Questions tagged [trusts]
An organisation set-up to manage funds perputally.
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Recently my mother died - how to handle her living trust account - Does the date of trust formation change?
A few months ago, my mother died. She had a living revocable trust which reported its income to the IRS under her social security number. When she died the trust became irrevocable and I went to the ...
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Tax Reporting and a Defective Trust
By a defective trust, I mean a trust that meets the definition of a trust for estate tax purposes but not income tax purposes.
Consider an irrevocable defective trust that is setup without going to ...
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(Canada) How does a trust help with tax burden?
My company is offering me share options. I'm trying to understand what the tax implications are.
My understanding is that as soon as I convert the options into shares, I must pay tax because the ...
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Did the tax laws regarding trusts significantly change?
I saw a YouTube video come up that said something about how some of the tax incentives of trusts significantly changed in the US tax code. The video said it was changed very quickly in a way people ...
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What is a trust? (Canada)
I'm having a very difficult time researching what exactly a trust is. Is a for-profit company with some additional agreements? Is it a not for profit?
If it's neither of the two, and is simply a ...
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Filing for an EIN number for a Trust
Recently my mother died and her living revocable trust is now irrevocable. I am the sole trustee and sole beneficiary of the trust. I am also the executor of her estate.
I need to file for an EIN ...
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inheriting (and selling) a house via a trust vs being named on the title
Apologies if this is a silly question. I am quite naive when it comes to taxes.
I am a dual US/UK citizen. My wife is a UK citizen. We reside in the UK.
My mother is a US citizen residing in the US ...
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Why can't I find an online savings account that supports revocable trust?
I keep an emergency fund in a savings account where it is liquid and easy to access. It is a sizable amount, but my bank offers a laughable savings rate. It doesn't even pay enough over a year to ...
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Trust tax/debt concerns
I live in the US, and have been appointed as the trustee of an irrevocable trust with my father (who also lives in the US) as the beneficiary. My father is potentially in some debt/behind on taxes, ...
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Using a trust vs stocks to purchase land
I plan to purchase land to build a new home within the next year. I am receiving an inheritance in the form of a trust account; the account is in my name and I am also the trustee. I had planned to ...
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Trust Question with IHT (UK)
This is a fictional scenario but I'm trying to get my head around it. Say if we had the following.
James had a discretionary trust with £600,000 in cash and shares on March 2011. James agreed to pay ...
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Is it ok to name a trust as a beneficiary to a CD?
Is there any downside to naming a trust as a beneficiary to a CD or in general, a bank account if the bank and/or credit union allows it? This is in California.
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US - Taxation of foreign trust before distribution
My wife and I are US green card holders with an annual income of around $270,000. All of her family is in the UK. Her father passed away in 2016 in the UK and left a will where all his money would be ...
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Is There Such a Thing as a ‘Safety Net Trust’?
A married couple living in the United States has accumulated some wealth that they would like to use to start a trust - for the purpose of creating a ‘safety net’ for their children, grandchildren, ‘...
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Can I put my rental in a trust and have the trust sell it?
I probably am not the first to think of this and the IRS most likely has this covered but if one wanted to put their rental into a trust and then have the trust sell it, would they save on taxes since ...
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Trying to get Cashier's Check rewritten
We are trying to set up a Special Needs Trust Fund for my disabled brother. My father (who died in Dec. 2021) had a CD account with my brother named as beneficiary. We were issued a cashier's check ...
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Two Trusts and Income Tax
Imagine a person who parents set up an irrevocable trust for him while he was alive. Upon the death of the parents, the parent's will setup another irrevocable trust. After the death of the parents ...
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Are financial trusts or cryptocurrency investments exempt from the SSI maximum resource limit?
As a recipient of SSI, I am not permitted to exceed a maximum resource limit of $2000.
The SSA definition of "resources" is vague, but is basically liquid assets, including: bank accounts, ...
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Custodian account vs trust for child?
Let's say that a parent wants to give away some of his wealth to his 3 year old child so child could start to use it once he turns 18.
What would be the main differences between creating trust or ...
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Setting up a corporation for family finances
Jurisdiction: Canada
Could I set up a private business corporation in Canada to handle my family finances (eg. pay rent, car repairs, even groceries). What are the ramifications? Why doesn't everyone ...
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Does the distribution of a dynasty trust count as income for purposes of chapter 7 bankruptcy?
Assume a person is one of the beneficiaries of a dynasty trust fund. The dynasty trust is irrevocable and perpetual, set in a US state that allows perpetual trusts. Annual distribution of the trust to ...
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Does transferring assets from regular brokerage to revocable trust generate a taxable event?
I was considering creating a living trust. One of the step after creating is to fund the trust.
It seems simple enough to call brokerage and ask them to change the title of the brokerage account to ...
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Is tax liability from a trust distribution, made in payment on behalf of the beneficiary instead of to them, defered to the beneficiary?
For trusts that can distribute income to the beneficiary's tax bracket...
When filling out a 1041 for a trust, instructions are a little ambiguous on income distribution deductions. No mention of if ...
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Is property with a transfer-on-death deed on it part of "the estate"?
My parents, in Colorado, would like my sister and I to be able to avoid probate when they pass away. They have a home (mortgage still in the process of being paid off) but not much in the way of other ...
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Is this a 'trust fund scam'?
