Discretionary trusts


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DISCRETIONARY TRUSTS. Those which cannot be duly administered without the application of a certain degree of prudence and judgment; as when a fund is given to trustees to be distributed in certain charities to be selected by the trustees.

References in periodicals archive ?
Remedies provided to exception creditors of spendthrift trusts and discretionary trusts vary from state to state.
There's no indication that there's any desire from the discretionary trusts to move away from the investment.
In some cases the capital appreciation of an asset held in the Nil-Rate Band Discretionary Trust can outgrow the increase in the Nil-Rate Band.
Ms Elliott said: "You can decide to leave your discretionary trust will in place and when the first spouse or civil partner dies their estate can be distributed entirely to the surviving spouse or civil partner.
33) Because of these standards of conduct, certain creditors are deemed to have enforceable rights against discretionary trusts under both the Restatement (Third) and the UTC.
Whatever the circumstances, discretionary trust arrangements can provide a protective umbrella and a flexible financial planning vehicle for the next generation and beyond.
There are GST issues with many total discretionary trusts.
Furthermore it does not mean that discretionary trusts should avoid investing in dividend producing assets but should consider holding such investments in a suitable investment wrapper.
If the trust is a discretionary trust, this would protect your financial position and your future.
Furthermore, if income is not being distributed from a discretionary trust, then it will be taxed at up to 50%.
Alison Burn, partner in Ward Hadaway's private client team illustrates how nil rate bands work in discretionary trusts in practice when a spouse passes away
Assets sheltered in discretionary trusts do not attract inheritance tax and trustees have discretion on their disposal, he points out.