Having the flexibility to control who inherits, when and how much can be very useful. For example, what might happen where money is left or given to a child who later gets divorced or goes bankrupt? What could happen if a client is estranged from one of their children, and excludes them in their Will but circumstances change later? Is it wise to leave money to somebody who has an addiction to gambling or drugs?
Assets left in a Discretionary Trust are protected in all of the above situations. The inheritance of the child who gets divorced, would not pass to their spouse. The monies intended for the child who later goes bankrupt, would not be lost through bankruptcy.
The future is uncertain. Providing inheritance through a flexible discretionary trust can be far more effective than transferring assets directly to beneficiaries.