And this means that it is possible to have the sole director of the corporate trustee of a discretionary trust to also be a beneficiary of the trust?
We see no problem with having the sole director of the corporate trustee of a discretionary trust being able to benefit from the trust.
Since the corporate trustee is a separate legal person, and the class of beneficiaries of a discretionary trust is very broad, there is no issue of the legal and beneficial interests in the trust property merging - i.e., the legal owner is the company, and the beneficial owners are effectively all of the discretionary objects in the deed. We have never heard that "control" of a trustee by a single beneficiary (in a class of many beneficiaries) could invalidate a trust - in fact, many discretionary trusts would be controlled by a single individual, whether as a director of the corporate trustee or as an individual trustee. It is highly unlikely that it could be said that a trust was never formed simply because the director of the corporate trustee makes a decision in a particular year, by resolution of the trustee, to make a distribution to himself as a discretionary object of the trust.