An Account on Discretionary Trust
People want to protect their assets with the help of different trusts so that their family can benefit from these assets when required. If you list down the number of trusts that work on this principle, you would find many of them. What happens in a discretionary trust? Here the beneficiaries are not specifically named, instead there are certain criteria which one has to meet to benefit from this trust, and these criteria is laid down by the testator.
There are certain good reasons why people opt for discretionary trust rather than going for the other ones. One prime reason is that the testator gets to exercise control over his trust and will whether who exactly the beneficiaries will be, because he is not naming them. The testator also enjoys a bit of flexibility with this discretionary trust where he can change his mind according to the circumstances and his will.