As an adviser, you know family trusts play a key role in estate planning—but many clients don’t fully understand the difference between ownership and control.
A family discretionary trust’s assets are separate from a client’s personal estate. While they may not "own" the assets, they can control them as a trustee or appointor. However, control after death isn’t always straightforward.
✅ Trustee control: The trustee makes day-to-day decisions. Upon death, this role typically shifts to the executor—but their control depends on the trust deed, not the will.
✅ Appointor power: The appointor has the authority to replace trustees. If this role isn’t carefully considered, trust control could pass to unintended parties.
💡 Estate planning strategies include appointing a professional co-trustee, updating the trust deed, or even winding up the trust upon death to prevent disputes.
🔎 Has your client’s family trust deed been updated in the last 10 years? If not, they may face compliance risks, outdated tax provisions, or unintended beneficiary exclusions. Regular reviews ensure the trust aligns with current laws and family dynamics.
Helping clients understand that trust control is key to protecting their legacy.
Talking about control of the family trust can be a good trigger for an estate planning conversation with clients, which is sometimes hard to start. An estate planning health check can be considered the next step to identity gaps and create an action plan.
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