Are you covered by an employer retirement plan? Many think they have an employer retirement plan, only to realize it is actually something different. You want to really hone in on the Internal Revenue Service definition of one of these retirement plans to make the determination if you meet the criteria or not. You can […]
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Ever hear of a social savings club? Do you have an idea as to what type of organization this is all about? Have you ever wanted to get a group of folks together to save money towards a common goal? If so, you probably thought about a social savings club. A social savings club is a […]
When an individual wants to make sure that their final arrangements are covered, they can set up something known as a Qualified Funeral Trust. Final arrangements can be many tens of thousands of dollars, and many don’t want to place this burden on their family. Through a Qualified Funeral Trust, they can prepay for their final […]
A charitable remainder annuity trust requires a separate tax ID because it no longer reports its taxes under the original grantor, nor does it report its taxes under beneficiaries. Luckily, an EIN isn’t difficult to get, and the EIN will usually be acquired when the trust account is opened. Any trust account that is no […]
What is a Charitable Remainder Annuity Trust? | IRS Definition of a Charitable Remainder Annuity Trust
29
Oct
2021
Under a charitable remainder annuity trust, a grantor places an asset or assets within a trust controlled by a trustee. This trust account pays out a certain amount as income to a designated beneficiary. Once the grantor passes on, the remaining assets are given to a charity of choice. What Are the Benefits of a CRAT? […]
What is a Settlement Fund (under IRC Sec 468B)? | IRS Definition of a Settlement Fund (under IRC Sec 468B)
19
Oct
2021
A settlement fund is a fund formed when an entity, generally a business, must pay out a settlement to a number of different individuals or entities. This often occurs during a class action suit, when a single company needs to pay out multiple people Forming a settlement fund makes the process of managing the settlement itself […]
Does a Receivership need a Tax ID (EIN)?
7
Oct
2021
When a company goes through a disruptive financial process, such as bankruptcy, its often placed under receivership. Under receivership, another individual (known as a trustee) manages the company. The trustee’s goals are to manage the company in its best interests while also ensuring that all debts that can be repaid are repaid. The trustee is a […]
Does an Escrow need a Tax ID (EIN) Number?
28
Sep
2021
During an escrow period, funds are held by a third-party before disbursement to the other parties. For escrow to be safe for all involved parties, those who have contributed funds to the escrow company cannot have access to those funds. Consequently, the escrow company is going to need to create an entity that has a separate […]
When an individual, family, or other entity places assets into a trust, and then that trust provides income to the donor as well as a charity, it’s known as a pooled income fund. A pooled income fund is a way for a donor to gain a steady income from their assets while also giving to […]
A type of mutual fund, a pooled income fund occurs when numerous assets are pooled together within a single fund for the ultimate benefit of charity. During the donors’ lifetimes, income is given to them from the fund. After the donors have passed on, the assets pass on to charity. A pooled income fund therefore manages the […]