Discretionary Trust

The Discretionary Trust is a very flexible form of trust. It gives your chosen trustee the discretion to provide for your chosen beneficiaries. Most importantly, discretionary trusts give you the comfort of knowing your assets will be protected according to your wishes.

What are the benefits?

Discretionary trusts are most useful where the settlor has identified a group of people they wish to benefit from but is still determining how much help and who will benefit most in the future.

As the settlor, you give the trustees discretion as to how, when, and for whose benefit some or all the capital and income are used.

Although beneficiaries or a class of beneficiaries are named in the trust deed, it is entirely the responsibility of the trustees to decide which of the potential beneficiaries is to benefit.

As the settlor, you may feel it inappropriate to leave your beneficiary in control of the funds;

This could be due to various reasons. If you have children and are concerned about the potential misuse of your assets, you can decide when they will inherit. Discretionary trust is also commonly used to distribute assets to beneficiaries who are disabled or mentally impaired, or who have money or addiction problems. Discretionary trust can also be used to protect inheritance from any third-party attacks, such as divorce settlements.

As well as being a very flexible form of Trust, Discretionary Trusts are also advantageous because the assets remain outside the beneficiaries’ estates for Inheritance tax purposes and are therefore not included in calculating means-tested benefits. Discretionary trust assets and income are also protected from distribution on divorce.

As well as being a very flexible form of Trust, Discretionary Trusts are also advantageous

 Because the assets remain outside the beneficiaries’ estates for Inheritance tax purposes and are therefore not included in calculating means-tested benefits. Trust assets and income are also protected from distribution on divorce.

An inheritance tax specialist can provide tailored advice to help you navigate the complexities of inheritance tax. They can assist in structuring your will, setting up trusts, and making lifetime gifts to reduce the taxable value of your estate. Their expertise ensures that you make the most of available exemptions and reliefs, ultimately protecting more of your wealth for your beneficiaries.

With our continued support, we free you from the burden of worry and provide you with peace of mind that your assets will be inherited by your loved ones when you are no longer here.

At Paradigm Wills and Legal Services, we genuinely care about educating people on the importance of making a lasting power of attorney in Leicester. In an industry often loaded with complex legal jargon and a conveyor-belt mentality, we provide a paradigm shift in how we offer our wills services. We aim to supply fresh ideas, clear and straightforward explanations, and a service tailored specifically to you. With you at the centre, we strive to make the will writing process as transparent as possible.

Contacting us is free. Have a consultation or a home visit with one of our experts and discuss your options with no obligation.

Our team of seasoned legal advisors is always available to offer comprehensive support and expert advice. Whether you're looking to draft a will, establish a trust, navigate the complexities of applying for probate, or arrange for prepaid funeral plans, we've got you covered. Our goal is to simplify these processes for you, ensuring clarity and peace of mind every step of the way.

 

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