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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

trust

  1. 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.
  2. see UNIT TRUST.
  3. an alternative term for a CARTEL (most commonly used in the USA).
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

trust

  1. 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.
  2. (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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
A more homogeneous sample is desirable and it would be useful to see if a comparison could be made between the trust in undergraduate versus graduate student groups.
First, the present value of the stream of payments made over the term of the trust will be a gift subject to normal gift tax rules if the beneficiary is other than the donor or the donor's spouse.
"The more special instructions you put into the trust, the higher the fee." Legal fees are higher in some areas of the United States and lower in others.
The ability to level the playing field to allow Departments and Chapters to effectively provide service to veterans and their families is truly a unique aspect of the Trust.
Thus, without a proper filing of a notice of lending, the bank, as a trustee, would be "guilty" of self-dealing since it was both a trustee as a recipient of funds and a trust fund beneficiary as an entity with a claim against the trust funds for repayment of its loan.
Each state's Medicaid agency may impose different requirements on the trust, and may have its own form.
Don't assume the trustee's powers are limited to ensuring the trust provisions are followed.
The Trust's objective is to assist the rehabilitation and re-integration of persons with physical disabilities back into the mainstream of society by enabling them to share with the ablebodied the challenge of crewing a square-rigged vessel at sea.
25, 1985, to the extent the transfer is not made out of additions to the trust after Sept.
For example, if a trust sells real estate for a $1,025,000 gain before $50,000 of sales costs and commissions--and the trust also has $75,000 of rental income with $50,000 of related expenses--the $1 million net economic benefit normally would be allocated $975,000 to principal and $25,000 to income.
Benjamin Fortson, the trustee since 1984, manages its assets, including the Carter Ranch, which the trust has operated since i956.