Standard discretionary trust clauses

Powers and duties of trustees are found in:

• • the general law relating to trusts;
• • the various state and territory trustee legislation; and
• • the trust instrument.

Many discretionary trusts have a similar structure. Some of the more important aspects of the trust deed are:

• • definitions, including in particular:
• • ◦ the vesting date;
• • ◦ the beneficiaries;
• • ◦ the trust assets;
• • ◦ income; and
• • ◦ income categories;
• • the formal declaration of the trust;
• • the duration of the trust and the ability to appoint an earlier date;
• • power to distribute income;
• • power to distribute capital;
• • power to stream income and capital gains;
• • power to deal with the trust assets, including investment, carrying on business, raising capital, etc;
• • mechanisms for appointment and removal of trustees;
• • powers of the appointor;
• • the right of indemnity of the trustee against the trust assets; and
• • power to amend the trust deed.

See Standard discretionary trust clauses.