discretionary trustnoun [ C ]
ukusLAWa legal arrangement in which the person or organization that manages money has the right to decide how to invest it and use the income from the investments:
A discretionary trust was set up for children whose parents were unable to pay school fees.
a legal arrangement in which you give a person or organization the right to manage your money after you die and decide how and when to make payments to the people you have chosen to receive the money:
You can set up a discretionary trust to pass your home on to your children.