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Discretion is defined as the right of someone to make choices or the quality of someone who is careful about what they do or say. An example of discretion is the ability of a juror to determine a verdict. An example of discretion is not talking about politics at family dinners.
A discretionary trust is unique in that the trustee has discretion on all particulars as regards to the payment of income or capital to the beneficiaries. The distinction is important in law as it can affect the extent to which a beneficiary of such a trust may be able to make demands upon the trustee.