What does the appointor do in a discretionary trust?

The appointor (which can be an individual, several individuals or a company) has the power to remove and appoint trustees (other than the initial trustee). This would commonly occur when:

  • the trustee dies, becomes bankrupt or is incapacitated, or
  • the company is wound up (if the trustee is a company).

The appointor (or the legal personal representatives of the appointor) may:

  • delegate its powers to another entity, and/or
  • resign by giving written notice to the Trustee. On resignation, the appointor’s notice may nominate its successor and if no successor is nominated, the trustee becomes the appointor.