Discretionary Trusts

A discretionary trust is a legal arrangement where a trustee manages assets for beneficiaries, but with flexibility to decide how and when each beneficiary receives benefits. The trust specifies the rules and identifies potential beneficiaries, but the trustee has discretion in distributing income or capital based on circumstances, needs, or other considerations. This structure helps provide flexibility, protection from creditors, and may offer tax advantages. Beneficiaries do not have an automatic right to the assets; instead, the trustee’s discretion ensures assets are managed responsibly and in line with the trust’s purpose.