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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.

We have seen this may times in NY and people with means became poor and unable to access anything. All transactions in Spendthrift Trusts are private and not public information unless you wish to make it so. I would never put anyone in a position as they suggest. You determine if you want others to manage you and your family.

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: http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-TIN

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! Under no circumstances!

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?

No

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

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.

Are there any potential issues with a Trustee or Compliance Overseer residing in a Trust owned property full time?

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

And other questions we get:

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

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 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.

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

What is deemed an acceptable salary range for the Trustee(s)?

No upper limits

Under what conditions should a notarized signature be used when signing Trust documents?

Only if required by receiving party.

Can this Trust be legally used in all 50 states and overseas countries?

Yes

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.

Is this particular Trust free from Probate and Estate Taxes?

Yes

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