OfflineHi everyone,
I'm looking for the trust experts out there. I will be calling the academy, but thought that it should be posted on DG somewhere for other people's benefit.
I'm filling out the paperwork for the TIN for my trust to close my first deal, and there is a new way to fill out the form as of January 2010, where you need to put the responsible party. There is also a separate area for the trustee. Now, the way I've structured my trust, I have my trustee, who is delegating all the management to my company at the director's direction (me), and my company as well as 10% of the original grantor (seller) are the beneficiaries.
My question is, do I use a.) the trustee as the 'responsible party' or b.) the one who is managing the property, or c.) the grantor, or d.) the director?
This is what they described the the directions as 'the responsible party':
For all other entities, “responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party."
The academy didn't know the answer. I've managed to stump them again!
So, I'm hoping someone here knows the answer!
Best to you!
It is CERTAIN we will SUCCEED!!!
Why do I always come up with these odd questions? LOL
Anybody?
Hoping there's someone out there!
?
1st thing to do is check with real estate attorney - where U live & work.
They should know more than DG family or non-legalese people.
Invite an attorney to join UR team.
Alex B.
Rich people choose to get paid based on results.
Poor people choose to get paid based on time.
T.H. Ecker
Thanks for the reply alexbee! Lawyers scare me! I mean, not really, but the last one I had at the beginning of my journey was all nice, we did a lot of small talk, didn't discuss anything business other than the types of things I would need him to do (read over my documents, and give advice when needed), I reiterated stuff I'm looking for in an attorney. Ok, that's fine, but a month later, I got a bill from him for talking to me. This is what gives lawyers a bad name. The guy didn't even know what a land trust was either. Go figure!
Anyhow, I'm doing the trust in NV or WY, but this is a federal issue and its a fairly simple form, but the IRS directions are as clear as mud on this new field! I've taken an extensive course on land trusts, and this is new info as of Jan 2010, the course was recorded before that time. I was hoping someone here that uses them regularly would know the answer to this as its pretty basic to someone who does trusts regularly.
Kimmy J, are you out there?