Are the lights changing for discretionary trusts?

An individual's 'control' of a discretionary trust may become 'property' for the purposes of s79 of the Family Law Act 1975 (FLA). As confirmed by Kennon v Spry,1 persons who control trusts and can benefit themselves or their spouses from trust assets may be ordered to transfer such (other) property as the Family Court determines. Discretionary trusts used in other contexts are not directly affected by Kennon v Spry. However, the decision is likely to have a significant 'gravitational' effect.