capitaltrust

Capital trust is a term used in financial and legal contexts to describe a trust arrangement or investment vehicle designed to manage and protect capital for beneficiaries. It can refer to a generic arrangement or to specific legal entities or funds in jurisdictions that recognize “capital trust” as a formal product.

In estate planning and wealth management, a capital trust typically involves a trustee who holds and invests capital according to the trust deed. The primary aim is preservation of principal and controlled distribution of capital, while income and capital gains may be allocated according to the terms. Such trusts may be discretionary or non-discretionary, offering flexibility for distributions and control over who receives capital.

Capital trusts may be contrasted with income trusts or income-only vehicles, where distributions are funded primarily from income generated by assets rather than from the capital itself. The designation can influence tax treatment, regulatory oversight, and fiduciary duties of the trustee, though tax rules vary by jurisdiction and product.

In addition to standalone trusts, "Capital Trust" is a name used by various financial services firms, fund managers, and investment vehicles around the world. These entities may operate as private wealth managers, unit trusts, or investment trusts and are subject to the laws and regulations of their respective jurisdictions.

See also: trust law, estate planning, fiduciary duty, asset management, unit trust, investment trust.