Webinar | Distributing and dealing with trust assets: the boundaries of discretion

Our Alfred Ip discusses essential considerations related to the distribution of trust assets with Kerby Lau and Joshua Yeung of Des Voeux Chambers.

The DVC Trusts, Estates and Succession Series is a collection of seminars and events on topical issues and developments in the law concerning trusts and estates, being explored through the practitioner’s perspective. It aims to create a forum for the exchange of ideas between different stakeholders and practitioners.

In this inaugural seminar, the focus is on a commonly-used mechanism in structuring wealth and assets: the discretionary trust/power. In the absence of any fixed stipulations as to how assets should be distributed, what guidance does the trustee/administrator have when distributing and dealing with assets? What are the limits of such discretion? What are the pitfalls to avoid? These practical questions and more will be discussed and explored.

The following sub-topics are covered:

Role and function of discretion in distribution and use of assets:

• Handling trust assets (acquisition, management,
• migration/transfer, investment, sale)
• Engaging professionals (investment advisors, legal advisors and auditors etc)
• Adding, removing and excluding beneficiaries and protectors

Guiding factors for exercising discretion:

• Equality equals equity?
• Testator’s/Settlor’s wishes
• Beneficiaries’ requests
• In specie distribution v. monetary distribution

Avoiding pitfalls:

• Transferring assets away from trust/estate
• Fettering discretion
• Advancements/interim distributions