Mr. Phillips, thank you for your video and your book, Protecting Your Financial Future. Both are fabulous! I have a question about avoiding probate. It is clear that a Living Trust is a great way to avoid probate. It also seems that a simple estate can avoid probate by assigning asset ownership through beneficiaries/owners assigned all the assets: add a child to a TOD deeds on the paid-off house and car, add beneficiaries on retirement and TOD securities accounts, make savings/checking accounts POD, etc. It seems that this strategy would keep all assets out of probate and work for some. I'd appreciate your thoughts. Again, thank you!
You are right. The POD/TOD stuff is getting more powerful. It has only been recently that the TOD deeds have come around. There are two problems the trust would solve. If the designated beneficiary dies with the account owner, you are in trouble, because who gets it then. If the beneficiary is a minor you have a problem. If you become incompetent the trust will cover for you and the POD/TOD won’t address that issue. But for a small estate, just watch those issues and you should be fine.
I’m the beneficiary, but the trustee never notified me about the Trust existence. How do I go about getting what’s owed to me if a family member is hiding the information?? I can’t even find the lawyer and he’s probably dead at this point. How can I get proof that I’m the beneficiary and the trustee mishandled the funds??
I have a question about choosing to be taxed under subchapter S. You've mentioned that an LLC can only have 2 of the 4 elements of a corporation - does an S-corp election impact how many of the 4 elements I can choose, or is it purely a tax status? I appreciate your knowledge more than you know. Thank you for making these videos!
The election of the tax status, Subchapter S, is only a tax election and does not affect the legal structure of the LLC. The two of four choice thing is a legal structure thing and does not affect the tax election. The courts are getting kind of loosey goosey about the two choice thing, but I would stick to the two choices.
I've been subscribed & will value your opinion regarding my situation. My parents have a 2018 Living Revocable Trust from a Texas law firm - Greening Law. I'm the successor Trustee & one of 4 boys all beneficiaries ( split evenly 4 ways) Dad & mom are 92 & 87 y.o. They built a home & live in Oregon since 2006. I asked dad why it's set up this way & he said they intend to move to Texas at some point. Will I have much success settling this Trust or is this highly unusual arrangement. Thank You
The important thing is that the Oregon home is titled in the trust. It can be “governed” by the Texas trust. Shouldn’t have a problem. At their age, they probably won’t make Texas.
"the assets that go into the trust is not income they're assets ? earned income (salary paycheck is assets, Y or N. Second, "zero out that income every year means ? reporting the 1099INT interest on the 1040? Thank you.
Does this all still apply to a revocable living trust with no income, just assets? (For example no bank accounts or the like, or anything else that produces income, just things like house/car/personal property.)
@@Legaleescorp Ah ok yes that's what I wanted to know, if filing the tax return was still necessary even if there would be no income or possibility of tax being owed. Thanks!
@@Legaleescorpso when filling out the ein it asks for revocable or irrevocable. Which one do we choose If dad made a revocable trust? Very very confused now since you mentioned after dad dies it becomes irrevocable.
Hey! I’ve been following you and I have a question about whether a trust can be under the jurisdiction of English Common Law or (if there is such a thing as) US Common Law?
Trusts are considered under common law in many respects. Our law is mostly based on English law, but we don’t have such a thing as English law in the US.
Yes, because if the trust earns income (interest, dividends, etc) after the grantor dies, it's no longer taxable to the grantor under their SSN. It's taxable to the trust under its EIN. Untill all of the assets of the trust are distributed, the trust will pay the tax on whatever earnings come from those assets. (it's actually a Federal Identification Number not an EIN, but that's irrelevant to your question)
When the trust’s grantor (living revocable trust) dies, then the trust becomes irrevocable and it needs an EIN. When you are applying for the EIN you would “click” irrevocable if the trust has become an irrevocable trust.
My parent had a Loving Trust, however they outlived the assets in the trust. There are no stocks, bonds, real estate, or bank accounts left. When they died, they were on medicaid and had no assets. Do I need to apply for an EIN and file a 1041, as a grantor trust, to close the trust?
My dad just passed in Jan and there is only stock and one savings account. My sister and I are the successor trustees. We have already distributed the savings and are only dealing with the stock. Can we close the trust when we cash out the stock? Not a large estate at all.
Should be able to close out when the trust doesn’t control any assets. Don’t distribute all the money. The estate could easily have expenses you weren’t expecting.
