Affluent individuals living in the United States often use a U.S. revocable living trust (RLT)for estate-planning purposes. Such a trust provides confidentiality and flexibility in how assets are managed, as it eliminates the specter of probate.

A revocable living trust is transparent for U.S. income, gift and estate-tax purposes. The individual who transfers (settles) property to the trust is also its trustee and beneficiary. The trust is considered a U.S. grantor trust, which is ignored for U.S. income tax purposes. All income, losses and expenses are claimed on the individual’s personal U.S. tax return.

Moving to Canada: Canadian tax issues and administrative burdens

For individuals moving to Canada (both Canadian and U.S. citizens), continuing to hold a U.S. RLT will present tax and administrative challenges. Under Canadian tax laws, once the trustee(s) become residents of Canada, the trust will be considered a separate taxable entity and will be treated as a Canadian resident trust. This will then require the trustee(s) to not only file a Canadian Trust return but also to pick up all of the income earned by the trust on their personal Canadian and U.S.  tax returns.

Although foreign tax credits can be used to reduce and/or eliminate double-taxation issues, continuing to hold the U.S. RLT complicates tax filings. Further, the trust would have both a Canadian and U.S. cost basis that would have to be tracked and reported. The Canadian basis would be equal to the value of the assets within the trust on the day the trustee(s) moved to Canada. The U.S. cost basis would be equal to the original value of the assets at the time they were acquired.

In some cases, an exception exists under Canadian tax law that allows the taxpayer to deem all the income and capital gains/losses associated with the trust property as taxable to the taxpayer as an individual, effectively making the trust disregarded for both U.S. and Canadian tax purposes. Under this exception, there would be no double taxation on income earned by the trust during the taxpayer’s lifetime.

Double Taxation at Death

Double taxation issues become a greater concern if the trustee happens to die as a Canadian resident after the trust had been in existence for 21 years. Under this scenario, the trust would form part of the trustee’s estate and, depending on the size of the estate, U.S. estate tax could be payable. In Canada, the trust would also be taxed once the assets were soldon or after the 21^st year anniversary of the trust. There would be no foreign tax credits available to offset these two taxes, which could result in double taxation.

Subject to Canadian departure tax

Meanwhile, U.S. citizens temporarily living and working in Canadacould be subjected to departure tax on their trust when they return to the United States. U.S. citizens are afforded a five-year period (See article: “Americans Exiting Canada: Understanding the Five-Year Deemed Disposition Rule”) living in Canada in which they are not subjected to Canadian departure tax upon a return to the United States. As stated earlier, because the trust is considered a separate legal entity from a Canadian tax perspective, it would not be granted the same five-year exemption from exit tax because itis not a personally owned asset.

Financial institutions unable to hold or administer trust

An additional complication, unrelated to the tax issues outlined above, is the fact that most U.S.-based financial institutions will not hold a U.S. RLT once the trustee becomes a resident of Canada.

Most U.S.-based financial institutions are not registered and licensed to oversee a taxable (or trust) investment account on behalf of a Canadian resident, even if that individual is a U.S. citizen.Many individuals try to get around this regulation by registering the U.S. RLT to a family or friend’s U.S. address. Not only is it illegal to misrepresent your residency, but it could also create tax issues because the IRS and state will continue to receive tax slips showing you live at a U.S.-based address.

Although it is a great estate-planning tool for those residing in the United States, a RLT presents many tax and administrative challenges once you move to Canada. For those individuals intending to live in Canada for the foreseeable future, it would likely bewise to unwind the trust structure before or soon after arriving in Canada. This would prevent any adverse Canadian income-tax consequences.At Cardinal Point, we assist individuals and families moving from the United States to Canada with their financial, tax and estate-planning needs. If you are moving to Canada and own a U.S. RLT, we can advise you on whether it is in your best interest to keep the entity intact or close it down.

Cryptex is a neologism created for a 2003 book, The Da Vinci Code, by the author Dan Brown, which denotes the mobile vault used to conceal hidden messages. The term “cryptology” and the word “codex” are combined; it is an appropriate name for that system because it uses cryptology skills to encrypt information written on the scroll or codex contained. Justin Kirk Nevins was responsible for the first physical cryptex in 2004.

The cryptex is exactly like the lock that is used in the bicycle whereby tumblers align, and every cylinder slides apart if one arranges the discs to determine the right password “. Protected information can be concealed inside the cryptex inside a scroll of thin papyrus wrapped around a delicate vial of vinegar as a security measure: if the Password is not known, but the cryptex is attempted to open up, the vial breaks down, and the vinegar dissolves the pulse before reading it.

Can you open a cryptex without the Password?

You can’t open the box without the right Password with a “failsafe” or key. If you have to forget your Password or turn it into something you don’t know, the only way to open the box is to lock it, which would at least ruin part of the package.

