Discretionary trust
Discretionary trust

The following Private Client precedent provides comprehensive and up to date legal information covering:

  • Discretionary trust
  • Background
  • 1 Definitions and interpretation
  • 2 Principal trusts
  • 3 Trusts of income
  • 4 Power to pay or apply capital
  • 5 Trust on expiry of the Trust Period
  • 6 Ultimate default trust
  • 7 Alteration of class of beneficiaries
  • 8 Restrictions on exercise of powers
  • More...

This TRUST is made on [date]

Parties

  1. 1

    [settlor] of [address] (the Settlor) and

  1. 2

    [original trustees] of [addresses] (the Original Trustees)

Background

    1. (A)

      The Settlor wishes to make this Trust for the benefit of the beneficiaries and has transferred to the Original Trustees [£[amount] cash] to be held on the following trusts.

    1. (B)

      Further assets may in the future be transferred to the Trustees (as defined below).

    1. (C)

      [This Trust shall be irrevocable.]

    1. (D)

      [The Original Trustees agree to act as the first Trustees.]

This Deed provides:

    1. 1

      Definitions and interpretation

      1. 1.1

        In this Trust:

        Beneficiaries

        1. means (subject to clause 7) the following persons:

          1. (a)

            the Settlor’s [widow OR widower] whether or not remarried;

          2. (b)

            the descendents of the Settlor [but subject to clause 11];

          3. (c)

            the spouses and any widow or widower (whether or not remarried) of the descendents of the Settlor,

        and Beneficiary has a corresponding meaning;

        Charitable

        1. means charitable (and exclusively charitable) according to English law;

        Charity

        1. means a trust, corporation, association, society or other institution established only for charitable purposes and Charities has a corresponding meaning;

        [[Spouse

        1. or spouse includes:

          1. (a)

            a person treated or registered as a civil partner under the Civil Partnership Act 2004; and

          2. (b)

            a spouse of the same sex,

          and a person is a surviving spouse whether or not he or she remarried or entered into another civil partnership and widow and widower shall be construed accordingly;]

        Trustees

        1. means the Original Trustees or

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