Statutory Trust vs Common Law Trust: Overstand The Differences

When crafted effectively, a trust has the potential to endure across multiple generations, fostering significant wealth for a family. The trustee plays a crucial role in this process, tasked with expanding the trust’s assets through prudent investment of its funds.

The choice of trust type and the jurisdiction it adheres to is within your control. Here are two types of trusts available to business owners, each presenting its unique advantages and drawbacks.

Statutory trusts operate under the regulation of the Uniform Statutory Trust Entity Act, and their legal framework is contingent on the laws of the state in which they are established, resulting in variations across states.

These trusts offer a heightened level of privacy in business dealings, as the beneficiary’s identity remains confidential. This stands in contrast to other business structures like LLCs, S corporations, and C corporations, where ownership information is publicly accessible.

Commonly employed in real estate and estate planning, statutory trusts facilitate the transfer of assets to family members. While they provide privacy advantages, it’s important to note that profits are distributed to beneficiaries, potentially resulting in increased taxation.

Statutory trusts are particularly appealing for individuals with a net worth ranging from $1 million to $5 million. Their simplicity in establishment, standardized terminology, and templated structure make them a cost-effective and expeditious alternative compared to the more complex common-law trusts.

Common-Law Trusts

Common-law trusts, often referred to as pass-through trust agreements, function by passing profits on to beneficiaries, akin to certain statutory trusts. They provide an elevated level of privacy and security, similar to statutory trusts, and are rooted in sophisticated tax and estate planning principles, aiding individuals in retaining more of their earnings.

When established, common-law trusts are categorized as complex trusts, necessitating the use of Form 1041 for filing. Notably, the accounting and legal rules governing common-law trusts differ from those applicable to statutory trusts.

Grounded in private contracts linked to Article 1 Section 10 of the Constitution, common-law trusts demonstrate the supremacy of privately created contracts, overriding statutory law. These trusts are directly filed at a federal jurisdiction, allowing for advanced rulings based on Supreme Court cases.

Despite their advantages, common-law trusts pose challenges, including higher setup costs compared to statutory trusts. Additionally, finding experts well-versed in common-law trusts can be challenging. This type of trust structure is most suitable for high-net-worth individuals and family offices equipped with a proficient team of experts capable of navigating the complexities of this advanced business structure and ensuring proper administration.

Bottom Line

In conclusion, the landscape of trusts is diverse, with variations like revocable or irrevocable, grantor or non-grantor, creating a complex array of choices. As each type operates differently, determining the best fit for your situation can be challenging. Therefore, conducting thorough research is crucial to make an informed decision aligned with your objectives.

While statutory trusts stand out as a popular choice among business owners, those seeking a more sophisticated solution may find common-law trusts worthy of exploration.

It’s important to emphasize that the information provided here does not constitute investment, tax, or financial advice. For personalized guidance tailored to your specific circumstances, consulting with a licensed professional is highly recommended.

The top folding treadmills, carefully selected by fitness experts, provide a space-efficient solution for those with limited room in their home gym. In an article contributed by Cassandra Brooklyn on Forbes Vetted, published on December 15, 2023, at 02:43 pm EST, the emphasis is on these treadmills being not only compact but also easily foldable and storable. The key advantage is that despite their space-saving design, the best folding treadmills maintain a performance level comparable to that of traditional, larger counterparts. This similarity in performance makes them an ideal choice for individuals looking to optimize their workouts without compromising on space in their homes or apartments.

The evaluation of numerous treadmills by our fitness and gear experts has resulted in the identification of several top-notch folding options. Among them, the Bowflex Treadmill 22 stands out as our top pick. Renowned for its ability to cater to the needs of both serious runners and cardio beginners, it excels in performance and conveniently folds up to save space when tested in our homes. While the Bowflex Treadmill 22 may be on the higher end in terms of price, we also offer five other recommendations that adhere to our stringent criteria for durability and performance. For those with budget considerations or seeking more space-saving options, we provide alternatives like the Horizon Fitness 7.0 AT, Horizon Fitness T101, Urevo 2-In-1 Under Desk Treadmill, and ProForm City L6. Additionally, for big and tall users, the Bowflex Treadmill 10 is highlighted as the best folding treadmill in that category.

The Bowflex Treadmill 22 distinguishes itself from many high-end treadmills by offering the convenience of folding away when not in use, making it an ideal choice for runners seeking extensive high-end features. While its substantial size may not allow it to fit underneath a bed or inside a closet, the treadmill’s innovative design allows the running deck to fold up significantly, reducing the overall footprint of the machine by over 40% when the incline is dropped to -5%.

This treadmill is a robust and versatile running machine suitable for both seasoned runners and beginners. With an impressive weight capacity of up to 440 pounds (well beyond the typical 250-pound limit of most machines), it boasts larger incline angles and speed ranges compared to many other treadmills on the market. The Bowflex 22 also offers enjoyable features such as instructor-led classes, compatibility with streaming services like Netflix and Hulu, and a smart, intuitive design that allows for seamless adjustments to speed and incline without interrupting your stride. For a more detailed examination of the Treadmill 22, you can refer to our comprehensive review, providing insights into its features, capabilities, and any potential shortcomings.

While the Horizon 7.0 AT may not be the most budget-friendly treadmill on the market, it caters specifically to serious runners who require a treadmill with a substantial incline capacity and the ability to handle high running speeds. Cheaper alternatives often fall short in meeting the needs of dedicated runners, typically being better suited for walking or jogging with minimal or no incline. In contrast, the Horizon 7.0 AT boasts a speed range of 0.5 to 12 mph and an incline range of 0 to 15%, making it well-suited for intense running workouts.

Designed with user convenience in mind, this treadmill features easy-to-use quick dials for adjusting speed and incline, accommodating individuals weighing up to 325 pounds. Its three-zone variable response cushioning system ensures a comfortable and consistent running experience over extended distances.

Moreover, the Horizon 7.0 AT seamlessly syncs with iPad or Android tablets, allowing users to connect to apps like Peloton or Zwift, and enjoy entertainment such as music or movies while running. The inclusion of thumb dials on the hand grips adds to the convenience, enabling users to swiftly toggle speed and incline without interrupting their stride or dealing with a cumbersome console.

The Horizon Fitness T101 stands out as a remarkable treadmill in its price range, offering an impressive array of features. Despite its compact size of 20 by 55 inches when folded, this treadmill packs essential elements such as a 2.25 horsepower motor, a speed capacity of up to 10 mph, and an incline angle reaching 10%. Heart rate monitoring is facilitated through hand grips, and a built-in fan contributes to keeping users cool during rigorous workouts.

Notable features include an easy-to-use center console, 30 preset workout programs, and Bluetooth connectivity that allows users to play audio from their phones through built-in speakers. While the weight capacity, speed, and incline ranges may not match those of the Bowflex Treadmill 22, and it lacks a large screen for connecting to streaming services, the Horizon Fitness T101 compensates with its significantly lower price. This makes it an excellent choice for those seeking a budget-friendly treadmill without compromising on essential features.

For those aiming to merge their step count and workload efficiently, an under-desk treadmill might be the perfect solution. The Urevo 2-in-1 Under Desk Treadmill stands out as a low-profile, slim treadmill that easily fits under furniture and has the added advantage of transforming into a full treadmill with a frame. This versatility allows users to conveniently slide the treadmill under a bed when not in use or beneath a standing desk to accumulate steps while working. Equipped with transportation wheels underneath the base, moving the treadmill to different locations is effortless.

Featuring a no-assembly design, five layers of a non-slip running belt, and an LED display with remote controls, this treadmill offers user-friendly functionality. It’s important to note that while some online ads may suggest suitability for “running fast,” the 2.5-horsepower motor can only reach speeds of 7.6 mph when the frame is installed. As a result, it is well-suited for walking and jogging but not recommended for intense running. Additionally, considering its affordable price and ease of storage, it doesn’t provide an incline option. However, if the absence of incline is acceptable, it presents a great deal on a compact treadmill often available at discounted prices through platforms like Amazon.

The ProForm City L6 is designed for users who prioritize walking and prefer a more streamlined treadmill. Not equipped with a screen, a large motor, or a significant incline range, this treadmill caters to individuals who engage in walking rather than running. Despite lacking certain features, it still incorporates tools commonly found in ProForm’s dedicated running treadmills, including interactive training options and tablet connectivity.

With a top speed of up to eight miles per hour and no incline option, the ProForm City L6 is well-suited for those who prefer a more relaxed pace. Its foldable design, folding nearly flat, offers convenient storage options, allowing users to easily stow it under a bed or in a closet without taking up much space.

The Bowflex Treadmill 10 is a smart choice, especially for larger or heavier individuals venturing into walking, jogging, or running. While sharing similarities with the Bowflex 22, which is our top pick for folding treadmills, the Treadmill 10 is slightly smaller, lighter, and notably more affordable. While it may not handle as much weight or move the belt as fast, its features are more than sufficient for those starting with walking or jogging, given its speed range of 0 to 12 mph.