Is cryptex for real?

Though there are many out there who believe that the cryptex is for real but, we still do not have any crucial evidence of the same.

How does a cryptex look like?

The (first) cryptex found in the novel The Da Vinci Code is called a stone cylinder consisting of five doughnut-style [marble] discs stacked on one another and connected to each other inside a delicate brass structure. The disc is grafted with the whole alpha and can be rotated to create various letter alignment combinations, including but not limited to words, initialisms, and anagrams, independently of the others.

Conclusion 

This was all you need to know about cryptex. Though many believe that they are for real, there are a lot of people out there who do not believe in the cryptex. There is no evidence of them being used in history to decode the passwords and send private messages. The cryptex came into existence with a popular movie and, after that, vanished. The church has no connection with it, and this also led the movie to be in a lot of contradictions and finally a ban on the same.

Are you looking for great mortgage rates in Austin? No matter what your financial background is, you can get a mortgage within your fixed budget only with a little bit of hard work. It is advised to make sure that the person looking for the mortgage has conducted thorough research in this field. It is important to do the research work so that they are able to compare the rates and then decide for themselves.

For people who are lazy, this article might be helpful. This article aims in bringing before the readers a compared rate, some information about the confirmation of mortgage loans, and about the second mortgage.

Mortgage rates

Mortgage rates in Austin often go through a frequent change. These changes need to be tracked for the benefit of those who are looking for the mortgage rates. The mortgage rates fall under four different categories – the 30years (3.083), 20 years (3.26), 15 years (2.848) and 10 years (2.966) of fixed-rate, and 5/1 (2.878), 7/1 (3.573), 3/1 (0) adjustable rates. In order to get a fair idea of the ever-fluctuating mortgage loans, it is important to do some research work.

Second mortgage

In order to arrange for the equity required for the home, many people are considering on the second mortgage.  There are two reasons which make these people think about a second mortgage.  Those two are as follows:

• First mortgages are priced according to the competition. There is no risk of first mortgages from the second mortgage.
• There is a minimal mortgage rates in Austin with the second mortgage. The risk is also lower than the debts which come without any kind of security.
• A second mortgage might be a good idea, but some research needs to be done in order to be able to make sure that the disadvantages of it do not conquer the advantages.

Conforming mortgage

Confirmation for a private loan especially comes from private lenders, but they are backed by the chartered agencies of the Federal government. Both lower classes, as well as middle class (in terms of income) people, are able to apply for the loan for buying a house. It has been seen that with the help of the federal agencies, the conforming mortgage is not as expensive as those which fall under the non-conforming mortgages and do not enjoy the backing of the federal. Thus mortgage rates in Austin might differ.

Many people think that tax must always be paid on the benefit from a term life insurance policy. That is not true. Tax is not always levied on the benefit. In specific situations, term life insurance does have tax consequences: for income tax and inheritance tax. On this page we show you what information we provide about the tax consequences of the term life insurance.

Wondering where you can find the cheapest term life insurance? Calculate and compare the premiums of many term life insurance policies online. Go for the track my taxes options now.

Income tax

A benefit from a term life insurance usually does not count as income and is therefore not taxed for income tax purposes.

Exception

There is an exception to this general rule. Your term life insurance premium may be income tax deductible. In that case, it must be a death insurance policy for a survivor annuity: a supplement to the income of your surviving dependents in the event of your death. If the premium has been deducted, the survivor’s annuity benefits are taxed.

Capital yield tax

In addition, the recipient of a benefit from a life insurance policy from that moment on may have more assets than is exempt in box 3. For example, a life insurance policy can lead to extra income tax. You can read more about these topics on the page Term life insurance and income tax.

Inheritance tax

In addition to income tax, there are many more taxes in the Netherlands. This is how we know the inheritance tax: tax that must be paid on inheritances. The payment of a term life insurance policy can also be (partly) subject to inheritance tax. We explain this to you on the page Term life insurance and inheritance tax.

• If the declaration has not yet been sent on time, a fine will follow. Anyone who cannot do anything about the fact that a declaration has not been made or not filed on time will not be fined.
• People who do not send a declaration at all will receive an assessment. The tax authorities then make an estimate of the amount on which tax must be paid.
• Tax authorities expect a few hundred thousand returns on Wednesday and Thursday. 

Offense fine

Anyone who has deliberately failed to file a report or made an incorrect or incomplete report on purpose can be fined.

In case of intent, the fine equates to half of the tax that had to be paid on the undisclosed amount. If it is gross negligence, the fine will be 25 percent. For example, there is gross negligence if someone has been reprehensibly careless or seriously negligent.

