What is a non adverse party?
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What is a non adverse party?
Code section 672(a) defines an adverse party as “any person having a substantial beneficial interest in the trust which would be adversely affected by the exercise or non-exercise of the power which he possesses respecting the trust.” Subsection (b) simply defines non-adverse party as anyone who is not adverse.
What is an independent trustee?
A trustee who is not related to the beneficiary of the trust and does not stand to inherit any property under the trust. Independent trustees are preferred when family members are likely to disagree over management of the trust.
Who is a related or subordinate party?
Section 672(c) defines the term “related or subordinate party” to mean any nonadverse party who is (1) the grantor’s spouse if living with the grantor; or (2) any one of the following: the grantor’s father, mother, issue, brother or sister; an employee of the grantor; a corporation or any employee of a corporation in …
Who is the owner of a grantor trust?
A grantor trust is a trust in which the individual who creates the trust is the owner of the assets and property for income and estate tax purposes. Grantor trust rules are the rules that apply to different types of trusts. All grantor trusts are revocable living trusts, while the grantor is alive.
Who can act as a trustee?
Who can be a trustee? A trustee, the person who manages the money and assets in a trust, can be almost anyone. A grantor appoints a trustee when they create the trust. In many cases, the person who creates a revocable living trust, also known as the grantor, settlor, or trustor serves as trustee.
What are the responsibilities of a trustee in a trust?
The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.
How much does a trustee of a trust get paid?
The Trustee can pay themselves from the trust funds based on the terms of the trust or the state’s laws. Some trusts stipulate hourly or flat fees for trustee duties. Professional trustees can earn over $100 per hour, while corporate trustees make 1-2% of the trust’s assets as annual compensation.
