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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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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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