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some trust questions
Hello…quick precursor..i have been watching all the videos and read weisses handbook and wrapping my head around trusts as best as possible. i am about to get one (a trust) but just had a couple of questions…
(1) regarding roles….at this stage it, the trust, would just concern myself and my partner. i am not sure whether i should be trustee and my partner beneficiery, or whether it would be best to both be beneficieries with myself also having a role as executive manager..i.e. concerning myself with day to day stuff /accounts/any possible transfer of assets. this second way would see the need for an independant trustee ..so the question is…is it recommended to be trustee or executive manager and beneficiery?..just curious as to any ideas ( i know trusts are a personal thing but, as said, any tips appreciated.
regarding settlor, am i right assuming that Mark/solutionsempowerment would make a small initial outlay making them settlor to get the trust up and running? if not who would be settlor if myself and partner wanted to assume the other (trustee/beneficiery)roles).
(2) regarding digital assets…my research to date leads me to believe that the way to place digital assets into the trust is via bill of sale….they are sold to the trust, via promissory note…they dont have to be paid for straight away, but over time the trust has duty to pay them off. is this right?
(3) what allowances are the beneficiaries allowed? is it just basics..i.e. clothing/food/shelter. I know the trust cannot be buying non essential like beer/cigarettes…i wonder about essential travel to visit elderly family? Can that be written into trust deed? Also what allowances are trustee entitled to? Is it just stuff required to run the trust..office rent? I heard wellness is ok but dont really know what that means. Are all these things written into the trust deed and is there a resource out there explaining what are all the various allofwances the different roles are entitled? Sorry, i know thats a lot of different questions!
(3) finally…i just wondered what form the trust should take..what i mean is this..just a simple straight fwd one..where beneficiaries have allowances for food/housing/clothing etc with a minimal (i.e. under tax free threshold) payment each year. trustee has his/her expenses…again minimal….
or, should i make it say a community based trust …one where myself and partner have the above allowances, but also if we do jobs around the local community..eg. helping elderly folk with their gardens/handyman tasks…the trust could accept donations for any productivity of labour/materials it uses and the trust account could be used for any materials relating to the work.
Thats it for now..if anyone can offer any tips or pointers that would be much appreciated. I basically have my head wrapped around what a trust is…its just getting to know what it can/cannot do, best methods of approach..all the little details….i suppose they will all be set out i the beginning….anyway, as said, appreciate any help. thanks in advance
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7 Replies
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This reply was modified 2 years, 3 months ago by morag-janet-of-the-hill-family.
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Thanks Janet…uve given me a bit of bed time reading!..will check yr replies out tomorrow…thank you for taking the time to reply!..
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hello mjh , again, thank you for sending me all the trust pdfs…i have read them and they have been of help…i just have a few more questions, if i may….
re digital assets….there was one question (#22) in QandA 1 that talked about them..i didnt quite understand it..what does BC stand for? as i previously said, it is my comprehension that one can sell them (digital assets) to the trust (the trust can purchase them by way of promissory note) for market value or less. once in the trust, it is up to the trustee to manage, as with any asset, as best he/she sees fit for the benefit of the trust…
when it comes to distributions….i just wonder what the finer details are…? are beneficieries allowed to receive distributions in order to cover basics..ie food, rent, clothing etc? are they allowed a trust debit card in order make these required purchases? i read somewhere that it was just trustee that could have debit card?
what about distributions if the trustee has managed to grow the assets, due to the productivity of his/her labour,..how can these be distributed (is it whenever the trustee see fit?) are they liable for tax..after all it was through productivity of labour that they grew Then…can the trustee him/herself take distributions?
transfer of assets…lets say the trust has digital assets and one day decides to purchase a property using said assets…is this considered just a transfer of assets..no gain has been made.
lastly, regarding roles…i wonder if it would be more beneficial to be executive manager (having day to day control of trust) and beneficiery, opting for an independant trustee, or be trustee onself with wife as beneficiery….maybe im getting a bit complicated here, but any thoughts appreciated.
thanks again for any advice.
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This reply was modified 2 years, 3 months ago by
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Hi the Trust will be liable to tax if it is a registered Trust. If you buy an unregistered Trust from Mark on this website then you will receive a one hour appointment with Mark as part of the package all inclusive. If however you have a registered Trust created by lawyer then you are subject to rules and regulations of the system. In Mark’s Trust package he will create a Trust tailor made to your needs. This is why he has an hour appointment to find out what you specifically require. He also answers any questions you may have about any aspect of running the Trust including all of the above questions you have asked.
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hi..thank you..yes, it will be an unregistered trust that is desired. ..most defintely! i see ..so all my little questions regarding what one can/cannot do, i.e. parameters of the trust will be made clear…sounds good…thanks again for answering
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