Understanding Discretionary Will Trusts

A discretionary Will trust is like a gift box for your assets. With this legal trust arrangement, your trustees (the people you appoint in your Will) have the authority to decide how your assets are distributed among your beneficiaries.

Let’s look at some of the situations where a discretionary Will trust could be advantageous.

When Can a Discretionary Will Trust Be Useful?

Protecting Vulnerable Beneficiaries

If you have beneficiaries who may struggle to manage an inheritance – like minors or individuals with specific needs – a discretionary trust ensures their financial security until they’re better equipped.

Tax Planning

Concerned about taxes? A discretionary trust can be a smart move. Trustees can make distribution decisions that potentially ease the tax burden on beneficiaries.

Preventing Family Conflicts

Family dynamics can be intricate. A discretionary Will trust allows trustees to make impartial decisions, reducing the potential for disputes.

Adapting to Change

Life is unpredictable. A discretionary trust offers flexibility to adjust plans as circumstances evolve, ensuring your wishes are honoured.

How do I include a Discretionary Trust in my Will?

Creating a discretionary Will trust requires careful planning. Carisma Wills can guide you through the legal aspects and help tailor the Will trust to your specific needs.

Remember, a discretionary Will trust isn’t a universal solution. It’s a personalised tool designed to match your unique circumstances.

At Carisma Wills, we’re dedicated to securing your family’s future with clear, practical advice. Discretionary Will trusts offer a practical approach to estate planning, but they have tax and cost consequences. If this option seems right for you, expert advice is essential to guide you through the process and choices.

Stay connected for more insights – your Carisma Wills consultant will provide clarity and help you make informed decisions.

Contact us today.

For more details about the benefits and tax position of discretionary trusts, we have produced a factsheet. Intended for financial professionals, our fact sheet is more technical than the information we provide in our blogs. Request a copy using the contact button if you’d like a copy.

Please note that information provided on the Carisma Wills website:

• Does not provide a complete or authoritative statement of the law;

• Does not constitute legal advice by Carisma Wills;

• Does not form part of any other advice, whether paid or free.