Discretionary Trusts

Be in complete control to take care of your family

Many homeowners want to ensure that their home is protected for generations to come. So, understanding how a trust can help protect and manage your home in a way that benefits you and your loved ones, is very important. As experts in different types of Trusts, we can help you do this.

What is a Discretionary Trust?

A discretionary trust, also known as a family trust or trust fund, is a legal arrangement where a person or entity (the settlor) transfers property, assets, or funds to a trustee. The trustee then holds and manages these assets for the benefit of a class of beneficiaries, whose identities and entitlements to the trust income or capital are not fixed. Instead, the trustee has discretion in determining how to distribute the trust's assets among the beneficiaries.

• A Discretionary Trust is a lot like a Will, in that you set out your wishes about your assets and your heirs
• However, a Will only becomes effective when you die and after the probate process.  A Discretionary Trust is effective while you are still alive
• Depending on the trust deed, trustees can decide; what gets paid out (income or capital); which beneficiary to make payments to; how often payments are made; and any conditions to impose on the beneficiaries.

At Honey Legal, we can assist you in protecting your family home within a Discretionary Trust, in a way that benefits you and your loved ones, for generations to come. 

What are the benefits of having a Discretionary Trust?

• Can bypass the time-consuming process of probate and assets can be managed without the need to wait for the Grant from the Court
• Provides for the financial needs of family members over an extended period. The trustee can make distributions based on the changing circumstances and needs of beneficiaries, ensuring ongoing financial support
• The discretionary powers of the trustee offer flexibility in managing and distributing trust assets. This flexibility is particularly beneficial when dealing with uncertain or changing circumstances, such as changes in family structure, financial needs, or tax laws
• You have complete control – you decide on the trustees and what they can and cannot do.  This is beneficial if at some point in the future you are unable to manage your financial and legal affairs due to incapacity, such as dementia
• The trustee has the flexibility to distribute income in a way that minimises tax liabilities, taking advantage of lower tax rates applicable to certain beneficiaries. 

Setting up a trust can be a complex process, and it's essential to seek the guidance of a specialist estate planner, to ensure it's tailored to your specific needs. Honey Legal make the process as hands-off for you as possible, and provide you with the advice that you need to protect what you love, for those you love.

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