CREATING A DISCRETIONARY
ABOUT THE BOOK
If the trust is discretionary, the trustee must decide what property to pay a beneficiary. Suppose I give all my money to buddy X to share among my children as he sees fit. Settlors are invited to write a letter of desires, but trustees must use their own judgement in operating the trust.
DISCRETIONARY TRUST ADVANTAGES
The trust may prevent bankruptcy losses. X gives his money to sons A and B. If B declares bankruptcy, the Trustee must pay him his half of the property, even if it goes to creditors. If the trustee had discretion over how to divide A and B's property, he or she may refuse to pay B if the money went to creditors. He would withhold payment until the bankruptcy was over.
When managing a discretionary trust, trustees have specific tasks. First, they must follow the discretion. If the trust stipulates "the trustee must distribute the money at their discretion among A, B, and C," there's no money for D. Second, the person granted discretion must exercise it; you cannot transfer it; the trustee must pick the proper path.
AIMS OF THE BOOK
Through this Law Book, people will be able to learn:
Demonstrate that you are familiar with the basics of setting up a discretionary trust.
Analyze difficult legal issues that concern a discretionary trust.
Make a discretionary trust using the knowledge you have gained, or work with your solicitor to do so.
Present your case and assess opposing viewpoints.
Use legal jargon and other specialised words appropriately.
Take control of your own Will and be ready for what's coming.
The aim and purpose of this book of the law is to:
All individuals and prospective individuals who need a discretionary trust should be introduced to the basic concepts and legal principles.
Information about the structure for establishing a discretionary trust Write it in the context of a larger slice of reality.
Give them a thorough manual to assist them in creating a discretionary trust.
Encourage the development of a person's ability to do independent research and analysis.
Encourage the development of estate planning solutions.
CHAPTER 1 INTRODUCTION
CHAPTER 2 - THE DISCRETIONARY TRUST
CHAPTER 3 - FAMILY PROTECTION TRUSTS
CHAPTER 4 - TAX ISSUES
CHAPTER 5 - THE TEMPLATE (TRUST DEED)
CHAPTER 6 - LETTER OF WISHES