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discretionary trust
(redirected from discretionary trusts)

    Also found in: Legal, Financial, Wikipedia 0.02 sec.
discretionary trust
n
(Economics, Accounting & Finance / Banking & Finance) a trust in which the beneficiaries' shares are not fixed in the trust deed but are left to the discretion of other persons, often the trustees
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.discretionary trust - a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate
trust - something (as property) held by one party (the trustee) for the benefit of another (the beneficiary); "he is the beneficiary of a generous trust set up by his father"


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These rules do not apply to discretionary trusts not required to distribute either income or specific dollar amounts.
Final regs. define "income" under sec. 643 by Spoor, F. Gordon / The Tax Adviser
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