Princedinar Posted July 10, 2011 Report Share Posted July 10, 2011 Hello evrybody, any idea which is better for Tax purposes, Trust vs LLC. Do we need to have a Trust before cashin in? Link to comment Share on other sites More sharing options...
drummerboy Posted July 10, 2011 Report Share Posted July 10, 2011 I all depends on what you intend on doing with your money. No, you do NOT have to have this set up before RV. Once the RV happens, cash in the smallest Denom you have to get your business stuff handled. Suggestions: 1 - If you can afford it, become a VIP member here. There is a wealth of info about this subject Good Luck Link to comment Share on other sites More sharing options...
Princedinar Posted July 10, 2011 Author Report Share Posted July 10, 2011 Thanks drummer boy, my concern is security and taxes, not having the money in my name when I get out of the bank, I just signed with VIP but not sure why it's not showing Link to comment Share on other sites More sharing options...
goldengoose Posted July 10, 2011 Report Share Posted July 10, 2011 Thanks drummer boy, my concern is security and taxes, not having the money in my name when I get out of the bank, I just signed with VIP but not sure why it's not showing 'Princedinar', Good morning! Trust vs. LLC. Well, I do not see these two separate financial legal entities being at odds of each other. ***I am not an economist, but just a regular guy who has done some research on these topics.....I am not an expert!!!!!**** 1. (IMO) and research I have done, is that a trust fund, which is created though an attorney, is an instrument designed to protect your funds in a financial institution where you deposit your substantial earnings into this account, this trust account can be set up to transfer a predetermined amount of funds into a checking account each week, monthly, or yearly from where you will conduct your daily financial business from. 2. An LLC is a Limited Liability Corporation, this is a business/corporation which affords the owner(s) certain legal protections of your money/assets and business related purchases. Both of these financial instruments will work well post RV........Adam Montana's VIP membership and VIP area speaks of post RV structures, I recommend you go there as well. I hope this helps! Have a good day! GG Link to comment Share on other sites More sharing options...
Princedinar Posted July 10, 2011 Author Report Share Posted July 10, 2011 Thanks golden goose, let say you go to the bank today and cash in, let say u have $5 million, where will u put it temporarily while you are looking where to invest it, bank have 250 k FDIC only, Link to comment Share on other sites More sharing options...
goldengoose Posted July 10, 2011 Report Share Posted July 10, 2011 Thanks golden goose, let say you go to the bank today and cash in, let say u have $5 million, where will u put it temporarily while you are looking where to invest it, bank have 250 k FDIC only, 'Princedinar', Good morning! You must do your due diligence prior to the revaluation; I already have a trust fund document ready to go and have also spoken to my financial institution for associated accounts when the revaluation takes place. It is my understanding that FDIC protections/limitations are for accounts that are intrest bearing only and your $5mil would be safe in a non-interest bearing account, but like I said, I am not an expert. This is why I have already done the leg work to set up post-RV financial arrangements. Hope this helps.... GG Link to comment Share on other sites More sharing options...
Lightmover Posted July 10, 2011 Report Share Posted July 10, 2011 Here is a nice article about Trusts. http://www.free-living-trust-information.com/advantages-of-a-living-trust.html Here is a nice article about LLC's. http://www.thellcexpert.com/articles/benefits_of_an_llc.htm Please note, I do NOT work for, sell, or offer ANY of these services. I simply Googled "What are the benefits of a Trust/LLC, and picked out the articles that I felt best described them. I have personally had 2 separate S corp's, and 1 Non Profit. The business' I was in required S corps to function, so I don't have first hand knowledge of the LLC. A good thing to check out would be the differences between an S Corp and an LLC to see what your specific situation would require. I know the main difference is the stock/ownership characteristics, which translates to how/who you pay dividends to, which translates to a significant difference in the amount of tax you pay when you take the money out of the entity. The stock ownership/type will also come in to play if you happen to build that LLC/S Corp into a business that needs to take on partners in the future. As for the Trust, the gist of it is that if you fund your Trust BEFORE you pass on, you save your heirs a significant amount of headache (and tax liability). Simply holding the asset in an LLC/S Corp doesn't offer the same inheritance protection. One option is having a Trust own the stock in the Corp, which means you could pass the Corp on to your heirs too. (Please talk to your tax adviser about this specific detail. It was simply an idea my adviser ran by me.) You basically fund the Trust, and take a disbursment at specified times (monthly, quarterly, yearly, etc...). Hope this helps! 2 Link to comment Share on other sites More sharing options...
