Jargon Buster - Definition of Discretionary Trust

Please select your letter of choice below to see the list of terms:

Discretionary Trust

is a type of trust where the nominated beneficiaries and entitlements are not fixed. It also means that the trustees can use discretion as to how the money within the trust is used.

In a Discretionary Trust, the trustees can influence how much is paid to each beneficiary. For this reason, trustees should be chosen very carefully and in many circumstances the trustee can also be the beneficiary as it is in their own best interest to pay the money to themselves.


Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.

The Financial Conduct Authority do not regulate tax and trust planning. Levels and basis of relief are based on individual circumstances and are subject to change.

If you are in doubt of the meaning of any terms, why not email us on info@topquoteuk.com

The Financial Conduct Authority does not regulate trusts.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.