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ESOP Trust

ESOP Trust

An ESOP trust is a legal entity that holds the shares of stock in a company on behalf of the company’s employees. The trust is managed by a trustee, who is responsible for investing the trust’s assets and distributing them to employees under the terms of the ESOP plan.

ESOP Trust as a bank vault

What is an ESOP Trust?

What is a Trust? In general, it helps to understand with a trust is in general. A trust is a legal arrangement where one party, the "trustor" or "settlor," transfers assets, such as money, property, or investments, to another party, the "trustee," to manage and hold for the benefit of specific individuals or entities, known…

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How do ESOPs work?

How do ESOPs Work?

Employee Stock Ownership Plans, commonly known as ESOPs, represent a unique and powerful model of employee ownership in businesses across the United States and beyond. These plans fundamentally alter how companies are owned and managed, offering a range of benefits to both employees and business owners. To understand how ESOPs work, it's essential to delve…

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What is a Trust?

What is a Trust?

Understanding Trusts in Greater Detail A trust is a legal arrangement in which one party (the grantor) gives another party (the trustee) the right to hold title to property or assets for the benefit of a third party (the beneficiary). The trustee is responsible for managing the trust assets according to the terms of the…

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