Lifetime discretionary settlement and probate

Trusts Discussion
1

I am assisting a client with estate administration and their father had a lifetime discretionary settlement. There are two unique features I’ve not seen in a lifetime trust before:

  1. A fund A and fund B - fund A is a discretionary trust holding what is defined as the maximum CLT allowance; fund B is the balance of the value of the trust fund to be held on bare trust for the Settlor.

  2. The ability for the trustees to set the trust period which is bolstered by a trustee resolution setting the trust period to the settlor’s lifetime less one day.

Because of point 2 above, I’m guessing the trust fund (the family home) will now form part of the deceased’s estate for probate purposes?

2

Paul yes that is correct. The extent of the property held in trust will pass to the beneficiaries of the estate of the deceased settlor.