Can I be both trustee and beneficiary of an irrevocable trust?

My father wants to gift his house ($3 million) to an irrevocable trust, which will then be sold and the proceeds used to buy income producing bonds. I will serve as trustee and he will be the beneficiary of the trust as I care for him. Then, when he dies, he wants me to remain the trustee, but also become the primary beneficiary with my other sibling a minor beneficiary, in that he will receive a smaller portion of the trust income.

Asked on October 19, 2011 under Estate Planning, New York

Answers:

Sharon Siegel / Siegel & Siegel, P.C.

Answered 9 years ago | Contributor

Sorry that I missed your call.  I know you spoke with my partner.  If you need help getting an estimated value, just call me.  I look forward to hearing from you.

 

siegelandsiegel.com

212-721-5300

 

Sharon Siegel / Siegel & Siegel, P.C.

Answered 9 years ago | Contributor

I am a NY lawyer.  The short answer is yes.  An interested person must serve with undivided loyalty to the trust estate.  Although you did not ask, your father should review the exact type of trust with a lawyer.  There are some types of irrevocable trusts (QPRTs , for example) that may provide the beneficiairies of the trust with great tax savings if set up properly. 

siegelandsiegel.com

212-721-5300


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