Tips From the Pros: Diving Into Discretionary DistributionsTips From the Pros: Diving Into Discretionary Distributions

Discretionary distribution decisions are arguably the most difficult judgments faced by a trustee.  Conscientious trustees spend significant time analyzing the trust instrument’s¹ dispositive provisions and gathering relevant information from beneficiaries to ensure they’re reaching appropriate conclusions regarding whether and how much to distribute.

Wholly Discretionary Trusts

The context within which trustees consider discretionary distributions varies widely. At one end of the spectrum, wholly discretionary trusts are trusts in which distributions to the beneficiary are left solely within the discretion of the trustee (generally, an independent trustee) without being tied to an ascertainable or a definite standard. Generally, the dispo...