Can a Beneficiary be a Trustee?
Discussion
Hi all,
My mum wants to set up a discretionary gift trust to pay for her funeral when she's had enough of planet Earth.
She's picked up a form to complete and needs help filling it in. The notes section is a little thin on the ground but I think she's filled it in correctly with the exception of whose name to put on the policy.
The form does advise that she doesn't actually need to put a Trustee and could just write down a Beneficiary.
She wanted to put me as both, but I wanted to check if that's ok to do.
Basically, she wants to put a few thousand to one side so that her funeral can be afforded. Despite the fact that I'm more than capable of covering the costs, she would just be happier knowing it's covered. There's only me, no siblings and very little extended family that will eventually get something from her estate once it's all settled.
I've probably put way more detail than necessary but i just wanted to paint a picture that we're talking about a few thousand to pay for a funeral, she has a full will set up for everything else. Even in death the thought of her owing for anything unsettles her.
Many thanks
David
My mum wants to set up a discretionary gift trust to pay for her funeral when she's had enough of planet Earth.
She's picked up a form to complete and needs help filling it in. The notes section is a little thin on the ground but I think she's filled it in correctly with the exception of whose name to put on the policy.
The form does advise that she doesn't actually need to put a Trustee and could just write down a Beneficiary.
She wanted to put me as both, but I wanted to check if that's ok to do.
Basically, she wants to put a few thousand to one side so that her funeral can be afforded. Despite the fact that I'm more than capable of covering the costs, she would just be happier knowing it's covered. There's only me, no siblings and very little extended family that will eventually get something from her estate once it's all settled.
I've probably put way more detail than necessary but i just wanted to paint a picture that we're talking about a few thousand to pay for a funeral, she has a full will set up for everything else. Even in death the thought of her owing for anything unsettles her.
Many thanks
David
Breadvan72 said:
A beneficiary of a trust can also be a trustee thereof. He or she must act in the best interests of all beneficiaries.
There may be off the shelf products for funeral costs. Less hassle than a bespoke trust.
Many thanks...virtual beers etc. Or if you ever need buying advice for a Honda I'm your man. There may be off the shelf products for funeral costs. Less hassle than a bespoke trust.
sparkythecat said:
My old man just bought himself an off the shelf funeral plan. When the day came some years later all we had to do was phone the funeral director, who dusted off the envelope and carried out Dad's instruction for his funeral.
Exactly what happened with both my Mum and Mum-in-Law. And the beauty of having a prepaid funeral is that you are protected against any cost increase!All we did was phone the funeral company and that was it. Mum(s) had both picked their coffins, songs, etc. Made it so easy for us.
Why does she need to do anything?
Her funeral costs are removed from any tax calculations on her estate, so as long as she doesn't spend all her money before she goes, there will be some left to pay for her funeral and it will make no difference whatsoever to anything else she has left.
The banks will give you the money to cover it as long as you show them the death certificate.
Her funeral costs are removed from any tax calculations on her estate, so as long as she doesn't spend all her money before she goes, there will be some left to pay for her funeral and it will make no difference whatsoever to anything else she has left.
The banks will give you the money to cover it as long as you show them the death certificate.
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