7 - Discretionary Trusts

Source - Unlocking Trusts

Here is the summary of this chapter:

1) Introduction - Fixed trusts (with interest in possession, discretionary trust (without interest in possession), exhaustive and non-exhaustive trusts

2) Period of accumulation - s164 of LPA and s13 of the Perpetuities and Accumulation Act 1964

3) Reasons for creating discretionary trust - contrast with administrative discretion 

4) Mere Powers and Trust Powers - see the subtle distinction burrough case v Weekes's settlement

5) Duties imposed on fiduciaries - see the distinction between exhaustive and non-exhaustive trusts

6)  Status of objects under discretionary trusts - objects 'individually' are not entitled for the benefit till discretion is exercised. That means they can only make the trustees to exercise their discretion. But, 'collectively' they can terminate the discretionary trust subject to certain conditions.

7) Protective trusts u/s 33 of Trustees Act 1925 - Determining / forfeiture events