Any individual or bank or trust company outside California (but not in a state that taxes trusts based on where the trustee is located or where the trust is administered) will work for this purposes....
As always, Bruce, I'm grateful for your advice here on the forum. ...
My homework assignment is to start interviewing professional fiduciaries.
Bruce, you had mentioned using a corporate trustee in Nevada in order to save on California taxes for the trust, and I'm researching that also, as I am concerned about retaining as much as possible in the trust to cover my adult child's health insurance, therapy bills, car insurance, etc. I do not know if this child will ever be able to work full-time, consistently. At this point in time, my estate is about 58% tax-deferred, with a paid-for condo, brokerage account and Roth IRA making up the balance of it.
Does anyone on this thread know anything about Whittier Trust? They have offices in a variety of states. I've reached out to them but don't even know yet if they would handle a trust the (small-ish) size of my daughter's or for me before my death in case of my own incapacity. I would like administrative as well as investment services.
https://www.whittiertrust.com/
By the way, my attorney does not have professional fiduciaries that she knows of in Nevada, so if anyone on the forum can recommend some, I'd be grateful.
I'm not familar with the trust company you mentioned.
Since Nevada is an asset protection state, there are some in Nevada that will serve for a modest annual fee so long as they're not responsible for the investments and someone else is, though for your purpose the someone else can't be in California or in a state that taxes trusts based on the location of the trustee.
The law hasn't changed. However, the quoted material is a mix of statements that are correct, incorrect, and partially correct. Did it come from ChatGPT?Four years ago I asked this question of the fiduciary officer for Members Trust and this was her reply, “According to CA law, there are several circumstances in which a CA situs trust would be subject to CA state income taxes, including 1) The beneficiary resides in CA, 2) Trust administration takes place in CA (i.e. CA brick and mortar trust office), and/or 3) The trust owns real property in CA. For your situation, if your beneficiary resides in CA, then the trust would have to pay CA taxes. It’s all based on the laws the govern the trust document.”…using a corporate trustee in Nevada in order to save on California taxes for the trust
Unless the state laws have changed, I’m assuming that Californians don’t benefit from having the trust administered in a tax-free state if the beneficiaries live in CA and/or the trust owns real estate in CA.
Except where needed to achieve a tax result, trusts should generally (and certainly in this case) be discretionary and not mandate or limit distributions.Did you ask this attorney about accumulation trusts? Did she understand the question?At this point in time, my estate is about 58% tax-deferred
Statistics: Posted by bsteiner — Sun Nov 17, 2024 6:40 am — Replies 46 — Views 2664