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Member You - Selecting a Good Trustee - Factors to Consider When Choosing a Trustee
Three Ways to Get Top Quality Content for Your Niche WebsitesGood, popular, profitable niche topic websites need good content. Period. You and I both know this.Now, there are many ways to get content online...1. You can hire freelance writers, and have them create custom content to be used by you exclusively. This is the best way to get content, because if you choose your writers well, you can get decent content on the topic of your choice. And chances are pretty slim that anyone else online will have the exact same content you have. The cheapest rate I've seen this service at though, is $4 per article. Usually it's more like $10 and up per article if you want good content. So a mere 20 articles will cost you at least two hundred bucks!2. Another great way to get content online though, is to join membership sites like Nicheology and Push Button Health. These sites give you a steady flow of rough draft content for one set pri
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life
When people hear the word salesman the first thing they want to do is run and hide. It's because people know that a salesman is after their wallet. The problem with most salespeople or network marketers is they want to make a sale without even qualifying their prospect. Remember the old saying, "You can't put the cart before the horse". Here's a unique approach that I have been using for years and it really put's your prospect in a very different position. Tell your prospect right away that it's ok to tell you No, that you will not be offended. By giving your prospect a way out you are going to save yourself alot of grief.If your close to the sale or recruit keep in mind that unless you are selling cars, packing meat, or candy, you are probably going to be building a long term relationship with this prospect, so make sure that you are selling to the right person. For anyone involved in direct sales, I have created a way to eliminate your
When selecting a Trustee the most important qualities are honesty, stability, dependability, organization, financial experience, and ability to devote time and energy on an impartial basis for the benefit of all Beneficiaries. The Trustee is the most pivotal and critical part of any Trust Agreement.
THE CONCEPT OF A TRUST AGREEMENT
A Trust is a written contract between the Grantor and the Trustee for the benefit of all Beneficiaries which can include the Grantor and any one else he chooses including spouse, children, grandchildren, friends, or charities.
A Trust can be created during one’s life or by will upon death. A trust that is created at death by virtue of a will, is referred to as a Testamentary Trust by the “Testator” (the dead guy). A Trust created during the life of an individual is referred to as, the “Settlor,” the “Grantor,” or “Trustor.” The Trust instrument is referred to as “inter vivos” formed during the life of its creator.
A Trust is an integral part of any estate plan for the purpose of avoiding the Probate Process, minimize the impact of taxation on the transfer of wealth from one generation to another or from one individual to another, or to protect against unwanted and unpleasant potential events like a lawsuit. A Trust can financially provide for a spouse, a minor child or children or yet unborn children, an incapacitated or disabled person, or for persons incapable of managing their financial affairs. A Trust must have enough provisions to adapt itself way beyond the life of the grantor(s) and the Trustee is at the center of the goals of the Trust creators.
Once a Trust is created, the Trust becomes the new legal titleholder of assets either transferred to the Trust, as a gift or as a sale. In order to avoid fraudulent conveyance, the individual giving up his legal right to possession or title and the right to own must in return receive equal fair cash value at the time of the transfer. Otherwise, it’s a “fraudulent transfer” to the detriment of all potential creditors or it’s a gift subject to a gift tax.
THE GIFT TAX ON TAXABLE GIFTS
The gift tax applies to the fair cash value given up at the time of the transfer (not the amount that was originally paid). Taxable gifts are reported on IRS form 709, taxable to the person giving up the right of possession by gifting his assets. The person receiving the gift (in this case the Trust) always receives the gift Tax Free. (Note: the person receiving the gift always obtains it tax free and the person giving the gift is always taxed on it unless it’s less than $12,000 per person beginning in 2006).
TRUSTEE'S POWER DERIVED FROM GRANTOR
A Trust can be revocable or irrevocable, grantor or non-grantor. Revocable is when the “Grantor” retains a power to “void” the Trust Contract. Irrevocable is when the Grantor “severs” all power of possession, the legal title to own the Trust. The concept of “possession” is the legal right to own and vested exclusively to the TRUSTEE. The Trustee’s power is derived from the Grantor(s) by a written agreement (Trust Agreement). The most important person is therefore the Trustee.
CONSEQUENCES WHEN GRANTOR NAMES HIMSELF TRUSTEE
If there is a provision in the Trust Agreement for the Grantor to name himself as the Trustee for his list of Beneficiaries, which includes himself, then he runs the risk of frivolous liability and harsh tax consequences, since he has elected himself the Pope by blessing himself and kissing his own ring.
FACTORS TO CONSIDER WHEN CHOOSING A TRUSTEE:
A true Trustee is an independent person not related to the Grantor(s) by blood or marriage or is an independent trust company, bank, or corporate body. The selection of a Trustee is the most significant part of any Trust Agreement.
When choosing a Trustee, several factors should be considered:
1. Location of the assets. Real estate, for example, has a definite location and the Trustee more familiar with the financial and tax implications of the property should be given weight.
