Discretionary Trust Wills

What is a discretionary trust?

A discretionary trust is a flexible trust that enables you to name several possible beneficiaries and trustees, giving the trustees discretion to choose who receives what, when, and how. This can be a very useful tool if you have beneficiaries who are young, beneficiaries with differing needs, a beneficiary who has alcohol, drug, or gambling problems or a beneficiary whose spouse you dislike.

The trustees have the discretion to pay income to beneficiaries or to delay any payments for a number of years (up to a maximum of 125 years).

A discretionary trust can be set up in a will or during a lifetime, depending on your specific circumstances and what you aim to achieve. However, there are very complex rules as to lifetime trusts and there can be tax implications for these, so it is essential to ensure professional advice is taken.

A discretionary trust can also be a way of safeguarding assets for future generations. You may write your will at the age of 60 when you have children in their 30’s and very young grandchildren. However, if you died at the age of 90 then your children, who are in their 60’s, may be very comfortable and have no need for the inheritance. Instead, your trustees could use their discretion to allow the monies to skip the older generation and pass to the grandchildren and even pass tax-free.

Discretionary trusts are a great way of trying to ensure your wishes are met in ever-changing circumstances. However, they are very complex and there can be tax implications depending on your estate, so it is essential to take professional advice before entering into any form of trust.

Give our expert team of wills and probate solicitors a call for more information – Doncaster 01302 341414 or Sheffield 0114 272 1884.

There are lots of different types of Wills. Our team can advise you all about: