Income trust

An income trust is like a piggy bank for grown-ups. It's a special kind of company that people can invest their money into, and instead of the company using that money to grow, like building new stores or factories, it uses the money to buy things that make money.

For example, the company might buy a bunch of buildings which it rents out to other companies. Or it might buy a bunch of oil wells or gas pipelines that it uses to make money by selling the oil or gas.

When people invest their money in an income trust, they get a share of the profits that the company makes from these things. The more money the company makes, the more money the investors get.

The great thing about an income trust is that it pays out most of the money it makes to the investors. This means that the investors can earn a lot of money in dividends (which is like when your parents give you allowance money).

However, in some countries, income trusts have become less popular because the government has started to charge more taxes on them.