What is ‘Wasting Trust’
A trust that holds plan assets when a qualified plan is frozen. A “wasting trust” derives its name from the fact that its assets get depleted over time, since plan participants continue to receive payouts as required under the plan, but no new contributions are received by the trust. It may also refer to income trusts that hold depleting assets such as oil and gas.
Explaining ‘Wasting Trust’
In a wasting trust, the trustee can use part of the principal to maintain the level of payments to the beneficiaries as required under the plan . This is because income generated by the plan’s assets may be insufficient to meet such payments.
Further Reading
- Chronic wasting disease in Wisconsin: Hunter behavior, perceived risk, and agency trust – www.tandfonline.com [PDF]
- Hunter perceptions of similarity and trust in wildlife agencies and personal risk associated with chronic wasting disease – www.tandfonline.com [PDF]
- Hunter perceptions of risk, social trust, and management of chronic wasting disease in Illinois – www.tandfonline.com [PDF]
- Lessons learned from human dimensions of chronic wasting disease research – www.tandfonline.com [PDF]
- Proximity to chronic wasting disease, perceived risk, and social trust in the managing agency – www.tandfonline.com [PDF]
- Buying and wasting sustainably. Determinants of green behaviour in Cyprus and Sweden – www.sciencedirect.com [PDF]
- Wasting a crisis? Democracy and markets in Britain after 2007 – onlinelibrary.wiley.com [PDF]
- “Fire in the Sistine Chapel”: How Wisconsin responded to chronic wasting disease – www.tandfonline.com [PDF]
