This document will guide you through setting up your trust to reflect historical gifting.
Once you've logged in to Trustworks, select the trust, click Assets and Liabilities.
In this example we have the following
- Robert & Victoria Nash
- Historic Gifting of House (Purchased in 2003 for $320000)
1. Creating the non bank facility
Who is providing money? Type the name of the Settlors separately, you can add additional notes if necessary. Amount or date is not necessary in this example.
For help in creating a non-bank debt facility, click here
2. Acquire Asset
How are you recording this transaction?
- As a purchase by the trust
What type of property is this?
- Real property (real estate)
How is the property being used?
- Non-income earning
How is it being paid for? Left Click Select Account, select the settlors (you created this before in non bank debt facility), enter the amount and click Add.
Both the Settlors are giving the property equally to the Trust. Robert Nash has already had $160,000 placed against his name, next we select Victoria Nash and put the balance against her name.
NOTE: By placing a note about the transaction in the dialogue window above, this reflect in the Debt and Gifting Report below.
Click Add, this is how it looks once completed.
"Out of Balance" must be $0.00
Once finished, click create
3. Gifting Process
Now we begin the gifting process.
Left click on "I would like to" which is located on the right of the screen. Under "Other Transactions" select "Forgive Debt (gifting)"
FORGIVE SOME DEBT
Which loan is being gifted down? Selected Robert Nash
- The name was created through "non bank debt facility"
- The amount shown is from what you entered in "Acquire an Asset". The amount will reduced as you go through the gifting process.
How much is being forgiven? Select the amount, here it is $27000
Date of forgiveness? Select the appropriate date, example here is 15 May 2003
Any additional details - enter as appropriate
Continue this process until you have completed the gifting for all parties
4. Gifting Completed
Once you have completed the gifting process the assets and liabilities should look something like this
Account Transactions - Loans/Gifting
Reports - Debt and Gifting