DISCRETIONARY TRUSTS
14/04/2011
A discretionary trust exists where the trustees have discretion over the distribution or accumulation of income and/or the appointment of capital. An essential feature is that whilst the power of accumulation of income exists or the power to appoint capital exists no beneficiary has any right to require the trustees to exercise their discretion in the beneficiary’s favour. This means that a class of beneficiaries exists from which any may be chosen for benefit but no beneficiary within the class has any right to enjoy income or capital at a particular time.
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