What is a discretionary Will trust?

Understanding Discretionary Will Trusts

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

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

When can a discretionary 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 are better equipped.

Tax Planning

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

In this blog, you will learn more about excluding someone from inheriting. Click the image to read.

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.

I’ve spent 18 years securing my clients’ family’s future with clear, practical advice. Discretionary Will trusts offer a pragmatic 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 – my blogs and estate planning resources can help you make informed decisions.

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