What’s a community dev. trust?

A community development trust is a real estate investment trust that focuses on properties that benefit the community, allowing investors to earn money while also contributing to social improvement. It can invest in various projects, such as low-income housing or disaster reconstruction, and must comply with the Community Reinvestment Act. A community development trust is […]

What are trust stocks?

Trust shares allow investors to invest in multiple companies, with different legal configurations in various countries. The trust pools money from multiple investors and puts it into multiple security investments, providing diversification and economies of scale. Trust shares can be open or closed-end funds, and there is also the option of holding shares in trust […]

Trust vs. Estate: What’s the Difference?

A trust holds property for beneficiaries for a specified or indefinite period, while an inheritance allows beneficiaries to take possession of property. A person can create and use a trust while alive, and can be the trustee and beneficiary. Trusts can be set up in countless ways for various purposes. An inheritance is passed on […]

Set up a testamentary trust – how?

A testamentary trust is created by a will and administered by a trustee for the benefit of named beneficiaries. It is important to choose beneficiaries and trustees, structure the trust, and protect it from legal and tax challenges. Testamentary trusts can provide regular income and care for minor children or disabled individuals, appoint a trustee […]

What’s a charity trust fund?

A charitable trust fund is a donation to a non-profit organization that provides benefits to the donor, including tax breaks and a continuing form of income. The process is time-consuming and requires consideration, including approval from the IRS. The fund awards the donation to a specific group or groups and is administered by an executor […]

What’s a private annuity trust?

Private annuity trusts defer capital gains and depreciation recovery costs for property owners who don’t need immediate sale proceeds. The owner transfers ownership to a trust, receiving predetermined payments for life, while the proceeds are invested by the trustee. Payments are taxed only when received, offering tax benefits until age 70. The program is open […]

Baby Trust Fund: What is it?

A trust fund is established by wealthy parents or guardians for their child’s future use. The term is often associated with negative connotations, such as laziness and entitlement, but many trust fund kids work hard and contribute positively to society. Critics fear that trust funds hinder a child’s work ethic and financial literacy, but some […]

What’s a living trust?

A living trust is a legal instrument that ensures a person’s assets are dispersed according to their wishes at death, while a living will describes medical treatment preferences. A properly prepared and funded living trust can help avoid probate, but caution is advised when selecting a trustee or purchasing do-it-yourself trust kits. A living trust, […]

What’s an income trust?

An income trust is an investment fund that holds income-generating assets, such as stocks, bonds, and real estate. It provides a steady cash flow and favorable tax policies but carries risks, including the lack of guaranteed income and the possibility of reduced or stopped cash distributions. There are four types of income trusts, including energy […]

Bank trust dept: what is it?

Bank trust departments offer conservative management of trust funds, estate planning support, and administration of trusts. They also provide agency services for businesses and can help manage assets during critical illness. Among the financial services offered with many banking institutions is the bank trust department. Essentially, the department’s role is to handle the administration of […]

What’s a common trust fund?

A common trust fund is a pooled investment fund controlled by a single trustee, usually a bank or trust company, that invests accounts as it sees fit. It offers similar diversification and professional experience to mutual funds, but with lower management costs and regulatory restrictions. It is a popular retirement account feature, overseen by state […]

Fixed income trust: what is it?

A fixed income trust limits the trustee’s authority to only disburse funds according to the founder’s instructions, while a discretionary trust allows for some flexibility. Fixed trusts ensure specific support for loved ones and prevent beneficiaries from wasting the estate, but may not account for unforeseen circumstances. It’s important to consider the needs of beneficiaries […]

Best Trust Deed buyers: how to choose?

Choosing the best trust deed buyers involves considering payment options (full, partial, or split purchase), the price offered, and matching your needs with what the buyer offers. Factors affecting price include the property, mortgage balance, interest rate, credit history, and number of payments remaining. Trust deed buyers buy the property rights you hold. Typically, choosing […]

What’s a family trust fund?

A family trust fund is a legal entity that holds assets and property to pass on to family members or beneficiaries. It provides benefits to the grantor and beneficiaries, including asset protection, tax savings, and bypassing probate. The grantor must choose trustees and draft a legal document outlining their wishes and instructions. A family trust […]

What’s the Charitable Remaining Annuity Trust?

A Charitable Remainder Annuity Fund (CRAT) provides annual disbursements to a beneficiary and is initially funded with a mix of assets. The donor receives a fixed payment each year, and upon their death, the remaining assets are transferred to a designated charity. The fund can be used as a tax deduction and can be changed […]

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