Adding a class of beneficiary to an existing trust
Sean_Fernyhough
Member
Settlor used a life company trust - it's a discretionary gift trust excluding the settlor.
Settlor didn't add additional classes of beneficiary at outset but now wants to add.
The life company advise that can't be done as the trust is in force.
The trust deed says that the trustees (as opposed to the settlor) can add any person or class of person to the class of beneficiaries.
Is the life company giving a formal response to not put itself on the hook for something? Or is there something of substance to what it is saying?
Comments
It will simply because the life office has either not read the Trust Deed or you are talking to someone who doesn't know what a trust is.
I have constant battles with life offices over trust administration.
Never believe what a life office says about a specific trust.
That life company is talking nonsense ( hop it's not us).
I can't lie Les...
I knew it would be! I think there maybe crossed wires. You may have spoken to someone who thought you actually wanted to amend the trust deed.
You can't amend the actual trust as it's in force. That's true (and it gets asked more than you think).
You can however add beneficiaries or classes by supplementary deed. If it's our discretionary trust then the trustees can add by deed but if the settlor is still alive they can only add if the settlor requests it or the settlor agrees to it.