4 Benefits of Using a Discretionary Trust

Using a discretionary trust could potentially benefit you in a number of ways. Here are some of the benefits of using a discretionary trust.

1. Advanced Tax Minimization

By using a discretionary trust, you will be able to minimize taxes as much as possible. When your assets are in the trust, they are not going to be subject to estate taxes, as they would if you had left them out of it.

2. Asset Protection

Another big advantage of using a discretionary trust is that your assets are going to be protected. Creditors will not be able to gain access to assets in the trust. Therefore, you know that you can set aside a certain sum of your assets for your beneficiaries without worrying about creditors taking them.

3. Clear Instruction in Estate Planning

With this type of trust, you can give clear instructions when it comes to planning the estate. Your executor is going to have some discretion as far as how the assets are distributed, but you will be able to give him or her instructions in advance.

4. Avoid Probate

Another big advantage of a discretionary trust is that you can avoid probate. The assets in the trust will not have to go through probate before they can be distributed.

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