Family Discretionary Trust Question

[Jules1961]

Hi , In a family discretionary trust where the husband is owns the company in his name and is the trustee. The husband and wife are the appointers 50% each. Would that be 50% half the business to husband and wife or would that be up to the trustee to decide. Thanks in advance.

 

[Rob Legat - SBPL]

If you’re talking about the distributions from the trust, that is up to the trustee to decide - hence the ‘discretionary’ nature. Most discretionary trusts will have a ‘taker in default’ provision which sets who gets what in what proportion if the trustee does not make an election.

 

[Jules1961]

If you’re talking about the distributions from the trust, that is up to the trustee to decide - hence the ‘discretionary’ nature. Most discretionary trusts will have a ‘taker in default’ provision which sets who gets what in what proportion if the trustee does not make an election.

Thanks for your reply.
Yes distributions. The last minutes of the trust it was signed 50% each. Can that change before the next meeting. ?

 

[Rob Legat - SBPL]

A new election can be made at any time.