Business, Legal & Accounting Glossary
An arrangement whereby property is transferred by its owner—the settlor—with the intention that it be administered by someone else—a trustee—for another person’s benefit, with the direction that the trustee gather, rather than distribute, the income of the trust and any profits made from the sale of any of the property making up the trust until the time specified in the document that created the trust.
A trust in which the income is retained and not paid out to beneficiaries until certain conditions are met. For example, if Uncle Pierre creates a trust for Nick’s benefit but stipulates that Nick will not get a penny until he gets a PhD in French; Nick is the beneficiary of an accumulation trust.
Many states have laws governing the time over which accumulations may be made.
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This glossary post was last updated: 8th October, 2021 | 0 Views.