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.