0504 (entitled "Discretionary Trusts
; Effect of Standard") could lead an uninformed attorney and client to the conclusion that trust assets left to a client in a discretionary trust
in Florida are protected from even a creditor holding a judgment in the form of support because although the creditor may be an exception creditor and, therefore, able to reach assets in a spendthrift trust, [section]736.
After sale, the cash could then only be passed to the discretionary trust
in IHT free manner with careful planning and giving an amount equal to the IHT 'nil rate band' every seven years.
He added: "There is no individual owner, that's the nature of discretionary trusts
- it's a perfectly legal and much-used ownership structure in many different industries, not just football.
Many married couples/civil partners made Wills which were designed to utilise the Nil-Rate Band on first death by putting its value into a Discretionary Trust
In some cases a nil-rate band discretionary trust
will may still be the best option for you, for example if you want to retain the flexibility of distributing the trust assets to any number of beneficiaries taking into account their personal circumstances at the relevant time.
1988); Halbach, Problems of Discretion in Discretionary Trusts
, 61 COLUM.
The question being posed by many is whether the Chancellor's announcement marks the end of nil rate band discretionary trust
But wills which include nil rate band discretionary trusts
can avoid this pitfall.
Total discretionary trusts
are being used more and more to meet the ever changing needs of clients.
This will therefore only affect trustees and beneficiaries of Discretionary Trusts
, where they have the power to accumulate income or have discretion over whether the income is made available to beneficiaries, with those distributing dividend income to beneficiaries being worst hit.
The second was to attack what are known as flexible reversionary trusts, discretionary trusts
that allow future beneficiaries to receive distributions during a trust owner's lifetime without sacrificing the periodic income payments that they receive from the trust.
However, he said that people could reduce their liability by making wills incorporating "Nil Rate Discretionary Trusts
9) Discretionary trusts
can also present valuation problems; the Service has ruled that a life estate cannot be valued if the trustee has the absolute discretion to either pay out trust income to the income beneficiary or to accumulate it.
Congress has passed legislation making inter vivos (lifetime) transfers to discretionary trusts
available to the beneficiaries of such trusts.
Capital Gains Tax (CGT) can also be applicable at a rate of 28% and for discretionary trusts
, Periodic and Exit Charges could also be applicable.