Discretionary Trust Frequently Asked Questions
a question in Discretionary Trust
A beneficiary is a person or entity who receives Trust income or property from the Trustee. The Trustee holds and administers the Trust property for the benefit of the beneficiary. A discretionary Trust is a Trust in which the Trustee has discretion over how to distribute Trust property to the beneficiaries. The Trustee may decide not to distribute Trust property to a beneficiary if the Trustee believes that doing so would not be in the best interests of the beneficiary.The terms of the Trust determine how the Trust property will be distributed to the beneficiary.
The Trustee has a fiduciary duty to act in the best interests of the beneficiaries. This means that the Trustee must make decisions about Trust property in a way that is intended to benefit the beneficiaries. The Trustee must also avoid conflicts of interest and self-dealing.
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