- discretionary trust
- 1) A trust in which the shares of each beneficiary are not fixed by the settlor in the trust deed but may be varied at the discretion of some person or persons (often the trustees). In an exhaustive discretionary trust all the income arising in any year must be paid out during that year, although no beneficiary has a right to any specific sum. In a nonexhaustive discretionary trust (or accumulation trust), income may be carried forward to subsequent years and no beneficiary need receive anything. Such trusts are useful when the needs of the beneficiaries are likely to change, for example when they are children.2) In the USA, an investment trust in which the managers can decide what investments to make.
Accounting dictionary. 2014.
Look at other dictionaries:
discretionary trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. discretionary trust … Law dictionary
Discretionary trust — Wills, trusts and estates … Wikipedia
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discretionary trust — 1) A trust in which the shares of each beneficiary are not fixed by the settlor in the trust deed but may be varied at the discretion of some person or persons (often the trustees). In an exhaustive discretionary trust all the income arising in… … Big dictionary of business and management
discretionary trust — An anomalous term from the standpoint of absolute discretion in the trustee, since unbridled discretion in a trustee negatives the necessary separation of legal and equitable ownership. Best defined as a trust in which a broad discretion is… … Ballentine's law dictionary
discretionary trust — /dɪsˈkrɛʃənri trʌst/ (say dis kreshuhnree trust) noun Law a trust in which the trustees have absolute discretion as to the application of the trust capital and income (opposed to a fixed trust) … Australian English dictionary
discretionary trust — noun a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate • Hypernyms: ↑trust … Useful english dictionary
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trust — n 1 a: a fiduciary relationship in which one party holds legal title to another s property for the benefit of a party who holds equitable title to the property b: an entity resulting from the establishment of such a relationship see also… … Law dictionary