Discretionary Trust

Gives the settlor full access to the trust fund. The trust fund is held for the benefit of the settlor’s family.

A discretionary trust is one where the trustees have full discretion on who will benefit and when. However, the settlor has full access to the trust fund during his or her lifetime. On the death of the settlor, the trust fund is held under a discretionary trust for the benefit of the discretionary beneficiaries.

Summary of benefits

  • Flexibility as to who will benefit.
  • A wide class of discretionary beneficiaries.
  • The settlor can be included as beneficiary.
  • Avoids probate if the policy comes to an end on death.

Access our Discretionary Trust Deed

This trust is not effective for inheritance tax (IHT) planning purposes as a chargeable lifetime transfer (CLT) will occur on creation and periodic and exit charges may apply.