Wording – Deed of resettlement

Trusts Discussion
1

The settlor created a Discretionary Trust on October 2014. The class of beneficiaries is open (descendants - children and grandchildren).
The trust deed provides for overriding power of appointment, power of advancement and power of resettlement.
Unfortunately, the trustee’s power to add and exclude beneficiaries was not included in the original deed. Not even the power to vary the trust deed is present.

Now the settlor would like to exclude specific persons from the DT, but there is no provision for such power.

We are considering a resettlement of the trust assets (already heard a tax advisor).

Could someone help me regarding the wording to be adopted in the new deed to highlight that it is a “resettlement”?

Many thanks

2

I suggest you might look at the judgment in Swires v. Renton (1991) - the leading case on this question, for guidance.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support snd advice to fellow professionals

3

I echo Paul’s sound advice, having worked with Gerry Swires at the Inland Revenue at that time.

4

Thank you very much.

Regards
Sarah

5

I’d suggest that on a technical level you can probably achieve this effect by using the power of appointment to appoint the trust’s assets upon discretionary trusts for the other beneficiaries.

Whether that is an appropriate thing for the trustees to do is a separate question.

6

Thank you very much.

Regards
Sarah