Discretionary Trust
What is a Discretionary Trust?
Discretionary Trusts are a way to ensure that your assets are kept specifically for the people you intend to inherit from you.
This is an effective way to ensure that your wealth and assets are protected for your Beneficiary and safeguarded from being wasted in the future.
Discretionary Trusts are an excellent way to ensure your assets stay within your immediate bloodline.
Contact Legal & Contract Services Ltd today for expert knowledge in creating comprehensive Discretionary Trusts.
Generally, this Trust will be included within your Will and set up upon your death. Trustees need to be appointed to manage the Trust and the Trust assets will be distributed at the discretion of the Trustees.
This is an effective way to ensure that your wealth and assets are protected from being included in Beneficiary divorce or bankruptcy proceedings in the future. This is the best way to ensure your assets stay with your immediate bloodline.
Many people avoid Trusts as they believe they are purely for the super-wealthy which simply is not true, they are available to everyone.
A Discretionary Trust can be a useful way for co-habiting couples to utilise both of their Inheritance tax allowances.
Disabled Beneficiary Trusts are an essential part of planning for your family’s future should you have a disabled child/ vulnerable adult. The Trust, set up upon your death, can make provision for the disabled/ vulnerable person whilst ensuring that funds are not used indiscriminately.
Vulnerable adult Discretionary Trusts are an excellent way to make provision for individuals who are unable to manage their own finances due to substance misuse, alcohol dependency or gambling.
LCS advise clients that all Discretionary Trusts should be accompanied by a ‘Letter of Expressed Wishes’ from the client to the Trustees. This letter should give direction to the Trustees as to how you would wish the funds to be distributed, this is just direction as you are unable to dictate what should happen.
Trust FAQs
What is the purpose of a trust?
How does a trust Work?
Who Creates a Trust?
What is a Trustee?
Trusts offer a means of holding and managing money or property for people who may not be ready or able to manage it for themselves. Trusts can protect your assets, such as your home. They can help ensure that your assets are passed on in accordance with your wishes after you die.
A Trustee should be appointed to legally manage and administer the Trust in accordance with the wishes of the person creating the Trust.
A Trust can either be set up by you during your lifetime or by your Trustee after your death and in accordance with your Will.
Trustees are the ‘legal holders’ of any Trust property and they manage and distribute the Trust assets. There can be one or more Trustees.