Questions tagged [trusts]

An organisation set-up to manage funds perputally.

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24
votes
3answers
10k views

What is a trust? What are the different types of trusts?

What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
18
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2answers
2k views

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 ...
17
votes
1answer
2k views

Should I set up a family trust?

I'm setting up a will in the near future and trying to decide if a trust is the right way to go. I'm in my thirties, married, and have two small children. Our assets consist of our home (mortgaged), ...
10
votes
1answer
409 views

When funding a trust does the gift tax exemption apply?

I'm researching setting up a bypass trust with my spouse. When I fund the trust, do the funds/property that I put into the trust count against the annual or lifetime gift tax (a.k.a. transfer tax) ...
8
votes
1answer
133 views

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 ...
7
votes
2answers
222 views

What specific quality of life factors need to be addressed when creating a special needs trust?

We are in the process of creating a special needs trust for my daughter. One of the many things we need to think about are the quality of life factors as she gets older and of course as we get older. ...
6
votes
3answers
7k views

What are my options if I don't have a relative who can be the executor of my will?

My wife and I have a new child and we're meeting with an attorney this week to draft a will. After doing some initial research, there are a few issues that make our situation a bit complicated: We ...
6
votes
2answers
181 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 ...
6
votes
2answers
553 views

At what point is the contents of a trust considered to be the property of the beneficiary?

My grandmother passed away several years ago, and left a generous trust fund to her 5 grand children. We can access our share of the money when either of the following two conditions are met: We turn ...
6
votes
1answer
214 views

Protecting assets against addictions

How would you pass or gift assets to a person with a gambling addiction? I suppose a drug addiction would be easier to deal with, since in this case the addicted person won't be able to blow it all ...
6
votes
0answers
222 views

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 ...
5
votes
1answer
343 views

How to cash US savings bonds as a successor trustee?

I have paper series-I bonds that are made out as follows, actual names omitted: "husband" and "wife" CO-TR UDT DTDT "date and name of trust" If both the husband and wife have passed away, what is ...
5
votes
1answer
82 views

Mechanism for long-term control of estate distribution?

This is an estate planning question. I want to accomplish certain longer-term control over distribution of assets and I'm wondering if there is a standard mechanism for doing it. Situation Say I ...
5
votes
2answers
246 views

Savings Account for Newborn--529? Trust?

A close family member is about to have a baby, and several family members are looking for a way to allow gifts to contribute to the child's eventual education. The twist is: if the child decides (for ...
5
votes
1answer
50 views

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 ...
4
votes
1answer
163 views

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. ...
4
votes
1answer
104 views

Can 1099s from a special needs trust be entered directly on the beneficiary's personal income tax return?

I'm the trustee for my brother's new special needs trust (first time filing taxes with it around), which has its own TIN. Different materials online suggest a K-1 may or may not be necessary. This ...
4
votes
2answers
1k views

When transferring shares to an adult from a irrevocable trust, what is the cost basis of those shares?

My grandparents set up an irrevocable trust account that has a few stocks in it. Now those shares are being transferred to me from the trust. Since those shares have value at some point, Uncle Sam ...
4
votes
0answers
280 views

Inheriting funds from a U.S. trust where you are not the trustee

I am a U.S. citizen trustee and executor of my mom's trust. My brother is a Canadian citizen and lives in Canada and not a trustee. I will be dividing the trust funds or investments between the two ...
3
votes
3answers
1k views

Should I sell shares to buy a home so I avoid a mortgage? [closed]

I'll be retiring next year, and I want to be in my own home (aging-in-place). Should I sell stocks to buy it outright and thus avoid a mortgage as I move to a fixed income. But what about capital ...
3
votes
2answers
207 views

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 ...
3
votes
2answers
174 views

Low Fee Income Generating Investments for a Trust

I am looking for a low-cost / low fee investment strategy for a modest ($75K) trust. I am only allowed to distribute the income of the trust to the beneficiary and cannot dip into the trust's corpus (...
3
votes
1answer
103 views

Good trust account in the UK

We need to open a trust account for our children for some money they inherited in trust. We were warned that quite a few of the banks are quite reluctant to do this. So the main questions are: Once ...
3
votes
1answer
123 views

What is a life establishment fund?

I was talking to someone regarding saving for college education. I mentioned that I was putting money into a 529 account but wasn't happy with this. My kids my not decide to go to college and ...
3
votes
1answer
103 views

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,...
2
votes
2answers
116 views

Calculate a Fund

I did an investment. I am worried I misunderstood everything. I am not worried about the money I was looking to do something risky, but looks like I might have to learn the hard way about doing more ...
2
votes
1answer
425 views

Mortgage company fee for quit claim deed

I transferred title to my home to a living trust, of which my wife and I are trustees, and my children are the beneficiaries. The main reason was to avoid probate. My mortgage company wants $100 fee ...
2
votes
1answer
372 views

Why is it better to pay the life insurance money into a trust?

