discretionary trust
- noun
- /dɪsˈkrɛʃənˌɛri trʌst/
- Specialized
:
fideicomiso discrecional
- A discretionary trust can provide flexibility in distributing assets.
Examples
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The wealthy businessman set up a discretionary trust to support his grandchildren.
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Under a discretionary trust, the trustee can decide how much money each beneficiary receives.
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Many families use a discretionary trust as part of their estate planning to provide flexibility.
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Many families choose to set up a discretionary trust for their children.
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The discretionary trust allows the trustee to determine how the income is distributed among the beneficiaries.
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He set up a discretionary trust to provide financial support for his children based on their needs.
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In a discretionary trust, the trustee has the power to decide the amount each beneficiary receives from the trust fund.
How Flexible
- Specialized
- Specialized
82
3.5
- Specialized
7
4.8
- Formal
Surface Forms
Morphology
The meaning follows straightforward compositional semantics: 'discretionary' (subject to personal choice) modifies 'trust' (a legal arrangement), so it denotes a trust in which decisions about distributions are left to the trustee. This adjective+noun pattern is regular and cross-linguistically common, so a B1 learner who knows both constituent words would likely infer the intended meaning.
Etymology
The noun discretionary trust starts from the idea that discretionary means 'a choice' and trust means money held for others. Imagine the person in charge holding a pile of money and choosing how much to give each family member. That's why a discretionary trust means the trustee can decide who gets money and how much.