Trusts

• Function:

  • Primarily separates legal from beneficial title
  • Serves as a will-substitute for the free portion

• Limitation

  • Institutional trustees avoid managing non-cash estates
  • Extremely regulated trust departments

• Tax Treatment

  • 20% final income tax for regular bank trusts
  • 7.5% final income tax on EFCDU trusts
  • Non-cash trust treated as an individual