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Deed Of Trust |
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Deed of trustSee: IndentureDeed Of TrustAn instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary), and reconveyed upon payment in full.Deed Of Trust Similar MatchesTrust receiptTrust receiptReceipt for goods that are to be held in trust for the lender. Association of Investment Trust CompaniesAssociation of Investment Trust CompaniesAn association formed in 1932 to represent the interests of investment trust companies. Its main aims are the protection and promotion of the interests of its members and their shareholders. It also provides information on the composition and performance of investment trusts.Contact the AITC by phone on +44 (0)20 7282 5555 or by post at Durrant House, 8-13 Chiswell Street, London, EC1V 4YY or online at http://www.aitc.co.uk. Anti-trust policyAnti-trust policyU.S. term for competition policy. Split capital investment trustSplit capital investment trustAn investment trust with a limited life, in which the equity capital is divided into two classes - income shares and capital shares.Holders of income shares receive the majority of the trust's income throughout its life and a specified capital amount on liquidationHolders of capital shares receive virtually no income during the trust's life but on liquidation receive all the assets after repayment of capital to holders of income shares. In other words they get the benefit of most of the capital growth.The raison d'etre of split capital investment trusts is that a single trust can accommodate the requirements of two types of investor in one fund, and provide better performance for both than they would be able to achieve if they invested in separate funds.It works like this:Ian Illingworth has £10,000 to invest and wants to get maximum income from it. He buys 'Income Shares' in the Split.Colin Casey has £10,000 to invest and wants to get maximum capital growth from it. He buys 'Capital Growth Shares' in the Split.The Split invests their pooled money and during the lifetime of the trust pays out all the income to Ian. At the end of the Split's life, when the capital value of the fund has risen to, say, £60,000, it pays Ian back his £10,000, and pays £50,000 to Colin.How have Ian and Colin benefited?Ian has benefited because for 7 years he has received the income on £20,000 even though he only invested £10,000.Colin has benefited because he has received the capital growth on £20,000 even though he only invested £10,000 and, being a higher-rate taxpayer, it has suited him very well not to have received any income on his £10,000 in that time.Basically, it is as if Ian said to Colin 'You have the capital growth on my £10,000' and Colin said to Ian 'Fine, I'll give you the income on my £10,000 in return.'There are many other classes of share within splits, and the thinking behind them gets progressively more complex. It is also important to note that Splits are geared investments (they can borrow money) which, depending on performance, can either be beneficial or detrimental to investors. If you are interested in what they have to offer it is essential to get specialist advice. Bare trustBare trustA trust which allows parents to give capital to a child and have the income from that capital treated as the child's rather than their own. This can save tax by using the child's personal income tax allowance. Further SuggestionsQualified plan or trustPersonal trust Equipment Trust Certificate Unit trust Bank trust department Nondiscretionary trust antitrust laws Real Estate Investment Trust (REIT) Trustor enterprise zone trust charitable trust Unit Share Investment Trust (USIT) real estate investment trust All inclusive Trust Deed (wrap around mortgage) trust deed trustee Resolution Trust Corporation (RTC) Finite Life Real Estate Investment Trust (FREIT) Trust fund transaction Equipment trust certificates discretionary trust Trust Indenture Act of 1939 Voting trust certificate Corporate Trust Trust company |
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