Questions tagged [trusts]

An organisation set-up to manage funds perputally.

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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?
Nat_Rea's user avatar
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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 ...
Rich J's user avatar
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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), ...
Matt Solnit's user avatar
10 votes
1 answer
547 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) ...
Spig's user avatar
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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 ...
Mr Monee's user avatar
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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 ...
Sarah Gatien's user avatar
7 votes
2 answers
255 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. ...
Richard Fantozzi's user avatar
6 votes
3 answers
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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 ...
Finch's user avatar
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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 ...
Barney Cowell's user avatar
6 votes
2 answers
273 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 ...
Phil Sandler's user avatar
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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 ...
sharur's user avatar
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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 ...
piton's user avatar
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6 votes
1 answer
240 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 ...
John Schmitt's user avatar
6 votes
0 answers
904 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 ...
tmt's user avatar
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5 votes
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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 ...
fixer1234's user avatar
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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: ...
Spencer Joplin's user avatar
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 ...
Bryce's user avatar
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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 ...
GendoIkari's user avatar
4 votes
2 answers
277 views

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 ...
Gabriel's user avatar
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1 answer
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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 ...
puzzled's user avatar
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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. ...
FamilyGuy's user avatar
4 votes
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 ...
Max Ghenis's user avatar
4 votes
2 answers
2k 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 ...
Michael Pryor's user avatar
4 votes
1 answer
162 views

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 ...
Lorem Ipsum's user avatar
4 votes
0 answers
66 views

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 ...
Mindwin Remember Monica's user avatar
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0 answers
77 views

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 ...
Sarah M.'s user avatar
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4 votes
0 answers
290 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 ...
user27477's user avatar
3 votes
1 answer
533 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 ...
Ulkoma's user avatar
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3 answers
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 ...
user14198's user avatar
3 votes
1 answer
132 views

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 ...
user92101's user avatar
3 votes
3 answers
4k views

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 ...
Henry Lee's user avatar
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3 votes
2 answers
216 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 (...
Mr_V's user avatar
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3 votes
2 answers
147 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 ...
Les's user avatar
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3 votes
1 answer
243 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 ...
Trey's user avatar
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3 votes
1 answer
99 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 ...
piton's user avatar
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3 votes
1 answer
108 views

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 ...
user4910112's user avatar
3 votes
1 answer
148 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 ...
Five Bagger's user avatar
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3 votes
1 answer
372 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.
Yu Zhang's user avatar
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3 votes
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 ...
NL - Apologize to Monica's user avatar
3 votes
1 answer
119 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 ...
Codek's user avatar
  • 407
3 votes
1 answer
141 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 ...
Web's user avatar
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3 votes
0 answers
37 views

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 ...
James's user avatar
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3 votes
1 answer
148 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,...
MisterStrickland's user avatar
2 votes
2 answers
134 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 ...
k1308517's user avatar
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2 votes
1 answer
445 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 ...
Derek McQuarrie's user avatar
2 votes
1 answer
147 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, ...
justin's user avatar
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2 votes
2 answers
263 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 ...
dglp's user avatar
  • 29
2 votes
1 answer
401 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,...
ttjj's user avatar
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2 votes
3 answers
383 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 ...
Johan's user avatar
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2 votes
2 answers
117 views

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 ...
Bob's user avatar
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