Discretionary Distributions: A Trustee’s Most Difficult Decision
During the drafting of a trust, a frequently overlooked provision is also perhaps one of the most important ones to consider, discretionary distributions. What is a discretionary distribution? Who makes them and how?
Most trusts provide named beneficiaries with net income for their lives or a term of years. They often include a provision that allows a beneficiary to request additional distributions from income and/or principal.