simple trust
Simple trust is one of three general types of trust that must meet three requirements set by the IRS : all the income must be distributed to the beneficiaries yearly, the trust fund must not payout any of its corpus (better known as principal ), and cannot make charitable contributions . The simple trust makes tax payments like other trusts on income and capital gains . A simple trust differs from complex trusts which may involve other payments to beneficiaries and to charities.
[Last reviewed in August of 2021 by the Wex Definitions Team ]
Wex
- PROPERTY
- trusts
- inheritances & estates
- wex definitions
- property law