Discretionary Trust

Business, Legal & Accounting Glossary

Definition: Discretionary Trust




Full Definition of Discretionary Trust


A form of trust, usually express, where there is some discretion to be exercised by the trustee(s) in the allocation of benefits of the trust. Unlike in a fixed trust, the beneficiaries of the discretionary trust have no identifiable equitable interest in the trust property until the discretion of the trustee is actually exercised.

See also: fixed trust, express trust, equitable interest (land and property).


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Discretionary Trust. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/discretionary-trust/ (accessed: September 26, 2021).
American Psychological Association (APA):
Discretionary Trust. PayrollHeaven.com. Retrieved September 26, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/discretionary-trust/

Definition Sources


Definitions for Discretionary Trust are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th April, 2020 | 0 Views.