Q&As

The two trustees of a discretionary trust established under a post-death deed of variation do not get along. The beneficiaries are grandchildren of the deceased. One of the trustees wants to split the trust fund so that they can carve out their children's fund and continue to manage this. How can this be done? There is a power to appoint at absolute discretion and to transfer any part of the trust fund to any person to be held on trust.

read titleRead full title
Published on LexisPSL on 03/11/2020

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

  • The two trustees of a discretionary trust established under a post-death deed of variation do not get along. The beneficiaries are grandchildren of the deceased. One of the trustees wants to split the trust fund so that they can carve out their children's fund and continue to manage this. How can this be done? There is a power to appoint at absolute discretion and to transfer any part of the trust fund to any person to be held on trust.

The two trustees of a discretionary trust established under a post-death deed of variation do not get along. The beneficiaries are grandchildren of the deceased. One of the trustees wants to split the trust fund so that they can carve out their children's fund and continue to manage this. How can this be done? There is a power to appoint at absolute discretion and to transfer any part of the trust fund to any person to be held on trust.

We have assumed that the discretionary trust is subject to the relevant property regime for inheritance tax (IHT) purposes.

For guidance on restructuring trusts generally, including a discussion about how this may be done, the use of powers to effect it and the possible tax implications, see Practice Note: Taxation of trusts—restructuring

Related documents:

Popular documents