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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.
2.3 Under a discretionary trust, the trustees have the power to make various decisions with the trust property such as the power to buy, sell and/or invest various trust assets. In a Bare Trust, however, the Bare Trustee is permitted to do nothing unless at the direction of the beneficiary (the Super Fund trustee).