LLC vs. Irrevocable Trust.

[Just On Time]

My brother is receiving SSI and I wanted to set either an irrevocable trust or LLC where he, his wife, and their 3 children would be beneficiaries or members in case of an LLC.

The purpose of this trust or LLC would be for short term trading, which would be done by a person who has been trading my other personal account.

What is the proper way to set this up and a better way. I don't mind giving up complete control of the money as my sister who lives in NY would be a trustee. I live in CT.

Thanks

[Peds]

What...?

[spiritrider]

Exactly, What the ....?

[xraygoggles]

This sounds like an ad lib, fill in random words between sentences... no offense.

[Larry Ragman]

If I understand the question correctly, you want the assets to be slated to support your handicapped brother and family. There are several ways to do that, including just setting up beneficiaries on the trading account. I can't see why an LLC would help, but the irrevocable trust would also get the assets out of your estate if you wanted to do that for other reasons like avoiding taxes. (Note the trust would still pay taxes on the trades, so not much advantage there since the trust is taxed at the highest rate.) If not, and you wanted someone to control the money for the family, you could also do a revocable trust. Bottom line here: this is a question that the Forum could have opinions about, but you really need to speak with an estate attorney preferably with your CPA in the room.

[Tim]

"The purpose of this trust or LLC would be for short term trading"!
The life expectancy of this account probably doesn't call for any structure at all. Not sure why you think you need an entity. Setup and account and your good to go!
The assets probably won't last long trading. Check with an estate attorney, CPA, and a FA is you want to create something for the family.

[Cubicle]

Just On Time [JOT] lives in Connecticut. His sister lives in New York. Sister is the trustee.

JOT’s brother is on SSI. JOT wants sister to day trade money for the benefit of the brother. But not in brother’s name as that may screw with his SSI.

So is an LLC or trust better for asset protection & transferability.
________________

Talk to a CPA and/or an estate attorney.

My brain hurts now.

[jfoxcpacfp]

Just On Time [JOT] lives in Connecticut. His sister lives in New York. Sister is the trustee.

JOT’s brother is on SSI. JOT wants sister to day trade money for the benefit of the brother. But not in brother’s name as that may screw with his SSI.

So is an LLC or trust better for asset protection & transferability.
________________

Talk to a CPA and/or an estate attorney.

My brain hurts now.

That’s interesting. My brain was leaning toward a SNT (Special Needs Trust). The day-trading and the “in case of an LLC” don’t make sense to me, though.

Need the OP to drop in to provide some clarity or we’ll need to close the thread.

[Peds]

closed until OP responds.
feel free to PM any of the mods to open Just On Time .