There are many advantages of writing a discretionary trust within an estate planning exercise. Each families needs, and therefore each case we handle, is different. A discretionary trust gives the trustees the power to decide when to pass on the estate to beneficiaries.  This is important when, for example, circumstances are changing and a protected position is sought.

If a beneficiary is going through personal difficulties, a relationship breakdown or divorce, or a personal or business insolvency, it may be inappropriate for this particular beneficiary to inherit what is intended for them at the time death occurs. Any inheritance at this stage could have negative effects and for example form part of a divorce settlement, and thus leave part of the estate open to an undesired beneficiary in the form of an ex-spouse.

 

awards