Frequently Asked Questions

 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.

 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 

 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. 

No.

 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. 

No.

Your choosing.

 Interest earned by trust corpus paid back to corpus is not income to the trust. 

No.

Yes.

Yes.

 21 years and is renewed by the Trustee. 

Yes.

 Title to Trust and Trust pays premiums. 

 Yes. Not Required. 

No.

 Yes, the basis (cost) of any asset legally sold to the Trust will be reflected on the Demand Note. The Trust must own the asset. 

 Yes, they can transfer assets into the Trust, BUT (1) the Trust owns the asset, (2) they can never take back the asset without buying it from the Trust, and (3) they take a Demand Note for their cost or basis in the Asset. The principal payments on the note are tax free payments. The interest on the note will be taxable income and must be reported and taxes paid each year. The demand note is the payment for the transfer (sale) of the asset to the Trust. 

 The Spendthrift Trust does not take depreciation on business assets it owns. All business assets are sold to the Beneficial Trust at Book Value (Cost less Depreciation taken) There is no need to generate a tax deduction of the business when the business now will Lease those assets and intellectual property from the Beneficial Trust and deduct the Lease Payment as an expense. The Beneficial Trust reports the Lease Payments as Lease Income and that income is Passive Income and tax deferred per IRC 643B. When an asset is sold from the Beneficial Trust and sale generates a Capital Gain, that Capital Gain is deferred per IRC 643B? 

 Let’s say both husband and wife are retired. The only income they’ve had so far are these three categories; a) around 6 weeks of 1099 income from my husband working for his previous general contractor. 1099 Income is Business Income and cannot be income to the Trust. You can have checks direct deposited into the Trust to fund the Trust, but the Income will still be recorded on a Business Tax Return. b) Some interest and dividend income from bank and brokerage accounts. If the account has been legally moved to the Trust and the Interest and Dividend income is Reported using the Trust’s Name and EIN, this income will be Tax Deferred. c) Rental income from three local rental. This will be the same as above. If the Rental Properties are legally sold to the Trust, the Rental Income will be Tax Deferred. 

 All Sale Papers and the Deed must be in the name of the Trust and the Trustee will sign all papers with “TTE” behind their name. 

 Once the Rental Property is sold and deeded to the Trust, the Trust is the Manager. All income and expenses are recorded in the Trust. Rental Income is Passive to the Trust and is Tax Deferred. The LLC’s will then have no function with Rental Properties. Your Trust can do all of that. Close the LLC’s after the property is sold and deeded to the Trust. 

 Yes. The trust can sell any asset it owns at any time. There is no “seasoning” with trust asset sales. 

 I recommend a personal Credit Card marked For Trust Use Only. Maintain a receipt for each expenditure and attach the receipts to the Credit Card bill and then the Trust can pay the bill. Only charge Trust authorized expenditures to this card. If using Bill Pay or direct Debit, print a copy of the payment receipt and attach that to the Credit Card Bill along with the receipts for each expenditure. 

 To document, keep any and all receipts. You must have receipts for ALL expenses of the Trust. The bank statement or credit card statement are not proof of the expense.