Partners | ||||
 |
Andrew Cross Partner |
Shrewsbury (Castle Street) | ||
Solicitors | ||||
 |
Margaret Ryan Solicitor |
Shrewsbury (Castle Street) | ||
Legal Executives | ||||
 |
Ann Whittingham FILEX |
Shrewsbury (Castle Street) | ||
Legal Assistants | ||||
 |
Sarah Carswell Probate Executive |
Shrewsbury (Castle Street) | ||
Support Staff | ||||
 |
Gaynor Evans Secretary |
Shrewsbury (Castle Street) | ||
 |
Mairi Keane Secretary |
Shrewsbury (Castle Street) | ||
 |
Alwyn Thomas Secretary |
Shrewsbury (Castle Street) | ||
Please visit the Probate, Wills & Trusts section of our Library for more relevant news and articles about this topic.
Discretionary Trust
The assets in the trust (the ‘trust fund’) are held for the benefit of one or more beneficiaries and the trustees can make choices about how much to give to which beneficiaries and when. There are three ways to do this:
1.For the benefit of the settlor’s children and future grandchildren, with each becoming entitled to his/her share of the fund at a specified age (often in the past called an ‘Accumulation and Maintenance Trust’)
This is the most common will trust for children and grandchildren, with discretion over payment of income until each child becomes entitled to their share in the estate at a given age.
2.Naming various beneficiaries (which may include the settlor’s widow(er)) who are to benefit at the trustees’ discretion according to need
This type of trust is useful for those of you who wish to defer the decision about who gets what and when. The decision could then be made by the trustees depending upon the circumstances or needs of the beneficiaries at any given time, bearing in mind tax consequences then applicable, and is the most flexible form of trust.
3.For a disabled person (sometimes called a ‘Disabled Trust’)
This type of trust allows disabled beneficiaries to benefit from favourable inheritance tax and capital gains tax treatment if certain conditions are met. However, if benefits are being claimed by the disabled beneficiary we advise a full discretionary trust so that the beneficiary can continue to receive benefits and indirect assistance from the trust fund.
