Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Beneficiary definition

What does Beneficiary mean? In legal practice, a beneficiary is the person or entity for whose benefit property is held or administered, most commonly under a trust or will. In trust law, the trustee holds legal title while the beneficiary holds the beneficial (equitable) interest and may enforce the trust. The term is largely descriptive rather than uniformly defined by statute, though particular Acts, scheme rules and trust instruments may define beneficiary classes. Key features include: fixed or discretionary entitlements; present, future, contingent or defeasible interests; and eligibility of individuals, charities and other bodies. Beneficiaries may, subject to the trust terms and capacity,...

UK IHT: Discretionary Will Trusts, s.144 Two-year Relief, Relevant Property Charges, NRB/RNRB Planning, Drafting Considerations, CGT/SDLT Points, and Comparison with s.142 Variations

Published by a LexisNexis Private Client expert

Practice notes

A discretionary trust provides a highly adaptable type of arrangement. Under such trusts, trustees exercise discretion over when distributions are made, in what manner, and to which recipients, covering both capital and income. Beneficiaries, or a class of them, appear in the trust deed, and the choice of who among the potential beneficiaries should benefit rests wholly with the trustees, sometimes with the guidance of a letter of wishes. Accordingly, timing, method and recipient of any payments are decided case by case.

Why discretionary Will trusts are used

There are times when passing assets straight to a Beneficiary under a Will is not advisable. For instance:

the beneficiary is, or in the future might become, bankrupt
the beneficiary is, or in the future might be, going through Divorce
the beneficiary is disabled, needs help with managing Money, or receives state benefits, where any money received directly from the estate might affect their entitlement to such benefits
prospective beneficiary is very young at the date of the making of the Will and it is not prudent to make any assumptions about their future family/financial circumstances
to allow the easiest account to be taken of lifetime gifts to achieve equalisation between various...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Katya Vagner

Fladgate

Katya Vagner (Ekaterina Vagner) is an associate in the Private Client department at Fladgate.She specialises in advising on a wide range of UK and offshore private client legal and tax matters.Katya advises individuals and business owners, their families, family offices, trustees, personal representatives and charities across the globe on issues such as estate and succession planning (including Wills and inheritance tax advice), setting up and advising on onshore and offshore structures (such as trusts and foundations), incapacity planning (including Lasting Powers of Attorney and Court of Protection matters), administration of trusts and estates and issues involving charities (such as advising on charitable giving and advising charities on a range of legal and tax issues).Katya has a keen interest in ESG initiatives and has a growing charities and philanthropy practice, advising on structuring of UK and cross-border charitable giving and...

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...