The last two posts have each mentioned seven key issues that should generally be considered whenever establishing or amending a discretionary trust deed.
Set out below are a further seven issues that should generally be taken into account:
- If there is an appointor, is the role automatically terminated on certain events (for example death, bankruptcy)?
- If the appointor ceases to act, do their powers pass to anyone else, and if so, who?
- If there is more than one appointor, must they act jointly?
- Is the appointor a beneficiary of the trust?
- Will the trust own more than one asset class?
- For an existing trust, has there been a pattern of income or capital distributions to at risk individuals associated with the trust?
- For an existing trust, have there been variations to the deed following establishment that impact on the overall control of the trust?