Discretionary Will Trust / Disabled Persons Trust
This type of trust is particularly useful where the beneficiaries are maybe going through a divorce, have a drug, alcohol or gambling dependency.
A Discretionary Trust allows assets to be made available to the beneficiaries but without assets ever actually forming part of their estate. The trustees own the trusts property on behalf of the beneficiaries. The beneficiaries need not all be born at the time the trust is created. The trustees can pay out income or capital to any one or more of the beneficiaries entirely at their own discretion.
No beneficiary has a right to demand income from a discretionary trust.
Setting up, running and exit charges may apply to this trust.
A Disabled Trust works in a similar manner as a Discretionary Trust but has additional tax advantages, however a Disabled Trust may not be suitable in every case.