Discretionary Trust
/dɪˈskrɛʃəˌnɛri trʌst/
Definitions
- (n.) A trust where the trustee has full discretion over which beneficiaries receive income or capital and to what extent, without fixed entitlement.
The beneficiaries could not demand payment until the trustee exercised discretion under the discretionary trust.
Forms
- discretionary trusts
Related terms
See also
Commentary
A discretionary trust grants broad powers to trustees and should clearly define the scope of discretion to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.