Gifts to a class such as “heirs” are acceptable because the scope of individuals comprising “heirs” can be defined by applicable intestacy statutes. To the contrary, gifts to a class such as “friends” is unacceptable because it is impossible to ascertain the identities of all of the settlor’s friends. This trust would fail for a lack of definite beneficiaries.
Definite Trust Beneficiaries
Definite beneficiaries are a requirement of an express trust along with trust property, trust intent, and a trustee. This means that the identities of the beneficiaries must be ascertainable. As long as there are objective standards on which to define the parameters of the group of beneficiaries, the trust will not fail for lack of definite trust beneficiaries.
