DISCRETIONARY TRUSTS AGREEMENT

WHEN TO USE THIS DOCUMENT

 This document is a deed for a Discretionary Trust. It is not for use as part of a Will.

 A trust deed forms a legal a arrangement which means that people, known as trustees, are appointed in the deed. The Trustees become the legal owners of the assets which form the trust fund and so the Trustees are responsible for managing that trust fund.

 The person who places the assets in the fund and who “makes” the trust is called a settler and the people who benefits from the trust are called beneficiaries.

 A discretionary trust is a particular type of trust which is flexible. The deed allows the Trustees to have a lot of discretion when dealing with the trust fund such as how they will

• Use any income received by the trust and
• Distribute (how much, when and to whom etc.) the trust fund and
• Impose conditions on beneficiaries

 Discretionary trusts have a number of uses including for use for the future of disabled children and adults and there are tax implications.

 This documents sets out the basis of the discretionary trust and comes with guidance notes does not include any advice such as when to use a discretionary Trust.

THIS DOCUMENT CONTAINS THE FOLLOWING:-

• Full definitions.
• Declaration of Trust.
• Power of appointment and removal.
• Powers of investment, borrowing, lending and appropriation.
• Power to vary administrative provisions.
• Power to delegate.
• Ability for trustees to be paid professional fees and commission.
• Limitation of trustee’s liability.

HOW TO USE THIS DOCUMENT

 This is a MS Word document and is easy to use. The document uses blue text to provide extra guidance and notes and green text where you will customise your document to suit the circumstances in which it is used.
 

File Type: Word File