The Beneficiary of the Trust has beneficial ownership over the Trust property – essentially, it is for their benefit that the Trust has been created and administered.
In a Discretionary/Family Trust, beneficiaries do not have a fixed entitlement to the Trust's assets; instead, the trustee has the discretion to decide which beneficiaries receive Trust assets and the amounts they receive. However, this discretion is subject to the limitations outlined in the Trust Deed. While the trustee holds legal title to Trust property, they also bear equitable obligations to the beneficiaries, as specified in the Trust Deed. Beneficiaries in a Discretionary Trust can be categorized into two groups: Primary (or Specific/Designated) Beneficiaries, who are explicitly named in the Trust Deed, and Secondary (or General) Beneficiaries, who are determined based on their relationship to the Primary Beneficiaries, including certain family members, companies, and trusts controlled by the primary beneficiaries.
If you are setting up a Trust with your partner, both of you can be designated as
primary or named beneficiaries, ensuring equal benefits for both.