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Discretionary trust estate

Last updated 4 December 2006

A discretionary trust estate is a trust estate for which:

  • Both of the following conditions are satisfied:    
    • a person - including the trustee - has a power of appointment or other discretion, and
    • the exercise of, or the failure to exercise, the power or discretion has the effect of determining, to any extent, either or both of the following:    
      • persons who may benefit under the trust
      • the beneficiaries are to benefit under the trust
       
     

Or

  • One or more of the beneficiaries under the trust have a contingent or defeasible interest in some or all of the capital or income of the trust estate

Or

  • The trustee of another trust estate that satisfies both conditions in the first dot point above benefits or is capable of benefiting under the first-mentioned trust estate.

QC18000