A family trust beneficiary's rights include the right to information about the trust, the right to distributions from the trust and the right to termination of the trust, according to Legal Zoom. Additionally, the beneficiary has the right of authority over the trustee including the authority to collect damages from the trustee in case the latter mismanages the trust assets and the authority to change the trustee through a court process.Continue Reading
The information right of a family trust beneficiary include an annual report detailing the income and expenditure of the trust, and a report of any investments of the trust made by the trustee, notes Legal Zoom. The distributions that the beneficiary is entitled to include those specified in the trust deed. Although some trustees have discretion to withhold the distributions as stated in the deed, the beneficiary may be entitled to such discretionary distributions in case the trustee, among other conditions, acts with bias in handling various beneficiaries of the trust.
Although laws on trust termination right of a family trust beneficiary may differ from one state to another, beneficiaries in a majority of the states are entitled to this right if they agree unanimously to terminate the trust, states Legal Zoom. Depending on the state, the beneficiaries may be required to have permission from the trustee or grantor, allowing them to terminate the trust. Additionally, a court order to terminate the trust may be a requirement in certain states.Learn more about Financial Planning