What Is A Trust And How Many Are Available?
Putting assets into a trust can help prevent interpersonal conflicts and mismanagement of funds. Starting the process can seem overwhelming, though, just because there are so many kinds of available trusts. A law firm in Jacksonville counts 37 different types of trusts, classified by their purpose. For example, there are trusts for elder care and trusts for children’s future education, among many others. Another classification system recognizes only two kinds of trusts, revocable and irrevocable, depending on how easy it is to modify them. When choosing a business entity type, though, all trusts are the same.
Why Should You Apply for a Trust?
A trust is an entity (the IRS considers it a type of business) that keeps assets to be used in the future by a particular person or organization. The person or organization that gets to use the money is called the beneficiary. Meanwhile, other people, known as the trustees, are responsible for managing the trust and dispensing its funds to the beneficiaries. You might want to open a trust if you want to set aside money for your children’s or grandchildren’s education.
How to Apply for the Trust
Setting up a trust is just like how to start an LLC or any other type of business entity. The first step is to apply for a federal Tax ID number for your trust. This Tax ID number is called an employer identification number (EIN). You can apply for one online at the Gov Doc Filing website. It will only take an hour for Gov Doc Filing to send you the EIN number for your trust.
Setting up a trust is a financially wise decision. The Gov Doc Filing website makes it easy to establish a trust or other type of business entity.