Page 8 - Taxation P6 - Lecture day 2 Notes - Trust

Types of trust

• Second classification-rights of beneficiaries

• Vested right: beneficiaries are entitled to the

amount/assets and have a legal right to claim

it.

• Discretionary right: beneficiaries only have a

contingent right to the amount/assets and

vesting can take place:

• In terms of the trust deed

• In terms of trustees exercising discretion.

8