Discretionary Trusts in property

T

Twoflutes

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I have a question regarding a discretionary trust made by a will

In the scenario, A was made a primary beneficiary (right of use) , and B and C as remainder. As my understanding is a DT offers no interest in possession, so how does title of ownership pass to B and C. Is this solely a matter for the Trustee ?
 
It doesn't sound like a discretionary trust at all. It sounds like a life interest to A, with remainder to B and C. If that is the case, B and C have no interest in possession and will not be taxed until A dies or the fixed term ( if there is one) expires. Probably the wording here would help.
 
Vanilla said:
It doesn't sound like a discretionary trust at all. It sounds like a life interest to A, with remainder to B and C. If that is the case, B and C have no interest in possession and will not be taxed until A dies or the fixed term ( if there is one) expires. Probably the wording here would help.
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So what element would determine whether it is a discretionary trust, or a life interest ?
 
Twoflutes

What does your solicitor say about this?

Unless you reproduce the entire wording here, people are guessing in the answers they give.

Brendan
 
Thanks. I am seeing my solicitor about this next week. Just thought I would get some general guidance here. I have the relevant wording copied below

I give devise and bequeath everything of which I may die possessed, my house and land to my son John to hold same in trust for my daughter A to use, as he at his absolute discretion shall think fit, for her benefit and the benefit of her children B and C and I appoint them my residuary legatee and devisees
 
Its an interesting choice of words. Its like the intention was to create a life interest but have managed to create a discretionary trust into the bargain. It is really up to John who gets what and when. A has the right to use, but again at the discretion of John. Presumably John could decide to promote B and C at any time. Does A still reside in the property? If you are a beneficary you could as the trustee what the story is
 
Is the disponer dead? What ages are A, B and C? Is this to try to obtain dwellinghouse relief?
 
On a Plain said:
Its an interesting choice of words. Its like the intention was to create a life interest but have managed to create a discretionary trust into the bargain. It is really up to John who gets what and when. A has the right to use, but again at the discretion of John. Presumably John could decide to promote B and C at any time. Does A still reside in the property? If you are a beneficary you could as the trustee what the story is
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Thanks
Yes I am a beneficiary. I am not sure what the intention was at all here. I was also confused with the wording. Like you say, its clearly given discretion to John. John, the trustee is also now deceased so it complicates matters still ! Anyway, the settlor is long dead at this stage
As i said, I am meeting solicitor next week. Hopefully it will be possible to sort it out
 
Ok, if the disponer has died 20 years ago that changes matters significantly. Best to seek advice where you can go into all the details, not on a website.
 
Vanilla said:
Ok, if the disponer has died 20 years ago that changes matters significantly. Best to seek advice where you can go into all the details, not on a website.
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Sure, as I said I am seeing solicitor next week
I would never treat anything I read in here as 'legal advice'.
Just thought I could ask a legal related question in the "Askaboutlaw" thread is all.
 
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