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Do I need to register a revocable trust with the court or state?

Do I need to register my trust?

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Barrister
Barrister

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No, trusts are entirely confidential legal instruments and are not registered or recorded anywhere. If it is a revocable trust, then it does not have its own IRS EIN tax number, so if it has income then it is reported under the grantor's Social Security number.

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Do I need to register my trust?

Lexi

Lexi, Chatbot

I understand that you're concerned about the registration of your trust. Can you tell me what type of trust you have?

With Secretary of State or Court

Lexi

Lexi, Chatbot

Have you already established the trust, or are you in the process of creating it?

Revocable trust. I'm new and just completed my trust here, but unsure how to proceed.

Barrister

Barrister

Hello and welcome to the site! My name is Barrister and I am a licensed attorney and I am here to help with your situation. I know your question is important, but there may be a short delay in my responses as I type out an answer or reply as I am typically working with several customers at once on the website. I have read your post and I am sorry to hear you are having to deal with this situation as I realize it can be frustrating and confusing.

Yes, a little confused. I wanted to know if I must register my trust in court or make it an entity. How does it work?

Barrister

Barrister

No, trusts are entirely confidential legal instruments and are not registered or recorded anywhere. If it is a revocable trust, then it does not have its own IRS EIN tax number, so if it has income then it is reported under the grantor's Social Security number.

How do I prevent it from going under my Social Security? I have 3 businesses and 42 properties to list under the trust.

Barrister

Barrister

You can't if it is a revocable trust.

Then is it recommended to be an irrevocable trust so the trust could own all the assets?

Barrister

Barrister

You could create an irrevocable trust, and then you get an EIN number from the IRS, but you can't change the trust or take assets out of it then. So you give up flexibility for asset protection.

To sell or reinvest, it's not recommended to be irrevocable?

Barrister

Barrister

With 3 businesses and 42 properties, it would probably be a very good idea to sit down with a financial planner to figure out the best way to protect your assets because if you are trying to do it yourself and you mess it up, then it can have very bad results tax-wise and also open you up to being liable if you get sued. Revocable trusts provide zero protection from getting sued personally.

Is it possible for a trust to own all the LLCs and corporations and each entity do the tax reporting?

Barrister

Barrister

Yes, that is allowed for a trust to own LLCs. And the members of the LLCs report income on their own taxes.

Ok, thanks for the advice.

Barrister

Barrister

You are very welcome. Glad I could help. It was my pleasure to work with you and help with your question. Have a good evening and be safe!

Same to you. Thank you.

Barrister

Barrister

Much obliged.

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