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Where Taxpayers and Advisers Meet

Deed of Variation- Discretionary Trust

Joined:Wed Aug 06, 2008 3:55 pm
Deed of Variation- Discretionary Trust

Postby umeshg1 » Mon Jan 24, 2022 3:08 pm

The deceased left the residue in her will to a discretionary trust that she set-up during her lifetime

The executors of her estate and the trustees of the trust are same. The beneficiaries of the Trust are the trustees and their adult children. The trust stipulates different % share to be distributed to the beneficiaries when the Trust is closed

The trustees want to vary their residue share that is going to the trust. They want to vary their share to their adult children. Can this be achieved if all the Trustees and beneficiaries sign a Deed of Variation OR it cannot because it is a discretionary trust

Thank you

Joined:Fri May 16, 2014 3:47 pm

Re: Deed of Variation- Discretionary Trust

Postby AGoodman » Mon Jan 24, 2022 3:23 pm

You can't vary the terms of the trust by a deed of variation, that can only vary the estate.

If you need to change the default provisions under the trust, you can likely do that under a power of appointment or advancement of some kind. However, query whether this is actually necessary/desirable as this is presumably the default provisions that would only take effect in 80 years + from the establishment of the trust.

It sounds like you need a private client solicitor with trust knowledge to review it.

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