The trust can then distribute the proceeds directly upon the death of the parent, or person, without its being factored into the estate.

Equity trusts have a set termination date, on which the trust liquidates and distributes its net asset value as proceeds to the unitholders.

As long as the trust distributes 95 percent of its income to shareholders, it pays no corporate income tax.

Or the trust might distribute dividends to employees.

The trust might hold the shares forever, or distribute them to individual employees, or a combination of the two.

Charitable tax laws require the trusts to distribute a minimum of 5 percent of their assets each year.

The trust received profits from the bank and distributed them to organisations within the banks boundaries meeting the trusts criteria (usually community organisations).

(The trusts must distribute 95 percent of net income to stockholders.)

The trust, which focuses on causes that benefit children and education, has distributed nearly $17 million to local charitable causes since forming in 2006.

The trust, which existed into the 21st century, took income from the family properties and distributed it to charities, particularly libraries, stretching from Fairbanks to northern California.