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How long does it take to set up a trust?


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#1 legacy35x

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Posted 10 November 2010 - 08:55 AM

I was wondering if anyone knows how long it takes to set up an irrevocable trust? We are planning on giving our children some dinar after the RV but after reading some of the posts here I am thinking a family trust might be a better option. I am also unclear on exactly how having a trust saves in tax dollars. Won't the corporation have to pay taxes? And won't the beneficiaries have to pay taxes when they are giving a draw from the trust?

Thank you!
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#2 ExecConsult

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Posted 11 November 2010 - 12:00 PM

I was wondering if anyone knows how long it takes to set up an irrevocable trust? We are planning on giving our children some dinar after the RV but after reading some of the posts here I am thinking a family trust might be a better option. I am also unclear on exactly how having a trust saves in tax dollars. Won't the corporation have to pay taxes? And won't the beneficiaries have to pay taxes when they are giving a draw from the trust?

Thank you!

The amount of time it takes depends on the attorney setting it up and what priority they give your work. It can be done as quickly as a day or two if all of your ducks are in a row. However, that usually means other work is pushed back to focus on yours. That usually costs a premium. I have seen other attorneys charge a 25% premium to expedite the work. I personally haven't done this yet, but it sounds like a good idea. :)

When you say "family trust," do you know what you are referring to? I have drafted Irrevocable Life insurance Trusts, Irrevocable Inheritance and Gifting Trusts, and plain old Revocable Living Trusts and they have all had the name "Family Trust" on them. Your other questions all depend on structure of the trust and corp, location of each, provisions of the trust, and the a few other things. You are right to be skeptical.

It sounds like what you need is a consultation with an estate planning attorney. Most of them will either offer a free consultation (hoping for legal work to follow) or charge a reduced rate for the initial consult. Since this is likely not going to lead to immediate work, you might expect to pay something. However, if it helps you have peace of mind, it might be well worth your money.

Best of Blessings,
Mark
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