dinars4me2 Posted July 10, 2011 Report Share Posted July 10, 2011 'Princedinar', Good morning! Trust vs. LLC. Well, I do not see these two separate financial legal entities being at odds of each other. ***I am not an economist, but just a regular guy who has done some research on these topics.....I am not an expert!!!!!**** 1. (IMO) and research I have done, is that a trust fund, which is created though an attorney, is an instrument designed to protect your funds in a financial institution where you deposit your substantial earnings into this account, this trust account can be set up to transfer a predetermined amount of funds into a checking account each week, monthly, or yearly from where you will conduct your daily financial business from. 2. An LLC is a Limited Liability Corporation, this is a business/corporation which affords the owner(s) certain legal protections of your money/assets and business related purchases. Both of these financial instruments will work well post RV........Adam Montana's VIP membership and VIP area speaks of post RV structures, I recommend you go there as well. I hope this helps! Have a good day! GG GG: We already have a family trust, so does this mean that in order to fund it, we would need to open an account under the trust's name and then we can deposit our money (post RV)? In doing so, will this benefit us in any way by allowing us to pay less than necessary taxes?? Also, if we already have a trust, is it necessary to also create an LLC? I know you say you are not an expert, but if anyone can clarify this in any way, I would really appreciate it...just trying to understand how all this works... Link to comment Share on other sites More sharing options...
goldengoose Posted July 10, 2011 Report Share Posted July 10, 2011 GG: We already have a family trust, so does this mean that in order to fund it, we would need to open an account under the trust's name and then we can deposit our money (post RV)? In doing so, will this benefit us in any way by allowing us to pay less than necessary taxes?? Also, if we already have a trust, is it necessary to also create an LLC? I know you say you are not an expert, but if anyone can clarify this in any way, I would really appreciate it...just trying to understand how all this works... 'dinars4me2', Good afternoon! Based upon you having a trust established: 1. Is it on paper only?, or; 2. Is is funded already in your financial institution? If you have a "Trust" on paper only, then yes, you will fund the trust account based upon the parameters and or legal verbiage within the trust document post-RV; however, if as you say, you already have a 'Trust" in place, then you would talk to your attorney to possibly modify the document to set new parameters for the funding of a money market checking account or regular checking account. Yes, Trust Funds can have a tax saving benefit and no, you do not have to set up an LLC in conjuction with a Trust. I suggest you conduct your own independent research on this topic and or consult with a trusted source, whether it be an attorney or a senior banking officer. ****** Please remember, I am not an expert on financial matters******** Hope this has helped.... GG Link to comment Share on other sites More sharing options...
drummerboy Posted July 10, 2011 Report Share Posted July 10, 2011 Thanks golden goose, let say you go to the bank today and cash in, let say u have $5 million, where will u put it temporarily while you are looking where to invest it, bank have 250 k FDIC only, Do NOT take your $5M to the bank and cash in. The best thing to do is take the smallest IQD you have (5k, 10k or 25K) and only cash it in for now. Have it go right into your personal account. If you cash more than that in, you will most certainly get audited by the IRS. Now take that money you cashed in and go set up which ever business entities you are going to use to protect yourself. I feel trusts are the best because their is no ownership. Meaning the money is not in your name so if someone tries to sue you, they cannot get your money, cars, homes, etc Note: If you have the money now, then go and consult with Trust attorneys, Wealth management people, tax attorneys and take all that advise and make a decision on what is going to be best for you and your money and set it up now. If not, then follow the above instructions. That is what most people who hold dinar are doing (so I've heard) I am setting up foundations, trusts and LLCs for all the different things I am doing because they all offer different levels of security and protection. Either way, you will have to do this on your own. No one here can tell you 100% which is going to be best for you. Link to comment Share on other sites More sharing options...
