New answers tagged

5

First, I am assuming that this is not a defective trust. That is, it counts as a trust for both income tax purposes and estate tax purposes. I am also assuming that you are in the United States. The beneficiary will normally pay income tax on the profits that are distributed from the trust. If the trust fails to distribute all the profits, then the trust ...


7

The answer is that the assets are not "his" anymore if they are they are not taxable to the grantor. If the trust is revocable, meaning that the grantor can get the assets back, then all income the trust(s) receive is reportable and taxable to the beneficiary. The scenario you describe, where the trust pays taxes on its own income, only applies to ...


1

Yes, if it will enable the deduction and not incur any IRA penalty (per your tax adviser), you should take the distribution. If you leave the $50k in the IRA, the beneficiaries will eventually pay tax at ordinary income rates on the $50k and all earnings from it. If you invest the $50k outside the IRA, taxes will be owed only on the earnings, likely at ...


2

what prevents someone from coming forward with the same trust name and attempting to lay claim to such assets The fact that they won't have a notarized document with your signature on it establishing the trust, whereas your trustee will.


1

Running a quick check on things owned by trusts, the names in this state for revocable living trusts tend to look like the following: Firstname Middlename Lastname Revocable Trust Dated mm/dd/yyyy Firstname Mi Lastname Revocable Trust Agreement Dated mm/dd/yyyy Firstname Mi Lastname Revocable Trust Under Agreement Dated mm/dd/yyyy Lastname Family ...


2

The trust is not a secondary beneficiary. When you retitle your accounts in the name of the trust, the trust becomes the de facto beneficiary which contains your will which spells out the trustee(s) or personal representative(s) (the name varies in different states) as well as how the assets are to be invested and/or divested to your heirs. I'm not sure if ...


Top 50 recent answers are included