The primary beneficiaries in a discretionary trust relationship are, as the term suggests, the persons for whose benefit the trust fund was primarily established. However, they still do not have a fixed interest in the trust fund and are still effectively only entilted to benefit from the trust fund once the trustee determines to distribute or allocate either the income or capital or both of the trust fund, at a particular point in time.

The fundamental point to note about the primary beneficiaries is that they stand to benefit from the trust fund should the trustee default from making a determination in favour of any particular beneficiary or beneficiaries . They are effectively the takers in default in the event that the trustee fails to make a determination in respect to either the income or capital of the trust fund in favour of any particular eligible beneficiary.

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