Questions tagged [trusts]
An organisation set-up to manage funds perputally.
109
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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?
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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 ...
17
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1
answer
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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
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1
answer
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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) ...
9
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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 ...
8
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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 ...
7
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2
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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
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3
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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
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2
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223
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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
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2
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273
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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 ...
6
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2
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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
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1
answer
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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 ...
6
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1
answer
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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
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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 ...
5
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1
answer
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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
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2
answers
130
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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:
...
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 ...
4
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1
answer
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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 ...
4
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2
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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 ...
4
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1
answer
461
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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 ...
4
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1
answer
314
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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. ...
4
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1
answer
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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
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2
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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
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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 ...
4
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0
answers
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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 ...
4
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0
answers
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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 ...
4
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0
answers
290
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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
1
answer
533
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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 ...
3
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3
answers
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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
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1
answer
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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 ...
3
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3
answers
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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 ...
3
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2
answers
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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
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2
answers
147
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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 ...
3
votes
1
answer
243
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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 ...
3
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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 ...
3
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1
answer
108
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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 ...
3
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1
answer
148
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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 ...
3
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1
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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.
3
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1
answer
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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 ...
3
votes
1
answer
119
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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
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1
answer
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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
0
answers
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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 ...
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,...
2
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2
answers
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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
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1
answer
445
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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
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1
answer
147
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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, ...
2
votes
2
answers
263
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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
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1
answer
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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
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3
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383
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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
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2
answers
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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 ...