WordNet
n. a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate
Wikipedia
A discretionary trust in Canadian and English trusts law is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by the settlor. It is sometimes referred to as a family trust in Australia or New Zealand. Where the discretionary trust is a testamentary trust, it is common for the settlor to leave a letter of wishes for the trustees to guide them as to the settlor's wishes in the exercise of their discretion. Letters of wishes are not legally binding documents.
Discretionary trusts can only arise as express trusts. It is not possible for a constructive trust or a resulting trust to arise as a discretionary trust.
Usage examples of "discretionary trust".
So three years ago I had her open a discretionary trust account at Houston Bank and Trust and empty her savings accounts into it.
They embraced the wise resolution of choosing six deputies or representatives, of whom Villehardouin was one, with a discretionary trust to direct the motions, and to pledge the faith, of the whole confederacy.
Everything that could be put into a discretionary trust had been put into it, so there would be very little to go through probate.