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.