Discretionary Trust - A highly
flexible arrangement in which the beneficiary has
no fixed interest in any part of the income of the
trust or its assets except perhaps at the termination
of the trust. The Trustees usually hold the property
and income for a broad class of beneficiaries to whom
they distribute the assets at their discretion. However,
the Trustees may be guided by an informal memorandum
written by the settior which outlines his wishes but
has no legal status. One advantage of this arrangement
is that benefits can be varied according to changes
in circumstances with little difficulty. Another is
that the beneficiary has a somewhat nebulous hope
of receiving anything and therefore it is difficult
for any creditors to find an interest to which to
attach a liability.
