ABSTRACT
The trust may be a ‘discretionary trust’ under which the trustees have the power to make apportionments of the trust property to one or more of the members of the class of beneficiaries in accordance with the terms of the powers given to the trustees by the settlor. An example of such a discretionary trust would be a term in a trust which provided: ‘My trustees shall pay £10,000 out of the trust fund to whichever of the beneficiaries achieves the best examination results at university.’ Usually, in such a situation, the trustees are obliged to make an apportionment of property but the decision as to which beneficiaries are to be the recipients will be the trustees’ power alone, provided that they apply it in accordance with the terms of the trust.
