[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.22.1″ _module_preset=”default” background_color=”#000000″ custom_padding=”20px||20px||true|false” custom_padding_tablet=”0px||0px||true|false” custom_padding_phone=”0px||0px||true|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.22.1″ _dynamic_attributes=”content” _module_preset=”default” text_font=”Abyssinica SIL||||||||” text_text_color=”#FFFFFF” text_font_size=”64px” text_line_height=”64px” text_orientation=”center” animation_style=”slide” animation_direction=”top” text_font_size_tablet=”42px” text_font_size_phone=”32px” text_font_size_last_edited=”on|tablet” text_line_height_tablet=”42px” text_line_height_phone=”32px” text_line_height_last_edited=”on|phone” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.22.1″ _module_preset=”default” custom_padding_tablet=”0px||0px||true|false” custom_padding_phone=”0px||0px||true|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.22.1″ _module_preset=”default” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed|||on|||||” header_text_align=”left” header_text_color=”#b39b7e” header_font_size=”40px” header_line_height=”40px” custom_margin=”||5px||false|false” animation_style=”slide” animation_direction=”top” header_font_size_tablet=”36px” header_font_size_phone=”26px” header_font_size_last_edited=”on|phone” global_colors_info=”{}”]

FREQUENTLY ASKED QUESTIONS

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure=”1_2,1_2″ custom_padding_last_edited=”on|phone” _builder_version=”4.22.1″ _module_preset=”default” custom_padding_tablet=”0px||||false|false” custom_padding_phone=”||||false|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.22.1″ _module_preset=”default” animation_style=”slide” animation_direction=”left” global_colors_info=”{}”][et_pb_blurb title=”What type of card should I use for Trust expenses?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” global_colors_info=”{}”]I recommend a personal Credit Card marked For Trust Use Only. Maintain a receipt for each expenditure and attach the receipts to the Credit Card bill and then the Trust can pay the bill. Only charge Trust authorized expenditures to this card. If using Bill Pay or direct Debit, print a copy of the payment receipt and attach that to the Credit Card Bill along with the receipts for each expenditure.[/et_pb_blurb][et_pb_blurb title=”Why do I need to keep such a strict record of my receipts and payment methods?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Strict records must be kept in order to maintain full records of all authorized Trust expenditures. Unauthorized expenditures (personal expenses) will be charged to your Liability Account (Demand Note) or, if no balance is in your Demand Note, then a Form 1099 will be issued to a Trustee or a K-1 will be issued to a Beneficiary for the personal expenses paid by the Trust.[/et_pb_blurb][/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.22.1″ _module_preset=”default” animation_style=”slide” animation_direction=”right” global_colors_info=”{}”][et_pb_image src=”https://trusttaxsolutions.com/wp-content/uploads/2023/10/onetrust-callout-faq.jpg” title_text=”Social,Media,social,Network,Concept.” _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.22.1″ _module_preset=”default” animation_style=”slide” animation_direction=”bottom” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Can the Trust get a Credit card? Can Trust build credit? If so, can beneficiaries use it. If they can, is it considered cash?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]No bank or credit card company will issue a credit card to a Spendthrift Trust since they have no way to collect on defaulted payments.[/et_pb_blurb][et_pb_blurb title=”If a person has ordered a trust and does not pay for it until after the RV can they exchange just enough to pay for the trust and then put the balance of the currency in the trust to defer taxes?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Making a down payment on a trust does not give you a legally working Trust. The Trustee does not have the pages outlining what the Trustee legally can do. Once the RV takes place, purchase a full trust then transfer the currency certificate into the legitimate Trust. The Trust then exchanges the certificate for US dollars. The US dollars then go into the Trust bank account and then the Trust can use those dollars to pay for Trust expenses.[/et_pb_blurb][et_pb_blurb title=”If a person exchanges currency and it’s not in the trust, is the tax based on the date of their receipt?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]As with any asset sold, the basis is what was paid for the asset and the tax is a capital gain based on the date bought. If the Trust does not own the foreign currency certificate prior to the exchange, the gain is personal and reported on a personal 1040 tax return. *see Assets & Implications (1.)[/et_pb_blurb][et_pb_blurb title=”If I put certificates into my trust before the RV and then take out cash, is the tax rate based on the date of the receipt or the date from when they exchanged the currency?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Any cash taken out of the Trust is 100% taxable income to the person taking the cash. A distribution after RV would be a K-1 Dividend Distribution. If the Trust held the currency more than a year, the dividends would be qualified dividends.[/et_pb_blurb][et_pb_blurb title=”Would a K-1 still be issued at the end of the year if cash or currency before RV was moved between the trusts?