A Discretionary Trust is one of the most common and popular Trust solutions as a result of its ability to achieve a wide range of objectives, while retaining flexibility.
What is a Discretionary Trust?
One of the most versatile types of Trust available, in that it provides flexibility in terms of who can benefit from the Trust. In particular, this flexibility arises because the original Settlor can be both a Trustee and a Beneficiary under the Trust. The Settlor has the comfort of knowing that although the Beneficiaries are named, the Trustees have the discretion, if circumstances alter, to change the Beneficiaries or change the level of beneficial interest they may have in the Trust at any time in the future. This is often an important consideration when the Beneficiaries are young when the Trust is established.
The Settlor can be a Trustee and a Beneficiary. You might use this Trust if...