How Do I Terminate a Family Trust? RE: the Saunders v Vautier Ruling

pphillips

Voyager2002 said:

Perhaps you need to enquire why the money is in trust rather than paid to you directly. The most obvious explanation is tax: be aware that if (at your insistence) the trustees pay everything to you and terminate the trust, you might face a large and unnecessary tax bill.

Far better to negotiate with the trustees to enable you to obtain enough money to do what you want to do rather than forcing their hands.

No, the most obvious explanation is to protect the money. For example the beneficiary might be: irresponsible with money, bankrupt, relient on benefits or is being assessed for local authority care fees.

The money in a discretionary trust is subject to tax on exit and on anniversary, so the longer the money  is kept in trust the more tax is payable.

Your advice shows that you don't understand the role of the trustees or how a discretionary trust operates.