Discretionary Trust - death of trustees

[estateexec]

I wondered if someone could advise what would happen to the proceeds of a discretionary trust investment, if both the trustees and beneficiary became deceased at same time? (Being in Trust, my understanding is that this would be outside of the guidance given in the Will of the beneficiary and their "Estate").

[maths]

Trust deeds should contain a "Default" clause which states what should happen if, for example, all the beneficiaries are dead.

Thus the clause may say the trust property is to pass to "XYZ charity" or "Sam Smith" etc. If no such clause then the trust property would be held on resulting trust for the original settlor.

The court has the power to appoint trustees as have certain other persons (e.g. executors of the last surviving trustee).

[estateexec]

Thankyou maths for your reply and assistance. I will check if Trust deeds and a "default" clause exist. If not, would an "expression of wishes letter" lodged with the Trust provider be the best way to cover such an eventuality? The original settlor is already deceased.

[AGoodman]

A letter of wishes is not a legal document, it just asks the trustees to exercise their discretion in a particular way. They can only exercise the discretionary powers they have for the beneficiaries who are named or described.

First thing to check is the trust deed to find out who the other beneficiaries are (if any). Then see is anybody benefits automatically in default or the trustees have a discretion.