I'm with Michael.As to Dee's question... in a rising market, owning real estate makes you money (on paper at least).

So as I see it the compensation is an area where questions can arise, I just proceed as to avoid questions by the IRS which makes life easier.

Any monies withheld are not meant to slap the hand of the contractor but cover financial losses arising from one partner failing to do their part.

When health issues arise, regardless of how well one is inusred, medical costs can dip into any estate.

Your only salvation might be owning a particular phase of the project that might be peeled away by lenders, but don't bet on it as the problems arise through the HOA of the PUD, if it is a PUD.As to slick thinking circumventing lending regulations....with multiple entities....bad idea.

Tender of the earnest money shall release Seller from anyclaims arising from this transaction."

Since this is from your father, if any claim arises you'd have to sue your dad who would then make a title insurance claim to defend your suit, and that would have issues being related but sometimes not, depends on the title insurance companies involved.

My thinking is not about tax treatment but to other issues that may arise and if payments were made to the trust I see no issues at all.

The problem arises when people simply have no idea where their money is going and who they owe what to...precarious indeed

I dont know where to start or what to do if certain situations were to arise.