What is a discretionary trust?

A discretionary trust is a type of trust that allows the trustee (the person responsible for managing the trust) to decide how much money each beneficiary of the trust should receive from the trust assets. The trustee can also make decisions on how the trust assets should be invested or used. This type of trust is often set up in Washington state to provide for the financial needs of a family, such as providing money for health care or education. A discretionary trust offers flexibility and control to the trustee since they can decide which beneficiary should receive which amounts and when. This allows the trustee to tailor the distributions to best meet the needs of the beneficiaries. The trustee can also decide which investments are best suited for the trust assets and how the money should be used. Discretionary trusts are a popular way to preserve wealth, manage assets, and provide for future generations. They are important tools for people who want to ensure their assets are managed properly and their beneficiaries are taken care of. A discretionary trust can help to ensure that the wishes of the person who sets up the trust are followed even after they pass away.

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