Get Zurich Discretionary Split Trust Deed

A discretionary split trust is a type of trust that allows the trustee to decide how to distribute the trust's assets among beneficiaries. This flexibility can be advantageous for managing family wealth and accommodating changing circumstances. The Zurich Discretionary Split Trust Deed outlines the terms of the trust, ensuring that the trustee has clear guidelines for distribution while also protecting the interests of the beneficiaries.

If a settlor creates a Discretionary Trust in their lifetime, a Trust Deed must be signed by settlor and all the trustees. After signing the deed, the assets that are held in trust are transferred into the trustee's names.

Discretionary trust The trustees have complete control over the assets and the income they generate, deciding how and when to give them to the beneficiaries.

They are different to discretionary trusts as, in discretionary trusts, the beneficiaries have no absolute rights to the trust assets, whereas in bare trusts, beneficiaries have absolute rights to the trust assets and the trustee must act in ance with their instructions.

Discretionary trusts can be very useful in a number of circumstances. They can be tailored to suit the needs of you and your family, and benefit your estate as a whole. They are valuable as a way to protect assets for beneficiaries who don't have the ability to manage their own funds.

Disadvantages and problems with discretionary trusts – Complexity. Setting up and maintaining a solid discretionary trust structure can be complicated. – Potential loss. Only profits are distributed – losses remain as such. – Trust.

A Marital Split Trust provides that at the time of the death of the first spouse to die, the assets are split into two halves, and one half is placed into a “Survivor's Trust”, and the other half is placed into a “Marital Trust”.

Discretionary Trusts are commonly set up to put assets aside for children and/or grandchildren for a future financial need or as a protective measure for a vulnerable family member who may be unable to manage their own finances.

The drawbacks of discretionary trusts Because trustees of a discretionary trust can choose which beneficiaries receive the trust assets, it is possible for them to decide that one or more beneficiaries should receive nothing.