Living Trust Erase For Free

One of the primary drawbacks to using a trust is the cost necessary to establish it. This most often requires legal assistance. While some individuals may believe that they do not need a will if they have a trust, this is sometimes not the case.

However, any other assets, such as, but not limited to, improvements such as buildings on trust land, vehicles, bank accounts, earnings, and fee simple land, owned by individuals, are subject to seizure, Federal Tax Liens, garnishments, and levies.

This rule generally prohibits the IRS from levying any assets that you placed into an irrevocable trust because you have relinquished control of them. It is critical to your financial health that you consider the tax and legal obligations associated with trusts before committing your assets to a trust.

If the IRS suspects this type of arrangement, they may conduct a trust fund IRS audit. This is another type of IRS audit that has a high risk of turning criminal or eliciting large penalties, and therefore should be handled by a Boston IRS trust audit attorney who has years of IRS audit experience.

A trust ends automatically at the end of the time specified in the document that created it. If a trustor has reserved the power to revoke a living trust, he may do so at any time. If a living trust is not revocable, the trustor and all the beneficiaries have to consent to revocation.

If a trust is a grantor trust, then the grantor is treated as the owner of the assets, the trust is disregarded as a separate tax entity, and all income is taxed to the grantor.

Only specific individuals have the standing to remove a trustee. If a trust is revocable, the person who created it typically has the discretion to remove their appointed trustee. This person, known as the grantor, can undo their appointment or even revoke the trust itself.