accumulation trust

Definition of "accumulation trust"
  1. A type of trust where the principal amount and generated income are kept within the trust instead of being disbursed
How to use "accumulation trust" in a sentence
  1. Children under 18 typically can't manage large sums of money, so an accumulation trust was established to protect their inheritance until they turn 25.
  2. To limit the beneficiary's access to the funds, the grantor chose to set up an accumulation trust that allows the money to grow.
  3. In their estate planning, they included an accumulation trust to ensure the generated income from their assets would benefit their grandchildren.

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