You say the "Revocable Trust" becomes "Irrevocable Trust" upon Grantors death. When applying for the EIN Do I select the Revocable or Irrevocable Trust in the online form? Thanks
My parents had the "[Dad & Mom's Names] Revocable Living Trust." When the form asks for the name of the trust that is now irrevocable (both parents have passed), does it retain the exact name from before the last parent died? Or does it become the [Dad & Mom's Names] IRrevocable Living Trust?"
I would use the name mom and dad trust and just drop the irrevocable or revocable stuff. The question is do you use the date from the original trust or the date of the final death. For my deceased wife I have been using the date of the original trust. Which for us is the date of the last amendment and restatement.
@@Legaleescorpthis contradicts what you said in the video. You said to use the date when dad dies. Not when dad made wrote and made the trust. Confused af here
i have little confuse, i'm grantor of the trust and not die yet, but i just apply for EIN number and paid $299 i thought needed. any pros and cons. thanks
Bro ain’t the most precise and thorough. He left out the $300 ein payment. Most the words when filling out the EIN on the IRS website aren’t the same, would help a lot if they were cuz the irs doesn’t explain anything. End says something about “authorization”. Wtf is that. Stupid ass irs intentionally doing shit no one can understand. Insane
There is no cost for an EIN through the IRS.. the $300 fee he paid is a link when you google search, it's a 3rd party company that takes advantage of people.
![Дон ДОН, Алаудинов и СБЕЖАВШИЕ из под Курска ахматовцы 😁 [Пародия]](http://i.ytimg.com/vi/dEfCf5IK26Q/mqdefault.jpg)
Screen shots with your explanation would be great help. Using the exact verbiage on the screen "responsible party" Thanks for free help.
Thank you for this! This was great information.
It's to the point and very helpful. Thanks!
I really appreciate this information. Cheers to you.
This was so helpful. Thank you.
Mr. Phillips, thank you for your video and your book, Protecting Your Financial Future. Both are fabulous! I have a question about avoiding probate. It is clear that a Living Trust is a great way to avoid probate. It also seems that a simple estate can avoid probate by assigning asset ownership through beneficiaries/owners assigned all the assets: add a child to a TOD deeds on the paid-off house and car, add beneficiaries on retirement and TOD securities accounts, make savings/checking accounts POD, etc. It seems that this strategy would keep all assets out of probate and work for some. I'd appreciate your thoughts. Again, thank you!
You are right. The POD/TOD stuff is getting more powerful. It has only been recently that the TOD deeds have come around. There are two problems the trust would solve. If the designated beneficiary dies with the account owner, you are in trouble, because who gets it then. If the beneficiary is a minor you have a problem. If you become incompetent the trust will cover for you and the POD/TOD won’t address that issue. But for a small estate, just watch those issues and you should be fine.
Keep em coming.
I’m the beneficiary, but the trustee never notified me about the Trust existence. How do I go about getting what’s owed to me if a family member is hiding the information?? I can’t even find the lawyer and he’s probably dead at this point. How can I get proof that I’m the beneficiary and the trustee mishandled the funds??
They were supposed to provide you with a copy of the will. Good Luck
I have a question about choosing to be taxed under subchapter S. You've mentioned that an LLC can only have 2 of the 4 elements of a corporation - does an S-corp election impact how many of the 4 elements I can choose, or is it purely a tax status? I appreciate your knowledge more than you know. Thank you for making these videos!
The election of the tax status, Subchapter S, is only a tax election and does not affect the legal structure of the LLC. The two of four choice thing is a legal structure thing and does not affect the tax election. The courts are getting kind of loosey goosey about the two choice thing, but I would stick to the two choices.
I've been subscribed & will value your opinion regarding my situation. My parents have a 2018 Living Revocable Trust from a Texas law firm - Greening Law. I'm the successor Trustee & one of 4 boys all beneficiaries ( split evenly 4 ways) Dad & mom are 92 & 87 y.o. They built a home & live in Oregon since 2006. I asked dad why it's set up this way & he said they intend to move to Texas at some point. Will I have much success settling this Trust or is this highly unusual arrangement. Thank You
The important thing is that the Oregon home is titled in the trust. It can be “governed” by the Texas trust. Shouldn’t have a problem. At their age, they probably won’t make Texas.
thank You
"the assets that go into the trust is not income they're assets ? earned income (salary paycheck is assets, Y or N. Second, "zero out that income every year means ? reporting the 1099INT interest on the 1040? Thank you.
I think you understand it well.
