Basic Concepts and Definitions (3 of 5) Grantor Party that transfers assets to the trust Trustee Party that administers the trust Income Beneficiary Party(or parties)who receives income when distributed by Trustee under provisions of trust instrument 6
6 Basic Concepts and Definitions (3 of 5) Grantor –Party that transfers assets to the trust Trustee –Party that administers the trust Income Beneficiary –Party (or parties) who receives income when distributed by Trustee under provisions of trust instrument
Basic Concepts and Definitions (4 of 5) Remaindermen Party(or parties) who eventually receives trust principal Same person may receive both income and principal Simple trust Must distribute all income annually Does not distribute any principal AND Makes no contributions to charities 7
7 Basic Concepts and Definitions (4 of 5) Remaindermen –Party (or parties) who eventually receives trust principal –Same person may receive both income and principal Simple trust – Must distribute all income annually –Does not distribute any principal AND – Makes no contributions to charities