Definition of discretionary trust in English:
A trust in which the number of shares of each beneficiary are not fixed by the settlor in the trust deed, but at the discretion of the trustees.
- Trustees for a discretionary trust have what the name implies - the discretion to decide which children should receive capital income, and when.
- In a discretionary trust, a beneficiary has no right to any part of the trust property and the trustees have a discretion to apply the property for the benefit of a specified person or persons or classes of persons.
- The powers that are conferred on the trustee, or manager, do not convert the unit trusts into discretionary trusts in the normal acceptation of that term.
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