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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 testamentary trust is a trust contained in a last will and testament that provides for the distribution of all or part of an estate and often proceeds from a life insurance policy held on the person establishing the trust.There may be more than one testamentary trust per will. 2. testamentary trust is provided for in a last will by the âsettlor,â who appoints a âtrusteeâ to manage the funds in the trust until the âbeneficiary,â or person receiving the money, takes over.