what does a discretionary trust mean
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- The noun DISCRETIONARY TRUST has 1 sense: 1. a trust that gives the trustee discretion to pay the beneficiary as much of the trust income as the trustee believes appropriate. Familiarity information: DISCRETIONARY TRUST used as a noun is very rare.
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- Thus, the principal can maintain control over the underlying shares held by the trust and the income attributable to it. The income beneficiaries of a discretionary family trust are usually the principal and the spouse, children, children’s spouses, grandchildren and their spouses.
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Trusts A non-statutory trust is generally referred to as a common law trust. [See The Law within this site for information on the common law.]. Statutory trusts are those, which like corporations, are established by and through a law created by the legislature of your state.
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- 1. a: an exclusive or special right, power, or privilege: as (1) : one belonging to an office or an official body (2) : one belonging to a person, group, or class of individuals (3) : one possessed by a nation as an attribute of sovereignty b: the discretionary power inhering in the British Crown.. a: an exclusive or special right, power, or privilege: as (1) : one belonging to an office or an official body (2) : one belonging to a person, group, or class of individuals (3) : one possessed by a nation as an attribute of sovereignty b: the discretionary power inhering in the British Crown.
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Discretionary jurisdiction Discretionary jurisdiction. Discretionary jurisdiction is a circumstance where a court has the power to decide whether to hear a particular case brought before it. Most courts have no such power, and must entertain any case properly filed, so long as the court has subject matter jurisdiction over the questions of law which must be decided, and in personam jurisdiction over the parties to the case. Typically, the highest court in a state or country will have discretionary jurisdiction. The reason for this is that appellate courts in common law countries have two basic functions: error correction and ensuring the orderly development of case law.
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Rights of the Beneficiary of an Irrevocable Family Trust An irrevocable family trust is a noncharitable trust set up by the creator, or settlor, for the benefit of family members. This type of trust is typically a permanent agreement that controls family assets placed into the trust for the benefit of the beneficiaries named in the trust papers. Although state laws establish irrevocable trust beneficiary rights, some rights are common across all or most states.
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Estate Planner Articles The constructive trust is basically a legal concept that has been created by the courts against someone who – through wrongdoing, fraud, or other unconscionable act, obtains or holds legal rights to property that he or she is not entitled to keep or enjoy. constructive trust is often used to prevent undue enrichment, and undue enrichment is present in almost all cases where a constructive trust has been imposed. Nonetheless, it is not a requirement that a court of law finds that the person whose property or assets is subjected to a constructive trust has acted wrongly.
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- DEFINITION of 'Discretionary Account'. An account that allows a broker to buy and sell securities without the client's consent.The client must sign a discretionary disclosure with the broker as documentation of the clients consent.EFINITION of 'Discretionary Account'. An account that allows a broker to buy and sell securities without the client's consent. The client must sign a discretionary disclosure with the broker as documentation of the clients consent.
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Trust law There are two types of living trusts in South Africa, namely vested trusts and discretionary trusts. In vested trusts, the benefits of the beneficiaries are set out in the trust deed, whereas in discretionary trusts the trustees have full discretion at all times about how much each beneficiary is to benefit.
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A Limited Liability Partnership Distributes Accountability The limited liability partnership (LLP) is a special type of partnership that provides personal liability protection to everyone involved. It should not be confused with limited partnerships or limited liability companies, which are different types of business structures.LPs Formed Under State Law. An LLP is a special type of general partnership that you must register with the state. However, states differ in how they treat LLPs. Some states restrict the use of the LLP structure to professionals, such as lawyers and accountants.
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- A directed trust allows the client, who appoints an administrative trustee in a directed trust state such as South Dakota, to appoint a trust advisor or an investment trustee/committee, who in turn may select outside investment advisor(s) and/or manager(s) to manage the trust's investments. directed trust allows the client, who appoints an administrative trustee in a directed trust state such as South Dakota, to appoint a trust advisor or an investment trustee/committee, who in turn may select outside investment advisor(s) and/or manager(s) to manage the trust's investments.
