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Forming a Trust... any links to info?

Topic closed. 35 replies. Last post 13 years ago by WILLSELL.

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hypersoniq's avatar - 8ball
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Posted: June 30, 2003, 8:47 am - IP Logged

I can't seem to find any go

    visiondude's avatar - eye3logo
    light on my feet
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    Posted: June 30, 2003, 4:23 pm - IP Logged

    trusting someone else with your money involves "trust".

    ultimately you are looking for somebody that you can trust. if you are not currently in a relationship with a financial advisor then you can get referrals from PEOPLE that you do trust. that would be a good place to start.



    you know also that if you need to you get have background checks done. it took you awhile to get in this situation and the trick is to NOT be in a hurry. take care of it right the first time around. if you have to, put your investments in non risk categories until you educate yourself. that way no one can rip you off.



    and the most important part, never ever trust anyone explicitly. money CAN change people. educate yourself so you exercise the MOST control over YOUR money.

    VDQPLS

                "i am .........."meant to"       

    P.S.,  that RJoH  is a stand up guy.  thanks,  vision

             until further notice,  it's  france everyday

      konane's avatar - wallace
      Atlanta, GA
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      Posted: July 1, 2003, 7:13 am - IP Logged

      A close relative's estate ende

        Avatar

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        Posted: July 1, 2003, 7:34 am - IP Logged

        The only person I would trust is Suze Orman as far as what are safe places to put your money in. She is top notch. Outside of her, I wouldn't give all the money to just one financial planner. I'd have several planners "compete" with each other to make money on the money.



          konane's avatar - wallace
          Atlanta, GA
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          Posted: July 1, 2003, 7:46 am - IP Logged

          Bottom line... no one

            midwstrngirl's avatar - hair

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            Posted: July 2, 2003, 8:31 am - IP Logged

            konane

            an estate does not "end up" in a trust.  the deceased (settlor) placed it in a trust, and might have had a good reason.  a trustee receives a fee for administering the trust, however, this is decided at the time the trust is formed and cannot be changed by the trustee arbitrarily.  trustee's have a fiduciary responsibility and are bound by professional ethics.  they are required to manage the assets in the best interests of the beneficiaries, they have no beneficial interest in the assets that comprise the trust.  the trust instrument (a contract) sets up all the rules governing the trust, the extent of the trustee's powers, and the duration of the trust and final distribution of the assets, as well as who the beneficiaries are.  there are also several different types of trusts.  revocable, irrevocable, discretionary or fixed.  also  a settlor may make the validity of certain decisions made by a trustee subject to prior agreement by a third party known as a protector.  the settlor can also write a letter of wishes to the trustee and although a trustee is not legally bound by it, they usually follow it. 

            a trustee only has as much discretion as he/she has been given by the settlor.  the wishes of the settlor will be respected.  forming a trust takes alot of careful planning in order to make sure that those wishes are very clear.

            check out this article about what to do if you win the lottery..it has info about how to find a good financial planner, and in general how to plan for that big win

            **This link already posted in past topic threads** 

             

            "It is an old maxim of mine, that when you have eliminated the impossible, whatever remains, however improbable, must be the truth. "

            "I presume nothing. I imagine nothing. Data! Data! Data! I can't make bricks without clay. "

            Sherlock Holmes, The Sign of Four

              hypersoniq's avatar - 8ball
              Pennsylvania
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              Posted: July 2, 2003, 9:02 am - IP Logged

              thanks midwstrngirl, great link!

              The whole point would be to maintain anonymity in a state where winner's data is public domain... a trust just seems to be the simplest way to do that... are there other ways?

                midwstrngirl's avatar - hair

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                Posted: July 2, 2003, 11:33 am - IP Logged

                konane,

                i do not have the facts of the case you are speaking of, because you did not provide the name of the case.  please provide me with the name of the case...i am very curious about it. 

                in your example though, it sounds like the settlor did not pick his own trustee, rather the trustee was a stranger appointed by the courts who may or may not have an understanding of the settlors true wishes before death.  even so, the trustee still has a ficuciary responsibility to act in the best interests of the beneficiaries.  a trustee is entitled to a fee, administering a trust is alot of work, but he/she is not entitled to confiscate all the assets as part of his/her fee.  again, i would like to know the name of this case and where it occured.

