Life Interest Trust over Property

Trusts Discussion
1

This clause is in the standard Property Life Interest Trust with a well known drafting software provider: "My Trustees may at their discretion apply the whole of, or any part of the Property Trust to the Life Tenant at any time during the Trust Period.”

My clients are concerned that it allows his Trustees the power to transfer out of the Trust into his name the share of the property left by the Testator.

Any thoughts?

2

If by “his name” you mean the Life Tenant, then yes. The purpose of the power is to give the trustees discretion to distribute trust capital to the Life Tenant.

3

Many thanks, that’s what I thought. Appreciate your clarification.