Trusts with LLC as beneficiary

[Ben Stout]

If you have a trust in which your LLC is the beneficiary, is it possible to commingle funds?

From what I've read the trust is the owner of the property and you need a trust bank account, etc... but trusts generally allow personal funds to be mixed. LLCs of course do not.

If rents go from your property manager to your ABC, Trust... do they then need to be distributed to the LLC which is only disclosed within the highly-guarded trust paperwork? Or is the LLC only a beneficiary and it's the trust operating as the business?

[Steven Hamilton II]

Ben Siegelbaum,

Remember the KISS method... Don't over complicate your situation if you don't have to. A Land Trust is a disregarded entity in most places. The trust's beneficiary (the LLC) is essentially the owner of the land trust. So the LLC and the land trust can commingle funds. Then if your LLC is a disregarded entity(Even if owned by your living trust) then you include the property on your tax return so yes, you could technically commingle funds all the way through.

I don't recommend commingling any further past your LLC due to piercing the veil issues.

-Steven the Tax Guy