Letter of Wishes for a Discretionary Trust, Disabled Persons Trust or Flexible Life Interest Trust

Letters of wishes are commonly drawn up alongside discretionary trusts, disabled persons trusts and flexible life interest trusts. These trusts have discretionary powers to apply trust assets for the beneficiaries as the trustees see fit. The letter of wishes will give guidance to the trustees on any particular intentions or concerns that the testator has but please note that they are not binding on the trustees. For example, a potential beneficiary of a discretionary trust may be a spendthrift and the trust has been included to protect that beneficiary’s inheritance.