Class Gifts

Question 1

Can a settlor name a class as beneficiary?

Answer 1

Yes - provided that the class is sufficiently definite

(“My kids” - definite; “My friends” - not definite)

Question 2

Do beneficiaries have to be identified at the time of trust creation?

Answer 2

No - but they have to be susceptible of identification by the time their interests come into enjoyment (i.e. vest)

Question 3

Can the settlor give the trustee discretion to select class members?

Answer 3

Yes - so long as the members are reasonably definite - if it’s too broad, it will be invalid.

Question 4

Is survival of a class member required to share in a future gift?

Answer 4

Typically no - however, the express terms of the trust will control.