Wasting Trust
(redirected from Wasting Trusts)Wasting Trust
1. A trust in which the principal does not generate sufficient income to meet desired payouts and therefore the beneficiary receives a portion of the principal each month. Obviously, this reduces the future income potential of the remaining principal. A wasting trust only occurs if further contributions (which increase the principal) are not made.
2. A trust that holds assets that dissipate over time, such as contracts on corn and gas.
2. A trust that holds assets that dissipate over time, such as contracts on corn and gas.
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