Which of the following statements is most true in relation to the rights of the potential objects of a discretionary trust?

Question

Quizplus · Accepted Answer

In an exhaustive discretionary trust, the class as a whole has a proprietary interest in the trust fund because the trustees are obliged to distribute the entire trust fund among the members of the class, even though they have discretion as to the manner of distribution. This contrasts with a non-exhaustive discretionary trust, where trustees may choose not to distribute some or all of the trust fund, leaving the potential beneficiaries without a proprietary interest in the undistributed portion.

Which of the Following Statements Is Most True in Relation