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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.
In a discretionary trust, the trustee is given the discretion to pay the beneficiaries any amount of the trust income or capital that the trustee deems to be appropriate.Discretionary trusts are often established to manage and pass on family assets from one generation to another.n a discretionary trust, the trustee is given the discretion to pay the beneficiaries any amount of the trust income or capital that the trustee deems to be appropriate.Discretionary trusts are often established to manage and pass on family assets from one generation to another.