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Message
I have a question for the tax people on here..brian kelly gets his check not made out to
Posted on 8/18/24 at 10:45 am
Posted on 8/18/24 at 10:45 am
Him but to his trust…can any regular joe blow get his work check to his trust..and what is the advantages of doing this?
6
Posted on 8/18/24 at 11:02 am to SuckerPunch
I’d think it wouldn’t be as advantageous for regular Joe blow. I don’t know all the advantages but I’d bet the biggest one is never having the money come into his “control” as it’s an asset of the trust and because of this it can pass to others regardless of whatever the lifetime exemption is when he dies. Rich people problems…
Posted on 8/18/24 at 11:06 am to UpstairsComputer
The trust then pays the guy a salary rather than his job paying him
Posted on 8/18/24 at 11:32 am to SuckerPunch
(no message)
This post was edited on 10/1/24 at 12:45 pm
Posted on 8/18/24 at 11:39 am to SuckerPunch
Assuming he is using it as estate tax shelter for his family. Outside of things like charitable trusts most use it to specifically issue out parts of the estate to their heirs. Which usually get taxed at time of disbursement at the rate of the recipient.
Posted on 8/18/24 at 11:49 am to SuckerPunch
Posted on 8/18/24 at 12:05 pm to SuckerPunch
Maybe to a revocable trust which offers no real benefit other than skipping probate. If to an irrevocable trust then the irs would probably deem it a gift since he is the one who earned the income. Risk trigger a gift tax if the latter since there is a limit of 13.61M in the gift tax exemption
Posted on 8/18/24 at 12:43 pm to MSTiger33
I mean somebody on here posted that like 40 or was it 60% of households in America pay no tax whatsoever.
Posted on 8/18/24 at 1:05 pm to SuckerPunch
quote:
mean somebody on here posted that like 40 or was it 60% of households in America pay no tax whatsoever.
After the trump tax cuts the standard deduction got so large it is not surprising that a lot of people technically owe no federal income tax.
quote:
Almost 60% of non-payers make less than $30,000 and another 28% make between $30,000 and about $60,000.
However as a beneficiary of the Trump tax cut changes, I'm not complaining
This post was edited on 8/18/24 at 1:07 pm
Posted on 8/18/24 at 1:12 pm to MSTiger33
This is the answer. Trusts are actually in a higher tax bracket. He just has everything in a revocable trust because he wants to avoid probate. Which is telling because that likely means he has zero plans to remain in Louisiana (where due to the probate process you don’t need a revocable trust)
Posted on 8/18/24 at 2:14 pm to JonTigerFan11
It’s not just to avoid probate. It’s for liability protection as well in case he’s ever sued for whatever reason.
Posted on 8/18/24 at 3:54 pm to UltimaParadox
Posted on 8/18/24 at 4:46 pm to SuckerPunch
He also likely has multiple income streams. I’m not sure how it’s done these days with coaches, but in the past only a portion of their salary came from the school and another portion from their endorsements and other contracts.
It’s possible he is living off one income stream and everything in his trust is for long term family planning and liability mitigation.
It’s possible he is living off one income stream and everything in his trust is for long term family planning and liability mitigation.
Posted on 8/18/24 at 6:48 pm to Shepherd88
quote:
It’s not just to avoid probate. It’s for liability protection as well in case he’s ever sued for whatever reason.
In the case of a garnishment, would this strategy work? Just asking out of pure curiosity.
I remember IndyCar driver Helio Castroneves doing something like this in the late 90s/early 2000s, when he was still with Roger Penske’s team. I can’t remember what the structure was, but I do remember him getting into a lot of legal trouble (taxes, I believe - but I can’t remember the facts or circumstances).
Posted on 8/19/24 at 7:06 am to SuckerPunch
Repeat after me…trusts are not an income tax shelter!!
Depending on how the trust has been set up, there could be creditor protection benefits or estate tax benefits, and even the estate tax benefits would be limited.
Depending on how the trust has been set up, there could be creditor protection benefits or estate tax benefits, and even the estate tax benefits would be limited.
Posted on 8/19/24 at 7:35 am to Jag_Warrior
The answer to that is always, maybe. Depends on how good your lawyer is but it at least gives another layer of defense that prosecution would have to go through.
Posted on 8/19/24 at 2:46 pm to Shepherd88
quote:
t’s not just to avoid probate. It’s for liability protection as well in case he’s ever sued for whatever reason.
Not a revocable trust
Posted on 8/19/24 at 4:03 pm to JonTigerFan11
quote:
He just has everything in a revocable trust because he wants to avoid probate. Which is telling because that likely means he has zero plans to remain in Louisiana (where due to the probate process you don’t need a revocable trust)
You don’t need one in LA, but there are good reasons to have one, particularly at his income level.
His income level meaning he has enough assets that setting up a trust in LA is probably worth it, not that there is some special tax benefit.
This post was edited on 8/19/24 at 4:05 pm
Posted on 8/19/24 at 4:26 pm to slackster
No idea what his family and marriage are like, but one reason to put equity into a trust would be preventing an divorce from taking half your money.
Posted on 8/19/24 at 4:33 pm to baldona
quote:
No idea what his family and marriage are like, but one reason to put equity into a trust would be preventing an divorce from taking half your money.
That in and of itself wouldn’t do you any good in LA as far as I’m aware.
There are no legal ways to really avoid community property without spousal consent. If there were, they’d be used all the time.
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