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Do I choose "Estate" or "Trust" EIN to open bank account for deceased grandma?
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Location: Los Angeles, CA
My grandma recently died and I am the trustee of her (now irrevocable trust.) She never proceeded with opening a trust bank account, but I've been told I can do it.
The reason I need to open a Trust bank account is because I'm selling her house, and need to use the money to pay her debts. (The debts are more than her assets.)
Since the house I'm selling isn't in the trust (it's actually a mobile home, that we did a transfer on death beneficiary thing for,) and will be sold in my name, I don't want to get screwed by it looking like I'm profiting all that money from the sale of the house. (I'm poor and on welfare, I can't afford to get screwed like that.)
I was at the bank yesterday to talk about opening the trust account and he said i needed to get an EIN to open the account.
When I go on the SS website it askes if I need an "Estate" ein or a "Trust" ein.
Here's what SS says about each:
Estate
An estate (or decedent estate) or succession is a legal entity created as a result of a person's death. The estate consists of the real estate and/or personal property of the deceased person. The estate pays any debts owed by the decedent, and distributes the balance of the estate's assets to the beneficiaries of the estate.
Trusts
A trust is a legal entity that is created under state law and is taxed under federal law. The trust can be created to perform one act or a series of acts.
An irrevocable trust is a trust in which the grantor has no control of the trust (trust cannot be repealed or annulled) and the trust will be responsible for reporting income on Form 1041 (U.S. Income Tax Return for Estates and Trusts).
They both sound right, but I can only pick one.
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Hey guys I’m a Crypto Bro 26M after this bull cycle I’m projected to make 1.2mill after taxes. Im looking to play defense here no kids no wife should i get into real estate or the stock market? I want to generate bare minimum 8k per month passively within 10 years. Im more familiar with stocks but im willing to take a chance will real estate i have a keen eye when it comes to investments. Majority of you guys have more experience than me so which asset class will accomplish my goal within 10 years?Also let me know if my goal is too ambitious! 🙏
Top Comment:
given your age, you would want to look at something closer to a 3% safe withdrawal rate if you want this to generate income. so $1.2m would generate $36k per year, so $3k per month. If you want to get $8k per month, you would need about $3.2m. Going from $1.2m to $3.2m in 10 years would require a 10.4% ROI per year. That is more or less what would be expected given the market has historically returned about 10% per year on average.
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So we currently own and live in a townhomr with roughly $100k equity. We loved apartment style living and would love to go back to it. We have roughly 100k also saved up for another down-payment.
One option is to look for an apt and rent out the townhome with property management company. We likely make a few hundred per month taking into account PM fees, repairs, unoccupied months etc. I will mention the home is in a high demand area. We invest the 100k or so amount that would have been used in a down-payment in some type of index fund.
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