Can you create a business inside a TRUST?

Question

I am very interested in the benefits and uses of forming a TRUST. Such as, tax benefits, interest bearing investments, real property, and businesses. Please give me your advice in good, and creative ways to use a TRUST.
ie.. place a business inside a TRUST and claim disability.

Answer 1

This is too complicated to discuss here in this limited space, but.... my parents formed a Revocable Living Trust, which allowed them to place all their assets (I mean EVERYTHING) into a Trust, which, upon death of one and/or both of them, is treated favorably (from the heirs' standpoint) in matters of estate taxation and plus it allows heirs the ability to avoid probate completely. Only problem is, these sorts of Trusts need to be set up by competent and skilled attorneys and accountants, with all the requisite documentation, etc.

You can even put your business into the Trust, if you rename it and retitle it properly (again, resort to the attorneys for this).

Like I said, it's complicated, but I can recommend a good book on it for the layman:
"The Living Trust : The Failproof Way to Pass Along Your Estate to Your Heirs", by Henry W. Abts. Read about it on Amazon.com for starters. It is full of useful information, lots of real-life case stories, and many useful FAQ'a that help you understand Trusts and their uses a lot better.

Good night, and good luck. Col. Kurtz.

Answer 2

There are three parties to a trust.
Grantor - one who makes the trust
Beneficiary - benefits from the trust
Trustee - considered the legal owner and must carry out the grantor's instructions.

Sometimes, one person can be all three.

There are different kinds of trusts. One was mentioned above, which is a kind of living trust.

There is also a testamentary trust, which becomes effective on the death of the grantor.

There is also a land trust in some states.

Benefits of a trust include, privacy, ease of conveyance and succession and legal protection for the beneficiaries.

Why you would want to claim disability is not understood by me. You would be required to reveal any income, including that received from a trust. If you are trying to defraud the government or an insurance company, the courts can pierce the trust and claim those assets.

Hope that helps.

Good Luck.