Can a trust have two corporate trustees?
Can I have 2 corporate trustees? Yes, you can appoint 2 companies to act jointly as trustees of a trust.
How do you set up a trust for a minor?
Here are the steps to follow.
- Select a trustee. As stated above, when a grantor creates a trust, they must name a trustee.
- Decide the terms of the trust.
- Create the necessary trust documents.
- Transfer assets into the trust.
Can a trustee be a trustee for more than one trust?
Trading between trusts: difficulties can arise when multiple trusts with the same corporate trustee wish to enter into legally binding agreements with each other eg. However, the corporate trustee may only have assets that it holds for another trust. The creditors will often try to gain access to those assets.
Can a family trust have a corporate trustee?
It is a common practice to have corporate trustees for family trusts for tax benefits. This ensures the limitation of the trustees’ liability to the corporate asset. Generally, corporate trustees are shell corporations with no, or minimal, assets. The trustee is personally liable for the trust’s liabilities.
How old do you have to be to have a minor’s Trust?
A “minor’s trust” is a trust that leaves property to a young person, but in the care of a trustee, until the young person reaches a designated age—often age 18, 21, or 25.
What does it mean to be a co trustee of a trust?
In addition, co-trustees must generally act cooperatively with each other, unless the trust explicitly grants certain duties to a single trustee. This means that each co-trustee must act with the full consent and knowledge of the other co-trustees.
What happens when a grantor names multiple trustees?
When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets. It is important to know what and how much power each co-trustee has over the management of the trust’s assets.
What are the duties of a successor trustee?
Generally we think of a successor trustee taking over the management of a trust in the event of the death or incompetency of the current trustee. These duties would include managing the assets, filing a tax return for the estate, and either closing the trust or managing the trust if there are minor children or special circumstances.
When to choose a trustee for a minor’s Trust?
A typical “minor’s trust” places the assets in a trustee’s care, and gives the trustee sole discretion to distribute the assets for a child’s health, education, maintenance and support until such child attains certain specified ages (i.e. 25 or 30).
Can a parent serve as a trustee of a trust?
Oftentimes, clients will name their own parents to serve as trustees of trusts for their minor children. However, unless a trust for a child is going to terminate upon the child attaining majority age (18 or 21 in most states), or the grandparents are very young, the client might want to reconsider who they have named as trustee.
When do you become a co-trustee of a family trust?
You are happy to help. You are later added as co-trustee when Aunt Joan falls ill. Sadly she passes away and a couple of months later Uncle Dan moves the funds into his own trust and starts spending them. You don’t concern yourself too much but something is gnawing at you.
Is there an exemption for trusts for minors?
However the IRS allows an exception (though IRS Code §2053(c)) that allows the $14,000 exemption to apply to gifts to trusts for minors if the trust provides that: The minor is the only beneficiary of the trust. Any income the trust makes and the original assets transferred to the trust are given to the child at age 21.