What is a discretionary trust?

A discretionary trust is a type of trust that allows a trustee to manage a beneficiary’s assets and determine when to use them for their benefit. This type of trust is used in disability planning law in Florida to ensure that a disabled beneficiary receives their assets in an appropriate manner. A discretionary trust allows the trustee to manage the beneficiary’s assets in the best interests of the beneficiary, instead of automatically transferring the assets to them. The trust document outlines the uses that the trustee can make of the beneficiary’s assets, allowing the trustee to use the assets for expenses such as housing, food, medical care, education, and other appropriate needs. This ensures that the trustee can use the assets in the manner that provides the most benefit to the beneficiary. The trust document also outlines the restrictions that the trustee must follow when distributing the assets, such as not exceeding a certain value or spending the assets on certain items. This helps to protect the beneficiary’s assets and ensures that they are used in the most appropriate manner. Discretionary trusts are a key component of disability planning laws in Florida, allowing the trustee to provide for the beneficiary’s needs without transferring all of their assets. This ensures that the beneficiary receives the most benefit from their assets while still protecting them from potential abuse.

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What is a discretionary trust?

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