A Discretionary Trust is a special type of Trust that gives the Trustee the greatest amount of — you guessed it — discretion. While in most cases a Trust’s beneficiaries have some rights to funds held in the Trust, a Discretionary Trust works differently.

A discretionary trust allows the trustee to use discretion when distributing trust assets. Learn how discretionary trusts work here.

A discretionary trust is a type of trust that is set up for the benefit of one or more beneficiaries. In this particular type of trust, however, the trustee is given full discretionary authority to decide when and what funds – such as principal or income – are given to which beneficiaries.

In the trust law of England, Australia, Canada, and other common law jurisdictions, a discretionary trust is a trust where the beneficiaries and their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by the settlor.

Jan 22, 2024 · A discretionary trust, also referred to as a discretionary support trust, is a type of trust set up for the benefit of one or more beneficiaries where the trustee has discretion over how to distribute the trust assets among the beneficiaries.

Dec 4, 2024 · What is a Discretionary Trust? Discretionary Trusts are so called because no beneficiary has a fixed entitlement and the trustees have complete discretion to decide what, if any, benefits should be given to each of the beneficiaries.

Discretionary trusts are a type of irrevocable trust where the trustee has complete discretion on when and what amounts of assets to distribute to the beneficiaries . The beneficiaries have no right to distributions from the trust.

Jun 30, 2022 · Discretionary trusts are an option when the grantor is concerned about their beneficiary's ability to manage the inheritance. These trusts may also be an answer if heirs are too young or the beneficiary struggles with conditions that would make managing an …

Jul 5, 2024 · A discretionary trust is a type of trust where the trustee has the power or discretion to decide how the trust's income or capital will be distributed among the beneficiaries. The trust deed outlines the terms, including the beneficiaries and the scope of the trustee's discretion.

Under a Discretionary Trust, the Beneficiaries do not have an automatic right to receive the assets within the trust. Instead, the Trustees determine (at their ‘discretion’) when to divide the assets and how much each Beneficiary will receive.