Simple trust

Also found in: Financial.

simple trust

n. a trust which requires that all income be distributed each year and not accumulated. (See: trust)

SIMPLE TRUST. A simple trust corresponds with the ancient use, and is where property is simply vested in one person for the use of another, and the nature of the trust, not being qualified by the settler, is left to the construction of law. It differs from a special trust. (q.v.) 2 Bouv. Inst. n. 1896.

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Ordinarily, a foreign partnership, Foreign simple trust, or foreign grantor trust is looked through for chapter 3 and chapter 61 purposes.
Finally, it will be taxed as a simple trust, which makes it much easier to file and report the trust's income.
Utilizing a simple trust, such as the Lifetime Credit Shelter Trust, provides more flexibility - one does not have to replace the asset in trust with an asset of equal value if the property is sold.
It begins with simple trust, for sure, but it seems to demand more than that.
At first glance these new vehicles may seem a good idea but, realistically, I have to question the value of these schemes over placing money on behalf of the child in a simple trust.
Stash away some money in a simple trust called a "bare" trust, which is held for the child's benefit.
However, there are good reasons for having a simple trust arrangement, protecting assets against nursing home fees, the re-marriage of the surviving spouse or divorce, bankruptcy etc of children/grandchildren.
A simple trust within the will would ensure that property is passed to the children which keeps the family assets within the family.
A simple trust must distribute all current income; thus all income taxes apply at the beneficiary level, and it does not have any undistributed net investment income.
Palin is just one example but is equally a victim of the simple trust model used by many web applications.
It might be worthwhile setting up a simple trust thatwill make clear that the shares are not your personal property, and that you are just looking after the investments until each child reaches 18.
For example, a simple trust might direct the trustee to distribute all income to the grantor's spouse and at the spouse's death distribute the principal to the grantor's children.

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