Convenient Wills, 16 Thomas Avenue, Newcastle-
The Next Step
A ‘discretionary’ trust is a trust in which the trustees decide who is to benefit from the trust’s assets and when. This flexibility allows testators to hand over responsibility of distributing the trust fund after their death to their trustees.
Case study (bankruptcy)
A parent P advised that his son S was going to be made bankrupt by his bank. P’s Will was rewritten so that in the event of P’s death his son’s inheritance would not go to the Official Receiver (to clear the son’s debts) but be retained in the trust fund until the son S was discharged. At that time the trustees would then release S’s inheritance to him so that he could rebuild his life.
After two years son S was discharged of his bankruptcy and P rewrote his will removing the trust clause as it was no longer necessary.