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Who and what is a Beneficiary? You (husband and wife, or individual) are the Beneficiary(s) of your Revocable Living Trust until you die. After you die, your heirs become the Beneficiaries (or the “successor” Beneficiaries) and receive their inheritance according to the instructions you have put in your Trust. This space is where you describe who your “successor” Beneficiaries are and how you want your stuff divided up among them. Below are some of the most common asset distribution methods as “examples.” If one of these examples describes what you want to have happen with your stuff once you are gone, write, say, “Example 1” here. You do not have to follow one of these methods. If none of them fit, just type a description of what you want to have happen with your stuff once you are dead. Beneficiary: An individual(s) designated in a will to receive an inheritance, or the individual(s) designated to receive the proceeds of an insurance policy, retirement account, trust or other asset upon the death of another individual. A husband and wife are the Beneficiaries of their Revocable Living Trust until they are deceased. Likewise, an individual is the Beneficiary of his/her Revocable Living Trust until they die. Examples of possible Trust asset distributions methods Example 1: (Most common method) Split all my stuff equally among our/my natural (including adopted) children. If any of my children predecease me, then follow our/my blood line and give their share to their children (your grandchildren). If any of my children predecease me and leave no posterity, split their share up equally among my other children. Example 2: I don’t think that my children should be given a large chunk of money until they are mature enough not to blow it. So, on their 21st birthday give that child 25% of their share of my estate; on their 25th birthday distribute 30% of their remaining share; on their 28th birthday distribute the balance of their share. (You can create whatever staged distributions scheme you want.) Optional: (Usually included) At the Successor Trustee’s sole discretion, the Successor Trustee may make additional distributions to any of the Beneficiaries from their share for the Beneficiaries “health, educations, support and maintenance.” (This accounts for situations such as a minor child, extreme medical needs, purchase of a home, tuition, etc. that may not be covered adequately by their percentage distribution). Example 3: A. If you want to give part or all of your estate to a charity(s), you must specify the exact name of the organizations, the address of the administrative offices, and, preferably, their Federal Tax ID number. You will then specify a percent or dollar amount to be given. Here is a sample: 10% to Utah Youth Village, Inc. 5800 South Highland Drive Salt Lake City, UT 84121 Federal Tax ID #87-0301014.
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