Trust Funds Explained™

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Investment Trusts: Structure assets. Manage capital. Plan for generations.

Trusts may hold, administer, or distribute investment assets. A privately established investment-holding trust is very different from a regulated investment product such as a REIT or unit investment trust.
These structures are not interchangeable and may be governed by different securities, tax, and trust laws. Forming a trust does not create an investment account or fund it with money.

Module 1

Investment Trust Fundamentals

  • ◆Investment ownership
  • ◆Trustee management
  • ◆Beneficiary rights
  • ◆Fiduciary investment standards
  • ◆Distribution policies

Module 2

Investment Assets

  • ◆Stocks and bonds
  • ◆Brokerage accounts
  • ◆Real estate
  • ◆Private business interests
  • ◆Private equity interests
  • ◆Cash and fixed-income assets
  • ◆Other permitted investments

Module 3

Investment Trust Structures

  • ◆Revocable trusts holding investments
  • ◆Irrevocable investment-holding trusts
  • ◆Discretionary trusts
  • ◆Unit investment trusts
  • ◆REITs
  • ◆Delaware statutory trusts used in investment transactions

Module 4

Investment Governance

  • ◆Investment policy statements
  • ◆Diversification
  • ◆Risk management
  • ◆Trustee selection
  • ◆Accounting
  • ◆Performance reporting
  • ◆Beneficiary distributions

Module 5

Tax and Regulatory Considerations

  • ◆Income taxation
  • ◆Capital gains
  • ◆Distribution deductions where applicable
  • ◆Trust tax returns
  • ◆Securities law considerations
  • ◆State compliance
  • ◆Investment adviser licensing where required

Hypothetical case study

Scenario

A family holds a hypothetical $2,000,000 brokerage portfolio and wants it managed for two children over 20 years.

Structure explored

An irrevocable discretionary trust with an independent trustee, a written investment policy statement, and a health-education-support distribution standard.

Issues to review

Gift tax reporting, grantor vs. non-grantor status, compressed trust tax brackets, trustee fees, and diversification duties.

Hypothetical figures for illustration only. Not a projection, recommendation, or offer. All investments involve risk, including loss of principal.

Next step

Move from understanding to a properly reviewed plan.

Explore an Investment Trust With Tangier

Educational information only. Not legal, tax, or investment advice.