Discretionary Trust

This is a probably the most common form of trust. The trustees retain discretion with regard to the administration of the trust including investment of the trust funds and distributions to beneficiaries.

The settlor generally provides the trustees with a letter of wishes, that sets out for the trustees the manner in which the settlor wishes the trust assets to be dealt with both during his lifetime and after his death. The settlor can amend this letter at any time.

Protective Trust (sometimes known as an alimentary trust)

This is a trust where the beneficiary has a life interest and which ends (or becomes a discretionary trust) if certain events (commonly including the bankruptcy of the beneficiary) take place. At the occurrence of such an event, the income of the property is applied at the absolute discretion of the trustees for the beneficiary or his family, the beneficiary no longer having any right to receive the income himself.

Fixed Interest Trust

As the name implies a fixed interest trust defines the interest that each beneficiary can have and these constraints may not be varied by the trustees. This provides certainty to all parties at the cost of the flexibiliy.

Accumulation and Maintenance Trust

An accumulation and maintenance trust is a gift of assets usually where the beneficiaries are the settlors children and the right to participate in the accumulated income from the trust depends upon the beneficiary attaining a certain age.

Purpose Trust

A purpose trust does not have beneficiaries and is established to achieve a specific purpose.