Legal Question in Wills and Trusts in New York
trusts
My mother's grave is on a 100'by 100'site of property valued at $30,000.00 My father is elderly and wants to put it in a trust so nothing happens to it ever. The trust would have a company name and would include him,myself, and five siblings. Two of the siblings would act as trustees to collect money for taxes and upkeep,ins. etc. We could make our own bylaws that would include , noone could sell the land (it is not for money making), if someone did not want to be part of this, they would simply not be put in the trust. My question, since we have a company name we want, is that company forced to file with the state? Is there a state or federal tax to pay? Does each person have to declare anything? What kind of form do we use?
2 Answers from Attorneys
Re: Use a Trust
I would not incorporate or use a LLC or similar entity. I would merely recommend a family trust into which the land could be placed by Deed. The beneficiaries could enter into an agreement as you propose, or the trust could contain language, to the effect that the property is to remain in the family and that anyone contributing to the costs of upkeep are primary beneficiaries, with new family members coming into the trust as soon as they reach adulthood. No annual maintenance costs will be incurred for the trust (minimum taxes to maintain the entity existance are levied against corporations, LLCs and the like) and the trust could pass through the taxes, insurance, etc., contributed to cover expenses, as expense deductions (almost a wash out for the contributing beneficiairies for their income tax purposes). Since the trust will have no income (unless some perpetual care fund was established - which might be a good idea) and the interest would be offset by the taxes, etc., no tax returns or minimal tax returns, but no taxes due, would be required. I can assist you in creating the trust if you desire.
Walter (973)-377-3313
Re: trusts
Your father can transfer the parcel to a charitiable organization and the charter will describe the purpose of the organization.
The organization can be a corporation (not for profit) or a trust.
The document can appoint the initial managers of the parcel, directors of a corporation; trustees of a trust fund.
The organization can obtain tax exempt status from the Internal Revenue Service.
Annual forms will have to be filed and annual contributions to charities, based on a percentage of the value of the fund, will have to be made by the organization.
The organization can have perpetual existence.
This can be accomplished by your father during his life or pursuant to his Will.
It may be impossible to prevent the sale of the parcel in the distant future.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