A week ago i received an email from an old lady (i actually submitted an ad on a site to find penpals), it seemed okay at first, she said that she had no children or relatives, and her husband was ...
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How to avoid the $800 minimum franchise tax as a California resident with out-of-state business?
Assume a California resident sets up an out-of-state trust, which in turn is the only member (and manager) of an out-of-state LLC for business in another state (e.g. holding rental properties outside ...
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Which institutions will hold a real estate "trust deed"?
Pardon me if my question is stupid.
I was Googling what a Trust deed is and in one of the websites, there is the following phrase.
A trust deed—also known as a deed of trust—is a document sometimes
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Is there any more efficent way to donate my inherritance from a trust directly to a non profit in the USA?
My grandfather passed away a little while back and apparently I'm one of the people he had listed as a beneficiary in his will. I'm due to inherit a small chunk of change, but I always donate my ...
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How can I word a life estate for myself without saying Life Estate?
I'm disabled and considering structuring a mortgage assumption to buy a primary home in Texas. My strategy is to have the seller settle a living estate trust that will bi pass me and convey to my ...
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Passing a property from parent to (adult) child in Australia (NSW)
My father is retiring and would like to pass on the family home to my sister and me. We are both adults now and do not live in the home. I should also so mention, we are based in Sydney, Australia.
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How do I set up an ABLE Account
It's a disability account. I'm disabled and need help with money. I need help setting up an able bank account
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In what sequence should I do these tasks?
I bought a house as an unmarried individual with a conventional mortgage. Years passed, i gained a spouse and child, and the three of us live in the same house. Now I want to do the following things:
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Using a trust to lower my property tax [closed]
I recently started pondering whether I could use a trust as a sort of tax dialysis instrument. Would it be possible to create a trust, sell my home to the trust for a low value and therefore lower my ...
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Investing as a Representative Payee / Custodial Account
Back Story
A family member suffered and injury while working a state job and after years of fighting the state they received a disability settlement. Due to some money troubles they've had in the past ...
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Handling the Income from an Income-Only Medicaid Asset Protection Trust
My family has created an Income-Only Medicaid Asset Protection Trust for my mother. I have some questions about how the interest (income) part of this works logistically.
I am the Trustee, and have ...
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Someone wants to give me lots of money [duplicate]
This is a real story.
About 6 months ago, someone asked me to help her to solve her financial problem.
I didn't know about her at all.
At that time, I replied as ... Sorry, I want to help you but I ...
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Can I claim homeowner tax benefits if the title isn't in my name yet?
My mom died at the end of 2018. Her living trust named me as trustee and indicated her house was to go to me. I failed to transfer the title to my name last year, but I paid the mortgage all year. Can ...
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Irrevocable Trust- Adding A Beneficiary
In the USA, an irrevocable trust is set up and funded for individual #1. Can an additional beneficiary be added later by the original donor? I am trying to understand how much flexibility irrevocable ...
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Adding To An Existing Irrevocable Trust
In the USA, once an irrevocable trust has been set up and funded, can the donor add additional funds at a later date?
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account type recommendation for minor beneficiaries of a trust (US)
As the trustee of a trust, I’m looking for suggestions as to how to make distributions to minor great-grandchildren. This is not a lot of money, but not trivial. I’m considering UTMA/UGMA/529b type ...
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irrevocable Trust - Who Pays The Taxes
Someone creates an irrevocable trust on behalf of someone. It is funded by a large amount of money that will be invested. The beneficiary will receive the profits/interest from the trust but not the ...
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What's to stop a person from forming multiple trusts in order to split their taxable income?
Suppose a person who is a beneficiary of a trust holds assets generating $100,000 annual income in one irrevocable trust, and they are taxed by the IRS at about 37% of all income above about $12500. ...
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Tax Strategy: Take Inherited Traditional IRA deduction now, or let the money ride?
How can I best calculate the fiscal impact of these two choices?
Take a $50k distribution from a traditional IRA to offset an expense,
thus saving taxes now.
Leave the money in the IRA, allowing tax ...
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How to name a revocable living trust?
The abbreviated context of the question is this: I have young children that are too young to name as secondary beneficiaries (my wife is the primary beneficiary) on various accounts. I am creating a ...
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Choosing a Trust Bank/Investment Account
Not that it matters for this question, but for people following my life story :), this is a follow up to this question:
Options for Protecting Inheritance Before Death?
So we have created an income-...
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Is Fidelity an IRS approved custodian?
My employer offers a Simple IRA match. The plan they've set up allows me to select the financial institution that will serve as trustee or custodian1.
I see many references to Fidelity in my ...
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Starting a trust fund in an EU country
I'm in a sudden and unfortunate need of starting a trust fund (money being the only asset) in an EU country (I'm afraid I need to rule out UK as an option) for a minor (not a relative of mine) that ...
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Keeping an adult away from their own account at their request
A friend of mine wants to live with me for a while while she gets back on her feet after a recent divorce and cross-country move. She has no current assets. She has asked me, instead of charging her ...
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How to give money to a 10 year old niece on joint business venture?
My niece and I came up with a good idea that I think will make some money. I want to compensate her accordingly for what she has done.
I don't want to give her the money now, and I don't want to put ...
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Trust vs. Foundation vs. DAF
Is there a mechanism by which you can put aside a lump sum of money (before or after your passing) wherein the money can just sit and earn interest in a safe investment in perpetuity and disbursements ...
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