How does a probate lawyer help in Fixed and Discretionary Trusts?

Share This Post

Understanding Fixed and Discretionary Trusts and the role of a probate lawyer

Trust agreements provide a wide range of advantages to both the settler and the beneficiary. Yet there are numerous kinds of trusts. Let us understand a probate lawyer’s fixed and discretionary trusts. 

Multiple individuals have heard the terms revocable and irrevocable when it comes to discussions about trusts. However, you might not have heard about the terms fixed along with discretionary. Although, these terms are considered vital as they tend to control the flexibility related to probate lawyers when it comes to the distribution of assets.

What is a Fixed Trust?

A fixed trust is created to give money or assets to beneficiaries as per a schedule. A fixed trust is handled by the trustee designated by the person who made the test. This person is also a settler. 

Within a fixed trust, the individual who has created the trust schedules distributions to specific heirs in certain amounts. There’s no control over the probate lawyer over the schedule, charges, or beneficiaries. The role of the trustee is limited to handling the assets within the trust. The trust tends to dictate and distribute per the terms made by the faith. The individual who has created the trust has zero control over when and how the distribution will be made and to whom. 

What is Discretionary Trust?

A Discretionary trust is known to be a trust established for the advantage of one or over one beneficiary. However, the trustee has complete discretion regarding when and how to distribute to the beneficiaries.

A discretionary trust is more common. It gives the trustee the authority and accountability to create the distribution at their discretion. A Discretionary trust tends to provide distribution control to the trustee rather than the individual who made the trust. 

Let us take an example.

Joy and Mary possess a young family. Joy is a healthy person. However, he wants to look after his children when he is not in good health. As his children are young, Joy worries about how they will manage money. Therefore, Joy establishes a Discretionary trust. Consequently, he is secure now as he is aware that the trustee will make sure to fulfill all the desires of his children. To sum up, the Discretionary trust will ensure that the wastage of money does not occur.

Advantages of Fixed Trust 

1. The beneficiaries of the fixed trust have fixed interests within the income and the capital of the trust property. Therefore, they can enforce the administration and distribute the trust property. 

Drawbacks of Discretionary Trust

1. The trustee does not possess discretion on how to disperse the income. 

Advantages of Discretionary Trust 

1. Estate planning takes place to provide an advantage to the family members in case of unexpected death. 

2. Trust property is known to be exempt from creditors. Therefore, a creditor cannot take trust property in bankruptcy or liquidation. 

3. Tax gets mitigated. Individuals receive only a 50% capital gains tax exemption. 

4. The trust income and capital get quickly and flexibly distributed. 

Drawbacks of Discretionary Trust 

1. There’s difficulty in launching as well as maintaining a trust structure. 

2. Only profits get distributed. 

3. Investors tend to invest more in a company structure than a trust structure


Trust agreements provide a wide range of advantages to both the settler and the beneficiary. Within a fixed trust, the individual who has created the trust schedules distributions to specific heirs in certain amounts. There’s no control of the trustee over the schedule or the charges, or beneficiaries. The role of the trustee is to handle the assets within the trust. Although, a Discretionary trust is more common. It provides the probate lawyer authority and accountability to create the distribution at the trustee’s discretion.

More To Explore

Subscribe to our Newsletter

legal will Long Island lega lwill New York legal will NYC legal will Queens legal will Staten Island living trust Brooklyn living trust Long Island living trust New York living trust NYC living trust Queens living trust Staten Island medicaid trust Brooklyn medicaid trust Long Island medicaid trust New York medicaid trust NYC medicaid trust Queens medicaid trust Staten Island New York estate planning legal New York probate lawyers NYC guardianship lawyer probate attorney Dutches county probate attorney Kings county probate attorney Nassau NY probate attorney Orange county probate attorney Putnam county probate attorney Queens probate attorney Rockland probate attorney Suffolk probate attorney Sullivan county probate attorney Ulster county probate Brooklyn lawyer probate lawyer Kings county probate lawyer Long Island probate lawyer Nassau probate lawyer Queens probate lawyers New York probate lawyers NYC probate lawyer Staten Island probate lawyer Suffolk probate lawyers Ullivan county probate New York attorneys probate New York lawyer probate NYC lawyer probate NYC lawyers probate property attorney probate property lawyer revocable trust Brooklyn revocable trust Long Island lawyers directory NY revocable trust New York revocable trust NYC revocable trust Queens revocable trust trust Bronx will attorney Brooklyn will attorney Long Island will attorney New York will attorney NYC will attorney Queens will attorney Staten Island will lawyer Brooklyn will lawyer Long Island will lawyer New York will lawyer NYC will lawyer Queens will lawyer Staten Island wills and trusts Bronx Wills and trusts Brooklyn wills and trusts Long Island wills and trusts New York wills and trusts NYC wills and trusts Queens wills and trusts Staten Island wills Brooklyn Estate Planning Boca Raton Miami Lawyer Near Me Lawyer Magazine Estate Planning Miami Lawyer wills Long Island wills New York wills Staten Island estate planning lawyers NYC probate New York lawyers trust and estate law firms estate planning attorneys Brooklyn estate planning lawyers Brooklyn estate planning Brooklyn estate planning New York attorney estate planning New York attorneys estate planning attorney Brooklyn estate planning New York lawyer estate planning New York lawyers guardianship attorney Brooklyn guardianship attorney Long Island guardianship attorney New York guardianship attorney NYC guardianship attorney Queens guardianship attorney Staten Island guardianship lawyer Brooklyn guardianship lawyer Long Island guardianship lawyer New York Estate Planning Lawyer NYC guardianship lawyer Queens guardianship lawyer Staten Island Near Me Dental Near Me Lawyers