Final answer:
A trustee with discretionary powers is authorized to make decisions on managing trust assets. They can decide on asset distribution and investment based on the trust's terms. Post-death, a trust typically becomes irrevocable, and its terms cannot be changed.
Step-by-step explanation:
A trustee possessing discretionary powers has the authority to make decisions regarding the management of a trust's assets based on their judgment and in accordance with the terms of the trust. These decisions can encompass various responsibilities, including the distribution of trust assets and investment choices. In contrast, a trust with non-discretionary powers restricts the trustee's decision-making authority, compelling them to adhere strictly to the instructions outlined in the trust document.
Upon the death of the trust creator (settlor), the instructions and assets within the trust commonly become irrevocable. This irrevocability implies that the terms of the trust cannot be altered or contested, providing a level of permanence and stability to the trust structure. The discretionary or non-discretionary nature of the trustee's powers significantly influences the flexibility and autonomy they have in managing the trust's affairs.