Investment through Trust One of the agency closest to me (and Top 10 in Los Angeles according to some magazines) ...
Investment through Trust
One of my agency (and of the top 10 in Los Angeles, according to several magazines) connected me to a lawyer who deals with real estate investments through Trust.
Something like a pension in Israel, in America you can invest money through Trust. I already knew that, but it turns out that there are certain laws that are barely known to the public about the ability to invest through trust for an indefinite period.
The advantage? There is no taxation. at all. The profits are tax-free as long as they remain in trust. Even if the money is supposed to be taxed, and you invested it in trust, magic, no.
The disadvantage? The money is "locked". The trust can be used to pay most of the living and business expenses, increase the portfolio, and in the most severe case you have decided to spend money, profit, tax will be deducted as standard income tax. In other words, you have been saving for ten years and avoiding hundreds of thousands of tax dollars, you have decided to spend money - taxation will not cover all profits earned.
Sounds crazy to me. exciting. Anyone else has come across this phenomenon?
By the way, it is possible to open a trust to citizens of America by taxation, meaning there is no need for green card, only TAx ID number.
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From my experience and knowledge it seems to me that there is a mix of two concepts here.
In the United States, it is possible to make investments of capital located in the pension fund.
Pension funds are most often called IRA or 401K.
Most pension funds, like Israel, are managed by financial entities that manage the money and how it is invested. But you can also place the money in a way of self-management and then decide how you want to invest it, such as real estate. Usually, and depending on which channel the pension plan is in, the money accumulated within the pension fund is tax-exempt.
* Important: I am neither a pension expert nor knowledgeable in all the nuances - so do not take my words as advice and I may also be wrong, but what matters is the principle. *
In my experience TRUST is a kind of association. There are all kinds of TRUST in the US. I have purchased quite a few properties within TRUST.
As far as I know TRUST does not give tax exemption but there is a mechanism that incorporates what I have noted about a pension fund whose mode of execution is within TRUST.
If you have been able to follow and not be confused until now - well done.
Just saying that all of the above does not apply to Israel's tax system.
Isn't it called an IRA retirement account? We need to understand what this means for the tax authorities here in Israel. And don't forget that if you are not an American citizen (with real citizenship or a green card...not just a number for tax purposes) you risk inheritance tax..
Very interesting, follows
An interesting super subject that was not talked about enough. We would love to hear from your experience. Dani Beit-Or