So what is the point of leaving money to someone "in trust"?

[89coupe]

https://www.diewithzerobook.com/

[TomcoPDR]

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Are we doing that thing where we just repeatedly say the same thing that the first person said?

A trust allows you to give money away with a set of rules on how it’s spent or managed.

It provides your loved ones a better chance to flex with ease; while giving a bit of social responsibility bra setting perimeters limiting them from turning into complete useless tits.

[suntan]

The trustee can be anyone, but if you pick one of them thar fancy pants companies they do indeed make a good penny from sending you a yearly report on the status of the fund.

[ExtraSlow]

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https://www.diewithzerobook.com/

Haven't read this book, but
I have been advocating the "die broke" philosophy.

[Buster]

If you get to 8.2 maybe you have enough to give some to your family.

[ExtraSlow]

#eightpointtew is not a part of my current plan.

[Buster]

I'm saying IF you get to 7.2, then you have excess capacity after that!

[ExtraSlow]

Probably correct.

[ThePenIsMightier]

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As pure estate planning tools they can be an effective tax shelter.

Easy, there.
You're about to get outted as a WFG rep.

[ExtraSlow]

There's a couple of WFG reps in beyond. At least one of them is a good dude, although I think I offended him last time we chatted.

[killramos]

Hehehe. WFG. Buster. Hehehe

[ThePenIsMightier]

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There's a couple of WFG reps in beyond. At least one of them is a good dude, although I think I offended him last time we chatted.

I also can't recall having a particular issue with them, but there was a thread in the last couple years that was a full-on jihad against any and all MLM's, no ifs ands or buts. It was pretty funny for the irrational fear.

[Buster]

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Hehehe. WFG. Buster. Hehehe

ugh, I'm outted.

If anyone needs insurance, @ me

[ExtraSlow]

Well don't think I have learned much in this thread, but I am reassured that I'm not missing something obvious. Thanks beyond!

[atgilchrist]

One thing that hasn't been clarified is if the accounts are inside a formal Trust, or are simply "In Trust" accounts. A formal Trust (in this case it would likely be a Family Trust) is a distinct legal taxable entity created with a Settlor (person putting capital into account), Trustee (different person who administers the Trust) and beneficiaries. These shift taxation of undistributed gains, dividends and income into the Trust, and can be carried on indefinitely (with a deemed realization of all assets for tax purposes every 21 years).

In Trust accounts are simply investment accounts created, where capital is invested into the account, taxable to the account owner who manages the account on behalf of the minor children beneficiaries until the beneficiaries reach age of majority (18 in AB), at which point they're entitled to the funds. The account is taxed in the owner's hands until the kids turn 18.

A lawyer is required to set up a Family Trust, and it typically isn't cheap.

There are no costs to set up an In Trust account, aside from whatever typical Advisory costs a Advisor (if involved) charges on investment management.

I guess sign me up for the WFG crew? Yearly Renewable Universal Life and AGF investment loans for everybody!

[ExtraSlow]

Hey back to original question, or maybe it was my second question. How does tax work for trust accounts?
Just received T3's addressed to:
Parent name
In trust for kid name

So I assume that goes on someones tax return. Kids or Parent?

[suntan]

Parent.

It's the "Why the Liberals hate Harper so much" rule.