revocable trust .vs. joint tenancy


A

alocksley

I am considering establishing a revocable trust for my
assets. Assuming the proceeds would go to my wife, is there
a tax advantage to taking joint investment accounts (JTWROS)
and moving them into the trust?

If after my death my wife sells securities, does she get a
step-up only on her portion of a joint account, as opposed
to the trust?

Thank you.
 
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S

Stuart A. Bronstein

alocksley said:
I am considering establishing a revocable trust for my
assets. Assuming the proceeds would go to my wife, is there
a tax advantage to taking joint investment accounts (JTWROS)
and moving them into the trust?
It depends on what your tax bracket is, whether or not you
live in a community property state and probably other
factors as well. Your best bet is to talk to a local estate
planning lawyer or tax professional conversant with the
issue.
If after my death my wife sells securities, does she get a
step-up only on her portion of a joint account, as opposed
to the trust?
Depends on the laws of your state. In general a spouse will
get a stepped up basis for only half of joint tenancy
property.

Stu
 
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S

Steve Pope

If I file a tax form (e.g. 5500) that says "this form is open
to public inspection", what exactly does that mean? Can
anybody browse through such filings, collecting names,
addresses, tax ID numbers and other data?

If so this seems less than desirable.

Steve
 
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P

pleasedontemailme

(Steve Pope) said:
If I file a tax form (e.g. 5500) that says "this form is open
to public inspection", what exactly does that mean? Can
anybody browse through such filings, collecting names,
addresses, tax ID numbers and other data?
If so this seems less than desirable.
That is exactly what it means. For example, Form 990 (also
"open to public inspection") is available on request from any
charity and many are available online at guidestar.org. Anyone
who wishes to do so can read the names, published address and
salary of any board member, officer, the five highest paid
employees and the five highest paid vendors providing
professional services.

I prepare the 990 for my employer and sometimes individuals
object to having such personal information listed. They agree
with you that it is less than desirable. However, it is also
required by the IRS to retain our charitable status.

-Crystal
 
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S

Steve Pope

(Steve Pope) wrote:
That is exactly what it means. For example, Form 990 (also
"open to public inspection") is available on request from any
charity and many are available online at guidestar.org. Anyone
who wishes to do so can read the names, published address and
salary of any board member, officer, the five highest paid
employees and the five highest paid vendors providing
professional services.

I prepare the 990 for my employer and sometimes individuals
object to having such personal information listed. They agree
with you that it is less than desirable. However, it is also
required by the IRS to retain our charitable status.
So would the IRS have any objection to me using a U.S. Post
Office box address, instead of my home address, on the form
5500?

Steve
 
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P

pleasedontemailme

Original
Next Question
So would the IRS have any objection to me using a U.S. Post
Office box address, instead of my home address, on the form
5500?
Next Reply:
We use the university's street address for each and every board
member and officer on our form 990 and the IRS has never
objected. They do sometimes object to the use of PO box
addresses, even for taxpayers who have no other mailing
address. The only IRS form (of which I'm aware, anyway) that
insists specifically and explicitly on the officer or
director's own home address and absolutely no substitute is the
excise tax form for gambling revenue.
 
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Steve Pope

(form 5500)
Next Reply:
We use the university's street address for each and every board
member and officer on our form 990 and the IRS has never
objected. They do sometimes object to the use of PO box
addresses, even for taxpayers who have no other mailing
address. The only IRS form (of which I'm aware, anyway) that
insists specifically and explicitly on the officer or
director's own home address and absolutely no substitute is the
excise tax form for gambling revenue.
Looking further, the instructions for 5500-EZ say it is
okay to use a PO box if the postal service does not
regularly deliver mail to the business's usual address.
This suggests to me they do not want me to use a PO box.

Steve
 
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