Page 29 - Trusts & International tax class slides
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TRUSTS
Rights of the beneficiaries
• If the trust deed makes provision for the trustees to
decide how the income and capital will be
distributed, the trust is regarded as a discretionary
trust – that is, there is no vesting until the trustees
exercise their discretion.
• If the trust deed stipulates exactly how the income
and capital of the trust are to be dealt with, it is a
non-discretionary trust (or a so-called ‘bewind’
trust) and the income and capital vest in the hands
of the beneficiary.
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