Frequently Asked Questions…
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 want others to manage you and your family.
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.
Can a non-
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? 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
Has the Masters 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 turn over order against a Spendthrift Trust. The Masters Trust is sold by a licensed attorney as a legal document and the Masters 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 the Masters 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.
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 it’s 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
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 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 accommodations? 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.
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
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.
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 /night time 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
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 it’s name or is it required to utilize a LLC when doing so? Yes. Not Required.
What type of items can be considered Trust assets and can be capitalized and placed within the trust? Anything whatsoever.
Are the any time intervals that are required by the Trustee to hold beneficiary meetings on the status of the Trust or any investments the beneficiaries should be made aware of prior to Trustee participating in them? No. The beneficiaries have no right to know about any Trust business affairs.
Is there a way to remove a Compliance Overseer once they hold that position? No
Does a Trust pay for all expenses from a beneficiary function wherever it it held? Yes
Can a beneficiary travel to view a Trust Property or any other asset purchase if the Trustee is not present? Only with permission of the Trustee or a standing permission.
Is it wiser to purchase clothing items etc, that may be used by Trustee that present a professional image when at Trust functions out of income paid to Trustee by the Trust or allowing the Trust to pay for items that will be for Trust use and purpose? Trust only pays for items to be used for Trust business.
Do all signatures(Trustee/Witness and Settlor/Witness on page 6 have to be the same date? No
Can a beneficiary whose children are grown and grandchildren eligible to travel with expenses paid by the Trust when traveling on Trust business? Yes