Which of the following best defines a Silent Trust?

• A. Trust that is hidden from the regulators
• B. Trust that beneficiaries are not informed of
• C. Trust with distributions tied to specified events
• D. Trust for impoverishing the settlor to qualify for government benefits

Answer: (B)

A silent trust is defined by secrecy about the trust’s existence: the beneficiary is not informed that a trust has been set up or about its terms. The settlor directs the trustee to hold or distribute assets for the beneficiary, but the beneficiary remains unaware of the trust. This focus on concealment from the beneficiary is what distinguishes a silent trust from other trust features. The other options describe different ideas (being hidden from regulators, distributions tied to events, or unethical aims), none of which capture the defining secrecy about the trust’s existence.