discretionary trust

discretionary trust
In the context of mutual funds, refers to a mutual fund or unit trust whose management decides on the best way to use the assets without restriction to a specific type of security. Bloomberg Financial Dictionary
In the context of trusts, refers to a personal trust in which a trustee has the power of decision as to how much income or principal each beneficiary receives. Bloomberg Financial Dictionary

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discretionary trust discretionary trust trust

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discretionary trust UK US noun [C] LAW
a legal arrangement in which the person or organization that manages money has the right to decide how to invest it and use the income from the investments: »

A discretionary trust was set up for children whose parents were unable to pay school fees.

a legal arrangement in which you give a person or organization the right to manage your money after you die and decide how and when to make payments to the people you have chosen to receive the money: »

You can set up a discretionary trust to pass your home on to your children.


Financial and business terms. 2012.

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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

  • 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 — 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… …   Accounting dictionary

  • 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) …  

  • 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

  • non-discretionary trust — n.    a trust in which the trustee is directed to invest only in specifically named securities and to diversify the investments among certain types of securities. The trustee has no discretion or personal decision making power in the matter.… …   Law dictionary

  • Discretionary trusts and powers in English law — are elements of the English law of trusts, specifically of express trusts. Express trusts are trusts expressly declared by the settlor; normally this is intended, although there are situations where the settlor s intentions create a trust… …   Wikipedia

  • 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

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