sceptre4444
New Member
I am considering starting this Nevada Trust, for investment. I will be Grantor, My Nevada company will be Trustee, I will be the only Beneficiary. I however, live in Canada.
I wish to avoid some of the legalish issues because they are so expenisve for me to resolve. There are no CPAs where I live, and legal advice is extremely expensive since from here it is considered international legal advice. That's why I'm here.
I don't know how much I will place into this Nevada trust. Probably not much. Certainly not my House nor my assets (if I did I would use a Canadian Trust, Obviously I pay no US taxes currently). I would like to borrow money here in Canada, then place it into the Trust, and invest the funds in the Trust's name. Say the amount the Trust starts with is $10. Let's say that amount I borrow afterwards and place into the Trust is 10K.
The objective would be to earn a return on the $10,0010.00
1) One question I have is, assumbing I made a small positive return, a capital gain say $100, and the investment ended, how do I withdraw the funds? After all 10 would be the seed, 10K would belong to the grantor and I assume could be withdrawn without issue, and $10 would be capital gains, which may be left in the Trust, but likely wouldbe withdrawn also (to me) to avoid having the Trust pay Tax (I'm under the understanding a Trust pays no Tax IF it pays out every each year to its beneficiaries).
Of course the 10K is being withdrawn to me as GRantor - return of the Loan (no Tax?) and $10 is also being withdrawn to me as Beneficiary (Tax implications)
When I describe this to anyone / either side of the border I get different answers, if it doesn't work then why setup the Trust, I say, often they say thats the chance I take - but of course they get paid even if my Trust turns out to be a useless setup.
2) I understand it would be wise to get a ITIN and send the proposed trust A W8BEN. So trust doesn't have to withold tax when sending me (beneficiary) income (stock trading income).
3) In this process i require a Company to act as Trustee, though it has no other purpose, Do I need to fulfill any Nexus Requirements (Nevada or possibly Wyoming, I don't expect the Trust to pay tax but just in case it does I picked a non tax state.)? Does a Trustee require a business license?
I wish to avoid some of the legalish issues because they are so expenisve for me to resolve. There are no CPAs where I live, and legal advice is extremely expensive since from here it is considered international legal advice. That's why I'm here.
I don't know how much I will place into this Nevada trust. Probably not much. Certainly not my House nor my assets (if I did I would use a Canadian Trust, Obviously I pay no US taxes currently). I would like to borrow money here in Canada, then place it into the Trust, and invest the funds in the Trust's name. Say the amount the Trust starts with is $10. Let's say that amount I borrow afterwards and place into the Trust is 10K.
The objective would be to earn a return on the $10,0010.00
1) One question I have is, assumbing I made a small positive return, a capital gain say $100, and the investment ended, how do I withdraw the funds? After all 10 would be the seed, 10K would belong to the grantor and I assume could be withdrawn without issue, and $10 would be capital gains, which may be left in the Trust, but likely wouldbe withdrawn also (to me) to avoid having the Trust pay Tax (I'm under the understanding a Trust pays no Tax IF it pays out every each year to its beneficiaries).
Of course the 10K is being withdrawn to me as GRantor - return of the Loan (no Tax?) and $10 is also being withdrawn to me as Beneficiary (Tax implications)
When I describe this to anyone / either side of the border I get different answers, if it doesn't work then why setup the Trust, I say, often they say thats the chance I take - but of course they get paid even if my Trust turns out to be a useless setup.
2) I understand it would be wise to get a ITIN and send the proposed trust A W8BEN. So trust doesn't have to withold tax when sending me (beneficiary) income (stock trading income).
3) In this process i require a Company to act as Trustee, though it has no other purpose, Do I need to fulfill any Nexus Requirements (Nevada or possibly Wyoming, I don't expect the Trust to pay tax but just in case it does I picked a non tax state.)? Does a Trustee require a business license?