Discretionary Trust
Flexibility and control for complex family situations
What is a Discretionary Trust?
A Discretionary Will Trust allows you to place all or part of your estate into a trust, created through your Will, to be managed by trustees of your choosing. You’ll name a group of potential beneficiaries, and your trustees will have the discretion to decide:
- Who among the named beneficiaries should receive funds
- When they should receive them
- How those funds are distributed (lump sum, ongoing support, etc.)
To guide your trustees, you can provide a Letter of Wishes, offering insight into your preferences without legally binding them — giving flexibility to respond to changing circumstances.
Why Use a Discretionary Will Trust?
This type of trust provides greater control and protection over how your assets are distributed, especially in complex or sensitive family situations. It can be particularly useful when:
- A beneficiary lacks mental capacity to manage their finances
- A beneficiary receives means-tested benefits and would lose them if they inherited a lump sum
- A beneficiary struggles with addiction, mental illness, or other vulnerabilities
- A beneficiary is in a difficult relationship or marriage and may be influenced to give away their inheritance
- You are in a blended family and want to protect assets for your own children, avoiding “sideways disinheritance”
- A beneficiary is financially irresponsible or poor at managing money
Even if none of these situations apply now, they could arise in the future. A Discretionary Will Trust allows for flexibility without the need to continually amend your Will. You simply update your Letter of Wishes as needed.
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