A trust tax return must be filed separately from an individual’s return in the US, and generates a K-1 form showing income to be included on the personal return. A trust is a separate entity subject to income tax, with four requirements: a grantor, assets, a trustee, and one or more beneficiaries. Taxes must be […]
A revocable trust is a legal arrangement that can be changed or terminated by the creator during their lifetime. It involves a grantor, trustee, and beneficiary, with assets transferred to the trustee to manage according to the grantor’s wishes. After the grantor’s death, the trust becomes irrevocable. While a revocable trust has benefits, it should […]
A cestui que trust is a beneficiary of a trust with no legal title. Trustees manage the trust and make decisions for the beneficiaries. Trusts can be structured in various ways and are difficult to revoke. Trustees must document all decisions and relationships with beneficiaries. Ownership of assets in a trust may revert to the […]
An employee trust fund is a type of trust where employees receive benefits such as healthcare and pensions through the trust, with the employer paying into the fund. These trusts can be used by employers to provide access to benefits, and can be organized to pay for healthcare services or retirement funds. However, poor management […]
A grantor trust is a legal entity created by an individual to hold and control their assets. The grantor can maintain control over the trust assets and appoint a trustee. The trust is typically revocable until the grantor’s death, at which point it becomes irrevocable. The successor trustee takes over management of the trust and […]
An educational trust fund is established by a donor to provide funds for education, managed by a trustee for a specified purpose. It can benefit a single individual or a group, such as scholarship recipients or an educational institution. The trustee’s responsibilities include managing the fund and ensuring the grantor’s wishes are followed. When established […]
Leona Helmsley left a $12 million trust for her dog in her will, highlighting the use of honorary trusts for non-human entities. While some states may not accept these trusts, New York does, making it difficult to contest a will with such a trust. The honorary trustee is responsible for ensuring the deceased’s wishes are […]
A trust transfer is when assets held for someone else are transferred to a trustee. The grantor no longer has control over the assets, and the trustee manages them for the beneficiary’s benefit. Trusts are used for various reasons, and a trust transfer may be done for legal reasons or if the trustee is better […]
Trust law is a legal framework where property is controlled by a trustee for the benefit of a beneficiary. It covers how trusts are created, owned, regulated, and what happens to the property. Trusts developed in England during the Crusades and are regulated by the Trust Act. Trusts can be used for estate planning, charitable […]
A business trust is a legal organization managed by trustees for the benefit of one or more beneficiaries. It protects assets from creditors and lawsuits and can provide tax benefits. Corporate trusts are alternatives to corporations or partnerships and are formed through statements of trust. Trustees hold title to the trust property and administer it […]
A testamentary trust is a trust that takes effect upon the testator’s death, often created for minor children or young adults. It involves appointing a trustee to handle funds until a certain point when the trust expires. While it can be costly due to legal fees, it may be beneficial for those with high life […]
A statutory trust is an estate planning tool that protects real estate for the benefit of a trust beneficiary. It involves three parties: the grantor, trustee, and beneficiary. Income and sale proceeds go to the beneficiary. The purpose is to protect property for a beneficiary, often a child, and protect it from creditors. A statutory […]
A rabbi trust is an irrevocable trust established for employees to finance nonqualified deferred compensation plans. The trust protects the employee’s assets and limits tax liability for disbursements made within a given tax year. Also known as a grantor’s trust, a rabbi trust is a type of trust that is established for employees and is […]
The IRS in the US can impose a trust fund recovery penalty (TFRP) on businesses that fail to withhold or deliver taxes owed to the government. The penalty can also be imposed on individuals responsible for payroll processing. Failure to pay into the trust fund can impact employee benefits. A trust fund recovery penalty (TFRP) […]
Crimes committed by someone in a position of trust towards the victim are considered serious and can result in heavier penalties. Sex crimes, financial crimes, and malpractice crimes can all have an element of trust present. Civil lawsuits can also be filed, such as malpractice lawsuits. Victims are more vulnerable when they know and trust […]
A beneficiary trust is an irrevocable trust that allows a grantor to give assets to a beneficiary while protecting them from losses due to divorce, lawsuits, property taxes, and income taxes. The beneficiary can make investment decisions and benefit from them without paying tax on the trust’s income. The trust is not subject to estate […]
A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust used in estate planning to reduce inheritance or gift taxes. The grantor receives a regular income for a set period, after which the remaining assets are transferred to a beneficiary. A Grantor Retained Annuity Trust (GRAT) is an estate planning tool used to reduce the […]
Over 20% of people get news from sources they don’t trust, with conservatives more likely to distrust sources. Local newspapers are the most trusted source, while news sites and blogs are least trusted. Confirmation bias may be a factor. According to a 2014 Pew Research Center survey, nearly 2014 percent of people get their news […]
Building trust in relationships involves sharing emotions, reacting positively, being genuine, and accepting flaws. Trust is difficult to develop but can be achieved by learning to trust oneself and realizing one deserves care and respect. Admitting and learning from mistakes is crucial in building trust. Establishing trust in a relationship is important as it means […]
A family trust is a legal document that allows the grantor to make changes at will and covers how assets are handled before and after death. It reduces probate taxes, avoids probate proceedings, and keeps all terms private. The structure includes the grantor, trustee, and beneficiary, with the grantor typically preparing the trust and the […]
