What is a Discretionary Trust

Discretionary Trust Accounting and Tax in Australia

A discretionary trust is a type of trust where the trustee has discretion over how to distribute the trust's assets. This means that the trustee can decide who gets what, and when they get it.

Discretionary trusts are often used for asset protection purposes, as the trustee can control who has access to the assets in the trust. This can be helpful if you're worried about creditors or other claimants coming after your assets.

There are some special rules that apply to discretionary trusts in Australia, so it's important to seek professional advice before setting one up. But if done correctly, a discretionary trust can be a very useful tool for protecting your assets.