Which statement about trust terms is typically accurate for third-party self-settled trusts?

Beneficiaries often lack control over the trust is an accurate statement regarding third-party self-settled trusts due to the nature of such trusts. In this type of arrangement, the settlor creates the trust and typically does not retain the power to alter or revoke it, which ensures that the trust assets are protected from being accessed by creditors or being influenced by the beneficiaries’ decisions.

The structure of self-settled trusts generally places the authority and discretion in the hands of a trustee, who manages the assets and makes decisions in accordance with the trust's terms. As a result, beneficiaries may have limited visibility and input regarding the management of the trust assets and potential changes to the trust terms. This design promotes a level of protection for the assets while limiting the beneficiaries’ ability to assert control over the trust, aligning with the intent of the trust's creation.

Understanding this distinction is crucial for those involved in guardianship and trust law, as it highlights the protective nature of third-party self-settled trusts and the ensuing lack of control experienced by beneficiaries.