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Simple English definitions for legal terms

Simple trust

Read a random definition: Modified Per Stirpes

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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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