Beneficiaries & Their Shares
The Trust Deed will need to specify who are to be the beneficiaries of the trust and how the shares are to be determined.
There are a number of ways that this can be done. It is a very important aspect of a Trust Deed and important for the Settlor to understand what the choices are.
In principle they are these:
It is the third which is the form of the Trust which I usually recommend. The trustees are left with a complete discretion as to:
The trustees have a discretion as to whether they distribute benefits by way of:
The trustees do not for instance have to make equal payments to all of the children, or all of the grandchildren, and any such payments are thus left in the discretion of the trustees.
The only restriction being that when the Trust is finally wound up the balance funds have to be distributed in equal shares between the children.
I would emphasise however that this is simply a common form and there are various other forms that this can take.