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The noun DISCRETIONARY TRUST has 1 sense: 1. a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate. Familiarity information: DISCRETIONARY TRUST used as a noun is very rare.
A Discretionary Trust is a special kind of trust fund you set up for your sick relative. You set up the trust, and in your will, leave however much money, property, possessions, etc, you want to go to your mentally ill relative to the trust instead of the relative. second option is to leave the money to someone who is mentally well, and entirely trusted by you. You can then ask this person (example: the brother, sister or spouse of the person suffering from mental illness) to look after the person you intend the money for.