A discretionary trust can have beneficiaries other than members from the same family. A friend could be included as a beneficiary of the trust for a variety of reason such as wanting the friend to benefit now or wanting the ability to want to distribute to them at some point in the future potentially. Example 1 Bart sets up the Simpson Family Trust with himself as the primary beneficiary and secondary beneficiaries including all possibly related family members. He has a good mate called Millhouse who has helped him over the years so has Millhouse named secondary beneficiary. He doesn’t tell Millhouse this, and nothing comes of it until 10 years later when Bart causes the trustee to distribute $10,000 to Millhouse. Example 2 Bart talks his mate Krusty into doing what Bart calls a ‘joint venture’ with the ‘structure’ being a discretionary trust which Bart controls. The trust is set up so that Bart controls it and his family are the beneficiaries and Krusty is a named beneficiary as well. The trust does a development and Bart causes the trust to pay 50% of the profits to Krusty and the rest to Bart’s other family members. This ‘structure’ is good for Bart but terrible for poor old Krusty because he is merely a discretionary object of a trust and has no right to any income or capital. Bart is in full control and if the trust paid nothing to Krusty there would be not much Krusty could do about it. Krusty would also have major issues if Bart suddenly dropped dead or lost capacity. Note there are some tax issues to consider if a Family Trust Election is Required.