Trusts are a legal document where a person or a group of people are made responsible for an asset – in this case the Life Insurance pay-out. What difference does this definition make? I am simply ...
2
votes
1answer
97 views

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, ...
2
votes
2answers
243 views

Property Trust - who or what is the Owner?

I'm trying to work out an arrangement to use some neglected UK property held in trust by a not-very active corporation. I'm puzzled by the nature of trust ownership. In essence, who owns land held in ...
2
votes
2answers
131 views

Tax implications of dispersing trust to my child's 529 plan vs directly to me

I will be inheriting a portion of my father's trust. My child is in college now, and I contribute the full amount to the trust every year. Are there tax advantages to disperse proceeds from the trust ...
2
votes
3answers
366 views

Mortgage and/or unit trust

I will be purchasing a property soon, so my question is the following: Do I pay off my mortgage off as soon as possible (by paying more every month) or do I put the same amount extra into some unit ...
2
votes
1answer
78 views

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 ...
2
votes
1answer
282 views

Can I set aside money for child's education so it will be safe in divorce?

I'm not sure if this is more of a financial or legal question. Let's say there's some tension in my marriage, and my wife and I would like to set aside money in a way that, if we were to get a divorce,...
2
votes
1answer
291 views

How does the FDIC know how much to insure trust accounts?

This page shows FDIC insurance on trust accounts is subject to the number of beneficiaries. Yet a bank will open a trust account given only the number of trustees, not the number of beneficiaries. ...
2
votes
1answer
95 views

Is a car owned by a trust a “commercial” vehicle?

If a car is owned by a trust, does it have to be registered as a commercial vehicle, or can it be considered a personal vehicle? Since commercial vehicles have much higher tax rates, this has tax ...
2
votes
1answer
148 views

How can you mortgage a house owned by a family trust?

My wife and I are doing some planning, and one of the options that has been suggested to us is to put the family home in a family trust. There seems to be no problem having a mortgage on the house ...
2
votes
1answer
292 views

what are the benefits of setting up an education trust fund for children?

I am thinking of setting up a trust fund for my children. I am wondering if there are any differences between setting up a saving account and a trust fund? Update, I am in New Zealand.
2
votes
1answer
265 views

Does the primary residence capital gains exclusion apply to irrevocable trusts?

I expect that with a revocable trust the capital gains tax exclusion ($250,000 in gains) on my primary residence will still apply. Does that tax exclusion apply when I place my house in an irrevocable ...
2
votes
1answer
73 views

Should we pay taxes on this trust?

My girlfriend (a legal resident of the United States) is the beneficiary of a trust and she withdrew the money this year. Essentially, her father put money into a trust which she was not allowed to ...
2
votes
1answer
110 views

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 ...
2
votes
1answer
65 views

What are tax consequences of reimbursement of premiums from a cancelled life insurance policy held in trust?

The situation: My mother bought a life insurance policy and has been paying the premiums using after-tax dollars. The policy is held within a trust she set up with me and my siblings as beneficiaries....
2
votes
1answer
208 views

US tax liability for beneficiary of UK bypass trust

In the UK, discretionary will trusts (DWT) often were, and to some extent still are, used to ensure that married couples could take advantage of both spouses' nil-rate-band (i.e. estate tax exemption ...
2
votes
0answers
100 views

Trusts, Inheritance Tax in UK

My background: I am a British citizen, currently living in mainland Europe i.e. Austria. Off-late, I married an Austrian Citizen. We purchased a property together in Austria. There is no Prenup ...
1
vote
3answers
744 views

Can a will or trust have more than one executor?

I am married with 2 grown children. I'd like do my own will and/or trust without an attorney that eventually leaves everything equally to my 2 children when the both of us have passed. We currently ...
1
vote
2answers
96 views

Where to learn about Trusts and alike?

Sadly I have already gone down the Computer Science route for a degree, however I would like to learn more about Trusts, Funds, Equities etc... for a future career or for personal investments. I have ...
1
vote
1answer
73 views

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 ...
1
vote
1answer
280 views

“Revocable Living Trust Agreement” without a lawyer?

As with the question on a will without an attorney, I'm wondering how well it would work to draw up a "Revocable Living Trust Agreement" without a lawyer. If it varies hugely by state, my specific ...
1
vote
2answers
324 views

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 ...
1
vote
1answer
75 views

what happens to existing accounts with a new living trust

If you have a living trust in the United States, and some financial accounts are registered under that title, and now you "update" your trust what happens to existing accounts with a new living trust? ...