Documents for Business
In excess of 1,000 customisable documents covering every conceivable business issue.Introduction to this document
Discretionary trust - letter of wishes to accompany a will
Using a letter of wishes can remove uncertainty for those looking after your money and assets after you die. One circumstance where a letter of wishes is espceically helpful is where your will creates a discretionary trust and you want to let the trustees know how you would like them to use the trust funds.
Trust
A discretionary trust is a powerful way of protecting your wealth for the benefit of your family after your death. The trustees you appoint in your will control the funds and use them for the benefit of the beneficiaries named in your will. They have the discretion to pay income and capital as they see fit.
Directions
You can give the trustees an idea of what you do or don’t want the funds used for by drafting a letter of wishes to go with your will. For example, you can use this to direct the trustees to the primary beneficiary, when funds can be appointed absolutely (if ever), and anything you don’t wish the funds to be used for. You can also use it to direct exactly who should receive any particular items. Note that your recommendations are not legally binding on the trustees but are usually followed or at least considered.
Procedure
Draft a letter of wishes and keep it with your will. Make sure your executors have a copy.
