I am looking for some advice on how I could accomplish this:
Consider a Person A living in Europe, and having no US citizenship, visa or plans to ever travel there. I am being asked to invest A's savings for him in the US, and pay him a monthly fixed amount from the gains - basically become his in-official 'trust-keeper'.
- He is not able to do it himself (assume he would blow the money or make bad decisions, whatever). By me handling it, he would not have access to the account without going through major efforts.
- There are no do-you-trust-him considerations; ignore those. Assume there is full trust from both sides. Also I am not responsible for the performance; if the money runs out, it runs out.
- The money is 'clean', the sources are well-known and provable, there is nothing fishy about it.
- I am perfectly willing to file taxes for him and pay (from his money) what is due for any gains.
- I'd rather not merge it with my money, or even invest it separately under my name, as I would have to pay higher taxes for the gains, and the transfer would look like a taxable 'gift'.
- I don't know enough about formal Trusts to understand if this would be a good option.
- Obviously, I look for 'cheap' solutions.
- the point is not to invest in US shares, but handle the investment in the US
It seems difficult if not impossible to invest in the US under his name - he doesn't have an SSN or ITIN, and no legal basis to apply for one, so the typical candidates (Vanguard, Fidelity) don't offer accounts for him.
How can I set this up? What is a legal way to deposit and invest money for someone else, in the US, controlled and handled by me?
[If you think 'Why in the US?': Simple, I am living in the US. Any other country would in principle work too, but seems even worse; I have the additional issue of not being a resident there, and not having the respective thing of SSN/ITIN, and I wouldn't know how to file taxes there, etc. So assume - for this question - the US location is a given.]