Can you change the beneficiaries of a Discretionary Trust?

Can you change the beneficiaries of a Discretionary Trust?

Being the Trustee of a Discretionary Trust means that you can distribute the Trust Property to the Beneficiaries at your discretion. This also carries with it the right to change the beneficiaries of a discretionary trust.

What rights do discretionary beneficiaries have?

Generally, a discretionary beneficiary has the right to: request from the trust or its representatives, documentation for the trust (i.e. trust deeds, appointment/removal of trustee documents, details of trust distributions, trust accounts, trustee contact details and details of trust assets and liabilities);

Does a Discretionary Trust need more than one beneficiary?

A Discretionary Trust allows your Trustees the discretion and choice to make payments (distributions) to the potential beneficiaries (or category of beneficiaries) named within the Discretionary Trust. If you have only named one beneficiary, then this is NOT a Discretionary Trust.

Can beneficiaries dissolve a discretionary trust?

Beneficiaries terminating a trust If the beneficiaries wish to terminate a trust and are all over 18 years with full capacity, then they can unanimously end the trust and distribute the assets, even if the trustees disagree with this.

What happens with a discretionary trust in a will?

There are lots of different types of trusts that you can create when making a will, and a discretionary trust is just one example. What happens with a discretionary trust in your will is that you leave your estate, or part of it, to a trust.

How often do you need to update your will?

Update your will. You should review your will every 5 years and after any major change in your life, for example: getting separated or divorced. getting married (this cancels any will you made before) having a child. moving house.

What should I do if I change my will?

For major changes you should make a new will. Your new will should explain that it revokes (officially cancels) all previous wills and codicils. You should destroy your old will by burning it or tearing it up.

When do you have to pay inheritance tax on a discretionary will?

An exception to this is that there is no inheritance tax charge if assets are distributed to beneficiaries from a discretionary will trust within two years of your death. Any distributions made within this time are treated as if they were made in your will.

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