Savings

People who deliberately do not or incorrectly declare income from savings and investments in box 3 must pay a fine of 150 percent. In case of gross negligence, the fine is 75 percent. The person who is fined can lodge an objection. This can result in a lower fine or a remission. Correcting the declaration in time can also prevent a fine. Incidentally, reporting is not mandatory for everyone. This only applies to people who have received a letter about this, who have done paid work or have assets without the knowledge of the tax authorities.

When it comes to loans, you have made several choices to get the best out of it. Getting a loan is not a simple process. You have to consider various factors before going for a loan.

If you are a start-up owner in Singapore or want business finance, you need to consider various options. You need to watch for the best opportunity.

If you try to get a loan in haste without considering important factors, you might end up paying more money. The interest rate is the biggest factor you need to consider.

Before you sign any loan agreement, you need to read all the terms and conditions. Suppose you don’t understand any clause, research about it, or ask an expert. Don’t fall into a loan trap.

You need to thoroughly understand the loan process, take precautions, and go with the best available opportunity. You need to consider different factors when applying for a personal loan and business loan in Singapore.

Things to Consider Before Applying For a Personal Loan in Singapore:

It is very easy to get a personal loan. Because of this reason, people don’t put any thought before applying for it. But need to beware because this loan takes up more interest than any other loan.

You need to consider all these things before you apply for a personal loan Singapore.

• Reason for Loan:

You need to use personal loan money wisely. Don’t take the loan just because it is available. You need to take this loan only in emergency cases or urgent funding. You can use the money wisely by investing it in the stock market to get a higher return.

• Check Interest Rate:

Personal loans have a higher rate of interest. You need to check the banks that offer you this loan at a lower interest rate. The loan also changes as per the amount and risk.

• Fees and Charges:

There are lots of fees and charges that come with this loan. You need to check these charges and fees beforehand. You need to check the annual fees, late payment fees, and tenure change fees.

• Borrowing Limit:

You also need to check the borrowing limit with the bank. This type of loan has a low limit and less time period. You also need a good credit score and income statement to get this loan. The amount depends on the income.

• Funds Acquiring Time:

You can get this loan very quickly as there is less documentation. You can check with the bank the time needed for approval and disbursement of funds—the time changes as per bank. So go with a bank that gives you the loan in lesser time.

• Lender Behaviour:

Consider the behavior of the lender before applying for a loan. Some banks will harass you to get the money on time. They even use illegal methods for collection. Go with a bank that is trustworthy and avoid such practices.

• Early Repayment Charges:

If you want to settle the payment before the tenure, you have to pay early repayment fees to the lender. It varies from bank to bank.

• Credit Card Limit:

If you take the loan and credit card from a common bank, it will affect the limit. The bank will reduce your card limit. Check this thing with the bank.

• Credit Score: 

This loan can also affect your credit score. Confirm these things with the bank.

• Monthly payment:

You need to check the amount you have to pay every time to clear the loan. Check how much more you have to pay and then apply for the loan.

Things to Consider Before Applying For a Business Loan in Singapore:

It is one of the most common types of loans in Singapore. If you are running a business, you will need a loan from time to time. You can get a loan for purchasing land, factory, machinery, working capital, etc.

Getting a business loan is much more complicated than taking a personal loan. Because of this, you need to consider certain things before applying for a business loan.

• Loan Type:

There are many types of business loans available in Singapore. You need to check all the types of loans and match them with your requirements to determine the loan that is perfect for you. Here are the types of loans.

Merchant Cash Advance

Invoice Financing

Unsecured Business Term Loan

Venture Debt Financing

Business Overdraft

• Application Process:

It is quite difficult to apply for a business loan. It is a complicated process that includes lots of steps. You need to understand this process before going for the loan. You need to consider the ways by which you can apply for the loan.

• Documents:

The documentation process is quite strict. If you miss any document, they will reject your application. You need to check all the documents. You mostly need five major documents.

ACRA Business Information

2 Years NOA

CBS Report

2 Years Financial Statements

6 Months Bank Statement

• Types of Institutions:

The next thing you need to consider is the institution; most of the major institutions provide business loans. These institutions provide the loan.

Banks

NBF

P2P Lenders

Private Lenders

Family Offices

Each institution has different requirements. The interest rate, lending amount, and time differ from one institution to another. So choose the best option.

• Eligibility:

You need to check if you are eligible for the loan. Check all the criteria and make sure you fulfill them before applying.

• Rejection Cases:

There are many reasons why your loan application can face rejection. You need to understand all these reasons.

• Compare Loans:

You need to compare all the business loans in Singapore to get the best opportunity.

• Loan Amount:

Make sure the institutions provide you the amount of loan you want. It differs as per the institutions.

You need to consider these things before applying for a business loan and a personal loan. If you follow all these things, you can get the best possible loan as per your requirement.