                there is no huge gamble about a trust...again, the powers of the trustee are enumerated in the trust agreement.  while you are alive, if you decide to form a trust, you can form a revocable trust, which you remain in control of...a trust is a very effective tool for tax planning, protecting privacy, and preserving wealth when used properly. 

                hypersonig,

                this link might also be helpful to you

                http://www.professorbeyer.com/Articles/Lottery.htm

                here is an example of what NOT to do

                http://gift-estate.com/article/lotto.htm

                if CASHONLY is reading this post, the first link should provide him with the ammo needed to end the cash vs. annuity question once and for all...the tax implications of taking an annuity are huge...and definitely are not in favor of the winner

                either way, it is clear, that if you win big, you need to take time and have a plan before showing up to claim the prize!

                "It is an old maxim of mine, that when you have eliminated the impossible, whatever remains, however improbable, must be the truth. "

                "I presume nothing. I imagine nothing. Data! Data! Data! I can't make bricks without clay. "

                Sherlock Holmes, The Sign of Four

                  hypersoniq's avatar - 8ball
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                  Posted: July 2, 2003, 12:40 pm - IP Logged

                  thanks again, more great reading!

                    hypersoniq's avatar - 8ball
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                    Posted: July 11, 2003, 6:51 pm - IP Logged

                    I believe I found the answer...

                    A "Personal Property Trust". It is of the intravivos revocable type. It is similar to the "Land Trust" that Real Estate investors who own multiple rental properties use to limit their liability in a tennant lawsuit to just the one property.

                    You can form the trust well in advance of winning, for $1 if you want and add assets as they are acquired. With this type of trust, you can make yourself the Grantor, the Trustee AND the Beneficiary. Name a spouse as Successor Trustee/Beneficiary and any kids you have as beneficiaries. You create a special "limited trustee" clause for the attorney you retain to cash in the winning ticket in the name of the trust. This attorney is limited to Cashing the ticket in the trusts name and giving you the check. Given their fiduciary responsibility to carry out the wishes of the grantor (you)... and the fact that the ticket is already signed, you get all the $$$ AND keep your privacy too! Plus you can always "shop around" to find this limited trustee at the best possible rate (I'd suggest you find one that will agree to a flat fee, NOT a %).

                    I would have one attorney help draft the document, then have another one from a different area check it out... written for the $1 and NOT the ticket... Then find a third one to act as the "limited trustee"... and not any from your nearby area. Then you would need a Certified Financial Planner and a Tax Attorney because they hold 27% but you really will owe 38.6% and would be required to make estimated tax payments that year. (This assumes you take the CASH).

                      hypersoniq's avatar - 8ball
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                      Posted: July 11, 2003, 7:01 pm - IP Logged
                      Quote: Originally posted by konane on July 01, 2003


                      Look for something which makes more sense like a personal corporation instead of giving away the power over your own money to a "trustee".





                      Most corporations, including personal ones, are required to keep public records.

                      If you are the Grantor, Trustee AND beneficiary, you have ALL the power. If the attorney that cashes in your ticket (already signed in the name of the trust) is limited in scope and power by a properly drafted trust document, then there should be no worries.

                       

                      The purpose of the document is not to give your power away, but rather to create a buffer between you and the media/public. If your name got out before you could set up proper security for you and your family... the risks wouldn't be worth the rewards. If it takes a few weeks longer to cash in the ticket and get paid, it's worth it to keep the anonymity...

                        Thomas Covenant's avatar - money
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                        Posted: July 11, 2003, 7:04 pm - IP Logged

                        The question is, can you wait long enough to set one up?


                        Okay, now I believe you can predict lottery numbers

                          hypersoniq's avatar - 8ball
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                          Posted: July 11, 2003, 7:07 pm - IP Logged

                          even if you never win big, it makes sense as a way to leave assets to your faimily if something should happen to you and avoid probate...

                            midwstrngirl's avatar - hair

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                            Posted: July 14, 2003, 4:48 pm - IP Logged

                            good things come to those w

                            "It is an old maxim of mine, that when you have eliminated the impossible, whatever remains, however improbable, must be the truth. "

                            "I presume nothing. I imagine nothing. Data! Data! Data! I can't make bricks without clay. "

                            Sherlock Holmes, The Sign of Four

                              Todd's avatar - Cylon 2.gif
                              Chief Bottle Washer
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                              Posted: July 14, 2003, 6:33 pm - IP Logged

                              midwstrngirl,

                              Great

                               

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