Legal Question in Wills and Trusts in Florida

LLC is a pass-through entity and doesn�t pay tax on any of the income/gain. It passes to the LLC members. Even though the income may be passed through to the members the cash may still remain in the LLC. This is how the CPA for the PR, informed us that we owed money on our taxes we never received. Is this legal, can you keep the money in an LLC and the PR spend it, and tell the others they owe the tax on the money they actually kept and spent? Is this legal or fraud? Then to add, they did not get the estate waivered, so now they've transferred back to the trust! My question is can you keep the money in an LLC and have the other beneficiaries pay the tax the whe the judge doesn't grant the PR their waiver, the PR transfers back to the trust?


Asked on 2/08/14, 5:21 am

1 Answer from Attorneys
Barry Stein De Cardenas, Freixas, Stein & Zachary

Phantom income is possible. Check with your account on how this affects you. With regard to the Estate issues, hire an attorney familiar with this area of law.

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Answered on 2/09/14, 11:28 am


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