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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.
CHAPTER 3 INCOME TAX ON DISCRETIONARY TRUSTS In this chapter you will cover the income tax rules for discretionary trusts including: â The tax rates paid by discretionary Trustees; â The âbasic rateâ band for trusts; â How the Trustees get relief for expenses; â The tax position of the beneficiary; â The operation of the âtax poolâ.