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What else can I help you with?
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 are the benefits of having an irrevocable trust?
The property is no longer vulnerable to your creditors, your heirs or your personal income taxes. After a waiting period, it cannot be used to disqualify you from entitlements. You can choose how the income will be distributed and how the property will eventually be distributed when the trust is terminated. However, you cannot get the property back. An irrevocable trust should be drafted by an expert in trust law.
Can a trustee use the income from an irrevocable trust?
For personal use, only if they are the beneficiary. They are entitled to compensation for their work and to use funds for the benefit of the trust, but these are typically laid out in the trust itself.
Why would one work with a revocable trust?
Revocable trust includes many advantages. Revocable Trust's main advantage is the agreement provides flexibility and income to the living grantor.
What are the annual income of average drop shippers?
The annual income of average drop shippers is around 45K. The minimum income is 20K, and the maximum income in 7.5K. When averaged out, the annual income of average drop shippers is 45K.
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 tax forms need to be filed for an irrevocable trust?
Form 1041 is U.S. Income Tax Return for Estates and Trusts. Trusts are required to file Form 1041 when (1) its income is at least $600, or (2) it has a nonresident alien as a beneficiary. But a trust classified as a grantor trust isn't required to file Form 1041 if the individual grantor reports all the grantor trust incomes/allowable expenses on his own Form 1040. For tax purposes, an irrevocable trust is treated as a simple, complex, or grantor trust according to the powers listed in establishing the trust.
What are the key differences between a non-grantor trust and a grantor trust?
A key difference between a non-grantor trust and a grantor trust is who pays taxes on the trust income. In a non-grantor trust, the trust itself pays taxes on the income it generates, while in a grantor trust, the grantor is responsible for paying taxes on the trust income. Additionally, in a grantor trust, the grantor retains certain control over the trust assets, whereas in a non-grantor trust, the trust assets are typically managed by a trustee without the grantor's involvement.
What is the income threshold that one must reach in order to receive the maximum amount of Social Security benefits?
The income threshold to receive the maximum amount of Social Security benefits is based on the highest 35 years of earnings.
Can the creator of an irrevocable trust contribute pretax income without paying income tax?
No.
What is the maximum income you can receive in a household to be eligible to receive food stamps?
The maximum varies from state to state. Your income and how many people in your family is another indicator. There is a page that can tell you if you qualify and for how much by answering a few questions. If you do qualify then it will direct you to the proper site for your state.
What is the maximum amount a person can receive in order to get assistance for medicare payments?
Medicare is not means tested - i.e., eligibility is not affected by one's income or assets.If you are referring to Medicaid, the maximum income amounts differ from state to state.
Are gifts deductible under the US Internal Revenue Code?
Under the existing Internal Revenue Code guidelines, rules and regulations gifts made to anyone, including relatives and friends are not deductible. However, the grantor (giver of the gift) might have to pay a gift tax if the gift exceed a certain amount (12,000.00) per individual per year. Gifts are generally not deductible to the grantor, nor are they taxable (reported as part of income) to the recepient or beneficiary. Gifts in general are irrevocable (cannot be taken back by the grantor). Respectfully submitted by: CHR Florida Certified Public Accountant April 1, 2007
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.
What is the income limit to be eligible for the EIC I have a family of five is there a limit per household size?
For a taxpayer with 3 or more children, the maximum Earned Income Credit is $5,657 and you will receive the maximum amount as long as you earned less than $21,420 in 2009. You will still receive a portion of the credit if you made less than $43,279 and you are single, and less than $48,279 if married filing jointly.
Can a set income from an irrevocable trust be increased by the trustee of the trust?
You need to review the terms of the trust to determine the extent of the trustee's power.
What are the benefits of having an irrevocable trust?
The property is no longer vulnerable to your creditors, your heirs or your personal income taxes. After a waiting period, it cannot be used to disqualify you from entitlements. You can choose how the income will be distributed and how the property will eventually be distributed when the trust is terminated. However, you cannot get the property back. An irrevocable trust should be drafted by an expert in trust law.
