are sometimes set up to put assets aside for a future need, like a grandchild who may be deserving of more financial help than other beneficiaries at some point in their life, or beneficiaries who are not capable or responsible enough to deal with money themselves.
[T]he terms "attach" or "reach" are not defined in the Florida Trust Code and lend themselves to a number of interpretations as to whether a creditor may be able to garnish the interest of a discretionary trust
once the trustee, in the trustee's sole discretion, is ready to exercise its discretion to make a trust distribution to the beneficiary.
The club's chief executive Shaun Harvey said Leeds is owned by a holding company called FSF, based in the West Indies island of Nevis and owned by three discretionary trusts
. The trustees have appointed two men, Patrick Murrin and Peter Boatman, to run the club and they had asked Bates to be chairman.
A discretionary trust
allows the trustee complete and uncontrolled discretion to make allocations of income or principal if and when the trustee deems appropriate.
It makes certain provisions of the Florida Probate Code inapplicable to trusts and provides that a creditor of a beneficiary of a discretionary trust
may not compel a distribution from a trust or reach a beneficiary's interest in the trust.
Geoff and Irene had chosen a Discretionary Trust
Will, which is particularly popular as a way to cushion the impact of Inheritance Tax.
Establishing a Special Needs Trust, a discretionary trust
, or a combination to provide extra funds needed for the care and maintenance of the Medicaid recipient without disqualification is possible.
The possibilities include: a total discretionary trust
, such as allowing trustees, within their discretion, to pay the income beneficiary trust income and/or trust principal; an inflation adjusted annuity trust; and a unitrust requiring fixed distribution of the trust corpus paid annually.
Creditor protection is at its greatest in a discretionary trust
because the beneficiary is not entitled to receive distributions and is also unable to control the decision-making process about who may receive distributions.
One of the most efficient ways is to set up a Discretionary Trust
as part of the wills so that on the first death liquid assets can pass into the trust up to the individual's personal allowance (currently pounds 231,000).
Example 1: P, a parent, transfers $10,000 a year for 10 years to a discretionary trust
for a child, C, and such descendants of C, which will terminate and distribute to C when C reaches age 35.
From a tax-saving standpoint, the ideal plan is to allocate the exemption to a discretionary trust
for grandchildren and succeeding generations that runs for the longest permissible period.