Discretionary Trusts
Protecting Your Loved Ones, Whatever the Future Holds
Life is unpredictable, and leaving an inheritance outright can sometimes create unintended risks. What happens if your child divorces, goes bankrupt, or struggles with addiction? What if family relationships change over time?
A Discretionary Trust keeps things flexible. It allows you to control who inherits, when, and how much—ensuring that your legacy is protected, no matter what the future brings
What are the benefits ?
Greater Flexibility for Life’s Uncertainties
Not sure how to divide your assets? A Discretionary Trust gives your trustees the flexibility to make decisions after you’ve passed away.
One beneficiary might need more support than another, or a child may prefer their inheritance to go to their own children. By keeping things adaptable, a discretionary trust ensures your wishes are met in the best way possible.
Keep Your Assets Safe
Life is unpredictable. A Discretionary Trust helps protect your assets from unexpected changes in your beneficiaries’ lives—like divorce, bankruptcy, or financial difficulties. By holding assets in trust, you can ensure they stay within the family and are passed down as you intended.
Smart Tax Planning
A Discretionary Trust isn’t just about protecting assets—it can also be a smart way to reduce Income Tax, Inheritance Tax, and Capital Gains Tax over the long term. With the right structure, you can make sure more of your wealth stays with your loved ones instead of going to the taxman
Avoid Challenges
Instead of completely excluding someone from your Will—which could lead to legal disputes—you can name them as a beneficiary of a Discretionary Trust. This gives your trustees the flexibility to decide what’s best over time, reducing the risk of challenges to your estate
Keep Control
A Discretionary Trust allows you to guide how your assets are used, even after you’re gone. By leaving instructions for your trustees, you can make sure that your wealth is managed and distributed in line with your wishes, giving you peace of mind that your loved ones are looked after in the right way.
Support for Vulnerable Beneficiaries
If a loved one is vulnerable or needs extra support, a Discretionary Trust can help protect their inheritance. Your trustees can manage the assets on their behalf, ensuring financial security while also safeguarding their entitlement to State Benefits or Social Care.