Please explain why a settlor would choose to create a Discretionary Trust over an Absolute Trust. Adam and Liz are married and they have two children: Robert, age 32, and Clare, age 28, that are financially independent. Robert is married and has one child and Clare is going to get married. Both Robert and Clare are planning to have more children. Adam's and Liz's total estate compromises of: Joint owned property: Adams's ISA: Liz's ISA: Adam's pension: Liz's pension: Cash savings (joint account): Adam's VCTS: Joined owned Buy to Let property: £1,500,000 £350,000 £200,000 £870,000 £650,000 £230,000 £150,000 £350,000 They also have the two following mortgages: Mortgage on residential property: £130,000 Buy To Let mortgage: £80,000

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Please explain why a settlor would choose to create a Discretionary Trust
over an Absolute Trust.
Adam and Liz are married and they have two children: Robert, age 32, and
Clare, age 28, that are financially independent. Robert is married and has
one child and Clare is going to get married. Both Robert and Clare are
planning to have more children.
Adam's and Liz's total estate compromises of:
Joint owned property:
Adams's ISA:
Liz's ISA:
Adam's pension:
Liz's pension:
Cash savings (joint account):
Adam's VCTS:
Joined owned Buy to Let property:
£1,500,000
£350,000
£200,000
£870,000
£650,000
£230,000
£150,000
£350,000
They also have the two following mortgages:
Mortgage on residential property: £130,000
Buy To Let mortgage: £80,000
Transcribed Image Text:Please explain why a settlor would choose to create a Discretionary Trust over an Absolute Trust. Adam and Liz are married and they have two children: Robert, age 32, and Clare, age 28, that are financially independent. Robert is married and has one child and Clare is going to get married. Both Robert and Clare are planning to have more children. Adam's and Liz's total estate compromises of: Joint owned property: Adams's ISA: Liz's ISA: Adam's pension: Liz's pension: Cash savings (joint account): Adam's VCTS: Joined owned Buy to Let property: £1,500,000 £350,000 £200,000 £870,000 £650,000 £230,000 £150,000 £350,000 They also have the two following mortgages: Mortgage on residential property: £130,000 Buy To Let mortgage: £80,000
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