Discretionary Trusts In Wills

Summary

Planning for the future can be a bit overwhelming, especially when it comes to making a will. Most people want to make sure their loved ones are taken care of when they’re no longer around, but the way that looks can vary due to different circumstances. In this article, we’ll explore how discretionary trusts in wills can be used to add flexibility to your estate planning. A discretionary trust is a flexible way to leave behind money and assets for your loved ones. Instead of deciding exactly who gets what, you pass that responsibility on to appointed trustees. The trustees can then choose what to pay out, who to pay it to (known as the beneficiaries), how often payments happen, and any other special conditions. In a discretionary trust, you leave some or all of your estate to the trust and pick who might benefit from it. This could even include people who haven’t been born yet. The trustees you appoint then have the power to pick and choose who, from your chosen potential beneficiaries, gets what - which is why it’s called a discretionary trust, as it’s at the discretion of the trustees. A discretionary trust can be useful if you’re not sure how you want to divide your estate when.

Key information

• A group (i.e. your grandchildren and their kids);
• Charities or other groups, like companies or sports clubs.
• Can’t handle their affairs or finances due to age or mental capacity;
• Might lose their benefits if they receive their inheritance as a lump sum;
• Might misuse their inheritance because of addiction or mental health issues;
• Are vulnerable to financial abuse;
• Aren’t very good at managing money responsibly.
• Planning for the future can be a bit overwhelming, especially when it comes to making a will. Most people want to make sure their loved ones are taken care of when they’re no longer around, but the way that looks can vary due to different circumstances.
• In this article, we’ll explore how discretionary trusts in wills can be used to add flexibility to your estate planning.
• A discretionary trust is a flexible way to leave behind money and assets for your loved ones. Instead of deciding exactly who gets what, you pass that responsibility on to appointed trustees.
• The trustees can then choose what to pay out, who to pay it to (known as the beneficiaries), how often payments happen, and any other special conditions.
• In a discretionary trust, you leave some or all of your estate to the trust and pick who might benefit from it. This could even include people who haven’t been born yet.

Practical guidance

• Source: Discretionary Trusts In Wills

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