Accumulation Trust

(redirected from Accumulation Trusts)
Also found in: Financial.

Accumulation Trust

An arrangement whereby property is transferred by its owner—the settlor—with the intention that it be administered by someone else—a trustee—for another person's benefit, with the direction that the trustee gather, rather than distribute, the income of the trust and any profits made from the sale of any of the property making up the trust until the time specified in the document that created the trust.

Many states have laws governing the time over which accumulations may be made.

References in periodicals archive ?
Patricia Mock, director of private client services at Deloitte, said: "Historically, transfers into interest in possession trusts and accumulation trusts have been potentially exempt for inheritance tax and are exempt if the donor survives for seven years after the gift.
Under the throwback rules, severe penalties are levied on beneficiaries of multiple accumulation trusts.
643(f),(94) under regulations to be prescribed by the Treasury, two or more trusts that are not accumulation trusts will be treated as one trust for income tax purposes if: 1.