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:
“It is not enough that we are truthful; we must cherish and carry out high purposes to be truthful about.”
—Henry David Thoreau (1817–1862)
“His purposes will ripen fast,
Unfolding ev’ry hour;
The bud may have a bitter taste,
But sweet will be the flow’r.”
—William Cowper (1731–1800)
“There is, I think, no point in the philosophy of progressive education which is sounder than its emphasis upon the importance of the participation of the learner in the formation of the purposes which direct his activities in the learning process, just as there is no defect in traditional education greater than its failure to secure the active cooperation of the pupil in construction of the purposes involved in his studying.”
—John Dewey (1859–1952)