How is a discretionary trust wound up?

[samfarrell]

Could anyone tell me how these Trusts are usually wound up?
In this case the grantor left a Discretionary Trust of property in a Will. The Trustee was named in the Will and there were 3 beneficiaries, trustee was not a beneficiary, but was Executor. After Probate was taken out the Trustee left the beneficiaries full use of the property in the trust
However the Trustee did not transfer named ownership to anyone. The trustee died about ten years later. Did the trust end then or does something need to happen to deal with it ?

 

[PMU]

I'm stuck with one of these, as a trustee, and I strongly recommend you get professional advice as they can be a minefield. The trust will continue for the time specified in the will until the property, the subject of the trust, is ultimately handed over to the beneficiaries. (I assume you are a beneficiary here? Even if you are a beneficiary you may have no legal interest in the trust fund; only the right to be considered favourably by the trustee for an appointment from the trust fund.) The the trustee may have absolute discretion in this area. So, you need to look at the will that set up the trust. Then you can determine if the trustee actually administered the trust as specified in the will. Also, you may need to check to confirm if the trustee paid the discretionary trust tax.

 

[Dan Murray]

How does a discretionary trust get wound up?

Just like the rest of us - if it gets annoyed!


[Apologies to all - extra glass of rouge at lunch!]

 

[samfarrell]

I'm stuck with one of these, as a trustee, and I strongly recommend you get professional advice as they can be a minefield. The trust will continue for the time specified in the will until the property, the subject of the trust, is ultimately handed over to the beneficiaries. (I assume you are a beneficiary here? Even if you are a beneficiary you may have no legal interest in the trust fund; only the right to be considered favourably by the trustee for an appointment from the trust fund.) The the trustee may have absolute discretion in this area. So, you need to look at the will that set up the trust. Then you can determine if the trustee actually administered the trust as specified in the will. Also, you may need to check to confirm if the trustee paid the discretionary trust tax.

Cheers
There was no time time specified in the Will. The trustee was holding it in trust for the beneficiaries , who were minors at the time the will was drawn, but all adult at the time the trust was established (at the death of the grantor). It was discretionary so the the trustee had absolute discretion over it , however I would have thought the trustee still had a duty to deal with the assets in the trust in some manner? or does discretion mean they dont have to make any transfers if they dont want? The property was never transfered and remains in the grantors name
No idea if the discretionary tax was paid either. Bit of a mess all round
will seek legal

 

[Joe_90]

Usually the settlor will give some guidance, assets are not to be given to the children until they are 23 or 25 or 30!

The trustee usually has discretion on how much income or capital is distributed to the beneficiaries.

Was there any guidance for the trustees?

 

[samfarrell]

Usually the settlor will give some guidance, assets are not to be given to the children until they are 23 or 25 or 30!

The trustee usually has discretion on how much income or capital is distributed to the beneficiaries.

Was there any guidance for the trustees?

No particular guidance mentioned in the Will itself
Not aware of any other guidance, i think i will ask the original solicitor