- Trust that is required to distribute all of its annual income to the beneficiaries.
- Beneficiaries cannot be charitable.
- Income of the trust is taxable to the recipient, even if left in the trust to accumulate.
- Not allowed to distribute corpus (principal).
- Capital gains are considered part of the corpus.
Complex Trust (must have one of the following):
- Retains current income in the trust.
- Distributes corpus.
- Distributions to charitable organizations.
*Both the Simple and Complex Trusts are given deductions for the income distributed to beneficiaries, and both trusts are granted the standard exemption amount of $100.*
Revocable / Irrevocable Trusts
Financial AdvisorCreating a trust is a common estate planning tactic, but naming a beneficiary to an IRA to a trust may have unintended consequences.
Financial AdvisorMany institutions want a piece of your portfolio, but trusts can provide a one-stop shop.
Financial AdvisorSeveral improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
Managing WealthTrusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
InvestingLearn more about unit investment trusts (UITs), and discover some of the most common trends in the UIT market to date in the year 2016.
Managing WealthMany people think family trusts are only for the very wealthy, but if your retirement assets exceed $500,000, you may want to consider the option.
Managing WealthNow may be the best time to set up a charitable trust. Here's why.
Managing WealthA trust is a fiduciary relationship in which one party gives another party the right to hold property or assets on behalf of a beneficiary.
Financial AdvisorUnsure of how your assets will be dispersed once you're gone? Here's how setting up a revocable trust while you're here can be a big benefit.
Managing WealthHere are five common situations where a trust fund makes financial sense.