Discretionary Trusts – What is “Bad Faith” and When Will the Court Interfere with a Trustee’s Discretion?

Discretionary Trusts – What is “Bad Faith” and When Will the Court Interfere with a Trustee’s Discretion?

The use of a “discretionary trust” that grants a trustee the absolute discretion to determine when
and if a distribution is made to a beneficiary, and in what amount, is a fairly common estate planning tool.

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