spendthrift?

  • Category: Trusts
  • Date:
  • State: Michigan

Answer:

The name of a trust can be based on the beneficiary's name. There is no requirement for the trust name to include the grantor's name. Additionally, a spendthrift trust must have a specific clause that restricts the beneficiary's ability to transfer their interest, but it does not need to include the word 'spendthrift' in its title.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

If a trust does not name a beneficiary, it may lead to complications. Generally, a trust must have a beneficiary to be valid. Without a named beneficiary, the trust assets could be distributed according to state intestacy laws, which may not align with the grantor's wishes. It's advisable to clearly name beneficiaries to avoid legal issues.