Absolute or discretionary trust

Our trusts are available on an absolute or discretionary basis. The choice of trust will depend on the individual's financial and family circumstances, and the amount of control that the individual wishes the trustees to have.

Absolute trust

Feature: The gift into trust is a potentially exempt transfer. It is useful where the settlor needs to make a large gift to reduce inheritance tax and the donor is confident that he/she will not need to change the beneficiaries.

Drawback: Beneficiaries cannot be changed and can demand the trust property at age 18.

Discretionary trust

Feature: The gift into trust is a chargeable lifetime transfer. The trustees have control over who will benefit and when.

Drawback: Subject to the relevant property regime.