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 ?
Judging from the steady stream of private letter rulings that the Internal Revenue Service has issued on the subject, NQDC plans backed by so-called rabbi trusts are extremely popular these days.
Thames Valley and Wessex Trusts; Berkshire Healthcare NHS Foundation Trust; Buckinghamshire Healthcare NHS Trust; Dorset County Hospital NHS Foundation Trust; Dorset HealthCare University NHS Foundation Trust; Frimley Health NHS Foundation Trust; Hampshire Hospitals NHS Foundation Trust; Isle of Wight NHS Trust; Milton Keynes University Hospital NHS Foundation Trust; Oxford Health NHS Foundation Trust; Oxford University Hospitals NHS Foundation Trust; Poole Hospital NHS Foundation Trust; Portsmouth Hospitals NHS Trust; Royal Berkshire NHS Foundation Trust; Solent NHS Trust; Southern Health NHS Foundation Trust; The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust; University Hospital Southampton NHS Foundation Trust; South East Coast Trusts; Ashford and St.
However, recently enacted final regulations reshape this theory when distributions from certain qualified trusts (mainly pensions) are involved.
The IRS classifies CRUTs as "split-interest" trusts, meaning that one interest in the trust is designated for a non-charitable beneficiary while a separate interest in the trust is given to a qualified charity.
* Domestic trusts. Alaska and Delaware have passed laws permitting personal trusts to be established, which will be exempt from creditors, and they are being used.
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.
Special-needs trusts can be funded by real estate, mutual funds and stocks, but life insurance is the most commonly used vehicle, said MetLife's Vogel.
On February 13, 1997, Tax Executives Institute submitted the following comment to the Internal Revenue Service on proposed regulations under section 671 of the Internal Revenue Code, relating to the application of the grantor trust rules to nonexempt employee trusts, including trusts established to provide retirement benefits to foreign-based employees.
Step 1: A series of trusts are set up to last 3, 5, 7 and 10 years respectively.
An investment advisor typically charges 1 percent of assets (a smaller percentage for larger trusts and a higher percentage for smaller ones) to manage a trust as well as to serve as trustee.
22, 1986 (the date the TRA '86 was enacted).TRA '86 Section 1433(b)(2), however, exempts transfers by certain trusts from GSTT.