What Beneficiaries are Protected?
When named as a beneficiary, protection becomes automatic. There is no required notice to anyone, including notifying the beneficiary.
A relative, a friend, or a company could be a beneficiary, or share with related (or unrelated) beneficiaries.
You can name a charity, your favorite school, or share with them.
Most trusts benefit the creator and spouse during their lifetime, then shift benefits to children or others.
Then, some trusts shift the benefits further, after the existing beneficiaries are gone.
You can limit, restrict, monitor, or delay benefits. Properly drafted, you can even modify proceeds or beneficiaries.
You can exclude anyone, exclude benefits, control distributions, or ignore anyone entirely.
You can set up benefits to someone with problems or that is connected to problems of others, anonymously if you want. This allows you to deliver basic needs like food and shelter, while protecting against their lifestyle or their associates. This keeps everything separate from their divorces, spouses, tax problems, or other disputes.
If you decided to be anonymous, they could not plead for more benefits or relaxed distributions.
The trust may even remain private to everyone. This allows for benefits to children of former marriages, former partners, or other undisclosed beneficiaries, such as an unpopular family member or political movement.