Drafting flexibility into trusts.

Discretionary decision making authority over the administration of the trust or its assets directly can be delegated or reserved to the settlor(s). Persons with discretionary decision making may include the trustee(s), trust protectors, trust directors, and holders of powers of appointment. Provisions for trust protectors and trust directors, however, is not typically seen in most living trusts.

A trust may give the trustee discretionary authority over distributions, asset investments, and asset management. Such discretionary authority can be broadly or narrowly defined and tailored to the purpose. For example, the trustee of a special needs trust always has absolute discretion over whether to make distributions for the special needs beneficiary. Also, the trustee of a support trust