Princedinar Posted July 10, 2011 Author Report Share Posted July 10, 2011 Thank you for all your response, it's so amazing how this event change people's mindset, I'm trying to think like a Rich people, how do they invest, how do they protect their money, this journey itself is very exciting, very morning I wake up, I'm very excited, but then again to think that many people want to get rich but they are not ready for it. I myself read a lot about financial stuff but this is a different ballgame. Even if it RV tomorrow, I still feel not ready for it, so I wa thinking of parking e money for 3-6 months until I know what to do with it Link to comment Share on other sites More sharing options...
dinars4me2 Posted July 10, 2011 Report Share Posted July 10, 2011 'dinars4me2', Good afternoon! Based upon you having a trust established: 1. Is it on paper only?, or; 2. Is is funded already in your financial institution? If you have a "Trust" on paper only, then yes, you will fund the trust account based upon the parameters and or legal verbiage within the trust document post-RV; however, if as you say, you already have a 'Trust" in place, then you would talk to your attorney to possibly modify the document to set new parameters for the funding of a money market checking account or regular checking account. Yes, Trust Funds can have a tax saving benefit and no, you do not have to set up an LLC in conjuction with a Trust. I suggest you conduct your own independent research on this topic and or consult with a trusted source, whether it be an attorney or a senior banking officer. ****** Please remember, I am not an expert on financial matters******** Hope this has helped.... GG Thanks so much for your response, GG. Yes, we have a revocable living will trust 'on paper' only, meaning we have not assigned any of our accounts to the trust as of yet. However, our trust also includes a 'pourover will' (comprehensive transfer document) which (to my understanding) catches any and all assets that my husband and I have that we have failed to include in the trust and transfers it to the trust (should we become deceased) which in turn gets distributed according to the parameters of our trust. In the meantime, I'm assuming that we should open a non-interest bearing account (so our funds are FDIC insured) in the name of our trust when the IQD RVs and take a monthly dispersement to lessen our tax liabilities?? Or, will our post RV money still taxed regardless if it's in our trust or not?? I think I just confused myself even more Link to comment Share on other sites More sharing options...
drummerboy Posted July 10, 2011 Report Share Posted July 10, 2011 you should research irrevocable trusts and ask you people why they chose revocable. I was counseled that irrevocable was better. Link to comment Share on other sites More sharing options...
dinars4me2 Posted July 11, 2011 Report Share Posted July 11, 2011 you should research irrevocable trusts and ask you people why they chose revocable. I was counseled that irrevocable was better. Thanks for your response, drummerboy...from what I understand, with irrevocable trusts, you cannot make changes (modify, remove, add, etc.) to your trust once it is created. However, with a revocable trust (living trust), amendments can be added whenever the grantor chooses (as long as they are still living). Also, most trusts automatically convert to irrevocable trusts upon the grantor's death. So, I suppose one should consider their own situation and decide which route to take because everyone's needs are different. My husband and I are young, so it didn't make sense for us to do an irrevocable trust because we decided that changes, modifications, and additions would be expected as we got older (became more financially stable, etc.). Plus, I was not too keen on giving up control of all my assets, especially if I am still alive. I am sure this is something your estate planner/attorney would discuss together with you so that you can determine which would make the most sense for your family. Link to comment Share on other sites More sharing options...
drummerboy Posted July 11, 2011 Report Share Posted July 11, 2011 Just remember, if you are "somewhat" in control of your assets, it means your name is attached, which means you could have a loss if sued. Either way, you are most certainly educated on the subject and sounds like you are doing all the rights things for you. Congrats. Link to comment Share on other sites More sharing options...
dinars4me2 Posted July 11, 2011 Report Share Posted July 11, 2011 Just remember, if you are "somewhat" in control of your assets, it means your name is attached, which means you could have a loss if sued. Either way, you are most certainly educated on the subject and sounds like you are doing all the rights things for you. Congrats. Thanks again for your feedback, 'drummerboy'...I believe one can never be too educated on any one subject, so I appreciate your discussion on this particular topic; if anything it helps me to understand both sides (pros and cons). Anyway, good luck to us all and may this RV happen soon! Link to comment Share on other sites More sharing options...
Adam Montana Posted July 11, 2011 Report Share Posted July 11, 2011 You want to be VERY careful with Trusts... one wrong move and you can lose every bit of protection you thought you were paying for! Princedinar, I see you are a VIP - I've paid 10's of thousands of dollars researching and getting advice on this very matter. Please check the links in my signature, you'll have your answer in about 15 minutes! Link to comment Share on other sites More sharing options...
fastarnie Posted July 11, 2011 Report Share Posted July 11, 2011 I was just talking to someone in chat about this yesterday. Hard to do, because there is so much information to cover. Thank you PrinceDinar for asking, and thanks go to GG, drummerboy, and Adam. Link to comment Share on other sites More sharing options...
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