This paper considers whether discretionary trusts remain an effective means for protecting assets given the decisions in a number of recent court cases. In particular, it:
- examines the decisions in Cummins, Richstar, Public Trustee v Smith and Spry
- discusses the difficulties of an "at risk" individual being the appointor of a discretionary trust
- reviews the options available to preserve discretionary trusts as asset-protection vehicles
- considers whether it matters who are the shareholders & directors of the trustee, and the beneficiaries & appointor of the trust.