Instead of file a 1041
Does this all still apply to a revocable living trust with no income, just assets? (For example no bank accounts or the like, or anything else that produces income, just things like house/car/personal property.)
The trust becomes irrevocable and needs an EIN. There won’t be any income, but technically it needs to have the EIN and file taxes.
@@Legaleescorp Ah ok yes that's what I wanted to know, if filing the tax return was still necessary even if there would be no income or possibility of tax being owed. Thanks!
@@ruhnet file the 1041
@@Legaleescorpso when filling out the ein it asks for revocable or irrevocable. Which one do we choose If dad made a revocable trust? Very very confused now since you mentioned after dad dies it becomes irrevocable.
🎉
Hey! I’ve been following you and I have a question about whether a trust can be under the jurisdiction of English Common Law or (if there is such a thing as) US Common Law?
Trusts are considered under common law in many respects. Our law is mostly based on English law, but we don’t have such a thing as English law in the US.
What if there is a sole beneficiary who is also the successor trustee? Do you still need an EIN?
Yes, because if the trust earns income (interest, dividends, etc) after the grantor dies, it's no longer taxable to the grantor under their SSN. It's taxable to the trust under its EIN. Untill all of the assets of the trust are distributed, the trust will pay the tax on whatever earnings come from those assets. (it's actually a Federal Identification Number not an EIN, but that's irrelevant to your question)
The important question Not answered > Do you click Revocable Or Irrevocable, he skipped that step
When the trust’s grantor (living revocable trust) dies, then the trust becomes irrevocable and it needs an EIN. When you are applying for the EIN you would “click” irrevocable if the trust has become an irrevocable trust.
Pls pls need help to get assets thank u for ur help
My parent had a Loving Trust, however they outlived the assets in the trust. There are no stocks, bonds, real estate, or bank accounts left. When they died, they were on medicaid and had no assets. Do I need to apply for an EIN and file a 1041, as a grantor trust, to close the trust?
Technically, yes you need to jump the hoops. If there aren’t any assets in the trust, who cares about the hoops
My dad just passed in Jan and there is only stock and one savings account. My sister and I are the successor trustees. We have already distributed the savings and are only dealing with the stock. Can we close the trust when we cash out the stock? Not a large estate at all.
Should be able to close out when the trust doesn’t control any assets. Don’t distribute all the money. The estate could easily have expenses you weren’t expecting.
You say the "Revocable Trust" becomes "Irrevocable Trust" upon Grantors death. When applying for the EIN Do I select the Revocable or Irrevocable Trust in the online form?
Thanks
You are getting an EIN for the irrevocable trust.
My parents had the "[Dad & Mom's Names] Revocable Living Trust." When the form asks for the name of the trust that is now irrevocable (both parents have passed), does it retain the exact name from before the last parent died? Or does it become the [Dad & Mom's Names] IRrevocable Living Trust?"
I would use the name mom and dad trust and just drop the irrevocable or revocable stuff. The question is do you use the date from the original trust or the date of the final death. For my deceased wife I have been using the date of the original trust. Which for us is the date of the last amendment and restatement.
@@Legaleescorpthis contradicts what you said in the video. You said to use the date when dad dies. Not when dad made wrote and made the trust. Confused af here
What if I already have an EIN for my revocable trust? Do I have to file a 1041 every year even though the trustee is still alive?
When you have an EIN for a trust, you should be filing a 1041 each year.
Watching a couple of your vids and noticed that cough. Hope you’re doing ok.
Thanks. I switched brands and that helped a lot. LOL. I don’t smoke, but COVID-19 left me with a cough. It is mostly better now.
i have little confuse, i'm grantor of the trust and not die yet, but i just apply for EIN number and paid $299 i thought needed. any pros and cons. thanks
Bro ain’t the most precise and thorough. He left out the $300 ein payment. Most the words when filling out the EIN on the IRS website aren’t the same, would help a lot if they were cuz the irs doesn’t explain anything. End says something about “authorization”. Wtf is that. Stupid ass irs intentionally doing shit no one can understand. Insane
There is no cost for an EIN through the IRS.. the $300 fee he paid is a link when you google search, it's a 3rd party company that takes advantage of people.
@@houston1733 wrong
Yeah. I was wondering what you guys are talking about. EINs are free. I'm probating my dad's estate and got a EIN 4 months ago.
@@mettamorph4523 you are right it's free. I must have clicked on some scam site and didn't even realize it
Thx y'all
Am sorry the representative for me she fraud n liar with his attorney. Am inocent get hurt feeling why do this forme sorry