Trust

A fiduciary relationship calling for a trustee to hold the title to assets for the benefit of the beneficiary. The person creating the trust, who may or may not also be the beneficiary, is called the grantor.

Trust

1. A relationship in which one party, known as the trustor, gives to a person or organization, known as the trustee, the right to hold and invest assets or property on behalf of a third party, known as the beneficiary. Most trusts exist to provide for the financial future of a minor child or mentally incompetent person. Trusts may also be set up to benefit charitable organizations. The trust agreement indicates at what time, if any, the beneficiary takes direct control of the assets. The beneficiary often receives disbursements to meet basic expenses until the time comes when the beneficiary takes control. Trusts are taxed on all money not given to the beneficiary. See also: Escrow, Charitable trust.

2. See: Monopoly.

trust

A legal arrangement whereby control over property is transferred to a person or organization (the trustee) for the benefit of someone else (the beneficiary). Trusts are created for a variety of reasons, including tax savings and improved asset management. See also charitable lead trust, charitable remainder trust, Clifford trust, marital-deduction trust, QTIP trust.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Trust.

When you create a trust, you transfer money or other assets to the trust.

You give up ownership of those assets in order to accomplish a specific financial goal or goals, such as protecting assets from estate taxes, simplifying the transfer of property, or making provision for a minor or other dependents.

When you establish the trust, you are the grantor, and the people or institutions you name to receive the trust assets at some point in the future are known as beneficiaries. You also designate a trustee or trustees, whose job is to manage the assets in the trust and distribute them according to the instructions you provide in the trust document.

trust

a collection of ASSETS held and managed by appointed trustees on behalf of an individual or group of people. Trusts are often established to minimize the amount of INCOME TAX and WEALTH TAX an individual or group is required to pay. See TRUSTEE INVESTMENTS.
see UNIT TRUST.
an alternative term for a CARTEL (most commonly used in the USA).

trust

ASSETS held and managed by trustees on behalf of an individual or group. While these assets are held in trust, the beneficiaries have no control over the management of them. In the UK, trusts have been used extensively to minimize the effects of income and wealth taxes.
(formerly, in the USA) a means of organizing CARTELS, provoking the establishment of anti-trust (anti-monopoly) legislation.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

trust

The practice of one party holding legal title to real property or other assets for the benefit of someone else,called the beneficiary.The one with the legal title is called the trustee.The person or entity that set up the trust is called the trustor.Trusts are extremely important in tax and estate planning but should almost never be established without the assistance of a tax attorney who is well skilled in the area. A very slight deviation from the format acceptable to the IRS could prove disastrous.

Trust

A tax entity created by a trust agreement. This entity distributes all or part of its income to beneficiaries as instructed by the trust agreement. This entity is required to pay taxes on undistributed income

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References in periodicals archive

Ouchi's book Theory Z: How American Management Can Meet the Japanese Challenge (Addison-Wesley, 1981) begins, "The secret to successful manufacturing is trust." His consultant role was to convince the chief and all of his executives that employee trust had real bottom-line value.

A commitment to trust: consultant recounts a storied history of the evolution of workplace trust research

401(a) qualified trust, the final regulations provide further guidance.

Final Sec. 382 Regs. on distributions from qualified trusts

Many studies have been published pertaining to trust yet the nature of its development has not been studied and inconsistencies exist in its conceptualization and measurement (Gill, Boies, Finegan, & McNally, 2005).

Trust and satisfaction in peer learning groups

For this reason the NIMCRUT is perhaps the most popular type of charitable remainder trust, since it allows for the deferral of income to later years, much like a deferred-income retirement plan, and still allows the trustee to maximize the payout amount.

The crux of CRUTs: charitable remainder unitrusts provide donors giving opportunity, income

A trust avoids the hassle of probate, prevents the courts from controlling your assets if you're incapacitated, and lets you control what you leave to your children and grandchildren.

Developing your children's trust: you don't have to have a fortune to establish a family living trust

Again, do not wait until it is too late or trust that your marriage is a good one.

Protecting your assets: your life is complicated enough. Here are some ways to put your mind at ease

One look at the support the Trust affords the Hospital Service Coordinator program and the expansion of the Transportation Network demonstrates just how effective the Trust can be providing services to our nation's disabled veterans.

Colorado Trust funds: innovation & commitment

Royalty trusts provide income-oriented taxpayers with opportunities to invest in natural resources, realize cash flows and participate in the tax benefits afforded this specialized industry.

Tax benefits of royalty trusts: another way of investing in commodities

Worse still, it is now clearly established that the absence of the filing of a notice of lending leaves a lending institution liable for a claim of trust fund "diversion" when it "pays itself back" with trust fund assets its own construction loan had created.

Lenders beware--claimants and sureties take notice

When the second parent dies, the policy funds the special-needs trust.

Fulfilling special needs: insurers are playing a critical role in helping families with children with special needs meet the emotional and financially challenging task of planning for the future

We believe that the diversity and professional training of our members enable us to bring an important, balanced, and practical perspective to the issues raised by the proposed regulations under section 671 of the Internal Revenue Code, relating to the application of the grantor trust rules to nonexempt employee trusts.

Proposed section 671 regulations relating to application of grantor trust rules to nonexempt employee trusts

If Mary establishes an income trust to take control of the income she receives that is in excess of the Medicaid cutoff, she can qualify for Medicaid.

According to the law: "income cap trusts" may help those too rich to be poor