Discretionary trust


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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.
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.

Discretionary Trust

A trust in which a trustee is able to make decisions without the need to consult others. For example, a discretionary trust gives the trustee the right to make significant investment decisions without permission from or even consultation with the trustor or the beneficiary. However, the trustee has a fiduciary responsibility to manage the assets as well as possible; decisions made in a discretionary trust must be made in accordance with the prudent man principle.
References in periodicals archive ?
Thus, even with a true discretionary trust, it would be advisable, if the trustee desires to distribute all of the trust corpus, first get a court order or get the consent of all remainder beneficiaries.
If a Will includes a Nil-Rate Band Discretionary Trust and on the first death it is decided that the trust is no longer appropriate, then it is possible to bring that trust to an end and to pass the whole of the trust fund to the surviving spouse/civil partner who will then be free to use the assets.
There is no right or wrong answer as to whether you should change a nil-rate band discretionary trust will if you have already made one.
Contractor address : DISCRETIONARY TRUST, 95/26 FELIX ST
Detailed consideration will be required for each case, but discretionary trusts may still be appropriate where there is property which qualifies for business or agricultural property relief, where there is concern about long term care or where it is anticipated that an asset might appreciate in value faster then the nil rate band.
The family's assets were accumulated as a result of business success during the course of a 28- year marriage and the court considered whether or not a pounds 68m offshore discretionary trust formed part of the couple's joint assets.
LONDON, July 11 /PRNewswire-FirstCall/ -- The Company was notified on 8 July 2005 of dealings in its Ordinary Shares of 30 5/14 pence each ("United Shares") by the Trustee of the United Business Media Qualifying Employee Share Ownership Trust (the "QUEST"), which is a discretionary trust for the benefit of UK employees (including executive directors) of the United Group, in connection with the exercise of SAYE options:
Life policies can be written to a discretionary trust, meaning the policy no longer forms part of the assured's estate, with the result no inheritance tax is to pay on his/her death.
LONDON, June 10 /PRNewswire-FirstCall/ -- The Company was notified on 10 June 2005 of dealings in its Ordinary Shares of 25p each ("United Shares") by the Trustee of the United Business Media Qualifying Employee Share Ownership Trust (the "QUEST"), which is a discretionary trust for the benefit of UK employees (including executive directors) of the United Group, in connection with the exercise of SAYE options:
This normally involves splitting assets and incorporating a Discretionary Trust clause in the Wills of both a husband and wife.
Contractor name : FRIDGE DESIGN STUDIO PTY LTD ITF FOUNTAIN FAMILY DISCRETIONARY TRUST