How does KissTrust Work
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Collect the required information. Printable list of data.
When you are ready to start creating your KissTrust, simply click on the "Start Now" located on the right to begin. At any time during the process, you may stop and save your work, and then return at a later time to continue establishing the trust.
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There is no maximum contribution. Additionally, KissTrust contributions may be made at any time and by any person at no additional cost.
Annual contributions in excess of the current annual gift limitation ($12,000 for an individual, $24,000 for an individual and his or her spouse) may have gift and estate tax implications. Consult your attorney or financial advisor for details.
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None. Additional contributions can be made at any time at no additional cost.
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Yes. Anyone...a parent, grandparent, or other family and friends may contribute to a KissTrust with no additional cost.
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No. KissTrust provides a complete "turnkey" service, including the trust documents required to establish and secure the trust. These documents have been prepared and extensively reviewed by top attorneys and financial experts. As a part of our service, a law firm produces your trust documents at no extra cost to you. Why reinvent the wheel? Use the legal fees you save - from $2,000 to $10,000 - to fund the KissTrust!
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There are many ways to save for your children, but none have all the features of KissTrust.
- Other tax-deferred investments cannot be funded with gifts to children
- Without a properly constructed trust, assets are not protected from divorce, bankruptcy and creditors
Compare these and other features here:
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By design, the KissTrust is very cost effective.
- A one-time setup fee of $199 for the first KissTrust and $99 for each additional KissTrust
- KissTrust, Inc., charges no direct ongoing administration fees
With KissTrust, there are no additional attorney, investment advisor, CPA or other professional fees, so you save thousands of dollars in start-up and administration costs. This increases the KissTrust benefit, makes small trusts possible and leaves you with more funds to contribute to the KissTrust.
In fact, for less than what you would spend with an attorney just designing a custom trust - you can fully fund a KissTrust.
Related Costs:
Tax-Deferred Variable Annuity. To help you better understand the applicable fees, we encourage you to read the related prospectus carefully.
After Tax Mutual Fund. To help you better understand the applicable fees, we encourage you to read the American Century prospectus or the Fidelity Advisor prospectus.
Important Notice: A Form 1041 tax return will be required for any trust utilizing the after tax investments.
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When you set up a KissTrust the investment option you select determines the tax treatment of the trust.
Tax-Deferred Investments (Annuity)
As indicated, these investments grow tax-deferred so there is no need for the KissTrust to file a tax return or pay any taxes.
Taxes are due upon withdrawal of assets from the annuity.
This option also keeps the operating cost of the trust low. In addition, the tax-deferred option allows the trust to grow to a greater long-term value as taxes do not diminish the assets of the trust.
After Tax Investments (Mutual Funds, etc.)
A tax return is required annually for any trust that has either:
- Any taxable income for the tax year, or:
- Gross income of $600 or more (regardless of taxable income).
KissTrust will prepare a signature ready trust tax return (Form 1041) upon your request for a small fee or you may prepare the return yourself at no charge.
Important Note: DO NOT include the taxable income on your personal tax return or file a return treating the income as personal income of the Beneficiary.
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The trust assets are held directly by the investment firm of your choosing, either:
- Nationwide’s, The BEST of AMERICA® America's FUTURE Annuity® II;
- Fidelity Investments, Inc.; or
- American Century.
The trust assets are NEVER held by KissTrust. Assets are NEVER co-mingled with any other trust. Each trust has its own separate entity with its own Federal tax identification number; the trust in fact owns the assets so each trust's assets are safe, secure and protected from claims.
Assets are also protected from theft and unexplained loss with unlimited fidelity bond coverage (theft). Also, KissTrust, Inc. clears all of its trades only through members of the National Association of Securities Dealers (NASD) and Securities Investor Protect Corporation (SIPC) providing all KissTrusts with the additional oversight and protection that those agencies provide. KissTrust utilizes an outside third party compliance department. Each KissTrust is subject to ongoing account and transaction audits assuring that every transaction is proper.
As previously mentioned, each KissTrust's assets are held in a separate account in custody directly with Fidelity Investments, Inc. and American Century (mutual fund options) or Nationwide Life Insurance Company (variable annuity option). Your contributions are never directly held by KissTrust, Inc.
In summary, your trust’s assets are never co-mingled with the assets of any other trust. The assets are always protected and are never subject to the claims of any other third parties or loss by theft.
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You can. However, there is significant expense, risk and complexity replicating the work making KissTrust a secure, smart tool. We've taken care of the heavy lifting for you by:
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Designing the special purpose trust document
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Building in tax-deferred growth (if the KissTrust is invested in a tax-deferred variable annuity)
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Providing for multiple investment options
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Tax-deferred annuity option
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Nationwide
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After-tax mutual fund option
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Fidelity Advisors
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American Century
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Creating the asset protection structure
- Providing ongoing independent trustee and administration support
- Allowing for early distributions, if desired
Establishing and maintaining a trust is time-consuming, complex and expensive. That’s why historically, only the wealthy could afford the advantage of trust investing. KissTrust makes trust investing now affordable for the rest of us.
Do it Yourself Trust
KissTrust
The Trust Document
$2,500 - $5,000 plus $500/year; $25,000+ for very complex trusts
Under $200
Time to Establish
Days to weeks; meetings with legal, financial, tax, etc. advisors
20 minutes online
Asset Protection
Varies by state, can lose 50% of assets
Yes, subject to changes in state laws
Monitor and respond to asset protection and tax laws
Pay lawyer, CPA or trust company as necessary over time, or risk loss
Included for life
Protection from improper Use of Assets
Improper use could incur personal fiduciary liabilities and costs
Included for life
Tax filings
Annual Federal and State returns, possibly other forms
Not required for annuity. May be required for mutual fund option
Annual administration time
Significant. The IRS estimates 100+ hours (10x the 1040 estimate) to file 1041 trust tax return alone.
Independent Trustee (required by IRS)
Minimum fees of $2,500 or more per year, potential tax implications
Included for life
Annual Trustee Report to Beneficiary
State laws mandate an annual report that the Trustee must satisfy. If Self Trusted, this report can take hours to prepare.
Included for life
Tax Identification Number
Trust must apply and file for its own Federal Tax Identification number.
Included
Self Trusted by Grantor or family
IRS will tax trust income at Grantor’s highest personal tax rate
N/A
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