Mid-Atlantic

A Trust is an instrument created by one person to hold assets for someone else, normally called beneficiaries. The Creator, called the Settler, transfers the assets to the Trust. The Trust can be written to distribute funds to the beneficiaries on a yearly basis or it can hold the assets to distribute them at a later date. The Creator of the Trust will appoint a Trustee or Trustees to manage the Trust. The Trust cannot operate a business. It is only a holding and distribution entity. There is a title split with a Trust with the Trustees holding legal title to the assets and the beneficiaries holding equitable title; therefore the Trustees and the Beneficiaries are associates. If the Trust earns income it is taxed at normally a 39% rate. The Trust comes under IRS regulations IRC 641-680.