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What else can I help you with?
Does irrevocable trust have to use ein?
Yes, an irrevocable trust must obtain an Employer Identification Number (EIN) from the IRS. This is necessary because the trust is considered a separate legal entity for tax purposes, and the EIN is used for reporting income and other tax-related matters. Even if the trust does not have any income, having an EIN is typically required to properly administer the trust and comply with tax regulations.
What is reasonable compensation for successor trustee in a living trust?
In New York, a Trustee's Commission is determined under the Estates, Powers and Trusts Law. Section 2309 covers persons dying or lifetime trusts established after August 31, 1956. Section 2308 covers persons dying or lifetime trusts established on or before August 31, 1956. § 2309. Commissions of trustees under wills of persons dying, or lifetime trusts established, after August 31, 1956 1. On the settlement of the account of any trustee under the will of a person dying after August 31, 1956, or under a lifetime inter trust established after August 31, 1956, the court must allow to him his reasonable and necessary expenses actually paid by him and if he be an attorney of this state and shall have rendered legal services in connection with his official duties, such compensation for his legal services as shall appear to the court to be just and reasonable and in addition thereto it must allow to the trustee for his services as trustee a commission from principal for paying out all sums of money constituting principal at the rate of 1 per cent. 2. In addition to the commission allowed by subdivision 1 hereof a trustee shall be entitled to annual commissions at the following rates: (a) $10.50 per $1,000 or major fraction thereof on the first $400,000 of principal. (b) $4.50 per $1,000 or major fraction thereof on the next $600,000 of principal. (c) $3.00 per $1,000 or major fraction thereof on all additional principal. Such annual commissions shall be computed either on the value of the principal of the trust at the end of the period for which the commissions are payable or, at the option of the trustee, on the value of the principal of the trust at the beginning of such period, provided that the option elected by the trustee for the first period for which such commissions are payable shall be used during the continuance of the trust and shall be binding on any successor or substitute trustee or trustees. In the case of a trust which prior to January 1, 1994 computed annual commissions on the basis of a 12 month period (other than a calendar year), the trustee's prior election of such 12 month period shall be binding unless, prior to January 1, 1995, the trustee makes a new election to compute annual commissions on the basis of a calendar year either on the value of the principal of the trust at the end of, or at the option of the trustee at the beginning of, the calendar year for which the commissions were payable, which new election shall be used during the remaining continuance of the trust and shall be binding on any successor or substitute trustee or trustees. The computation shall be made on the basis of a 12-month period but the amount so computed payable to a trustee shall be proportionately reduced or increased for any payments made in partial distribution of the trust or the receipt of any additional property into the trust within such period and shall be proportionately reduced in any period for which such commissions are payable to the trustee if the period is less than 12 months. For the purpose of computing the annual commissions the value of any principal asset when received by the trust shall be the presumptive value of the asset at the beginning and end of the period for which such commissions are payable. In computing the value of the principal of the trust the trustee may use the presumptive value in respect of any principal asset or may use the actual value of the asset. On the settlement of the account of the trustee any person interested may dispute the amount of any commission claimed or retained. The burden of proving that the actual value of any principal asset differs from its presumptive value is upon the trustee or other person claiming the difference. 3. Unless the will or lifetime trust instrument otherwise explicitly provides the annual commissions allowed by subdivision 2 shall be payable one-third from the income of the trust and two-thirds from the principal of the trust. However, in the case of a trust whose definition of income is governed by 11-2.4 of the estates, powers and trusts law or a charitable remainder annuity trust or a charitable remainder unitrust, as defined in section six hundred sixty-four of the Internal Revenue Code of nineteen hundred eighty-six, as amended, such annual commissions shall be payable from the corpus of any such trust after allowance for the annuity or unitrust amounts and shall not be payable out of such annuity or unitrust amounts. 4. The commissions allowed by subdivision 2 may be retained by a trustee provided he furnishes annually as of a date no more than 30 days prior to the end of the trust year selected by the trustee, to each beneficiary currently receiving income, and to any other beneficiary interested in the income and to any person interested in the principal of the trust who shall make a demand therefor, a statement showing the principal assets on hand on that date, and at least annually or more frequently if the trustee so elects, a statement showing all his receipts of income and principal during the period with respect to which the statement is rendered including the amount of any commissions retained and the basis upon which the commissions were computed. A trustee shall not be deemed to have waived any commissions by reason of his failure to retain them at the time when he becomes entitled thereto; provided however that commissions payable from income for any given trust year shall be allowed and retained only from income derived from the trust during that year and shall not be supplied from income on hand in respect of any other trust year. If a beneficiary receiving income does not desire to be furnished with any such statements his advice to the trustee to that effect in writing shall thereafter excuse the trustee from furnishing such statement to the beneficiary unless and until the beneficiary requests such annual statements from the trustee. 5. (a) During the continuance of a trust created solely for public, religious, charitable, scientific, literary, educational or fraternal uses and during the period of continuance of such a trust after the termination of a life use or uses the trustee shall be entitled to and may retain commissions from income in an amount annually equal to 6 per cent of income collected in each year. (b) In the case of a trust created solely for public, religious, charitable, scientific, literary, educational or fraternal uses the trustee shall not be entitled to any commission from principal. (c) In the case of such a trust which continues after the termination of the measuring life use or uses the trustee for the period of the measuring life use or uses shall be entitled to commissions from income and principal at the rates and according to the terms specified in subdivision 2 and except in respect of principal paid out to a charity or for charitable uses shall be entitled to a commission for distributing all sums of principal at the rate specified in subdivision 1. 6. (a) Subject to 2313 regarding multiple commissions of executors or trustees under wills of persons dying, or lifetime trusts established, after August 31, 1993, if the gross value of the principal of the trust accounted for amounts to $400,000 or more and there is more than 1 trustee each trustee is entitled to the full compensation for paying out principal allowed herein to a sole trustee unless there are more than 3, in which case the compensation to which 3 would be entitled must be apportioned among the trustees according to the services rendered by them respectively unless the trustees shall have agreed in writing among themselves to a different apportionment which, however, shall not provide for more than one full commission for any one of them. If the gross value of the principal of the trust accounted for is: (i) less than $100,000 and there is more than 1 trustee the full compensation for paying out principal allowed herein to a sole trustee must be apportioned among them according to the services rendered by them respectively, or (ii) $100,000 or more but less than $400,000, each trustee is entitled to the full compensation for paying out principal allowed herein to a sole trustee unless there are more than 2 trustees in which case the full compensation for paying out principal allowed herein to 2 trustees must be apportioned among them according to the services rendered by them respectively, unless the trustees shall have agreed in writing between or among themselves to a different apportionment which, however, shall not provide for more than one full commission for any one of them. (b) Subject to 2313 regarding multiple commissions of executors or trustees under wills of persons dying, or lifetime trusts established, after August 31, 1993, if the value of the principal of the trust for the purpose of computing the annual commissions allowed by subdivision 2 amounts to $400,000 or more and there is more than one trustee each trustee is entitled to the full annual commission allowed herein to a sole trustee unless there are more than 3, in which case the annual commissions to which 3 would be entitled must be apportioned among the trustees according to the services rendered by them respectively unless the trustees shall have agreed in writing among themselves to a dif- ferent apportionment which, however, shall not provide for more than one full annual commission for any one of them. If the value of the principal for the purpose of computing the annual commission allowed by subdivision 2 amounts to: (i) less than $100,000 and there is more than 1 trustee the annual commission allowed herein to a sole trustee must be apportioned among the trustees according to the services rendered by them respectively, or (ii) $100,000 or more but less than $400,000, each trustee is entitled to the full annual commission allowed herein to a sole trustee unless there are more than 2 trustees in which case the full annual commissions allowed herein to 2 trustees must be apportioned among them according to the services rendered by them respectively, unless the trustees shall have agreed in writing between or among themselves to a different apportionment which, however, shall not provide for more than one full annual commission for any one of them. However, if from a trust having a value of $400,000 or more, or if from a trust having a value of $100,000, or more but less than $400,000, as the case may be, at the beginning of a trust year any payments in partial distribution of the trust shall be made during the trust year so as to reduce the trust to a value of less than $400,000 or $100,000, as the case may be, at the end of the trust year, then the annual commissions allowed herein shall, on a proportionate basis, be those allowed to trustees of a trust having a value of $400,000 or more, or of a trust having a value of $100,000 or more but less than $400,000, as the case may be, for the period from the beginning of the trust year to the date of the distribution and shall, on a proportionate basis, be those allowed to trustees of a trust having a value of either $100,000 or more but less than $400,000 or less than $100,000, as the case may be, for the remainder of the trust year and the part of such commissions payable from principal and computed from the beginning of the trust year to the date of distribution shall be charged ratably to the property remaining in the trust and to the property distributed from the trust on the basis of their respective values. Further, if during a trust year additional property shall be received into a trust which had a value of less than $100,000, or into a trust which had a value of $100,000 or more but less than $400,000, as the case may be, at the beginning of the trust year, so that because of the additional property the trust has a value of $100,000 or more but less than $400,000, or of $400,000 or more, as the case may be, at the end of the trust year, then the annual commissions allowed herein shall, on a proportionate basis, be those allowed to trustees of a trust having a value of less than $100,000, or to trustees of a trust having a value of $100,000 or more but less than $400,000, as the case may be, for the period from the beginning of the trust year to the date of the receipt of the additional property and shall, on a proportionate basis, be those allowed to trustees of a trust having a value of $100,000 or more but less than $400,000, or of a trust having $400,000 or more, as the case may be, for the remainder of the trust year. (c) Notwithstanding any provision of paragraphs (a) and (b) of this subdivision to the contrary, if during the continuance of a trust not measured at any time directly or indirectly by a life or lives or during the continuance of a trust after the termination of the measuring life or lives, the annual income of the trust amounts to $4,000 or more and there is more than 1 trustee, each trustee is entitled to the full commissions allowed under subdivision 5 to a sole trustee unless there are more than 2, in which case the commissions to which 2 trustees would be entitled must be apportioned among the trustees according to the services rendered by them respectively unless they shall have agreed in writing among themselves to a different apportionment which, however, shall not provide for more than one full commission to any one of them. If the annual income of the trust amounts to less than $4,000 and there is more than 1 trustee the commissions to which a sole trustee would be entitled under subdivision 5 must be apportioned among the trustees according to the services rendered by them respectively unless they shall have agreed in writing among themselves to a different apportionment. 7. Where a trustee is for any reason entitled or required to collect the rents of and manage real property the net amount of rents collected and not the gross amount shall be used in making computation of commissions allowed by subdivision 5 and in addition to the commissions herein provided he shall be allowed and may retain for such services 6 per cent of the gross rents collected, but there shall be only one such additional commission regardless of the number of trustees. If there are 2 or more trustees the additional commission herein provided for must be apportioned among them according to the services rendered by them respectively unless they shall have agreed in writing among themselves to a different apportionment. 8. If a trustee is either authorized or required by the terms of the will to accumulate income for any purpose permitted by law he shall be entitled to commissions from the income so accumulated, including income derived from the investment of such accumulated income, at the rate of 2 per cent of the first $2,500 of such income distributed during the administration of the trust and 1 per cent of all such income distributed in excess of $2,500 and he may retain such commissions at the time or times such income is distributed. 9. The value of any property to be determined in such manner as directed by the court and the increment thereof received, distributed or delivered, shall be considered as money in making computation of commissions. Whenever any portion of the dividends, interests or rents payable to a trustee is required by any law of the United States or other governmental unit to be withheld by the person paying it for income tax purposes, the amount so withheld shall be deemed to have been collected. 10. Where the will provides a specific compensation for a trustee he is not entitled to any other allowances for his services. 11. For the purposes of this section, the term "trustee" shall mean any trustee who is not a corporate trustee provided, however, that as used in subdivision 6 of this section, the term trustee shall include a corporate trustee.
Which type of income is paid for the use of land?
rentLease.
If the CPI is 220 and nominal income is 37000 approximately what does real income equal?
To calculate real income, you can use the formula: Real Income = (Nominal Income / CPI) × 100. Given a nominal income of 37,000 and a CPI of 220, the calculation would be: Real Income = (37,000 / 220) × 100, which equals approximately 16,818.18. Thus, the real income is about 16,818.
How income elasticity of demand can be use to classify normal goods?
If income elasticity is positive, then it is a normal good. Otherwise, it is an inferior good.
Is the trustee of an irrevocable trust responsible for reporting partial surrender as income to be taxed?
Income to the trust or income to the donor of the trust? If the donor of the trust is taking income from it, this may be considered an incidence of ownership, violating the irrevocable nature of the trust. Ouch. This is potentially a very technical question and may require outside help. You may want to seek the help of a corporate trustee, or use a service from ours.
Can the trustee of a irrevocable trust buy the house in this irrevocable trust and take a loan out on the house to pay the other beneficiary?
You need to review the terms of the particular trust in order to determine what the trustee can and cannot do. A trustee has only the powers set forth in the trust document. Generally, a trustee should bot take money from the trust for his/her own use.You need to review the terms of the particular trust in order to determine what the trustee can and cannot do. A trustee has only the powers set forth in the trust document. Generally, a trustee should bot take money from the trust for his/her own use.You need to review the terms of the particular trust in order to determine what the trustee can and cannot do. A trustee has only the powers set forth in the trust document. Generally, a trustee should bot take money from the trust for his/her own use.You need to review the terms of the particular trust in order to determine what the trustee can and cannot do. A trustee has only the powers set forth in the trust document. Generally, a trustee should bot take money from the trust for his/her own use.
Can you use proceeds from the sale of a house in an irrevocable trust to purchase a new home?
You need to review the provisions in the trust. The proceeds belong to the trust and would be paid over to the trustee. The provisions of the trust will tell you if the trustee can use the proceeds to purchase another property in the name of the trust.You need to review the provisions in the trust. The proceeds belong to the trust and would be paid over to the trustee. The provisions of the trust will tell you if the trustee can use the proceeds to purchase another property in the name of the trust.You need to review the provisions in the trust. The proceeds belong to the trust and would be paid over to the trustee. The provisions of the trust will tell you if the trustee can use the proceeds to purchase another property in the name of the trust.You need to review the provisions in the trust. The proceeds belong to the trust and would be paid over to the trustee. The provisions of the trust will tell you if the trustee can use the proceeds to purchase another property in the name of the trust.
Can real estate that is transferred to an Irrevocable trust securitize a mortgage loan that is executed by the general manager of the trust as an individual?
No. The real estate in question is owned by the trust. The trustee cannot use it as security for his individual mortgage.
What is an example of irrevocable?
Suppose Charles, a very successful entrepreneur, owns a substantial amount of real and personal property and wants to transfer the property from his individual ownership in order to protect it from any creditors and avoid the need for probate at the time of his death. He has no children but has numerous nieces and nephews.Charles decides to have an irrevocable trust drafted by an attorney who specializes in trust law. The provisions of the trust provide the following: his eldest nephew, Thomas, is the trustee and the nieces and nephews are to have the power to name one of their group as successor trustee should Thomas die or resign; during his life Charles is to have a generous monthly stipend and the right to the use and possession of his various homes; upon his death, the remaining property in the trust is to be liquidated and divided equally amongst his nieces and nephews. Charles will have no power or control over the trust property.Now suppose Charles executed deeds for all his real property transferring the title to the trustee of his trust. He also arranged for all his bank and investment accounts to be transferred to the trustee and they are all now in the name of the trustee of the irrevocable trust.Charles cannot undo those transfers once they have been made. Those transfers are irrevocable. Charles is no longer the owner of his property. He is the beneficiary of his irrevocable trust.
