the incomplete idiot's guide to Living Trust

本贴内容已被 [jy101] 在 2010-09-17 08:38:20 编辑过。如有问题，请报告版主或论坛管理删除.

1. the advantage of living trust is preventing your assets going into court probation, which is a long and costly process.

your estate tax is base on your net worth, has nothing to do with setting up a trust. by setup a trust does not gain tax benefit, what you owe in death tax, you still owe, but you can prolong that tax till the second member die while your heirs can still receive a portion of your hard earn money.

there are many type of trust, each fit a special purpose needed, most frequently used is call A-B trust, where A is survivor, B is family, when one spouse die, assets at that time will divided in 2 parts, you can fund the B trust up to deceased spouse's federal estate tax exemption, and the remaining in A, which mean you don't need pay any estate tax at this time, but still able to pass thru portion of your assets to your heirs.

now, when you die, A trust then must distributed at the time, and pay the estate tax base on the asset in A.

you can direct how the asset is distributed, to whom, when or at what age.

if your net worth is XX mil, you should also consider A_B_C trust, where C can be just a life insurance policy on you, own by the trust and the face value can offsets the estate tax in A.

if your net worth is over XXXXX mil, then you should consider a charitable trust, where assets within goes to charity instead of going to IRS.

haha..

2. there is not much you can do to reduce the power of a trustee, when you name the trustee, you naming someone act for you, what you can do is to can name someone to audit the trustee's activities, if the trustee fail to perform or lie or steal, your heirs can file suit to release him from the trustee post, which is a painful process.

that is why I said the hardest part is to find someone you trust, I named my brother to oversee my kids, just because I am more close to my brother than the rest of my family..

3. you set of trust papers should include more than just the trust itself, you need an assignment agreement to assign all your personal affects, you should also appoint a durable general power of attorney before you lay in the hospitable, a medical power of attorney to decide you live or die, and you still need a living will for your own wish if you a vegetable, and lastly, your last will, tells your heirs what you want to with anything you left outside of your trust..

haha, now send me $500 for my time....

所有跟帖： 

• 如山, regarding a LLC in trust... -jy101- ♂ (325 bytes) () 10/31/2010 postreply 07:56:54

• 谢谢JY兄。这完全回答了我的开始疑问。那我理解这个Living trust -如山- ♂ (39 bytes) () 10/31/2010 postreply 09:38:21

• yes and no... -jy101- ♂ (102 bytes) () 10/31/2010 postreply 09:52:10

• “file 1040 as normal, same SSN”什么意思？我问的是Living trust自己是否 -如山- ♂ (31 bytes) () 10/31/2010 postreply 10:04:23

• haha, :-) -jy101- ♂ (322 bytes) () 10/31/2010 postreply 10:14:08

• 明白了。谢谢。不过LLC也是“pass-thru entity”，但是要file tax return（2个members） -如山- ♂ (35 bytes) () 10/31/2010 postreply 10:21:10

• LLC is not truly pass thru.. -jy101- ♂ (37 bytes) () 10/31/2010 postreply 10:35:18

• 那就可以说是州法不同吧（联邦税法也是）。因为我们州是。不管多少个members。 -如山- ♂ (0 bytes) () 10/31/2010 postreply 11:34:52

• what if pple owns corporation? I know corporation files its own -美西游子- ♀ (175 bytes) () 10/31/2010 postreply 12:03:07

• by transferring stock certificates into the trust. -jy101- ♂ (268 bytes) () 10/31/2010 postreply 12:20:44

• 我看还是不要 RICH :-) 要么 -美西游子- ♀ (11 bytes) () 10/31/2010 postreply 13:19:29

• MrsKwok, I don't think let the kids name the trust is the best i -jy101- ♂ (296 bytes) () 10/31/2010 postreply 07:59:37

• 柳MM, a living trust is setup to avoid probation.. -jy101- ♂ (186 bytes) () 10/31/2010 postreply 08:03:06

• 我的想法： -柳眉儿- ♀ (959 bytes) () 10/31/2010 postreply 08:53:18

• I agree with you completely.... -jy101- ♂ (294 bytes) () 10/31/2010 postreply 08:57:28

• 哈哈！孩子们应该会比我们更聪明，人生会过得更好的， -柳眉儿- ♀ (39 bytes) () 10/31/2010 postreply 09:04:51

• haha, shake hands.... -jy101- ♂ (91 bytes) () 10/31/2010 postreply 09:16:24

• 柳M的想法太正点了，丁页 一个。：） -laoyangdelp- ♀ (158 bytes) () 10/31/2010 postreply 11:36:14

• 嘻嘻：） -柳眉儿- ♀ (0 bytes) () 10/31/2010 postreply 19:17:06

• 美西MM, living trust can not reduce estate taxes.. -jy101- ♂ (171 bytes) () 10/31/2010 postreply 08:06:47

• 多谢JY! an expert indeed! -美西游子- ♀ (0 bytes) () 10/31/2010 postreply 11:29:17

• 梦想MM, a trust should be setup and funded while you still breath. -jy101- ♂ (247 bytes) () 10/31/2010 postreply 08:30:15

• JR98, life insurance can use to supplement a living trust.. -jy101- ♂ (373 bytes) () 10/31/2010 postreply 08:37:34

• Is it because they already have beneficiaries? -Morning3evening4- ♂ (285 bytes) () 10/31/2010 postreply 08:45:45

• no, "most asset is in accounts with beneficiaries" is no substit -美西游子- ♀ (1701 bytes) () 10/31/2010 postreply 12:34:59

• Thanks -JR98- ♂ (0 bytes) () 10/31/2010 postreply 12:41:57

• Read it. 还是有钱人的烦恼。 -Morning3evening4- ♂ (873 bytes) () 10/31/2010 postreply 13:07:29

• A-mao, actually the trust can work out perfect in this case... -jy101- ♂ (1275 bytes) () 10/31/2010 postreply 15:01:56

• Yes, if there is more than enough money. -Morning3evening4- ♂ (489 bytes) () 10/31/2010 postreply 15:14:22

• haha, sorry for the late replies, we had a Lord of the Ring mara -jy101- ♂ (201 bytes) () 10/31/2010 postreply 08:41:16

• Good life -:) Thanks for replying. Happy Halloween. -JR98- ♂ (0 bytes) () 10/31/2010 postreply 08:43:46

• 顶！解释得很精辟 -越王剑- ♂ (245 bytes) () 10/31/2010 postreply 08:50:42

• what about regular bank/brokerage accts then? thanks. -美西游子- ♀ (73 bytes) () 10/31/2010 postreply 13:16:09

• 谢谢JY兄。发贴前我已经拜读你这个贴。 -如山- ♂ (0 bytes) () 10/31/2010 postreply 09:35:44

• 建议置顶. OR -美西游子- ♀ (32 bytes) () 10/31/2010 postreply 11:42:28

• 谢谢老大的辅导。非常有用。 -youandmychina- ♂ (0 bytes) () 10/31/2010 postreply 13:29:24