Trust Income: A regular payment made from a trust to a beneficiary of the trust.

A regular payment includes interest, dividends and royalties earned from a trust or regular income withdrawals from the trust. A beneficiary is an individual or an organization who will benefit either solely or partially from the trust.

Example

Linda Smith has written a will that establishes a revocable trust. Linda Smith is the grantor of the trust. The trust was set up to transfer a right of funds to a trustee to be held and used for the benefit of a beneficiary. The beneficiary is Linda Smith's dependent child Susan Smith. The trust earns interest which is paid monthly as Trust Income to Susan Smith. A caseworker creates a Trust record for Linda Smith detailing the value of the trust. A case worker creates a Beneficiary record for Susan Smith and a Trust Income record for the interest that the trust is earning and is paid to the beneficiary Susan Smith.