Which type of trust has the trustee given complete discretion to support the beneficiary?

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Multiple Choice

Which type of trust has the trustee given complete discretion to support the beneficiary?

Discretionary trusts give the trustee full control over whether to distribute at all and, if so, how much to provide, specifically for the beneficiary’s support. The trustee can decide when, how often, and in what amount payments are made, with no guaranteed payout to the beneficiary. That level of control over support decisions is the hallmark of a discretionary trust. A support trust, by contrast, is oriented to ensuring the beneficiary’s maintenance and needs, but the trustee’s discretion is limited to applying funds for those purposes rather than freely deciding any amount or timing. A mandatory trust fixes payments, and a spendthrift trust centers on creditor protection and restraint on transfer, not on discretionary support.

Discretionary trusts give the trustee full control over whether to distribute at all and, if so, how much to provide, specifically for the beneficiary’s support. The trustee can decide when, how often, and in what amount payments are made, with no guaranteed payout to the beneficiary. That level of control over support decisions is the hallmark of a discretionary trust.

A support trust, by contrast, is oriented to ensuring the beneficiary’s maintenance and needs, but the trustee’s discretion is limited to applying funds for those purposes rather than freely deciding any amount or timing. A mandatory trust fixes payments, and a spendthrift trust centers on creditor protection and restraint on transfer, not on discretionary support.

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