2. The individual Trustee’s physical location (home address) in relation to the Beneficiaries.
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life o
The small time promoter has to work hard and on a shoestring to get an audience of a few hundred people to fill a venue. Flyers, word-of-mouth and media name checks are some of the tools promoters use to fill small venues or club nights. Building a loyal following from grassroots is no easy task. Considering the amount of effort that can be required to fill even the smallest of venues it is surprising that very few promoters capitalise on their efforts and use the actual event to maximise the opportunity to encourage further audience contact.With a little thought and small outlay online surveys can be used to provide the promoter with valuable feedback and the opportunity to engage in further contact with the audience. Using an online survey website such as www.surveygalaxy.com a promoter can now quickly and easily create an online survey.With an online survey a promoter can find out exactly:-• who attended;• what persuaded the
Once a Trust is created, the Trust becomes the new legal titleholder of assets either transferred to the Trust, as a gift or as a sale. In order to avoid fraudulent conveyance, the individual giving up his legal right to possession or title and the right to own must in return receive equal fair cash value at the time of the transfer. Otherwise, it’s a “fraudulent transfer” to the detriment of all potential creditors or it’s a gift subject to a gift tax.
THE GIFT TAX ON TAXABLE GIFTS
The gift tax applies to the fair cash value given up at the time of the transfer (not the amount that was originally paid). Taxable gifts are reported on IRS form 709, taxable to the person giving up the right of possession by gifting his assets. The person receiving the gift (in this case the Trust) always receives the gift Tax Free. (Note: the person receiving the gift always obtains it tax free and the person giving the gift is always taxed on it unless it’s less than $12,000 per person beginning in 2006).
TRUSTEE'S POWER DERIVED FROM GRANTOR
A Trust can be revocable or irrevocable, grantor or non-grantor. Revocable is when the “Grantor” retains a power to “void” the Trust Contract. Irrevocable is when the Grantor “severs” all power of possession, the legal title to own the Trust. The concept of “possession” is the legal right to own and vested exclusively to the TRUSTEE. The Trustee’s power is derived from the Grantor(s) by a written agreement (Trust Agreement). The most important person is therefore the Trustee.
CONSEQUENCES WHEN GRANTOR NAMES HIMSELF TRUSTEE
If there is a provision in the Trust Agreement for the Grantor to name himself as the Trustee for his list of Beneficiaries, which includes himself, then he runs the risk of frivolous liability and harsh tax consequences, since he has elected himself the Pope by blessing himself and kissing his own ring.
FACTORS TO CONSIDER WHEN CHOOSING A TRUSTEE:
A true Trustee is an independent person not related to the Grantor(s) by blood or marriage or is an independent trust company, bank, or corporate body. The selection of a Trustee is the most significant part of any Trust Agreement.
When choosing a Trustee, several factors should be considered:
1. Location of the assets. Real estate, for example, has a definite location and the Trustee more familiar with the financial and tax implications of the property should be given weight.
2. The individual Trustee’s physical location (home address) in relation to the Beneficiaries.
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life
Payment protection insurance (PPI) has taken a bashing recently. PPI is a type of insurance designed to protect repayments on financial products if borrowers find that they are in financial difficulty.PPI has been examined by the Financial Services Authority, criticised by Which? and is now under investigation by the Office of Fair Trading. Most of these organisations are concerned about protecting consumers' rights. They are worried about: whether consumers are sufficiently well informed at point of sale to make decisions about whether to have PPI the wide variation in the cost of PPI policies the huge profits made by lenders offering PPI because of the relatively few claims made by borrowers and the lack of PPI providers who are not linked to banks or other lenders.Given these concerns, it's a good time to find out more about whether PPI is really the right choice for borrowers.Why Have PP
THE GIFT TAX ON TAXABLE GIFTS
The gift tax applies to the fair cash value given up at the time of the transfer (not the amount that was originally paid). Taxable gifts are reported on IRS form 709, taxable to the person giving up the right of possession by gifting his assets. The person receiving the gift (in this case the Trust) always receives the gift Tax Free. (Note: the person receiving the gift always obtains it tax free and the person giving the gift is always taxed on it unless it’s less than $12,000 per person beginning in 2006).
TRUSTEE'S POWER DERIVED FROM GRANTOR
A Trust can be revocable or irrevocable, grantor or non-grantor. Revocable is when the “Grantor” retains a power to “void” the Trust Contract. Irrevocable is when the Grantor “severs” all power of possession, the legal title to own the Trust. The concept of “possession” is the legal right to own and vested exclusively to the TRUSTEE. The Trustee’s power is derived from the Grantor(s) by a written agreement (Trust Agreement). The most important person is therefore the Trustee.
CONSEQUENCES WHEN GRANTOR NAMES HIMSELF TRUSTEE
If there is a provision in the Trust Agreement for the Grantor to name himself as the Trustee for his list of Beneficiaries, which includes himself, then he runs the risk of frivolous liability and harsh tax consequences, since he has elected himself the Pope by blessing himself and kissing his own ring.
FACTORS TO CONSIDER WHEN CHOOSING A TRUSTEE:
A true Trustee is an independent person not related to the Grantor(s) by blood or marriage or is an independent trust company, bank, or corporate body. The selection of a Trustee is the most significant part of any Trust Agreement.
