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What is a trust?
A discretionary (family) trust is a legal relationship in which one or more trustees hold assets for the benefit of one or more other parties, known as beneficiaries. In a discretionary trust, the trustee is given the discretion to pay the beneficiaries any amount of the trust income or capital that the trustee deems to be appropriate.
Discretionary trusts are often established to manage and pass on family assets from one generation to another. A simple family trust structure often involves the parents of a family as trustees, with their children and other relatives as beneficiaries of the trust's assets and capital.