Another pillar of wealth creation to be considered – A Discretionary Trust is a trust where income is distributed to beneficiaries at the total discretion of the trustee. Most family trusts are discretionary trusts.
What are the benefits of a discretionary trust?
The benefits of a discretionary trust include the following:
- Asset protection;
- Flexibility regarding distribution of income and capital;
- Tax effective;
- Trust deeds can be tailored to specific needs;
- Simple to establish and wind up.
Discretionary trusts are popular as they have the ability to distribute income and capital in a tax effective manner to specific beneficiaries at the discretion of the Trustee.
The Trustee can be either a Company or Individual(s).
Please contact us if you have any specific questions or require further information.