When choosing a Trustee, several factors should be considered:
1. Location of the assets. Real estate, for example, has a definite location and the Trustee more familiar with the financial and tax implications of the property should be given weight.
2. The individual Trustee’s physical location (home address) in relation to the Beneficiaries.
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life
Benefits of compromise agreements for youQuick Resolution – there are plenty of benefits to resolving a potential unfair dismissal or redundancy case as soon as possible. A compromise agreement can be debated and agreed in a short period of time which leaves you to get on with the rest of your life and put the unpleasant business of your old job behind you.Quick Financial Compensation – If your employer agrees financial compensation in your compromise agreement you can have the money in your bank much sooner than you would from a lengthy tribunal process. Similarly the money is guaranteed in the agreement, if you take legal action you have no definite idea of how much money you might receive.Guaranteed Reference – Often, if you leave a company on bad terms, you might suffer from a reference which doesn’t highlight all you achieved in your role. When you are arranging a compromise agreement you
CONSEQUENCES WHEN GRANTOR NAMES HIMSELF TRUSTEE
If there is a provision in the Trust Agreement for the Grantor to name himself as the Trustee for his list of Beneficiaries, which includes himself, then he runs the risk of frivolous liability and harsh tax consequences, since he has elected himself the Pope by blessing himself and kissing his own ring.
FACTORS TO CONSIDER WHEN CHOOSING A TRUSTEE:
A true Trustee is an independent person not related to the Grantor(s) by blood or marriage or is an independent trust company, bank, or corporate body. The selection of a Trustee is the most significant part of any Trust Agreement.
When choosing a Trustee, several factors should be considered:
1. Location of the assets. Real estate, for example, has a definite location and the Trustee more familiar with the financial and tax implications of the property should be given weight.
2. The individual Trustee’s physical location (home address) in relation to the Beneficiaries.
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life
If you can identify the Mavens for your product, you can start off a viral discussion and buzz about it that could ultimately lead to it to become an epidemic, and the theories presented in ‘Tipping Point’ are useful to “businesses trying to spread the word about their product, or for that matter to anyone who's trying to create a change with limited resources.”Big business, in fact, does recruit people to spread the word about their latest products, and if you can find the connectors, the people who always have a large list of contacts and are forever talking on their mobiles or lunching here and there, then you will have a good chance of having the buzz spread about your product. Some car manufacturers lend their cars to Mavens to drive around town all day and get it known, and then to talk them up whenever they can. Soon the latest model is not only on everybody’s lips but is seen all over town. That is more powerful advertising than showi
3. The types of assets. Tangible or intangible, cash or near cash.
4. Relationship of the individual Trustee to the Grantor’s family.
5. An understanding of the intra-family dynamics of all the Beneficiaries.
6. Familiarity with financial management of himself and others he may employ.
7. The financial ability and level of experience with the assets entrusted.
8. If it’s a family business, the nature and familiarity of the business.
9. The willingness and vitality to serve as an impartial fiduciary.
10. The legal capacity to interpret and administer the agreement fairly to all Beneficiaries.
11. The willingness to accept the appointment and the willingness to accept potential legal liability from disgruntled beneficiaries.
12. Succession planning for a successor Trustee.
SOME BAD TRUSTEES
When choosing a Trustee that is intended to last longer than the life of the original Grantors certain types of Trustees may not be the best qualified to serve.
1. Corporate Trustees or Trust Companies. For the most part these types of Trustees are nothing more than business robots driven by numbers staffed by individuals who have no connection to the Grantors or the Beneficiaries. They administer the Trust assets but they lack the sensitivity of the people they are hired to serve. Generally they are very slow in responding to the needs of Beneficiaries and usually react in the interest of the Trust Company not their clients.
2. Banks as Trustees. They are too slow in making decisions, are ultra conservative, and always afraid to make decisions without first consulting their legal department. They have self-preserving motives and generally have no clue or understanding about the individual family dynamics of the people they are intended to serve.
3. Lawyers as Trustees. Lawyers are very up on the ins and outs of legal maneuvers and they have been trained to handle legal matters but generally have no financial experience or expertise in the management of assets. Even when they hire others in those financial roles, they are usually way too expensive and in some cases they make the assets their life’s insurance policy.
4. Accountants as Trustees. Accountants are good at keeping scores but generally lack visibility into the future. They have been trained to accumulate information but very tunneled visioned to make investment decisions. While there are notable exceptions to lawyers and accountants, generally they lack qualities to administer and provide full service or to take legal liability to serve as Trustees.
5. Family members as Trustees. It’s not a very good idea to have a family member become the Trustee of anything. The problem is mistrust. If you want to watch a family tear itself apart when it comes to money, especially with lots of money, you can go to family court or watch the Anna Nicole Smith’s made-for-TV drama.
SELECTING A TRUSTEE IS COMPLICATED
Selecting a Trustee can very complicated and you will not generally find individuals ready and willing to assume those fiduciary responsibilities, even when compensation is not an issue. Some Grantors have opted for co-Trustees and even Trust Protectors to ease the responsibility. See my article on “Trust Protectors.” Generally Trustees are more willing to accept the position if they know that they have a back up for consultation with someone who is closer to the Grantor’s family.
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