Total return trusts: why didn't we think of that?
Florida Bar Journal › Vol. 74 Nbr. 4, April 2000
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Total return trusts: why didn't we think of that?
The total return trust is an idea whose time has come. With the arrival of the Prudent Investor Rule[1] and the development of the modern portfolio theory,[2] trustees now have great flexibility to invest aggressively and to improve the total return for both income beneficiaries and remaindermen.
Traditional Trusts Traditional trusts were known as income rule trusts. Under these trusts, the trustee held the principal and distributed the income. There was inevitable conflict between the income beneficiary who wanted trust assets invested to produce the highest possible income and remainder beneficiaries who wanted tru...See the full content of this document
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