Non-family members and banks and trust companies who serve as trustees normally charge a fee for their services. Family members typically waive them. The trustee is required to carry out the exact instructions of the trust agreement with diligence and care. For example, a trustee cannot act beyond the authority found in the trust or beyond what a reasonable and prudent person would do under the circumstances. Another asset of the trust is the income produced by the principal.
Beneficiaries are the recipients of the income from the trust property or the trust property itself.
They can be the grantor, the spouse, the children, a charity, or any entity the property owner desires. There can be numerous beneficiaries and they can even succeed one another. For example, income from the trust can be distributed to the grantor s spouse during life and upon the spouse s death, income or principal can be distributed to the children. It is even possible for the same person to play multiple roles, such as that of grantor, trustee, and beneficiary. Living trusts are established by a grantor during his or her lifetime.