Trust Income

In one sentence

Money earned by trust assets, such as interest, dividends, or rental payments.

Plain English

Trust Income is the earnings generated by the assets in a trust—things like interest from a savings account, dividends from stocks, or rent from a property. It's different from the trust corpus (the original assets themselves). The trustee typically distributes this income to beneficiaries according to the trust document, and it may be taxed differently than the principal.

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Example

A trust holds a $1 million stock portfolio. The stocks pay $40,000 in annual dividends. That $40,000 is trust income, while the $1 million portfolio itself is the trust corpus.

Used in a sentence

“The trust document specified that all trust income should go to the surviving spouse while the corpus remains untouched.”

Related terms

Trust Corpus

The actual money, property, or assets that make up a trust.

Trust Instrument

The legal document that creates a trust and outlines how assets will be managed and distributed.

Trust Situs

The location where a trust is administered and its legal proceedings take place.

Charitable Trust

A trust that provides income to beneficiaries while ultimately donating the remaining assets to charity.

Intestate Succession

The legal process of distributing a deceased person's property when they leave no valid will.

Intended Beneficiary

A person who is not a party to a contract but has the right to enforce it because the parties meant to benefit them.

Probate

The court process of validating a will and distributing a deceased person's estate.

Elective Share

A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.