A Discretionary Trust is a legal arrangement you can set up in your Will or whilst you are alive, where you arrange for your estate or a proportion of your estate assets to be looked after by your trustees for the benefit of beneficiaries.
When you create a Discretionary Trust the trustees become the legal owners of the relevant assets. These relevant assets are then held in trust and known as trust property. Your trustees will be responsible for handling your trust property for the benefit of your beneficiaries. As part of this responsibility the trustees will need to use their discretion to decide how best to utilise the income for the beneficiaries and the capital of the trust property. It is normal and sensible to guide them in exercising this responsibility through the trust deed or leaving a letter of wishes.
Our expert trust solicitors will be able to advise you on the best method of structuring and administering the trust.