Discretionary trust?

rodney2012

Hi
As joint executor and trustee of a will which splits things jointly into discretionary trusts. Can anyone explain in layman’s terms what this means.
Rodney 

Keep_pedalling

It means you have bern lumbered with a major headache. Unless the trusts are for vunarable beneficiaries then DTs are usually a terrible idea as far as management and taxation are concerned.

Can you provide some detail into why these trusts have been created?

Alderbank

rodney2012 said:

Hi
As joint executor and trustee of a will which splits things jointly into discretionary trusts. Can anyone explain in layman’s terms what this means.
Rodney 

Here's an article which explains them better than I can...

Discretionary trusts in Wills - what are they?
https://www.clarionsolicitors.com/articles/discretionary-trusts-in-wills-what-are-they

RAS

Please can you type out the exact wording, removing any names or addresses? Presumably England or Wales.

rodney2012

each of the two trustees/executors is required to hold the fund on the following trusts
125 year
to apply capital and income for benefit of beneficiaries as trustees think fit 
they may exercise their discretionary powers when and how think fit
section 11 and 19 of trustees act shall not apply

Keep_pedalling

rodney2012 said:

each of the two trustees/executors is required to hold the fund on the following trusts
125 year
to apply capital and income for benefit of beneficiaries as trustees think fit 
they may exercise their discretionary powers when and how think fit
section 11 and 19 of trustees act shall not apply

That does not help us much, can you provide the actual wording as requested by RAS please? 

Are all the beneficiaries adults? Are any of the beneficiaries vulnerable adults? 

If they are all adults and the answer to the second question is no, I think I would be off loading this trust by distributing the lot in one go. 

rodney2012

Sorry just a bit nervous about posting it all word for word. All beneficiaries are adults

Keep_pedalling

rodney2012 said:

Sorry just a bit nervous about posting it all word for word. All beneficiaries are adults

As long as you don’t include the personal details it will be fine, just redact the names.

RAS

And remember that once you've got 10 posts, you can edit your post once you've got advice, to remove anything else you think might be recognised.

rodney2012

i will shortly but meanwhile, keep pedalling says that they would offload the trust by distributing the lot in one go. I assume you need to record that in some way as the trust is established by the will, which is obviously a legal document. Would we need to involve solicitors to do that properly?

RAS

To clarify what you said above and in your first post.

The will divides the estate 50:50. 

Each half is designated as a separate trust with different trustees? And the beneficiaries of each trust are different? 

And the beneficiaries of both trusts are adult? 

What sort of value is the whole estate after IHT, round figure ish?