Total Return

What Does Total Return Mean?

Total return trust is a way of handling the assets of a trust in which the distribution to the beneficiaries is through a fixed amount of money. Regardless of the conditions of the market in relation to the assets of the trust, the amount distributed remains the same.

Insuranceopedia Explains Total Return

The trustee of old trust models was often strained in placating the intermediary beneficiary and the remaining beneficiaries of a trust. That is because the income of the trust which went with the intermediary beneficiary and the growth of the trust assets which benefitted the remaining beneficiaries can sometimes be not reconciled causing intense conflicts among the trust parties.

With the total return trust where there is a fixed amount of money earmarked for all beneficiaries, the parties can now know what they are going to receive and thus remove suspicions and disappointments in how trust assets are managed.