A discretionary trust is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by trustor. Discretionary trusts can be discretionary in two respects. First, the trustees usually have the power to determine which beneficiaries (from within the class) will receive payments from the trust. Second, trustees can select the amount of trust property that the beneficiary receives. Although most discretionary trusts allow both types of discretion, either can be allowed on its own. It is permissible in most legal systems for a trust to have a fixed number of beneficiaries and for the trustees to have discretion as to how much each beneficiary receives.
The Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary is a legal instrument used for estate planning in the state of Illinois. This trust allows the trust or, also known as the granter or settler, to create a separate trust for each of their children, granting them discretionary powers over the accumulation and distribution of both principal and income. One type of this trust is the Irrevocable Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust. This type of trust is created with the intention that it cannot be modified or revoked by the trust or once it is established. Another type is the Revocable Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust. Unlike the irrevocable trust, the trust or retains the ability to modify or revoke the trust during their lifetime. The key feature of this trust is that it provides the children with discretionary powers, meaning that they have the authority and flexibility to make decisions regarding the accumulation and distribution of both the principal and income of their individual trusts. This allows the children to have control over the assets while still maintaining the protection and benefits of being held in trust. By establishing separate trusts for each beneficiary, the trust or can customize the terms and conditions of each trust to cater to the unique needs and circumstances of each child. This ensures that the assets are distributed and managed in a manner that aligns with the trust or's intentions while also providing financial security and flexibility for the children. Overall, the Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary offers a comprehensive solution for estate planning, allowing for the creation of tailored trusts for each child and granting them discretionary control over the trust assets.The Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary is a legal instrument used for estate planning in the state of Illinois. This trust allows the trust or, also known as the granter or settler, to create a separate trust for each of their children, granting them discretionary powers over the accumulation and distribution of both principal and income. One type of this trust is the Irrevocable Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust. This type of trust is created with the intention that it cannot be modified or revoked by the trust or once it is established. Another type is the Revocable Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust. Unlike the irrevocable trust, the trust or retains the ability to modify or revoke the trust during their lifetime. The key feature of this trust is that it provides the children with discretionary powers, meaning that they have the authority and flexibility to make decisions regarding the accumulation and distribution of both the principal and income of their individual trusts. This allows the children to have control over the assets while still maintaining the protection and benefits of being held in trust. By establishing separate trusts for each beneficiary, the trust or can customize the terms and conditions of each trust to cater to the unique needs and circumstances of each child. This ensures that the assets are distributed and managed in a manner that aligns with the trust or's intentions while also providing financial security and flexibility for the children. Overall, the Illinois Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary offers a comprehensive solution for estate planning, allowing for the creation of tailored trusts for each child and granting them discretionary control over the trust assets.
