Real Estate, Landlord Tenant, Estate Planning, Power of Attorney, Affidavits and More! All Major Categories Covered. What is discretionary trust? Is a family trust the same as a discretionary trust?
Should I establish a discretionary or unit trust?
We’ll start off with the basics. Firstly, we will quickly identify some of the key terms in a trust agreement. See full list on lawpath.
The discretionis in the trustee having the option of splitting up the trust property however they like. Richard can split the whole property into equal thirds, allow Xavier to have a higher share, or even give the whole property to him. Unit trusts are fixe express trusts.
Richard would distribute the property by allocating shares.
Unlike discretionary trusts, unit trusts allocate the shares in the property for beneficiaries in the trust agreement, rather than discretion by the trustee. Each beneficiary is allocated a unitin the trust property beforehand. In your Trust Dee the shares in the investment property are now determined by what was set out in the agreement. The trust agreement can say that Richard has to split the property evenly, or that Janet receives of the shares, while Xavier and Ashley receive each.