Here is a link to the case I mentioned, Public Trustee v Smith [2008] NSWSC 397:
http://www.lawlink.nsw.gov.au/scjud...4DE829E369881E6FCA25743B0017D5DA?OpenDocument
And, I should add that even though I think discretionary trusts are pretty safe as is it would be better if the appointor, trustee (or directors/shareholders of trustee) and main beneficiary were not the same person. (but this could create other problems such as banks wanting guarantees etc).
http://www.lawlink.nsw.gov.au/scjud...4DE829E369881E6FCA25743B0017D5DA?OpenDocument
And, I should add that even though I think discretionary trusts are pretty safe as is it would be better if the appointor, trustee (or directors/shareholders of trustee) and main beneficiary were not the same person. (but this could create other problems such as banks wanting guarantees etc).