trust

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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.

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.

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

  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).

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.

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
References in periodicals archive ?
The announcement follows a public consultation on whether Child Trust Funds can be transferred to Junior ISAs.
7 trillion as of December 31, 2012 across the 20 largest collective trust fund sponsors.
This month, a Child Trust Fund Cymru information booklet and claim form will be posted to the households of every eligible child in Cardiff.
Categories: May 6, 2010, Compensation, Employment, Federal Unemployment Tax Act tax, Federal/state relations, Income maintenance programs, Public assistance programs, Rates, Risk factors, Statistical data, Trust funds, Unemployment compensation programs, Unemployment insurance, Unemployment insurance benefits, Unemployment Insurance Trust Fund, Unemployment rates
The IRS will aggressively pursue the assessment and collection of the Trust Fund Recovery Penalty against people who authorized or signed checks to other creditors when they knew the trust funds were unpaid.
So now the neighborhood council has asked the City Council to set up a trust fund and a citizens steering committee to manage mitigation fees and fines collected from Sun Valley waste, mining and auto-repair businesses.
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.
The Code does not bar consideration of financial difficulties in determining whether reasonable cause has been established, and does not differentiate between trust fund taxes and nontrust fund taxes.
She says that the biggest problem today is a lack of trust in government and such proof of the Social Security Trust Fund will help restore faith with the seniors back home.
So equities are riskier than bonds but not by much, especially if the trust funds hold them.
For pension and nonexpendable trust funds, some auditors used total assets as the base while others used fund balance or total revenues.