What is a discretionary trust?
A discretionary trust is a trust which allows the appointed trustee to decide how to use the trust funds for the benefit of the trust’s beneficiaries, at the trustee’s discretion. In Kansas, discretionary trusts are typically set up to leave an inheritance to one or more beneficiaries, with the trustee having the authority to decide when and in what amounts the trust funds can be distributed. This allows the trustee to manage the trust funds in a way that ensures the best interests of the beneficiaries are taken into account, such as making sure the funds are distributed evenly and judiciously when the beneficiaries are minors or providing financial protection for beneficiaries with special needs. Discretionary trusts also allow the trustees to adapt the trust terms to changing circumstances, making them a useful and flexible estate planning tool.
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