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The purpose of a trust IS to receive assets and hold them for the benefit of someone else.
Trust law is one of the most complex areas of law. If you want to create a trust you should consult with an attorney who specializes in trust law and who has a good reputation in your community. She/he will review your situation, discuss your needs, evaluate the property you want to transfer to your trust and then draft a trust that will meet your needs.
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Do trust documents need a list of assets?
No.
Are prepayments nonmonetary assets?
Yes. You will receive / provide no cash or cash-equivalents. You will get / provide some assets for the prepayments.
Do assets in an irrevocable trust get a stepped up cost basis?
Yes
What documents are necessary for a trust with limited assets?
The only document needed to set up a trust is the trust document, or, the Declaration of Trust. The trustee and all business carried on by the trustee must rely on the provisions in that trust document. It should always be drafted by an attorney who specializes in trust law in your jurisdiction since the trustee can only exercise the powers set forth in the trust document. An invalid trust can create problems that are costly to correct and must be addressed by a judge in a court of equity.
What if your parents passed away and left money to the children is this counted as income on your taxes?
i think it is but when you file your taxes, meet with a tax advisor first and be sureIf your parents protected their/your/the family's assets by establishing a Family Living Trust and transferring all assets into the Family Trust, the assets are NOT subject to taxation. The Trust allows the Family assets to live on and continue to grow, protected for generations.YES, ONE SHOULD ALWAYS CONSULT WITH A QUALIFIED TAX CONSULTANT.
Can filing bankruptcy affect a living trust?
Yes. If the trust is not a true trust (i.e., the settlor, trustee and beneficiary are all the same person) or if the trust is revocable, the trustee can pursue the trust assets. If the debtor is the beneficiary of a living trust and can or has gotten a distribution of some of the trust assets, the trustee may be able go after the assets to the same extent the debtor is eligible to receive a distribution. It may be possible to negotiate a settlement of less than the full amount of the assets with the trustee.
What is the difference between a trust and an estate?
A trust is an entity set up to maintain and distribute assets in accordance with the trust creator. There are specific laws on how a trust can be set up and run, what reporting and what taxes have to be paid. There are also laws about how long a trust can last. A will is the method used to specify how one's assets will be distributed upon death. Often a will with create a trust. Wills also are subject to specific laws and taxes.
Irrevocable trust - 2 folks named in trust 1 is successor trustee w 60 claim other gets 40 - can the successor trustee donate the assets without the approval of the other benefactor?
Your phrasing is difficult to understand. The only power a trustee has is set forth in the trust instrument. If a beneficiary is supposed to receive 40% of the trust assets then, of course, you cannot take their portion and donate it. You should read the trust document to refresh yourself on the purpose of the trust and your obligations as trustee. You cannot steal, or misuse the assets. You cannot do anything with the trust property that's not stated in the trust. You have liability for any wasting of the trust assets.
How do you liquidate a deceased person's trust?
A trust account can be liquidated if the wording used to create the trust allows for its liquidation. The actions taken would be to sell the assets of the trust and distribute the cash to the beneficiaries of the trust. This again is only possible if the trust's creative wording allows or says it should be done. A trust is administered by a trustee appointed for its position by the will of trust or in the words used to create the trust.
Can the grantor receive income from an irrevocable trust?
The grantor sets up the trust as they wish. If they want to receive the income, they can create the trust in that way. It would be a good idea to consult a trust attorney to take full advantage of tax laws and rules.
What does it mean that you cannot get the assets back in a revocable trust?
You CAN get the assets back in a revocable trust. You CANNOT get the assets back in an irrevocable trust. An irrevocable trust cannot be terminated by the settler once it has been created. The settler transfers their assets into the trust and no longer has any rights of ownership in that property or the trust. The main reasons for setting up an irrevocable trust are estate planning and tax purposes. Generally, assets in an irrevocable trust are shielded from creditors.
Does a trust protect personal assets?
Yes. However, the assets must be transferred to the trust and will no longer be "personal" assets. They will be under the control of the trustee of the trust. You should discuss your situation with an attorney who specializes in trust law in your state.
Can same assets be left in a will and a trust?
If the deceased's will leaves assets to a person but places them into a "trust" for that person, yes, they can.
Can you use a living trust as an asset?
Does the trust have assets in it?
Can the grantor sell assets listed in irrevocable living trust?
The grantor has no control over the assets in an irrevocable trust. Those assets are under the control of the trustee.
What are some of the better known nondeposit trust facilities in the U.S.?
Amalga Trust Company Inc., which had 1997 assets of $6.1 billion; First of America Trust Co., with 1998 assets of $14.4 billion; Imperial Trust Co., with 1997 assets of $9.3 billion; and Mercantile Trust Company N.A., with 1997 assets of $28.7 billion
How are assets distributed when there is a trust?
You must read the provisions of that particular trust to determine how it directs that assets be distributed. A trust is managed according to the provisions set forth in the document that created the trust.
