Discretionary trusts are where the trustees decide what happens to the income and captial throughout the lifetime of the trust and how it will be paid out.  There is usually a wide range of beneficiaries however no specific beneficiary has the right to income from the trust.

A few trusts will now have to pay an IHT charge when they are set up, at 10 yearly intervals and even when assests are distributed.

If you have any questions and would like to speak to an independent financial advisers in regards to Discretionary trusts , we at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you the independent financial advice you wish to seek.