discretionary trust

discretionary trust definition - business

discretionary trust

A trust in which the trustee may use his or her discretion in distributing assets to beneficiaries. For example, a discretionary trust for a minor may allow a distribution that the trustee feels is reasonable. Compare nondiscretionary trust.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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