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 North Dakota 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 designed to provide financial protection and control over assets for the children of the trust or. This trust allows the trust or to establish separate trusts for each beneficiary, granting discretionary powers to trustees for the accumulation and distribution of both principal and income. The main purpose of this trust is to carefully manage and distribute the wealth accumulated by the trust or for the exclusive benefit of their children. By creating separate trusts for each beneficiary, the trust or ensures that each child's financial needs and circumstances are considered individually, allowing for customized and personalized management of assets. The North Dakota Discretionary Distribution Trust offers several types of discretionary powers to the trustees, allowing them to make decisions regarding the accumulation and distribution of both principal and income. These powers may include the ability to withhold distributions in specific situations, such as when a beneficiary is experiencing financial or personal difficulties, or when it is deemed necessary to protect the beneficiary's best interests. Additionally, this trust may also provide provisions for the accumulation and reinvestment of income, ensuring the growth and preservation of assets for the beneficiaries' long-term benefit. Trustees have the authority to make investment decisions and manage the trust's assets in accordance with the trust or's intentions and applicable laws and regulations. The North Dakota 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 serves as an effective estate planning tool, offering flexibility and control over the distribution of wealth to children. By tailoring each separate trust to the unique needs of each beneficiary, the trust or ensures that their children are provided for and protected in the best possible manner.