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Funds moved between beneficial trusts is a taxable event requiring a K-1 unless a Note Payable (for funds) or Bill of Sale (for asset transfers) is properly executed.[/et_pb_blurb][et_pb_blurb title=”If I put all the currencies I have bought into the trust, does that mean I could also take a tax-free draw from the trust from the principal?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Transfer the asset (currency) at your “Cost” (or “Basis”) and take a Demand Note. The principal payments on the Demand Note are just that and are not taxable income to you. The interest will be taxable income to you each year you hold the note.[/et_pb_blurb][et_pb_blurb title=”When we exchange our currency, will it be drawn out tax free?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]No. The gain on the RV will be Extraordinary Dividends and held in the corpus.[/et_pb_blurb][et_pb_blurb title=”What percent of my total RV exchange should I hold in my personal account vs. my trust account?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Hold only 3 months’ worth of personal expense funds in your personal non-trust bank account. This will be the money used for Food, Fun & Fashion – again, 3 months’ worth. This is because any funds in the personal bank account can be seized or levied in a lawsuit. For example – I have all my Social Security and funds Direct Deposited into my Trust Bank Account so that the funds are untouchable and while I still have to pay taxes on that income, it can’t be seized or levied. Next, I Bank Transfer enough funds for each month to support my family’s monthly budget for the 3 F’s.[/et_pb_blurb][et_pb_blurb title=”Can I donate to other Trusts as a beneficiary?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]The word “Donate” only applies to a 501c3 organization. “K-1 Distributions” are made to another Trust or beneficiaries.[/et_pb_blurb][et_pb_blurb title=”If an exchange was not taxable, can I still distribute it to the beneficiaries?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]You can distribute an asset or funds, but the action will generate a taxable event (K-1 to beneficiaries and 1099’s to anyone else). I recommend a “Transfer” to the Trust at “cost” or “book value”. This will generate a Demand Note from the Trust to the person transferring the asset. The Demand Note gives that person a means of taking note principal payments from the Trust with no taxes due. Endowments have no basis or value and as such would not be recorded in the Trust’s Financials and would not be added to a demand note.[/et_pb_blurb][et_pb_blurb title=”How do I document Trust expenses?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]To document, keep any and all receipts. You must have receipts for ALL expenses of the Trust. The bank statement or credit card statement are not proof of the expense.[/et_pb_blurb][et_pb_blurb title=”Should I keep gas receipts?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]Yes[/et_pb_blurb][et_pb_blurb title=”What is the function of the Trust?” content_max_width=”100%” _builder_version=”4.22.1″ _module_preset=”default” header_font=”Roboto Condensed||||||||” header_text_color=”#000000″ header_font_size=”24px” header_line_height=”26px” body_font=”Roboto Condensed||||||||” body_text_color=”#333333″ body_font_size=”16px” body_line_height=”24px” header_font_size_tablet=”28px” header_font_size_phone=”24px” header_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”]The Trust functions for the benefit of a beneficiary(ies) and to maintain, operate and manage the Trust and the Trust assets. The Trustee is a fiduciary and cannot benefit from the Trust or its assets.[/et_pb_blurb][/et_pb_column][/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjMyNCJ9fQ==@” button_text=”Previous FAQs ” button_alignment=”right” _builder_version=”4.22.1″ _dynamic_attributes=”button_url” _module_preset=”default” custom_button=”on” button_text_size=”15px” button_text_color=”#FFFFFF” button_bg_color=”#4a86ff” button_border_color=”#4A86FF” button_border_radius=”0px” button_font=”Roboto Condensed||||||||” button_use_icon=”off” custom_padding=”12px|50px|12px|50px|true|true” animation_style=”slide” animation_direction=”bottom” hover_enabled=”0″ locked=”off” global_colors_info=”{}” button_text_color__hover_enabled=”on|hover” button_bg_color__hover=”#014c85″ button_bg_color__hover_enabled=”on|hover” button_border_color__hover=”#014C85″ button_border_color__hover_enabled=”on|hover” button_text_color__hover=”#FFFFFF” sticky_enabled=”0″][/et_pb_button][/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjMzNyJ9fQ==@” button_text=” Read More FAQs” button_alignment=”left” _builder_version=”4.22.1″ _dynamic_attributes=”button_url” _module_preset=”default” custom_button=”on” button_text_size=”15px” button_text_color=”#FFFFFF” button_bg_color=”#4a86ff” button_border_color=”#4A86FF” button_border_radius=”0px” button_font=”Roboto Condensed||||||||” button_use_icon=”off” custom_padding=”12px|50px|12px|50px|true|true” animation_style=”slide” animation_direction=”bottom” hover_enabled=”0″ locked=”off” global_colors_info=”{}” button_text_color__hover_enabled=”on|hover” button_bg_color__hover=”#014c85″ button_bg_color__hover_enabled=”on|hover” button_border_color__hover=”#014C85″ button_border_color__hover_enabled=”on|hover” button_text_color__hover=”#FFFFFF” sticky_enabled=”0″][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]