Beneficiaries and Named Beneficiaries of Discretionary Trusts

A discretionary trust can have two kinds of beneficiary relationship in StructureGram. This article explains the difference, when to use each, how they appear on diagrams, and what happens when you import from or send to Xero Practice Manager (XPM).

The Two Relationships

One person can hold both. For example, a primary beneficiary you also distribute to has a Beneficiary row (from XPM) and a Named Beneficiary row (because the deed names them). The two are independent: each has its own dates and its own display setting.

These relationships are available on discretionary, hybrid, testamentary and deceased-estate trusts. Other trust types take only some of them; see Beneficiary Relationship, by Trust Type.

Which One to Use

• Use Named Beneficiary only for someone the deed names.
• Use Beneficiary for everyone else, including people you distribute to who fall within the deed's general class.
• If you're not sure, use Beneficiary. Nominating someone as a Named Beneficiary is a claim about the deed.

Distributions work with either. A distribution to someone who holds either relationship on the trust is accepted without a warning about the beneficiary.

Adding Them

From the trust

1. Open the trust and click Add Relationship.
2. Choose Has beneficiary or Has Beneficiary (Named).
3. Choose the beneficiary and save.

From the beneficiary

1. Open the individual or company and click Add Relationship.
2. Choose Beneficiary Of or Named Beneficiary Of, then the trust.

To make a trust a beneficiary of another trust, add it from the trust it benefits, as above. A discretionary, hybrid, testamentary or deceased-estate trust's own page doesn't offer both options.

Nominating someone who is already a beneficiary

Add a Named Beneficiary relationship for the same person, as above. Their existing Beneficiary relationship stays as it is, and stays linked to XPM. To remove the nomination, delete the Named Beneficiary relationship; the Beneficiary relationship is not affected.

Where You See Them

• Entity pages: the relationships list shows "Has beneficiary:" and "Has beneficiary (named):" on the trust, and "Beneficiary of:" and "Beneficiary (Named) of:" on the beneficiary. On an individual's page, whose list is divided into sections, both sit in the Ownership section.
• Diagrams: see below.

On Diagrams

Named Beneficiary groups (Diagram Settings → Display → Grouped entities) gathers a trust's Named Beneficiaries into one grouped node under the trust. See Beneficiary Groups.

• Only Named Beneficiaries go in the group. Plain Beneficiaries are always drawn as their own lines.
• Someone who holds both, with Named Beneficiary groups on: they appear in the group, and their Beneficiary line is drawn too.
• Someone who holds both, with Named Beneficiary groups off: both relationships would be drawn as lines between the same two boxes, so only one is drawn: the Named Beneficiary line. This applies only while the Named Beneficiary relationship is shown and current at the diagram's date. If it has ended, or its display is turned off, the Beneficiary line is drawn as usual.

Each relationship's dates are applied separately, so with an "as at" date (Snapshot Filtering) a nomination that ended still leaves a current Beneficiary line in place.

Importing from XPM

XPM has one beneficiary relationship, Beneficiary Of. In XPM it is what lets a distribution flow from the trust's return to the beneficiary's return, so it records who the practice distributes to, not what the deed says.

• "Beneficiary Of" always imports as a Beneficiary, never a Named Beneficiary. XPM can't say whether the deed names someone.
• A pull never changes a relationship between the two kinds. If you've nominated someone, the next pull leaves the Named Beneficiary relationship alone, and only updates the linked Beneficiary.
• The trust needs a trust type. If the trust has no type yet, the pull skips its beneficiaries and asks you to choose one (for example Discretionary trust, Testamentary trust or Bare trust), then pull again. The rules for a beneficiary depend on the trust type.
• Units in a unit trust import as a unitholder instead. See Data Required to Import from XPM.

Sending to XPM

• A Beneficiary is sent as "Beneficiary Of": from a group push, a single push, or reconciliation.
• A Named Beneficiary is never created in XPM. A group push and reconciliation leave it out. If you push one on its own, the push fails and nothing is created in XPM.
• To make someone a beneficiary in XPM, give them a Beneficiary relationship in StructureGram and push it.
• Reconciliation compares only the Beneficiary relationships with XPM, so a nomination never shows up there as a difference.

See Push to Xero Practice Manager and XPM Reconciliation.

Why Your Diagrams Changed (October 2026)

Before 25 October 2026, an XPM "Beneficiary Of" on a discretionary, hybrid, testamentary or deceased-estate trust was imported as a Named Beneficiary, so everyone the practice distributed to appeared in the trust's Beneficiary group. That has now changed:

• Every Named Beneficiary linked to XPM was changed to a plain Beneficiary, keeping its XPM link and dates.
• A Named Beneficiary was kept beside it where there was reason to: someone you had added yourself or written a note on, and individuals on trusts with no more than three individual beneficiaries.
• Companies and trusts imported from XPM, and individuals on trusts with four or more, are now plain Beneficiaries only. If the deed names them, add a Named Beneficiary relationship.

So a trust's Beneficiary group may now list fewer people than before. Check it against the deed, and nominate anyone missing.

Related Topics

• Trust Entities
• Beneficiary Groups
• Distributions
• Data Required to Import from XPM
• How to Pull Data from XPM
• Push to Xero Practice Manager
• XPM Reconciliation