What is a presumptive trust?
What is a presumptive trust?
A presumptive implied trust arises when a settlor transfers property to a beneficiary, and there is sufficient evidence to suggest that the intention of the settlor was for the property to be held in trust for that party. In these cases, no trust will be presumed.
Why do automatic resulting trusts arise?
An automatic resulting trust will arise where the settlor transfers property to the intended trustee but the trust has failed for some reason. The trustee holds the legal title of the property on trust. The beneficial or equitable ownership is retained by the settlor.
What is the purpose of a discretionary trust?
A Discretionary Trust is a legal arrangement which allows the owner of a life policy (the settlor) to give their policy to a trusted group of people (the trustees), who look after it. At some time in the future they pass it on to some people from a group that the settlor has decided (the beneficiaries).
Who controls a discretionary trust?
trustee
Why a trust over a will?
A significant advantage of a revocable living trust over a will is that it can prepare your estate in the event you become mentally incapacitated, not just when you die. Your successor trustee can also step in if you become mentally incompetent to the point where you can no longer handle your own affairs.
How do you manage a discretionary trust?
In order to effectively manage the trust, you (or a solicitor appointed) will need to:
- administer the trust according to the trust deed.
- invest and manage the assets – including the sale of any assets.
- process payments or other distributions to the beneficiaries from the trust fund.
What are the disadvantages of a discretionary trust?
Discretionary trusts disadvantages
- – Complexity. Setting up and maintaining a solid discretionary trust structure can be complicated.
- – Potential loss. Only profits are distributed – losses remain as such.
- – Trust.
Can you change the beneficiaries of a trust?
The beneficiaries of a trust are those to whom the trustee may distribute trust assets. However, if you do wish to remove someone as beneficiary, you can do so by executing a deed of variation.