This treadmill offers an incline range of up to 15%, providing users with the option to intensify their workouts. After completing the session, the deck can be lifted at the touch of a button for space-saving storage. With a substantial weight capacity of 350 pounds and proprietary Comfort Tech cushioning on the deck, users can experience a softer and more comfortable impact.

The treadmill’s 10-inch interactive console includes an LCD display with access to 26 built-in workout programs, catering to various fitness goals. Additionally, compatibility with the Bowflex JRNY subscription program (free for the first year, then $149 per year) allows users to access instructor-led classes and stream entertainment through platforms like Netflix, HULU, and Disney+, making it an attractive option for those seeking high-end features without breaking the bank.

Why Trust Forbes Vetted

Forbes Vetted’s credibility in providing fitness equipment recommendations is bolstered by their extensive review coverage of various core fitness pieces, such as treadmills, rowing machines, and ellipticals. The team’s familiarity with fitness brands, particularly Bowflex and Horizon, adds a valuable layer of experience to their assessments. Cassandra Brooklyn, the Forbes Vetted contributor who authored the piece, not only personally tested the overall pick, the Bowflex Treadmill 22, but also provided a comprehensive review.

The collective expertise of Vetted staffers contributes to the reliability of their recommendations. Gear editor Cam Vigliotta, with a background in kinesiology, leverages his knowledge in reviewing each product. Senior strategy editor Katie Simpson, a certified personal trainer, brings her fitness expertise to the editing process of gear story updates.

The commitment to accuracy and relevance is evident in the regular revisions of the story. The information is continually updated to ensure that every recommendation remains accurate and continues to represent the best in its class. The most recent update in December 2023, conducted by gear writer Alexandra Garrett, signifies the ongoing effort to provide trustworthy and up-to-date information for readers.

How We Chose The Best Folding Treadmills

Initially, the selection process involved focusing on reputable brands with proven experience, such as Bowflex and Horizon. The goal was to identify the best folding treadmill models by thoroughly examining key specifications critical for these space-saving devices. This included a detailed evaluation of factors like the ease of folding, stability, motor power, incline options, and technological features. Real user experiences played a significant role, with a thorough analysis of online reviews providing valuable insights and feedback to ensure a well-rounded perspective. The final choices underwent a review by gear editor and fitness expert Cam Vigliotta.

The outcome is a thoughtfully curated list of the best folding treadmills that seamlessly blend functionality with compact convenience. The selection process aimed to offer a diverse range of models catering to various fitness levels, budgets, and space limitations.

When shopping for a folding treadmill, several key factors should be considered:

1. Size: While folding treadmills save space when not in use, their unfolded size can be comparable to traditional treadmills. Measure your room and check the dimensions of the treadmill to ensure it fits comfortably in your space.
2. Storage and Portability: The convenience of a folding treadmill lies in its storage capability. Check how easily it can be folded and the space it occupies when stored. Some models come with transport wheels for easy movement and storage in smaller homes or apartments.
3. Speed and Incline: Consider your intended use—whether you are a runner or prefer walking with inclines. Assess the treadmill’s speed and incline range, keeping in mind that most folding treadmills have a maximum speed of 10 to 12 mph. Models like the Urevo 2-In-1 Under Desk Treadmill and ProForm City L6 are more suitable for walkers with lower speed limits.
4. Safety Features: Prioritize safety by checking for built-in features such as an emergency stop clip. This feature automatically shuts down the treadmill’s belt in case of a trip or fall, ensuring a safe workout environment.

Taking these factors into account will help you choose a folding treadmill that aligns with your space, workout preferences, and safety requirements.

The best-rated folding treadmill, according to independent testing and in-depth analysis, is the Bowflex Treadmill 22. Its impressive incline range, high maximum user weight capacity, and access to virtual classes, combined with a folding mechanism that reduces its footprint by over 40%, make it stand out. However, if the Treadmill 22 is too large or expensive, the Horizon Fitness 7.0 AT is also recommended for its similar specifications, albeit without a built-in screen, which contributes to a more budget-friendly price.

As for disadvantages, the folding mechanism introduces additional moving parts, potentially leading to wear and tear over time. While reputable manufacturers strive to ensure the durability of their folding mechanisms, there might be a perception that non-folding treadmills are more solidly built. Despite advancements in technology and design, providing improved durability and stability for folding treadmills, those seeking the utmost robustness, especially for heavy-duty or intense workouts, might still prefer non-folding treadmills.