Is a deed of appointment always required when appointing capital out of a discretionary trust?

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Produced in partnership with Helen Galley of XXIV Old Buildings

Published on: 25 March 2025

Generally, a deed of appointment is not always necessary when appointing capital out of a discretionary trust. Needless to say that is not the end of the matter. Appointment of capital from a discretionary trust is pursuant to the exercise of a power and, in general, no formality is required for the exercise of a power. Statute, however, does impose formalities in certain cases and the settlor frequently does.

If the capital to be appointed to the beneficiaries is formed of shares in a company, then an informal appointment will be sufficient to pass the beneficial interest but, in order to pass the legal interest, a share transfer must be executed. If the capital is land then the disposition of the land, or an interest in the same to a beneficiary, can only be

Helen Galley

XXIV Old Buildings

Helen has built up a reputation as a well-respected commercial Chancery practitioner with an emphasis on property and trusts related issues. She has built up extensive and wide ranging expertise in both non contentious and contentious property matters ranging from small scale cases to multi-million pound developments. Helen has also acted in a wide range of commercial and business disputes in areas as diverse as travel, hire purchase, the media, entertainment, IPR, IT and e-commerce. Contentious and non-contentious trusts matters, both on and offshore, are a regular feature of her caseload. Helen is a member of STEP, ACTAPS, the Property Bar Association, the Chancery Bar Association and IAL as well as an accredited mediator. Helen is recommended as “a first-rate advocate” in Legal 500 2015 for private client (trusts and probate), partnership and professional negligence. She is said to be “consistently able to provide excellent advice in a charming and friendly style” and is “responsive, hugely supportive and extremely user-friendly”.

Jurisdiction(s):

United Kingdom

Key definition:

Appointment definition

What does Appointment mean?

The agreement entered into between a consultant and employer specifying the services to be performed by the consultant and the legal rights and obligations of both parties. A consultant may be appointed by deed, contracts under hand or by letter. A consultant’s appointment may be based on an industry standard form of appointment or be a bespoke document.

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