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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.
Make Your Own Living Trust. Related Ads. A testamentary trust is a type of trust that does not go into effect until the grantor (the person who made the trust) dies. Usually this type of trust is made within a will â often to create a trust for minors.nd while leaving property to children through a testamentary trust can be a practical way to leave gifts to children through a will, it is not the only way â for example, in most states you could use the Uniform Transfers to Minors Act instead.