Lex Armarum
Ultimate Member
- Oct 19, 2009
- 3,450
I just want to set the record straight...
The only advice I give to any client is that an EIN is useful if your taxation situation warrants it. I advise clients that they can use their SSN if they want to but, as I am not a financial advisor nor am I retained to provide detailed tax liability analysis and advice, folks with questions should consult professionals licensed in these matters. Time is money and too many people want me to spend an inordinate amount of time explaining things to them without paying me for my time. I have never advised a client that an EIN was NECESSARY and I've always provided documentation to clients that fully explains my recommendations and the reasons underpinning those recommendations. I also notify all clients that our fee agreement does not contemplate tax advice and that the client will have to contact the appropriate professional if the client wants detailed advice in those matters.
Some banks require EINs if you want to open a checking account for your trust (please note that I said CHECKING ACCOUNT not TRUST ACCOUNT). Some banks will accept a grantor's SSN as the EIN. I can't change those facts. As for why I recommend a separate bank account, I recommend a separate bank account because it provides a way to separate out trust property from personal property and avoids issues with co-mingling should the trust be challenged in court. It also provides a means for individuals to track expenditures associated with the trust. As a litigator, I always view legal matters through the prism of what happens if this document ends up in court. Unfortunately, too many attorneys who are not litigators fail to take these factors into consideration and set their clients up for failure as a result. I'm sure that the "legal experts" in this thread understand the doctrines of merger and intent to create a trust.
As for Anderson76, he likes to pretend he knows my reasoning then proceeds to trash me because I challenged him at one point. Unfortunately, he almost always misunderstands my reasoning or misses the point entirely but I doubt that matters to him. As a result, much of his critique of my advice is the very trash that he describes. Reality, as opposed to his wishful thinking, guides my advice to clients.
I will note a point of order. NO ONE in this thread who has critiqued or criticized my recommendations in this matter has bothered to contact me to request an explanation. Oh I love character assassination on the interwebs.
The only advice I give to any client is that an EIN is useful if your taxation situation warrants it. I advise clients that they can use their SSN if they want to but, as I am not a financial advisor nor am I retained to provide detailed tax liability analysis and advice, folks with questions should consult professionals licensed in these matters. Time is money and too many people want me to spend an inordinate amount of time explaining things to them without paying me for my time. I have never advised a client that an EIN was NECESSARY and I've always provided documentation to clients that fully explains my recommendations and the reasons underpinning those recommendations. I also notify all clients that our fee agreement does not contemplate tax advice and that the client will have to contact the appropriate professional if the client wants detailed advice in those matters.
Some banks require EINs if you want to open a checking account for your trust (please note that I said CHECKING ACCOUNT not TRUST ACCOUNT). Some banks will accept a grantor's SSN as the EIN. I can't change those facts. As for why I recommend a separate bank account, I recommend a separate bank account because it provides a way to separate out trust property from personal property and avoids issues with co-mingling should the trust be challenged in court. It also provides a means for individuals to track expenditures associated with the trust. As a litigator, I always view legal matters through the prism of what happens if this document ends up in court. Unfortunately, too many attorneys who are not litigators fail to take these factors into consideration and set their clients up for failure as a result. I'm sure that the "legal experts" in this thread understand the doctrines of merger and intent to create a trust.
As for Anderson76, he likes to pretend he knows my reasoning then proceeds to trash me because I challenged him at one point. Unfortunately, he almost always misunderstands my reasoning or misses the point entirely but I doubt that matters to him. As a result, much of his critique of my advice is the very trash that he describes. Reality, as opposed to his wishful thinking, guides my advice to clients.
I will note a point of order. NO ONE in this thread who has critiqued or criticized my recommendations in this matter has bothered to contact me to request an explanation. Oh I love character assassination on the interwebs.
