A TRU balances interests of current, future beneficiaries
Abstract: Trusts often create conflicts between current beneficiaries, who receive the income that the trust generates, and remainder beneficiaries, who receive what’s left at the end of the trust’s term. A total return unitrust (TRU) can better balance both current and remainder beneficiaries’ interests. Using a fictional example, this article details how a TRU can benefit all beneficiaries. A sidebar looks at whether an existing trust can be converted into a TRU.