Trust Information Fact Sheet

Trusts - Irrevocable, All Including Life Insurance

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Question or Topic

You may contact Bob Parrish by email, USA Mail, Fax, telephone or request a meeting

The Question:

If I do not have a copy of the trust instrument, cannot get a copy or do not want to furnish a copy of the trust instrument - what is the minimum and essential information needed to prepare the tax return?

Objectives

	The Answer

In addition to reducing the preparation procedures, providing access to the trust instrument will assist with compliance and computation procedures. A fact gathering sheet is reproduced in the solutions section. Although the work can be performed for you in much less time both for you and for me by furnishing a copy of the trust instrument the fact gathering form is made available to you to serve the purpose of the copy of the trust instrument.

If the IRS makes a decision to observe your trust instrument and trust bank records it will accomplish its decision. If for some reason it cannot observe the trust instrument, in all probability, it will disregard the trust and charge income taxes, gift taxes and estate taxes plus the additions to tax and interest and penalties. The IRS has the authority to issue an Administrative Summons and if it chooses to petition a Court and issue a subpoena for the records. The IRS can issue either the Summons or request the Subpoena be issued to third parties, such as insurance agents, banks, loan officers, credit reporting agencies and any other third party it chooses. You have very limited protection to quash either process. Information that you possess. Information in the possession of the following has protection (the amount of protection will vary):

Yourself
Your CPA
Your lawyer

Information in any other person's possession is open for discovery - including brokers, insurance agents, financial planners, bookkeepers, banks, discount brokers and others - the list of parties that can be summoned or subpoenaed is infinite.

	Solutions

Solutions are dependent upon facts & circumstances, law and the objectives. These elements vary from one time to another, from one circumstance to another and from person or entity to another.

Kit to Prepare for Your Adviser

Print this page and write in the responses that apply

If the requests are sufficient, I may program this to be a form which can be filled in online (without accumulating information on the web host), print the sheet and click a button to submit the sheet by email to me.

TRUST INFORMATION SHEET

Have client complete Letters of Instruction form:

Date: _______________

Name of Trust as shown in the trust agreement:

______________________________________________

Federal Taxpayer Identification Number as shown on the SS4:

______________________________________________

What was the date of the initial funding of the trust:

______________________________________________

Trustor's name on birth certificate:
Usual Name:
Alias, nicknames, or other names trustor has been known by:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Identity of trustor's Family :
Spouse:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?


Previous spouse:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?
Children and stepchildren:
Name:
Address:
Birth date:
Share of income
Share of corpus
Life estate?
Social Security No.:


Identity of Deceased Children:
Name:
Birth date:

Other Beneficiaries [list each]:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?

Disposition of Property:
Specific Bequests: [list]
Property to Spouse: [list]
Property to go to Children if Spouse is Deceased: [list]
Per Stirpes: or Per Capita:
Other Beneficiaries: [list]
Name:
Address:
The following will be shared equally among all beneficiaries:
Share of income
Share of corpus
Life estate?



Independent Trustee:
First Choice:
Name:
Address:
Phone No.:
Second Choice:
Name:
Address:
Phone No.:
Third Choice:
Name:
Address:
Phone No.:
Guardian:
First Choice:
Name:
Address:
Phone No.:
Second Choice:
Name:
Address:
Phone No.:
Third Choice:
Name:
Address:
Phone No.:
Date Trust Instrument Executed:
Place of Execution:
Location of Original Trust Instrument:
Date Client given letters of instruction:
Trust Tax and Trust Terms:
Name of Notary:
Date Notary's commission expires:
Other:
Is the trust irrevocable?
Does the trustor retain any rights to the income?
Does the trustor retain any rights to the corpus?
Does the trustor retain any rights to change or direct the trustee?
Are there any alternate trustees?
What powers and what responsibilities does the trustee possess? [list]
What powers and what responsibilities does each alternate trustee posses? [list each individually with a full description for each alternate separately]
Is the annual income allowed to be distributed to the beneficiaries?
Is the annual income required to be distributed to the beneficiaries?
Can corpus by distributed? [list and define all circumstances]
Is there a spendthrift clause?
List the initial funding
Is the trustor or is there provision for the trustor to make future premium payments if this is a life insurance trust, or make transfers in future years?
List each individual transfer to the trust, each premium payment, each transfer of property, or any other transaction for or for the benefit of the trust. The list must show – the date, the current market value, the trustor’s cost, the trustor’s tax basis and a description of the property (or money) transferred.
Furnish copies of all documents relating to real estate or any other property for which there is title or other ownership documentation.
Furnish all bank statements, canceled checks and any other information to compute the administrative costs, distributions of income and corpus, record transfers to the trust, and any other circumstances that may apply.

TRUST INFORMATION SHEET

Have client complete Letters of Instruction form:

Date: _______________

Name of Trust as shown in the trust agreement:

______________________________________________

Federal Taxpayer Identification Number as shown on the SS4:

______________________________________________

What was the date of the initial funding of the trust:

______________________________________________

Trustor's name on birth certificate:
Usual Name:
Alias, nicknames, or other names trustor has been known by:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Identity of trustor's Family :
Spouse:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?


Previous spouse:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?
Children and stepchildren:
Name:
Address:
Birth date:
Share of income
Share of corpus
Life estate?
Social Security No.:


Identity of Deceased Children:
Name:
Birth date:

Other Beneficiaries [list each]:
Name:
Address:
Phone No.:
Age:
Birth Date:
Social Security No.:
Share of income
Share of corpus
Life estate?

Disposition of Property:
Specific Bequests: [list]
Property to Spouse: [list]
Property to go to Children if Spouse is Deceased: [list]
Per Stirpes: or Per Capita:
Other Beneficiaries: [list]
Name:
Address:
The following will be shared equally among all beneficiaries:
Share of income
Share of corpus
Life estate?



Independent Trustee:
First Choice:
Name:
Address:
Phone No.:
Second Choice:
Name:
Address:
Phone No.:
Third Choice:
Name:
Address:
Phone No.:
Guardian:
First Choice:
Name:
Address:
Phone No.:
Second Choice:
Name:
Address:
Phone No.:
Third Choice:
Name:
Address:
Phone No.:
Date Trust Instrument Executed:
Place of Execution:
Location of Original Trust Instrument:
Date Client given letters of instruction:
Trust Tax and Trust Terms:
Name of Notary:
Date Notary's commission expires:
Other:
Is the trust irrevocable?
Does the trustor retain any rights to the income?
Does the trustor retain any rights to the corpus?
Does the trustor retain any rights to change or direct the trustee?
Are there any alternate trustees?
What powers and what responsibilities does the trustee possess? [list]
What powers and what responsibilities does each alternate trustee posses? [list each individually with a full description for each alternate separately]
Is the annual income allowed to be distributed to the beneficiaries?
Is the annual income required to be distributed to the beneficiaries?
Can corpus by distributed? [list and define all circumstances]
Is there a spendthrift clause?
List the initial funding
Is the trustor or is there provision for the trustor to make future premium payments if this is a life insurance trust, or make transfers in future years?
List each individual transfer to the trust, each premium payment, each transfer of property, or any other transaction for or for the benefit of the trust. The list must show – the date, the current market value, the trustor’s cost, the trustor’s tax basis and a description of the property (or money) transferred.
Furnish copies of all documents relating to real estate or any other property for which there is title or other ownership documentation.
Furnish all bank statements, canceled checks and any other information to compute the administrative costs.