Should You Keep a Trust Quiet (Silent) From Beneficiaries?

Wealth transfer to younger generations is one of the biggest concerns for families today. Many families feel that the younger generations aren’t ready to handle the wealth they’ll receive; in fact, only one-third of wealthy parents have fully disclosed their wealth to their children. The perceived unpreparedness, along with a concern for privacy and wealth preservation or asset protection, are some of the key non-tax reasons that many families establish trusts. Beneficiary quiet trust statutes generally provide the settlor the flexibility to waive beneficiary notice of trust assets and keep trust information silent from one or more beneficiaries.

This article highlights the key benefits of keeping a silent trust from beneficiaries.