An unincorporated business organization (UBO) is a business arrangement used in lieu of a company or partnership. The investor acts as the settlor of the trust and gives the management rights to the trustee, who holds title to the property for the benefit of the beneficiaries for investment purposes. The investor/settlor has limited liability for his investment (trust property) only, so it is a similar arrangement to a limited partnership. Also referred to as a Massachusetts trust, common law trust, or business trust.
[Last updated in March of 2022 by the Wex Definitions Team]