What is a WHFIT?

A WHFIT is a Widely Held Fixed Investment Trust. These are trusts that are set up by a third party to offer investment opportunities to a group of investors. WHFITs invest in assets and sell shares or units to investors, who are paid dividends and/or interest at regular intervals. Fixed investment trusts consisting solely of debt instruments and that pay only interest to unit holders at regular intervals are also considered to be WHFITs. Upstart’s fractional loan-related securities meet this definition and are considered to be WHFITs for federal income tax purposes.

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