This paper considers some practical issues in relation to variation of discretionary trusts, particularly in a ‘post Clark’ environment. It is important that trustees have wide powers of variation to ensure that the original founders and future controllers have the required level of flexibility to deal with changing circumstances over the life of the trust – but with some checks and balances.
The paper looks at effective powers of amendment, and at the procedures that should be followed when exercising those powers. It considers some specific issues, particularly whether changes to a discretionary trust deed are likely to trigger a resettlement.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.