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 Franklin Ohio 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 specific type of trust created in Franklin, Ohio. This trust is designed to provide financial support and flexibility to the beneficiaries, who are the children of the trust or (the person creating the trust). The trust operates on the principle of discretion, giving the trustee the power to decide when and how much of the trust's principal and income should be distributed to each beneficiary. This discretionary power allows the trustee to make decisions based on the unique circumstances and needs of each beneficiary, ensuring their well-being and financial security. The Franklin Ohio 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 can have different variations depending on the specific needs and preferences of the trust or. Some common variations include: 1. Education-focused Trust: This type of trust places a strong emphasis on using the trust's assets for the education and development of the beneficiaries. The trustee may have discretionary powers to allocate funds for tuition fees, books, supplies, or other educational expenses. 2. Health and Well-being Trust: In this variation, the trust or may specify that the trustee has discretionary powers to distribute funds for the healthcare and general well-being of the beneficiaries. This can include medical expenses, insurance premiums, and other related costs. 3. Special Needs Trust: If one or more of the beneficiaries have special needs or disabilities, a specialized variation of the trust can be created. This type of trust may have additional provisions to ensure the beneficiaries' unique needs are met, while still providing discretionary powers to the trustee. 4. Age-based Trust: The trust or may decide to structure the trust in a way that gradually grants more control and financial responsibility to the beneficiaries as they reach certain milestones or ages. This can be done to encourage financial maturity and responsible decision-making. 5. Charitable Trust: For philanthropic-minded individuals, a version of the trust can be established with charitable intentions. The trust or may include provisions that allow the trustee to allocate a portion of the trust's income or principal to charitable organizations or causes in addition to providing for the beneficiaries. It's important to note that the specific terms and conditions of the Franklin Ohio 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 may vary depending on the trust or's preferences and the guidance of their legal advisors.
