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Simple English definitions for legal terms

Simple trust

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A quick definition of Simple trust:

Simple trust: A type of trust that has to follow three rules set by the IRS. First, all the money the trust makes has to be given to the people who will get the money (called beneficiaries) every year. Second, the trust can't give away any of the money it has saved up (called principal). Third, the trust can't give money to charities. The trust has to pay taxes on the money it makes, just like other trusts. Simple trusts are different from complex trusts because complex trusts can give money to charities and can make other payments to the people who will get the money.

A more thorough explanation:

A simple trust is a type of trust that must meet three requirements set by the IRS:

  1. All the income must be distributed to the beneficiaries yearly
  2. The trust fund must not payout any of its corpus (better known as principal)
  3. Cannot make charitable contributions

For example, if a parent sets up a simple trust for their child's education, the trust must distribute all the income earned from the trust to the child each year. The trust cannot use any of the principal to pay for the child's education expenses, and it cannot make any charitable contributions.

A simple trust makes tax payments like other trusts on income and capital gains. It differs from complex trusts, which may involve other payments to beneficiaries and charities.

Overall, a simple trust is a straightforward way to manage assets and distribute income to beneficiaries.

similarly situated | Simplified Employee Pension plan

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snow
10:02
dk i feel like you would do great in criminal defense
soap
10:02
you good Dk?
snow
10:03
i got my nose pierced last thanksgiving and it got infected @babycat
Dkk
10:03
Probably could just shock the jury into sideing with me lol
babycat
10:03
I mean bc you can’t go swimming with a piercing
Dkk
10:03
Ahh yeah, just hate that word. Trauma. Hate how people use it.
babycat
10:03
So you want to do it in winter when you won’t be missing it. Sorry abt ur nose though
BulbasaurNoLikeCardio
10:04
@snow: healing is super easy it takes like a week to get through the bad part but being in the sun or going in water is a no no so if you get it in the summer that is two weeks at least of no summer fun while winter it doesnt matter
snow
10:04
i think the piercer just did a bad job. my ex and i's piercings both got infected
babycat
10:04
maybe you’re spiritually aligned like that
Dkk
10:04
Gross, piercings.
snow
10:04
@babycat: i was living the bob dylan life man. smoking cigs with a nose piercing while drinkin coffee. have been chasing that high since
BulbasaurNoLikeCardio
10:04
I have been wanting a piercing just to feel what it is like
snow
10:05
@BulbasaurNoLikeCardio: that makes sense. idk im just nervous of infections
snow
10:05
i have my ears pierced but thats it
babycat
10:05
I have a couple types of ear piercings and navel
BulbasaurNoLikeCardio
10:05
Only dirty people get infections from tattoos, higher chance of an allergy to the ink. Just go to a legit shop
Dkk
10:06
I just don't like the idea of the ink in my lymphnodes. That scares me.
good morning everyone
BulbasaurNoLikeCardio
10:06
I wanna try a nose peircing to see how it feels. Need a piercer friend who wants to practice on me cause I want to experience it but not keep it
babycat
10:06
You just want to know how it feels to be pierced?
snow
10:07
nose hurt like a bitch, but my tolerance is low
BulbasaurNoLikeCardio
10:07
Yes, I don't think having metal on my face or nips would be fun long term
Dkk
10:07
@BulbasaurNoLikeCardio: I would like that too. I would like to feel that.
honestly any face piercing hurts a lot less than any ear one for me
Dkk
10:07
Man, maybe I will eat another ghost pepper today.
BulbasaurNoLikeCardio
10:07
Like I have my whole body tattooed and dry lined litterally everywhere on my body to just see how it feels
i was so terrified to get my lip done and it was completely fine lmao
but i my industrial was not fun lol
Dkk
10:07
@jackfrost11770: yo you excited for arcane tonight! I haven't slept more than 4 hours in like 3 days.
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