Hi All! Long time, no type! 
I wanted to ask this question here, with the hope that there are enough of us with the right knowledge that could help. It could span a number of different topics, but I identify it mostly as a matter of "Rebuilding Credit," as that's what I'm trying to do, and why I ask it.
As we all work as hard as we can to rebuild that credit, there is something that still gets in our way... that "bad credit history" of ours. All the "adverse" report entries that stay on the credit report for years, not to mention the bankruptcy itself that can stay on as long as 10+ years after the discharge. It makes it really difficult to do things like open new checking accounts, or rent apartments, or even apply for some jobs, as many of these activities will require a "credit check" as part of the application process. I know... it's "my fault." I got myself into this mess, I have to deal with it the best way I can.
Enter, the "Trust..." that financial vehicle a lot of wealthy people use to protect assets and hide them from other people, creditors, etc. etc. There's a lot of YouTube content out there on how to use them, create them etc., along with LLCs, and other things. There are land trusts, real-estate trusts, etc. The "Living Trust" is a rather important one for "Estate planning" as it can replace a Will and help you avoid probate. Not that I have a whole lot to "probate" at this point, but ya never know... I could always hit the mega-zillion dollar Powerball Lottery! When you create a trust, there are 3 entities involved, normally... the "Grantor" or Settlor, who creates the trust and funds it with cash and other properties. There is the "beneficiary," to which the proceeds of the trust will go to, eventually, and there is the "Trustee" who manages the trust and does all the transactions. They can be individuals or LLCs or any sort of entity.
My question: Could creating such a trust have the added benefit of shielding/protecting a grantor or beneficiary from the ill effects of their own "bad" credit history? Could the trust, for example, obtain its own Tax ID # (or FEIN) and then do things like open new checking accounts, based on that new tax ID#? The beneficiary would then be given access to the account, the ATM cards, etc. Or, would that not be permitted due to all the SOX and 9-11 legislation that requires an "individual" to act as a "fiduciary" and open any such checking accounts in their name and on their Tax ID # (Soc. Sec. #)? This, so they can "follow the money" and track any potential "terrorist" activity. I know that's how it works for "corporate entities" like an LLC. The LLC itself cannot open checking accounts, etc., as a corporate entity. The LLC must name a "registered agent" (an individual) who becomes the fiduciary and opens all the accounts on their tax ID and credit history.
At best, one could use a trust, per the above. At worst. one might need the "Trustee" to be the fiduciary and open the bank accounts on their personal Tax ID and credit history. Either theirs, or that of the "Registered Agent" of the LLC if an LLC is acting as the Trustee.
Please understand. No one is advocating or attempting anything "fraudulent," here. The objective is to be able to recover a bit quicker from that bad credit experience and start over again, rebuilding their lives.
Thoughts? Thanks!
I wanted to ask this question here, with the hope that there are enough of us with the right knowledge that could help. It could span a number of different topics, but I identify it mostly as a matter of "Rebuilding Credit," as that's what I'm trying to do, and why I ask it.
As we all work as hard as we can to rebuild that credit, there is something that still gets in our way... that "bad credit history" of ours. All the "adverse" report entries that stay on the credit report for years, not to mention the bankruptcy itself that can stay on as long as 10+ years after the discharge. It makes it really difficult to do things like open new checking accounts, or rent apartments, or even apply for some jobs, as many of these activities will require a "credit check" as part of the application process. I know... it's "my fault." I got myself into this mess, I have to deal with it the best way I can.
Enter, the "Trust..." that financial vehicle a lot of wealthy people use to protect assets and hide them from other people, creditors, etc. etc. There's a lot of YouTube content out there on how to use them, create them etc., along with LLCs, and other things. There are land trusts, real-estate trusts, etc. The "Living Trust" is a rather important one for "Estate planning" as it can replace a Will and help you avoid probate. Not that I have a whole lot to "probate" at this point, but ya never know... I could always hit the mega-zillion dollar Powerball Lottery!
When you create a trust, there are 3 entities involved, normally... the "Grantor" or Settlor, who creates the trust and funds it with cash and other properties. There is the "beneficiary," to which the proceeds of the trust will go to, eventually, and there is the "Trustee" who manages the trust and does all the transactions. They can be individuals or LLCs or any sort of entity. My question: Could creating such a trust have the added benefit of shielding/protecting a grantor or beneficiary from the ill effects of their own "bad" credit history? Could the trust, for example, obtain its own Tax ID # (or FEIN) and then do things like open new checking accounts, based on that new tax ID#? The beneficiary would then be given access to the account, the ATM cards, etc. Or, would that not be permitted due to all the SOX and 9-11 legislation that requires an "individual" to act as a "fiduciary" and open any such checking accounts in their name and on their Tax ID # (Soc. Sec. #)? This, so they can "follow the money" and track any potential "terrorist" activity. I know that's how it works for "corporate entities" like an LLC. The LLC itself cannot open checking accounts, etc., as a corporate entity. The LLC must name a "registered agent" (an individual) who becomes the fiduciary and opens all the accounts on their tax ID and credit history.
At best, one could use a trust, per the above. At worst. one might need the "Trustee" to be the fiduciary and open the bank accounts on their personal Tax ID and credit history. Either theirs, or that of the "Registered Agent" of the LLC if an LLC is acting as the Trustee.
Please understand. No one is advocating or attempting anything "fraudulent," here. The objective is to be able to recover a bit quicker from that bad credit experience and start over again, rebuilding their lives.
Thoughts? Thanks!
Bankruptcy Tutor
Bankruptcy Wizard
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