Discretionary Trust Deed
A Discretionary Trust Deed is used to establish a discretionary trust in any state or territory in Australia.
Last updated October 23, 2025
Suitable for Australia
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What is a discretionary trust deed?
What is a discretionary trust deed?
A discretionary trust deed is a legal document that establishes a trust where the trustee decides how to distribute income or capital among beneficiaries, who don't have a fixed entitlement to anything.
It names the trustee, the appointor, the beneficiaries, and the trust property, and sets the rules the trustee must follow when making distribution decisions each year.
Is a discretionary trust deed legally binding?
Is a discretionary trust deed legally binding?
Who can act as trustee, and are there restrictions?
Who can act as trustee, and are there restrictions?
The trustee can be one or more individuals, a company, or a combination of both, but this deed doesn't allow a trustee to also be a beneficiary.
A private company is often preferred as trustee for continuity and asset protection, since a company doesn't die or lose capacity the way an individual trustee can.
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Frequently asked questions
What is the appointor, and how is this role different from the trustee?
keyboard_arrow_upWhat's the difference between a discretionary trust and a family trust?
keyboard_arrow_upWhat are the key benefits of a discretionary trust deed?
keyboard_arrow_upWhat are the limitations or risks of a discretionary trust deed?
keyboard_arrow_upHow does a discretionary trust deed address foreign beneficiaries and surcharges?
keyboard_arrow_upDoes a discretionary trust have a vesting date?
keyboard_arrow_upWhat's the most common mistake people make when setting up a discretionary trust?
keyboard_arrow_upCan a discretionary trust be changed or updated after establishment?
keyboard_arrow_upWhat practical steps are required after signing a discretionary trust deed?
keyboard_arrow_upHow long does it take to create a discretionary trust deed?
keyboard_arrow_upHow much does it cost to get a discretionary trust deed, template versus a lawyer?
keyboard_arrow_upView Sample Discretionary Trust Deed
The Legal Risk Score of a Discretionary Trust Deed Template is High
Our legal team have marked this document as high risk considering:
- Trust deeds must follow specific signing and witness procedures.
- Deeds often involve the distribution of assets of meaningful value and carry tax implications.
- There is little margin for error when drafting this document given the level of rights given to the trustee and beneficiary.
Meet Our Users
Articles about Discretionary Trust Deed
3 Steps After Completing Your Trust Deed
Recently established a discretionary trust? Find out what to do after completing your discretionary trust deed here.
Advantages and Disadvantages of a Discretionary Trust (2024 Update)
Discretionary trusts give a trustee discretion when distributing trust property. Find out the advantages and disadvantages here.
Trust Series: What is Trust Vesting?
This article will explain what trust vesting is and what you need to know about your trust deed to ensure your trust is vested and administered properly.
How to Change the Trustee of a Discretionary Trust
Changing the trustee of a discretionary trust may be required for a number of reasons. In this article, we break down how to do so and its affect.
A List of the Key Parties to a Discretionary Trust
A discretionary trust means a trustee can choose not only who benefits, but how they benefit from the trust. Read about the parties involved in this guide.
How to Set Up a Family Trust (2025 Update)
Setting up a family trust requires careful planning and an understanding of how trusts operate. Find out how to get started here.
What is an Irrevocable Trust?
An irrevocable trust doesn't allow its creator to change anything about the trust once it is created. Read this article for more information on such trusts.
Potential Changes to Discretionary Trusts
Important changes that will affect anyone who is currently, or intends to become, a trustee of any discretionary trusts in New South Wales.
Tax Implications for Family/Discretionary Trusts: EOFY Guide
With the end of financial year around the corner, there’s a lot to do. Find out the tax implications for your family/discretionary trusts.
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