Can the trustee distribute to an estate if the beneficiary is deceased?
Yes, if a beneficiary dies then the trustee may make a distribution to the beneficiary’s estate – the Cleardocs discretionary trust deed has 2 requirements to allow for this: • There must be a testamentary trust in the deceased beneficiary’s will; and • The relevant beneficiaries of the discretionary trust must also be beneficiaries of the testamentary trust in the will.
