Purposes
Discretionary trusts still serve a useful function, despite their original source of popularity (tax savings) having diminished in most countries. They still continue to be used for these reasons, among others:
- to protect improvident beneficiaries against creditors - as the beneficiary has no claim to any specific part of the trust fund, none of the trust fund is vulnerable to attachment by the trustee in bankruptcy of any beneficiary
- to exercise control over young or improvident beneficiaries
- to create flexibility to react to changes in circumstances
- in certain jurisdictions, a discretionary trust can be used to protect family assets from forming part of any divorce settlement.
Read more about this topic: Discretionary Trust
Famous quotes containing the word purposes:
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—John Dewey (1859–1952)
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—Henry David Thoreau (1817–1862)
“The purposes of the Almighty are perfect, and must prevail, though we erring mortals may fail to accurately perceive them in advance.”
—Abraham Lincoln (1809–1865)