In a Leading Member Discretionary Trust document, can we name specific beneficiaries?

Discretionary Trusts where beneficiaries are named have been causing problems with the latest case Re Owies Family Trust [2020] VSC 716 where the Trustee was removed because they did not take into account the needs of all named beneficiaries.  The Leading Member discretionary trust focuses on who the current and future leading members are - for they are the beneficiaries.  To add named beneficiaries would severely weaken the structure and succession.  Named persons can be excluded however.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024