Discretionary Trust: Trust Law Definition

A flexible trust where trustees have complete discretion over how income and capital are distributed among a class of potential beneficiaries. No beneficiary has a fixed entitlement - the trustees decide who gets what and when. Ideal for protecting assets from beneficiaries who may be vulnerable, spendthrift, or facing divorce. Allows trustees to respond to changing family circumstances over time.

This definition is part of the Equity Steward Trust Law Glossary — a plain English reference for UK families and trustees.