The BC Court of Appeal in Putzki v Saunders 2016 BCCA 344 examined the nature of a family property trust and discussed what is a discretionary trust.
A discretionary trust is commonly used in estate planning often when dealing with infants, disabled people on a government pension, spendthrifts and mentally challenged people of all sorts. The simple idea is that someone else who is neutral and competent manages the assets/ monies held in the trust for the benefit of the beneficiary, typically by paying the interest and some capital from time to time when necessary.
Underhill and Hayton: Law of Trusts and Trustees, 18th ed. (London: LexisNexis, 2010) at 98, describe the nature of a discretionary trust as follows: