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Discretionary trust – settlor excluded

Overview

A discretionary trust provides clients with control and flexibility over how wealth is distributed.

Quick facts

  • For use with the Collective Investment Bond.
  • Available under the law of England & Wales and Scotland.
  • This is a trust where your client, the settlor, cannot be included as a beneficiary.
  • The settlor chooses their trustees. They can also appoint themselves as a trustee. We would recommend appointing an independent trustee.
  • Classes of beneficiary are defined within the deed; for example, ‘children and decedents of the settlor’. Beneficiaries not covered by the classes can be added to the trust by the settlor.
  • The trustees use their discretion to decide who may benefit from the trust and when.
  • The beneficiaries cannot demand their rights from the trustees.

Suitability

Technical support