ABSTRACT
The concept of a ‘discretionary trust’ in trust law is a generic description of duties and powers of trustees in respect of a class of objects and the property subject to a trust. In tax law, ‘trusts without an interest in possession’ is adopted as a substitute. In its broadest sense, a discretionary trust is a trust in respect of which the trustees are given a discretion to pay or apply the income or capital or both, to or for the benefit of all or anyone of a group or class of objects on such terms and conditions as the trustees may see fit.
