Discretionary trust
A discretionary trust is a trust that contains a provision giving the trustee discretion to pay to the beneficiary only so much of the income and principal of the trust property as the trustee sees fit. Since the beneficiary’s interest is subject to the trustee's complete discretion, theoretically the beneficiary only has an expectancy and no actual property interest. Hence, there are no assets to transfer voluntarily and nothing on which creditors can attach.
Definition from Nolo’s Plain-English Law Dictionary
A common type of trust that grants the trustee broad power to decide when and how much income or property to distribute to a beneficiary.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm
