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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.
Duhaime's Law Dictionary. Discretionary Trust Definition: A trust in which the settlor has given the trustee full discretion to decide which (and when) members of a defined group of beneficiaries is to receive either the income or the capital of the trust. Related Terms: Trust, Sprinkling Trust, Fixed Trust, Spendthrift Trust. Underhill 's Law of Trusts, 17th edition: