FAQs
Someone suggested that I get a bank managed Trust. What do you suggest?
If you give any bank control of a Trust, they take full control and you are left out! Bankers love the get their hands on large trust accounts so they can convert them for the use of the bank and the beneficiaries get nothing. They like to scare people into thinking there is liability in Trust management so they may gain control of their asset and funds.
Can a non-citizen Settlor create a Spendthrift Trust, or must they have an ITIN number?
No foreign id numbers may be presented to gain an EIN number for a Trust. If a foreigner is the Settlor of a Trust, they must provide an SSN, an ITIN, or EIN number registered with the IRS. For more about this, check out this IRS site.
Has our Spendthrift Trust ever been challenged by the government and was it successful?
Trust Law is not subject to any Federal, State or Local court and no judge or court may issue a turnover order against a Spendthrift Trust. The Spendthrift Trust is sold by a licensed attorney as a legal document and the Spendthrift Trust is created for the client by the Attorney unlike others who sell illegal documents or trusts who are not licensed lawyers. The IRS examined our Spendthrift Trust for compliance and a past District Director purchased one for himself. We have prosecuted vigorously those who have infringed on our Copyrighted Trust and prevailed in Federal court each time even when the defendants claimed invalid, it was found valid. The Federal cases are sealed.
The name on my IRS Letter with the EIN number and the name of my Trust do not match. One has “Spendthrift Trust” and the other just “Trust.” Do I have to file a name change with the IRS?
No, the Trust may do business or open any account in all or any part of the name.
We have a Settlor who are unwilling to have their SSN number associated with the Trust EIN number. Does this mean that the Trustee should find a different Settlor, or can the Trustee apply for the EIN number?
The Settlor or Creator of a Trust must give a SSN or EIN period. However, a Settlor who provides their SSN for the EIN is assured that they have no tax consequences where the Trust is concerned. Therefore, they should be willing to present it for the EIN number.
Can a beneficiary witness the signatures of Trustees, etc on documentation pertaining to operating the Trust?
No! Do not do this!
Can a provision be written into the Trust stating that only a blood relative be qualified to hold the position of Trustee or Compliance Overseer of the Y Generation Trust during its entire existence? Does it need to be added with Trust initiation?
Not needed; the named successor is the key here.
If I take $10 million of Trust assets at build a business developing, manufacturing and selling “a better mousetrap,” is the income from that business taxable for the Trust?
A business trust is required to be a pass through and must disburse its earnings. If it endows a second trust, then the profits may be passed through without tax events.
If I take $5 million of Trust assets and invest in apartment houses, is the rental income considered taxable income?
No.
If I invest $1 million of Trust assets in Euros and turn a profit of 10% is that taxable income for the Trust?
No.
Are there any potential issues with a Trustee or Compliance Overseer residing in a Trust owned property full time?
No.
Is it best for the trustee or the Compliance Overseer to be paid a salary and the best frequency?
Salaries are optional and can be paid.
Is the Trustee and Compliance Overseer considered an employee or Contracted by the trust?
No.
Do I have to place everything into the trust that I presently own all at once, or can I capitalize items at the time of my choosing?
Your choosing.
Does a “Beneficiary” pay rent while living in a Trust property?
No.
Is the Interest from Trust funds used for investments taxed if they are deposited back immediately back into a Trust bank account?
Interest earned by trust corpus paid back to corpus is not income to the trust.
Is a Trust owned Property or an Auto paid with Trust funds through a Trust bank account taxable once it leaves the Trust bank account?
No. But sales tax is paid on the purchase.
Is there a form for removing Trust Assets?
For real property there is a Quit Claim Deed or Auto Transfer or Sales Form otherwise no.
Under what conditions should a notarized signature be used when signing Trust documents?
Only if required by receiving party.
What is the life of the Trust and who is responsible to renew it before it expires?
21 years and is renewed by the Trustee.
What is the rule for a Trustee taking up residence in a Trust home, do they pay rent under the daytime /nighttime rule of 30% of the current rental value of the property?
They declare income personally for a stated amount determined by the Trustee.
Who besides the Trustee can drive a Trust held vehicle?
Anyone the Trustee authorizes to do so.
When purchasing Home or Auto Insurance for assets in Trust, who is on the Title and does the Trust pay all premiums?
Title to Trust and Trust pays premiums.
Can the Trust operate a business in its name or is it required to utilize a LLC when doing so?
Yes. Not Required.
Is there a Min/Max salary range that a Trustee or Compliance Overseer is paid?
No.
When traveling to visit Trust Assets, does the Trust pay for a Beneficiaries travel accommodation?
Yes.
What is deemed an acceptable salary range for the Trustee(s)?
No upper limits
Are Trust to Trust funds transfers or assets taxable?
No.
Can the Trustee or Compliance Overseer receive income from another Trust if they are not a Trustee or Compliance Overseer on the new trust if they initially gave funds to the new Trusts?
Yes.
Is it advisable for the Trustee or Compliance Overseer to have a Trust Credit/Debit Card?
Yes.
Does a Compliance Overseer receive a salary/income from the Trust?
They may.
Can this Trust be legally used in all 50 states and overseas countries?
Yes.
Is this particular Trust free from Probate and Estate Taxes?
Yes.
