Each class is defined in relation to a given person and is entitled to a fixed proportion of the income and or capital of the trust. Within each class distributions are completely discretionary. This creates a flexible business structure which can be used for two or more independent parties as a discretionary trust could not. By changing definitions of a class under a power of variation in the deed there is the opportunity to vary entitlements to profits of the business. By suspending the rights of individuals or of classes under the deed there is further potential to reflect differing operational inputs and earnings.
