Questions tagged [trusts]

An organisation set-up to manage funds perputally.

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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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5 votes
2 answers
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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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1 answer
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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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-1 votes
1 answer
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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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1 answer
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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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1 answer
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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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4 votes
1 answer
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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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6 votes
0 answers
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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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3 votes
1 answer
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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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2 votes
1 answer
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As a trustee and executor of a trust, can I "settle" the financial portion of a trust on my own?

regarding settling the trust as an executor: I have gone through the legal aspects of informing heirs regarding the trust, and assuming that there are only liquid assets, can I just make out checks to ...
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2 votes
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How should trust payments be arranged to preserve the principal?

Many trust funds are designed to keep principal intact while generating a steady revenue stream. They do this by paying out some percent of net asset value and, assuming the trust fund grows faster ...
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1 answer
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How do I fill out IRS form 1310, as a successor trustee? Reissue a check from the IRS?

I am the successor trustee for an individual who had a living trust. Thus there was no court, no probate. A refund was due the individual, but the IRS chose to issue a check rather than direct ...
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2 votes
1 answer
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Do we need a revocable living trust?

I'm considering setting up a trust for my father but would like a second opinion before meeting with an estate planning attorney. His estate is fairly simple; a home, bank accounts, a CD, a vehicle, ...
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Is it possible to change the second (or residual) beneficiary of a CRUT?

A CRUT is a Charitable Remainder Unitrust, which usually has as its first beneficiary the person who set up the CRUT (the settlor), and which may (but is not obliged to) have as a second beneficiary a ...
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3 answers
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Will: Leaving property to beneficiaries until their deaths only

I am in the process of writing my will and overall it's a very simple one, apart from one thing: I would like to leave some money for my brother to help him take care of my parents until they die. ...
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6 votes
2 answers
206 views

Is there a need for a Living Trust in my situation?

I was thinking of having a Living Trust drawn up for the benefit of my wife should I pass away so that she would have access to all of our assets without going through probate. It occurred to me ...
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3 votes
1 answer
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Tax implications in the US of home ownership in the UK

My family and I are residents in the USA. My British wife and her brother have received some inheritance from their father, which is to be shared with his ex-wife: £120,000 cash. A mortgage of £150,...
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0 votes
1 answer
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Can I avoid state trust tax with a conditional gift?

My state taxes resident trusts. A resident trust is any of the following: a. Its settlor (or any of its settlors) was a state resident at the time the trust was created; or b. All ...
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5 votes
1 answer
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Tax Advantaged Options for Protective or Special Needs Trusts

I am tasked with setting up a trust or trust-like instrument for a relative. The bulk of the funds will be held about 15 years, until the beneficiary reaches a normal retirement age. The funds can ...
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8 votes
1 answer
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Capital gains when a spouse passes away

I live in California. My husband and I had a trust and when he passed away in October 2017 his half of our condo went into an exemption trust for his two children from a previous marriage. We bought ...
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18 votes
2 answers
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Special Needs Trust and Financial Planning

update: I may not have explained it clearly in my post below but I don't believe the intent is to close out the 401k or fund the life ins. policy using it. I will clarify with the consultant what the ...
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4 votes
1 answer
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IRS ramifications of renting to a family member who also entitled to 1/3 of home (informally)

My mother quit claimed her mortgage-free home to me many years ago. It was understood that she would retain financial control the remainder of her life, although never formalized as a living trust. ...
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