What are the first steps I should take when setting up a trust?
This is our first trust we are setting up and want to be sure we didn't overlook anything of importance or to make sure if anything we added that was a custom addition doesn't look off or incorrect.
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Your first step should be to execute the trust and then put assets into it. You can retitle your bank accounts, retirement accounts, real property, anything. Put it into the name of the trust itself. You will also need to obtain an Employer Identification Number (Apply Online or file Form SS-4) for the trust, since it will potentially file taxes.
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This is our first trust we are setting up and want to be sure we didn't overlook anything of importance or to make sure if anything we added that was a custom addition doesn't look off or incorrect.
Lexi, Chatbot
Setting up your first trust can be a complex process. Have you already consulted with a lawyer specializing in trusts?
Not yet.
Lexi, Chatbot
Are there any specific custom additions or clauses in the trust that you are concerned about?
Mostly to make sure if something happens to me or my wife or god forbid both of us, that the kids are going to be okay without a lot of issue.
Lexi, Chatbot
Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your trust setup.
No, no other items to note.
StephenH129
Hello! Thanks for using AskaLawyer. My name is Stephen, and I am an attorney ready to answer your questions with top-quality service.
StephenH129
Have you funded the trust? Put assets into it? Have a pour-over will (one that pours any non-trust assets through probate into the trust)?
Just structuring the trust now via eForms.
StephenH129
Your first step should be to execute the trust and then put assets into it. You can retitle your bank accounts, retirement accounts, real property, anything. Put it into the name of the trust itself. You will also need to obtain an Employer Identification Number (Apply Online or file Form SS-4) for the trust, since it will potentially file taxes.
With assets like our primary home with a mortgage, does moving ownership to a trust cause any issues there we need to address?
StephenH129
I'd ask them, but they probably don't care. Still, it's worth asking and getting consent in writing. You never know. Better safe than sorry.
Does this change our tax structure since the trust technically owns all assets?
StephenH129
No. Not if it's revocable. Normally that changes when the first spouse passes and the trust becomes irrevocable.
Got it. I think that's all the questions I had for now, thanks for your help.
StephenH129
But be sure to put things in. You can also use joint, POD, TOD, or beneficiary status on assets to put them into the trust.
Not sure what any of that is?
StephenH129
Joint: you personally and the trust
Payable on death
Terminates on death (both go to the named entity upon death)
Beneficiary: naming a specific person or the trust to receive the asset upon death.
Got it, so more in line with active assets like bank accounts and such, right?
StephenH129
It'll change over the course of life, but yes. The more you have in the trust, the less the kids would need to do.
Should I select or not select Trust filing as an Estate under Sec. 645?
StephenH129
For what?
Don't make an EIN until it is executed.
Going through EIN setup now and that’s a question on one of the first pages on the IRS site.
StephenH129
So, is the trust fully signed?
No, it's establishing a trust.
StephenH129
Don't do the EIN yet. No point. Execute it first, then the EIN.
OK makes sense.
Is there a way to save this chat or download it so I can look back down the road?
StephenH129
It doesn't have to be quick. It just needs to be done sooner or later.
StephenH129
You can copy and paste it; it should be in your account section, or you can contact customer service. They have that ability.
OK, thanks again for your help.
StephenH129
Sounds good. Happy to help. Thank you very much. Take care now and be well!
StephenH129
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