In other words, the trustee has no discretion as to the amount of income that is paid away or to whom it is paid. When establishing a discretionary trust, the settlor decides exactly how wide the powers of the trustee will be. These powers are set out in the trust deed. The trustee can be given absolute discretion as to which beneficiaries will benefit, to what extent and on what occasions. This absolute discretion to appoint, at some future time, beneficiaries not even named in the trust deed can be very useful when establishing a trust structure providing extra confidentiality.
Trusts often contain a mixture of fixed and discretionary elements.
With the increased financial risks, increased litigation and obscene jury verdicts in our changing economic climate, even the most financially sound and prudent executives has been convinced to turn to the old and proven asset protection strategies of the wealthy, the use of offshore trusts. With the development of tax havens the cost of establishing a trust makes it affordable to everyone, not just available for the rich and famous. You too can benefit from a trust. Being one of the most flexible legal instruments available, the offshore trust can be used for almost any purpose, which is considered to be legal, or not against public policy. You can use it to conceal personal assets.