Can a irrevocable trust use a social security number?
If the irrevocable trust is properly drafted and is not, in fact, a grantor-owned revocable trust, then it should have its own unique Taxpayer Identification Number ("TIN").
What is a trust property?
Generally, a trust is a legal relationship that is set up whereby one person holds the legal title to the property, the trustee, and another has the benefit of the use, enjoyment and income from the property, the beneficiary. Trust law is extremely complex. Very briefly stated, the person who sets up the trust and conveys or transfers their property to the trustee is called the trustor. Once set up properly the trust allows the grantor to remove her property from her own estate, thereby protecting it from creditors and heirs, and still enjoy the use of and income derived from it. The trust property is any personal or real property transferred to the trust such as real estate, stocks, bank accounts, etc. That property is "held in trust" by the trustee.
Why Are safeguards needed in trust accounting?
Because a trustee has sweeping power over the trust property and a dishonest trustee could convert the trust assets to their own use quite easily. Beneficiaries should always insist on a regular accounting.Because a trustee has sweeping power over the trust property and a dishonest trustee could convert the trust assets to their own use quite easily. Beneficiaries should always insist on a regular accounting.Because a trustee has sweeping power over the trust property and a dishonest trustee could convert the trust assets to their own use quite easily. Beneficiaries should always insist on a regular accounting.Because a trustee has sweeping power over the trust property and a dishonest trustee could convert the trust assets to their own use quite easily. Beneficiaries should always insist on a regular accounting.
What interest does a named trustee have in property given for the use of others?
The trustee has no personal interest in the property. The trustee holds interest as a trustee only and must manage the property according to the terms of the trust and only according to the terms of the trust.
What do you do if a sibling is trustee of a living trust and you feel he may be using funds from the trust for his own use in California?
If possible you should discuss the situation with the trustor and ask to have the trustee removed. If that's not possible you could start by asking for an accounting by the trustee. You have an equitable interest in the trust property and the trustee is responsible while he is in charge. If you suspect that the trustee is borrowing against the trust, take him to court. Court's do not look favorably on self-dealing by a trustee and can remove the trustee if it finds the trustee is violating the trust. As a fiduciary the trustee is bound to do nothing that compromises anyone's rights under the trust. As a fiduciary the trustee has the obligation to grow the assets of the trust rather than waste them. If the trustee is making unsecured, no-interest loans to himself he is not making prudent decisions on behalf of the trust.
Can the trustee of a minors trust spend monies in that trust account?
The trustee must act according to the provisions set forth in the trust. They cannot make personal use of the trust funds unless they were given that power in the document that created the trust. You need to review the trust document. Any trustee who makes unauthorized personal use of trust funds should be reported to the court and replaced. That kind of behavior is against the law.The trustee must act according to the provisions set forth in the trust. They cannot make personal use of the trust funds unless they were given that power in the document that created the trust. You need to review the trust document. Any trustee who makes unauthorized personal use of trust funds should be reported to the court and replaced. That kind of behavior is against the law.The trustee must act according to the provisions set forth in the trust. They cannot make personal use of the trust funds unless they were given that power in the document that created the trust. You need to review the trust document. Any trustee who makes unauthorized personal use of trust funds should be reported to the court and replaced. That kind of behavior is against the law.The trustee must act according to the provisions set forth in the trust. They cannot make personal use of the trust funds unless they were given that power in the document that created the trust. You need to review the trust document. Any trustee who makes unauthorized personal use of trust funds should be reported to the court and replaced. That kind of behavior is against the law.
Why would the grantor of an irrevocable trust want the trustee to use the US Treasury bonds or notes to be used for the payment of estate expenses before using other assets of the trust?
In most cases, for financial reasons. Bonds used in this way get beneficial tax treatment. Many people bought them just for this purpose.
