Income trusts use collateral to substantiate income. For example, a Unit Investment Trust (UIT) transfers the income from investment returns to the trust owners. All of the unit holders receive a portion of the income generated by the trust. The income is generated by various stocks or bonds. A major advantage to income trusts is their ability to avoid double taxation. One of the most popular forms of  income trusts are REITs. They have become popular over the past twenty years.

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