I am drafting a Deed of Appointment out of a Discretionary Trust and winding up the trust.
The question I have is : - Is it possible to include an indemnity (really in respect of any tax payable as a result of the appointment and winding up the trust) in favour of the professional Trustee. There are two Trustees, one is also the recipient of the assets and the other the professional. If it can be included then, would it be similar to the indemnity given to outgoing Trustees in a Deed of appointment and retirement? And finally, if it is possible, are there any risks or negative implications of including such an indemnity in a Deed other than the burden being passed on.
The reason that I raise the above is that in all the precedent Deeds of Appointments that I have come across there is no mention of an indemnity.
Thank you in advance for any assistance that can be offered.