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- DEFINITION of 'Discretionary Expense'. A discretionary expense is a cost which is not essential for the operation of a home or a business. For example, a business may allow employees to charge certain meal and entertainment costs to the company in order to promote goodwill with employees. discretionary expense is a cost which is not essential for the operation of a home or a business.
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What is a 'Trust' DEFINITION of 'Trust'. A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. There are two types of trusts: 1. Living Trust (inter-vivos): A trust that is in effect during the trustor's lifetime. 2.
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discretionary Definition of discretionary for English Language Learners. : 1  available to be used when and how you decide. : 2  done or used when necessary.
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discretionary Definition of discretionary. 1  1 : left to individual choice or judgment : exercised at one's own discretion discretionary powers. 2  2 : available for discretionary use discretionary income.
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- A gastroduodenoscopy, a test where the vet can look at your dog’s stomach, may be performed. In some cases, a biopsy or ultrasound may be necessary. Your veterinarian will go through the following steps: 1  Review the history of vomiting episodes and relationship to feeding times and your dog's diet. Do the same with your dog. 2  If your dog's gums feel dry and not wet like yours, then your pet may be suffering from dehydration. 3  The other method is called tenting. 4  Pull the skin gently up along the pets neck in one spot to form a temporary tent. 5  The skin should pull back into position in 2 seconds or less.
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- Definition. An amount of funds in an income trust that may be transferred to the unit holders. Can also be used in reference to estate trusts in that it is the maximum taxable amount of income to be distributed from that trust to the receiving beneficiary.n amount of funds in an income trust that may be transferred to the unit holders. Can also be used in reference to estate trusts in that it is the maximum taxable amount of income to be distributed from that trust to the receiving beneficiary.
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- Full Definition of HAMSTRING. 1. a: either of two groups of tendons at the back of the human knee b: any of three muscles at the back of the thigh that function to flex and rotate the leg and extend the thigh. 2.: a large tendon above and behind the hock of a quadruped.. a: either of two groups of tendons at the back of the human knee b: any of three muscles at the back of the thigh that function to flex and rotate the leg and extend the thigh. 2.
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QTIP Trust QTIP Trust. QTIP trust is a type of trust and an estate planning tool used in the United States. A QTIP trust is often used in order to take advantage of the marital deduction and still control the ultimate distribution of the assets at the death of the surviving spouse.
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DEFINITION of 'Charitable Remainder Trust' DEFINITION of 'Charitable Remainder Trust'. A tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and then donating the remainder of the trust to the designated charity. Next Up.his is done by first donating assets into the trust and then having it pay the beneficiary for a stated period of time. Once this time-frame expires, the remainder of the estate is transferred to the charities deemed as beneficiaries.
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What is a 'Trust Fund' Loading the player... A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. A grantor establishes a trust fund to provide financial security to an individual, most often a child or grandchild, or organizations, such as a charity or other nonprofit organization.
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Constructive trust A constructive trust is an equitable remedy resembling a trust (implied trust) imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference.
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Discretionary Family Trust For information regarding why you should choose a DBA discretionary trust, click here. Note: Stamp duty is $200 in Victoria, $500 in NSW and $50 in both Tasmania and the NT (broadly, provided there is no dutiable property at the time of execution).ote: Stamp duty is $200 in Victoria, $500 in NSW and $50 in both Tasmania and the NT (broadly, provided there is no dutiable property at the time of execution).
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What is a discretionary trust and what are the benefits? What is a Discretionary Trust? In a discretionary trust (or family trust) the beneficiaries do not have a fixed entitlement or interest in the trust funds. The trustee has the discretion to determine which of the beneficiaries are to receive the capital and income of the trust and how much each beneficiary is to receive. The trustee does not have a complete discretion.
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Beware the pitfalls of the discretionary family trust This means that a creditor of the potential beneficiary cannot get access to the assets in the discretionary trust to help satisfy a debt owed to them by the beneficiary. This also means the trustee in bankruptcy of a beneficiary usually cannot access assets in a discretionary trust.
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Beware the pitfalls of the discretionary family trust A discretionary trust is a trust, much like a fixed trust. However, unlike a fixed trust, no beneficiary (or potential beneficiary) obtains an income or capital distribution/allocation unless the trustee exercises the discretion they have in favour of a beneficiary.