What does absolute discretion mean?

Absolute discretion means the right to distribute principal that is not limited or modified in any manner to or for the benefit of one or more benefi- ciaries of the trust, whether or not the term “abso- lute” is used.

What does discretion mean in a contract?

Contractual discretion has been described as one party making a decision under a contract which entails “an assessment or choosing from a range of options and taking into account the interests of both parties”. It is usually contrasted with an “absolute contractual right”.

What does sole discretion mean?

Sole Discretion means the right and power to decide a matter, which right may be exercised arbitrarily at any time and from time to time.

What is a purely discretionary trust?

A pure discretionary trust provides that a trustee can only distribute principal and income in line with his or her individual discretion about what’s appropriate. This means that, without additional guidelines, the trustee cannot be compelled to make a distribution that the trustee doesn’t see fit to uphold.

What is unfettered discretion?

uncountable noun. Discretion is the quality of behaving in a quiet and controlled way without drawing attention to yourself or giving away personal or private information.

What is unqualified discretion?

: an unqualified right : a legally enforceable right to take some action or to refrain from acting at the sole discretion of the person having the right.

What does discretion mean in legal terms?

Discretion is the power of officials to act according to the dictates of their own judgment and conscience. Discretion is abused when the judicial action is arbitrary, fanciful, or unreasonable. If the plaintiff or the defendant thinks that the trial court judge has abused the discretion, the party can appeal the case.

What is reasonable discretion?

Reasonable Discretion means, as to any Person, a determination or judgment made by such Person in good faith in the exercise of reasonable (from the perspective of a secured lender) business judgment.

What does unfettered discretion mean?

“Unfettered discretion” means the exercise is not controlled in any way, it is unrestricted.

What does sole and absolute discretion mean?

Saying “sole” discretion suggests that only one party can exercise that discretion. Saying “sole and absolute” discretion means that only one party can exercise that discretion in an unfettered way.

Who owns the assets in a discretionary trust?

the trustee
While discretionary trust assets are legally owned by the trustee, the trustee does not beneficially own the assets. The trustee must, however, manage and safeguard the assets for the general body of potential beneficiaries, but no beneficiary can demand an asset or income from the trustee.

What does unfettered mean in law?

Definition of unfettered : not controlled or restricted : free, unrestrained unfettered access to the Senate.—

What does fettered mean in law?

to restrict or confine something or someone to stop them making progress.

What does complete discretion mean?

the power or right to decide or act according to one’s own judgment; freedom of judgment or choice: It is entirely within my discretion whether I will go or stay.

What are some examples of discretion?

Discretion is defined as the right of someone to make choices or the quality of someone who is careful about what they do or say. An example of discretion is the ability of a juror to determine a verdict. An example of discretion is not talking about politics at family dinners.

How is discretion applied?

Discretion has the meaning of acting on one’s own authority and judgment. In law, discretion as to legal rulings, such as whether evidence is excluded at a trial, may be exercised by a judge. Some view discretion negatively, while some view it positively.

What does it mean to use discretion?

1 : care in not attracting attention or letting out private information Use discretion in dealing with the situation. 2 : the power to decide what to do I’ll leave it to your discretion. discretion. noun. dis·​cre·​tion | \ dis-ˈkre-shən \

How do you use sole discretion?

You claim to be fit and proper people to take this thing under your sole discretion. That is left to the sole discretion of the police themselves. It is left to the sole discretion of a politician. That matter is at the sole discretion of the mortuary staff.

Who controls a discretionary trust?

the Appointor
It is fair to say that in a modern discretionary trust, true control rests not with the trustee, but with the Appointor – the person who has the power to remove or appoint the trustee.

What is trustee discretion?

Trustee’s Discretion. In exercising any discretion the Trustees may, but shall not be required to, consider and accept as correct any statement that the Trustees believe to be reliable made by any person, including a person interested in the way in which the discretion is exercised.

Can a trustee’s discretion be fettered?

But, there is a more fundamental issue that deserves attention – fettering of a trustee’s discretion. Take for example an insurance funded buy-sell arrangement that uses options under the contractual arrangement to help facilitate any ultimate buyout.

unfettered discretion. The ordinary meaning of the term ‘unfettered’ is ‘fully unrestricted’, with no constraints. However, courts equally have a discretion to

What happens if a trustee does not give reasons?

Trustees are not required to disclose the reasons for how their discretion, which is effectively unfettered, is exercised. However, while this principle is unimpeachable – where trustees elect not to give reasons, the court can make inferences from the trustees’ failure to give reasons.