
Zurich Discretionary Trust Deed Form
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People also ask
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What are the drawbacks of a discretionary trust?
Disadvantages of discretionary trusts Trusts are complex. Unless professional trustees are appointed, which will incur costs, lay trustees will have to navigate trust and tax law, and manage the assets of the trust. They will also have to decide how to exercise their discretion as to the beneficiaries of the trust.
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What are the requirements for a discretionary trust?
The trustees must understand the terms of the trust, and must not do anything that is not allowed by the trust or by the law. The trustees must act in the best interests of the beneficiaries, and exercise a high degree of care and honesty and must all agree when making trust decisions.
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Why would you have a discretionary trust?
A discretionary trust enables flexibility for income distribution among a defined class of beneficiaries, commonly structured around a family.
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What happens to money in a discretionary trust?
The structure of a discretionary trust enables you, as the person putting your assets or money into the trust (known as the settlor), to give those assets to a group of people chosen by you (the trustees) to look after.
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What is a discretionary trust deed?
A deed used to create a discretionary trust. A discretionary trust is a flexible trust structure in which none of the beneficiaries has the right to the capital or income of the trust. It is often used to benefit the settlor's family for a family trust structure.
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What are the downsides of a discretionary trust?
Disadvantage 1: Complexity Like other trusts, setting up a discretionary trust can be complicated. The complexity depends on: Whether it's a company structure (more complex) or a family trust. The number of beneficiaries.
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Who owns the money in a discretionary trust?
Trustees. The trustees are the legal owners of the assets held in a trust. Their role is to: deal with the assets ing to the settlor's wishes, as set out in the trust deed or their will.
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Who owns the money in a discretionary trust?
The Settlor (the person who puts assets into trust) would lose control of their assets at the point they are transferred to a trust; the assets would therefore fall under the control of the trustees who must manage them in ance with the Trust Deed.
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