A discretionary trust is a trust where the beneficiaries and/or their entitlements to the trust fund are not fixed, but are determined by the criteria set out in the trust instrument by trustor. Discretionary trusts can be discretionary in two respects. First, the trustees usually have the power to determine which beneficiaries (from within the class) will receive payments from the trust. Second, trustees can select the amount of trust property that the beneficiary receives. Although most discretionary trusts allow both types of discretion, either can be allowed on its own. It is permissible in most legal systems for a trust to have a fixed number of beneficiaries and for the trustees to have discretion as to how much each beneficiary receives.
An Indiana Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary is a specific type of trust that allows the trust or (or granter) to set aside assets for the benefit of their children. This trust provides the trust or with control over how the trust's principal and income are accumulated and distributed to the beneficiaries. In this trust, the granter has the power to determine how the trust's assets are invested and how the income generated from those assets is distributed among the beneficiaries. The granter can also decide the circumstances under which the trust's principal can be distributed to the beneficiaries. The trust document usually outlines the discretionary powers given to the trustee, who is responsible for managing and administering the trust. The trustee can use their discretion to make decisions regarding the allocation of income and principal, taking into consideration the best interests and needs of the beneficiaries. Each beneficiary of the trust has a separate trust created specifically for them, ensuring that their interests are protected and that any distribution decisions made regarding their trust are tailored to their specific needs and circumstances. Different types of Indiana Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary may include: 1. Indiana Discretionary Distribution Trust with Equal Powers: In this type of trust, each beneficiary has equal discretionary powers over the accumulation and distribution of principal and income from their individual trust account. 2. Indiana Discretionary Distribution Trust with Different Powers: This type of trust allows for different levels of discretionary powers to be granted to each beneficiary based on their needs, abilities, or the trust or's specific instructions. The trustee may have more flexibility in making decisions for beneficiaries who may require additional support or have varying degrees of financial responsibility. 3. Indiana Discretionary Distribution Trust with Age-Based Powers: Here, the granter can specify different levels of discretionary powers based on the age of each beneficiary. For example, younger beneficiaries may have restricted powers initially, with more control being granted as they reach certain age milestones, such as turning 18 or 21. It is important to consult with a qualified attorney experienced in estate planning and trust law to properly establish and draft an Indiana Discretionary Distribution Trust for the Benefit of Trust or's Children with Discretionary Powers over Accumulation and Distribution of Principal and Income Separate Trust for each Beneficiary. This will ensure that the trust reflects the trust or's specific intentions, provides for the individual needs of each beneficiary, and complies with all relevant legal requirements.
