I am discussing with a consultant, who states that in a trust deed (discretionary and irrevocable trust) can be included the class of beneficiaries identifying it as follows:-
“a) Primary beneficiaries as descendants which will include anyone born down their bloodline and
b) Secondary beneficiary a named/specified charity in case the primary beneficiaries are not alive”.
The nature of the interest of a discretionary beneficiary of a discretionary trust, is that they don’t usually have a present right to enjoy property, nor do they have an immediate entitlement to the income/capital, as well as no contingent interest in a trust property.
The difficulty on my side, is to accept the wording regarding the “secondary beneficiary”.
I am inclined to think that a secondary beneficiary in such a case, does have a ‘contingent interest’ and not (as it should) an expectancy or mere possibility of a distribution in their favour.
Thank you very much for your attention.
Regards
Sarah