discretionary trust

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now
A discretionary trust, in the trust law of England, Australia, Canada and other common law jurisdictions, is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by the settlor. It is sometimes referred to as a family trust in Australia or New Zealand. Where the discretionary trust is a testamentary trust, it is common for the settlor (or testator) to leave a letter of wishes for the trustees to guide them as to the settlor's wishes in the exercise of their discretion. Letters of wishes are not legally binding documents.
Discretionary trusts can only arise as express trusts. It is not possible for a constructive trust or a resulting trust to arise as a discretionary trust.

View More On Wikipedia.org
  1. A

    WA Discretionary trust - trustee dies

    What happens where the trustee dies and the trust document is missing? There is a reasonable amount of funds in the trust bank account and I was a beneficiary of the trust. The trust account does not appear to be listed at probate as I have been told it does not form part of the estate. The...
  2. J

    Family Discretionary Trust Question

    Hi , In a family discretionary trust where the husband is owns the company in his name and is the trustee. The husband and wife are the appointers 50% each. Would that be 50% half the business to husband and wife or would that be up to the trustee to decide. Thanks in advance.
  3. Q

    NSW Can I Set Up Discretionary Trust on 457 Visa?

    Hi. Can I legally set up a discretionary trust being on temporary 457 visa? I do not want to have a business on it. I will still be working for the employer that sponsored me. I would like to put there some investments, maybe property. Also I need an ABN to create a website with .com.au. Can...
  4. C

    QLD Does Stamp Duty Apply to Property in Discretionary Trust?

    My spouse and I own property in a Discretionary Trust that we wish to transfer to our ourselves as the sole benefactors of the trust in Queensland. The property will be used as a principal place of residence. Does stamp duty apply? Do any concessions apply ? Kindest regards
  5. S

    NSW Can Trustee Close Down Trust Fund Without Telling Beneficiary?

    Trust Fund: I'm a beneficiary in discretionary trust fund. The Trustee has cancelled/closed down the Trust fund without telling me, the beneficiary. Is this allowed, not notifying me of this Trust fund being cancelled/closed down? The trustee also claims they are a beneficiary on this...
  6. S

    NSW General Rights of a Beneficiary to a Trust Fund?

    In a Discretionary Trust fund, do the Trustees have to notify the Beneficiary that the Trust is being cancelled/closed down? Can you be a Trustee and a Beneficiary on the same Discretionary trust fund? Can you Distribute the assets or money in the Trust fund before the vesting date if there is...
  7. R

    QLD Minor Son is Sole Beneficiary to Superannuation - Roles of the Trustee?

    Hi all, My wife's former partner has died. He leaves behind my minor stepson who has been awarded his superannuation death benefit of $350k. My wife has been told by the fund to set up a trust with her 6-year-old son as the sole beneficiary. She is chatting to an accountant about this but...
  8. G

    QLD Discretionary Trust Structure - How Does It Work?

    John is self-employed as a mechanic and wants to operate a business through a discretionary trust structure with a corporate trustee being ABC Pty Ltd. How does this structure work? Is he simply employed by the trust (who has an ABN), or should he operate from another company XYZ Pty Ltd from...
  9. T

    QLD Bankruptcy and Directors

    Hi, Myself and my wife are both directors of a discretionary trust with a corporate trustee company, that owns the property we live in. We pay the mortgage and have guaranteed the loan. The property has little equity. We understand that when bankrupt, we are no longer able to be directors. If...
  10. S

    NSW Who is the True Settlor of the Trust Fund?

    Say you want to claim the capital or remove the Trustee on a Trust fund, 1st though you want to establish the "True-settlor". Say the person A transferred money into Person's B's bank account to set up a family trust for "Person B's" relative. Would the settlor be person A or B? This becomes...