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).

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Discretionary Trust. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 26, 2021 https://payrollheaven.com/define/discretionary-trust/.
Chicago Manual of Style (CMS):
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.