Simple Trust
Categories: Trusts and Estates, Tax
See complex trust.
The key differentiator is that a simple trust must distribute any income it made during the year. (A complex trust can retain 'em.)
Income is different from just capital or real estate or whatever appreciating in value—that stuff gets retained in the simple trust. And the beneficiary can not be a charity—it has to be a taxable someone or something.
Yeah, we know: not that simple.