The primary objective of this "arrangement" is for assets protection (liability purposes) and for estate planning purposes (avoiding probate):
An "S" Corporation* (2,000 shares issued)
Owners Shares Percent
My Living Trust 990 49.00%
My wife's Trust 990 49.00%
other relatives 20 2.00%
*I am the sole Director and President
Partners of the Limited Partnership
Type of Partner Percent
My Living Trust Limited Partner 99.50%
"S" Corp General Partner 0.50%
Assets in MY Living Trust Assets (which I am the Trustee)
99.5% Partner in the Limited Partnership
49% owner of the "S" Corporation
The assets that are in the LP are stocks and bonds that I transferred from my personal account into the name of the LP (which my Living Trust is a 99.5% Partner) and my questions is, how do I treat transfers that I made from my personal account and/or cash outlays of my personal funds to the Limited Partnership (for expenses such as Start-up legal fees, annual registration / renewal fees, the cost of the stocks and bonds that are now in the Living Trust?
I want to be repaid/reimbursed for these expenses / outlays, and would appreciate if you can advise me how to treat them on "the books" of Limited Partnership? Are they a loan, a contribution, or ?????? (something else).
Any help would be appreciated.
Thank you,
Bob
An "S" Corporation* (2,000 shares issued)
Owners Shares Percent
My Living Trust 990 49.00%
My wife's Trust 990 49.00%
other relatives 20 2.00%
*I am the sole Director and President
Partners of the Limited Partnership
Type of Partner Percent
My Living Trust Limited Partner 99.50%
"S" Corp General Partner 0.50%
Assets in MY Living Trust Assets (which I am the Trustee)
99.5% Partner in the Limited Partnership
49% owner of the "S" Corporation
The assets that are in the LP are stocks and bonds that I transferred from my personal account into the name of the LP (which my Living Trust is a 99.5% Partner) and my questions is, how do I treat transfers that I made from my personal account and/or cash outlays of my personal funds to the Limited Partnership (for expenses such as Start-up legal fees, annual registration / renewal fees, the cost of the stocks and bonds that are now in the Living Trust?
I want to be repaid/reimbursed for these expenses / outlays, and would appreciate if you can advise me how to treat them on "the books" of Limited Partnership? Are they a loan, a contribution, or ?????? (something else).
Any help would be appreciated.
Thank you,
Bob
