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Simple English definitions for legal terms

complex trust

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A quick definition of complex trust:

A complex trust is a type of trust that is not simple. It is called "complex" because the trustee has more control over how the trust's money is used. To be considered a complex trust, it must do at least one of three things each year: keep some of its income, give some of its money to the beneficiaries, or donate some of its assets to charity. Complex trusts can deduct certain expenses when calculating their taxable income. They can also be helpful for people with large estates or many beneficiaries who want more options for estate planning.

A more thorough explanation:

A complex trust is a type of trust that does not meet the requirements of a simple trust according to the IRS. The term "complex" refers to the trustee's discretion rather than the complexity of the trust's provisions. To be considered a complex trust, it must engage in at least one of the following activities each year:

  • Keep part of its income instead of giving it all to the beneficiaries
  • Distribute part or all of the trust's principal to the beneficiaries
  • Distribute a portion of the trust's assets to charitable organizations

For tax purposes, complex trusts can deduct certain expenses when calculating taxable income for the year. The amount of income the trust is required to distribute for the year is deducted. A complex trust may provide additional estate planning options for owners with large estates or many beneficiaries.

Let's say that a wealthy individual sets up a trust for their children and grandchildren. The trust is set up as a complex trust because it distributes a portion of its assets to charitable organizations each year. The trustee has discretion over how much income to distribute to the beneficiaries and how much to keep in the trust. The trust can deduct certain expenses when calculating taxable income for the year, such as the amount of income it is required to distribute to the beneficiaries. This allows the trust to minimize its tax liability and provide additional estate planning options for the owner.

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WorthlessAttractiveZombie
9:35
Jack's just tweaking on LSD no biggie
to be fair this accurately represents my mental state
election day psychosis coming in hot (fordham)
usc pls pull through .....
i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
soapy
9:43
USC still has not looked at my app
WorthlessAttractiveZombie
9:43
when did you submit soapy?
soapy
9:44
10/16
WorthlessAttractiveZombie
9:44
to be fair it took them almost 2 months for me to go under review
soapy
9:44
Feelin a bit stressed, as I've got no date change for Michigan either despite applying 10/7
WorthlessAttractiveZombie
9:45
I have not had a date change either for Mich but I've seen people get in without one so who knows
I applied 9/25 to like 6 schools and some (Houston) have no date change yet so dw
soapy
9:46
But do people get in without addresses going long?
WorthlessAttractiveZombie
9:46
it's tough to tell because a lot of people type out their addresses long to begin with
soapy
9:46
Ah. I didn't. Looking back, my Mich supplement kind of sucks, so there's that
Mich overrated (Dean Z please let me in even tho i didnt apply and I am below both 25ths)
ClassyPleasantHeron
10:01
The "date changes" at Michigan really don't mean anything. We had to do them in undergrad admissions whenever a Georgia applicant picked the country instead of the state, because we'd have to remove the TOEFL requirement and reassign the application from the international application readers.
soapy
10:06
Classy, does that mean they may look at your application, and that look doesn't necessarily trigger any date change?
1a2b3c4d26z
10:06
Man
1a2b3c4d26z
10:07
Walkin to the bus
1a2b3c4d26z
10:07
What a good day to get into law school
ClassyPleasantHeron
10:11
@soapy: I don't know for sure about the law school. For undergrad, once the application is complete, it's assigned to a reader the following Monday. If we had to make any changes, it's because a reader saw something that needed to be changed and the application needed to be re-read after that change.
soapy
10:12
Ahh, got it. Thank you for the insight!
ClassyPleasantHeron
10:14
You're welcome. FWIW, I have no idea what's up with the address changes. We didn't have to do any of that, except for the Georgia state vs country kinds of things.
soapy
10:15
I've heard it theorized that some schools will change the address from "St." --> "Street" as they prepare to send out admissions packets. That's the rumor, anyways.
i think it just indicates a change in status like under review or stages of review
my stanford address went long as soon as it was marked complete lmao
soapy
10:25
I saw some Reddit adcom say that they can see any time we refresh the status checker; I wonder if it's a red flag if an applicant's checked it like 50 times in a day?
soapy
10:25
Also, can we send another LoR to a school that we've already applied to?
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