What is a discretionary trust?
A discretionary trust is a type of trust used in West Virginia inheritance law. It is an arrangement in which a person or entity, known as the “trustee”, is given control over the trust assets. The trustee is responsible for managing the trust assets and making decisions about how the trust assets should be allocated. The trust assets are usually held in trust for the beneficiaries, which are entities that receive the trust assets and use them according to the trust agreement or trust document. The trustee of a discretionary trust has the power to decide how and when to distribute the trust assets. Unlike a traditional trust, the trustee can decide who receives the trust assets and when they receive them. This type of trust offers a great deal of flexibility to beneficiaries, allowing them to receive trust assets when they need them the most. The trustee of a discretionary trust may also be responsible for other activities, such as investing the trust assets or providing financial advice to the beneficiaries. The trustee is typically a professional, such as a lawyer or accountant, with a legal or financial background. The trust agreement will outline the trustee’s responsibilities and the terms of the trust. Discretionary trusts are a popular choice for those looking to make sure that their assets are distributed in accordance with their wishes. They also offer more flexibility to beneficiaries, allowing them to receive trust assets at the time that is most beneficial to them. Ultimately, discretionary trusts provide a great way for West Virginians to ensure that their estate is managed in accordance with their wishes.
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