Who Can See Your Trust? Understanding Beneficiary Rights

Estate planning can be a sensitive topic. One of the primary tools for such planning is a trust, which can provide both flexibility and security in the distribution of assets. However, a common question arises: Who exactly gets to see the contents of a trust? Let's unravel the mystery surrounding this topic.

The Essence of a Trust

At its core, a trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in multiple ways and can specify exactly how and when the assets pass to the beneficiaries.

When Can a Beneficiary See the Trust?

While a trust might exist for the benefit of specific individuals, that doesn't necessarily mean they have an immediate right to view its contents. The typical protocol is that a beneficiary is only privy to the details of the trust once they become an "active" or "current" beneficiary.

For example, if parents set up a trust leaving all their property to their children, the children don't have a legal right to see the trust details while the parents are alive. Only upon the parents' passing, when the children become active beneficiaries, are they entitled to view the trust.

Transparency in Trusts

Although the law sets out when a beneficiary must be allowed to see a trust, practicality and clarity often call for a more open approach. It's usually beneficial to inform trustees and potential beneficiaries of a trust's existence. 

There are several reasons for this: