Q&As

Is there any way a prospective beneficiary of an already established discretionary trust can be removed?

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Published on LexisPSL on 09/03/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • Is there any way a prospective beneficiary of an already established discretionary trust can be removed?

Is there any way a prospective beneficiary of an already established discretionary trust can be removed?

See Practice Note: Creation of trusts—discretionary trusts for information on the nature of a discretionary trust.

Under a discretionary trust, the trustees are given a discretion to pay or apply income or capital or both, to or for the benefit of all or any one or more exclusively of the others, of a specified class or group of persons. Accordingly a discretionary beneficiary has no entitlement to benefit under the trust.

Consider the terms of the trust document to see whether there are any provisions which can be used to remove the prospective beneficiary.

A discretionary trust often includes a provision for the trustees to change the beneficial class by adding or removing beneficiaries. This is often included because of the considerable flexibility it gives. By way of example, see clause 7 of Discretionary trust.

See Practice Note: Trustees—power of advancement. A power of advancement may be used by the trustees to resettle

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