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Trust deed |
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Trust deedA trust deed is a legal document for setting up a trust. In order for a unit trust to be authorised by the FSA, the trustees and fund managers must submit a draft trust deed and scheme particulars. The fund may only be promoted to the public once authorisation has been obtained.The trust deed has certain mandatory content:It must contain the category and the name of the trust, which must reflect its objectives.It must state the law that applies to the trust (e.g. England and Wales).It must state the currency of the trust (e.g. sterling).It must contain a general statement that the scheme may invest in certain eligible markets.It must state that the trust deed is binding on the unitholders, trustees and managers and that the trust property is held by the trustees for the unitholders.It must state that unitholders have no further liabilities once they have paid the purchase price of the units.Other optional detail includes any restricted investment powers or geographic limitations, charges, unit pricing formulas, the remuneration of trustees, auditing arrangements, the creation of a unitholders' register etc.Trust deedAgreement between trustee and borrower setting out terms of a bond.Trust deed Similar MatchesTrust fund transactionTrust fund transactionAn intra budgetary financial arrangement in which both payments and receipts occur within the same trust fund group. D Declaration Of TrustD Declaration Of TrustA written acknowledgement by one holding legal title to property that the property is held in trust for the benefit of another. Venture capital trustVenture capital trustA type of investment trust which invests in small unquoted companies with assets of under £15 million, including AIM and OFEX companies, and which is designed to attract risk capital from higher rate taxpayers by giving them tax concessions.Like investment trusts, VCTs are quoted on the London Stock Exchange.As with investment trusts, their share price may trade at a discount to net asset value.They provide 3 types of tax benefit:-40% capital gains tax deferral, provided the shares are held for a period of no less than 3 years.- 20% income tax relief on the amount of the original investment- All dividends are tax free and all gains on disposal after 3 years tax exempt. But when the shares are sold, the original capital gains tax liability will be re-triggered.VCTs are only allowed to invest in companies under a certain size, and there is a limit on how much they can invest in any one company. The idea is that they must apply their funds to genuinely risky entrepreneurial ventures. Revisionary trustRevisionary trustAn irrevocable trust that becomes a revocable trust after a certain amount of time. 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 SuggestionsTrustorAssociation of Unit Trusts and Investment Funds Trust Indenture Act of 1939 Grantor Retained Income Trust (GRIT) Unit Share Investment Trust (USIT) Deed of trust discretionary trust Municipal Investment Trust (MIT) Trustee In Bankruptcy enterprise zone trust Bank trust department Sprinkling trust Trust company approved investment trust Association of Investment Trust Companies Fixed trust Collateral trust bonds Term trust Resolution Trust Corporation (RTC) unit trust Depository Trust Company Unit trust Inter vivos trust accumulation and maintenance trust Unit investment trust |
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