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A trust is a fiduciary entity whose objective is to hold and invest money or property held in the trust for the benefit of the beneficiaries.

Trust property consists of principal (aka corpus), which is the property transferred to the trust by the grantor, and income earned by the trust, usually from investments.

The limitation shall be waived in the case of hardship.

A reverse mortgage or home equity loan may be used to reduce the equity interest in the homestead.

Return of capital is a payment received from an investment that is not considered a taxable event and is not taxed as income.

Instead, return of capital occurs when an investor receives a portion of his original investment, and these payments are not considered income or capital gains from the investment.

Please review this article with the idea that the solutions proposed may not be applicable to your particula fact situation.

A simple trust is one that is required to distribute all of its income and no amount is paid or set aside for charitable contributions. Capital gains, under most state laws and trust documents, are allocated to corpus.

The complexity of trust taxation arises because of several factors: When a trust earns income or pays expenses, the income or expenses are allocated either to principal or to income.

The amount will be increased, beginning 2011, based on the percentage increase in the consumer price index. All property which is contiguous to the homestead is also considered exempt.

The homestead of an SSI related applicant-recipient (a person who is 65 years of age or older, certified blind, or certified disabled) loses its exempt status if the owner moves out of the home without the intent to return, and no spouse, child under 21 years of age, certified blind or certified disabled child, or other dependent relative is living in the home.

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