What does discretionary trust mean?
Definitions for discretionary trust
dis·cre·tionary trust
This dictionary definitions page includes all the possible meanings, example usage and translations of the word discretionary trust.
Princeton's WordNet
discretionary trustnoun
a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate
Wikipedia
Discretionary trust
A discretionary trust, in the trust law of England, Australia, Canada and other common law jurisdictions, is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by the settlor. It is sometimes referred to as a family trust in Australia or New Zealand. Where the discretionary trust is a testamentary trust, it is common for the settlor (or testator) to leave a letter of wishes for the trustees to guide them as to the settlor's wishes in the exercise of their discretion. Letters of wishes are not legally binding documents. Discretionary trusts can only arise as express trusts. It is not possible for a constructive trust or a resulting trust to arise as a discretionary trust.
ChatGPT
discretionary trust
A discretionary trust is a type of legal arrangement that gives the trustee the power to decide how, when, and to whom the assets in the trust are distributed. The beneficiaries have no legal claim to the assets in the trust and can only receive benefits at the discretion of the trustee, often guided by terms established by the settlor (individual who creates the trust) in the trust deed. This arrangement is often used to manage and protect family assets, carry out estate planning or minimise legal obligations such as taxes.
Wikidata
Discretionary trust
A discretionary trust in Canadian and English trusts law is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by the settlor. It is sometimes referred to as a family trust in Australia or New Zealand. Where the discretionary trust is a testamentary trust, it is common for the settlor to leave a letter of wishes for the trustees to guide them as to the settlor's wishes in the exercise of their discretion. Letters of wishes are not legally binding documents. Discretionary trusts can only arise as express trusts. It is not possible for a constructive trust or a resulting trust to arise as a discretionary trust.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of discretionary trust in Chaldean Numerology is: 4
Pythagorean Numerology
The numerical value of discretionary trust in Pythagorean Numerology is: 6
Translations for discretionary trust
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"discretionary trust." Definitions.net. STANDS4 LLC, 2024. Web. 28 Apr. 2024. <https://www.definitions.net/definition/discretionary+trust>.
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