What is a discretionary trust?

A discretionary trust (also known as a Family Trust) is where the entitlements and trust property is not fixed to each beneficiary. In a discretionary trust, it is up to the trustee to decide the upon the portions of the trust property that each beneficiary receives.

In a discretionary trust you must have:

• A trustee
• A settlor
• Beneficiaries
• Having an appointor is optional and often dependent on the trust deed

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Updated — Jul 22, 2020