1.1.D.200 Discretionary trust

Usage

This definition applies to all payments.

Definition

A discretionary trust is a private trust set up by an individual or individuals (often a family) either to:

  • hold property or investments, or
  • run a business.

In virtually all cases the trust deed gives absolute discretion to the trustee to distribute both income and capital among the beneficiaries as he or she sees fit.

Act reference: SSAct section 547E Assets of trust in which person benefits, section 1207P Designated private trusts

Policy reference: SS Guide 1.1.N.100 Non-discretionary trust, 1.1.T.180 Trust

Last reviewed: 16 May 2016