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carbur001
New Member

In a multiple (6person) member LLC with the co-manager members death in 2016, how do i change his shares (using his SSN) over to his trust with an EIN #?

 
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Accepted Solutions
Rick19744
Level 12

In a multiple (6person) member LLC with the co-manager members death in 2016, how do i change his shares (using his SSN) over to his trust with an EIN #?

A few comments:

  • You will need to complete a K-1 for the member who died through the date of death.  This income will be included on this individuals 1040.
  • You will then set-up a new K-1 for the trust and allocate the income / loss to the trust for the period post death.
  • From an internal book keeping perspective, you will transfer this individuals capital account balance over to the trust.  This needs to be done "after" the allocation of the part year income or loss.  This will zero out the capital account for the individual and "transfers" it to the trust.
*A reminder that posts in a forum such as this do not constitute tax advice.*

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1 Reply
Rick19744
Level 12

In a multiple (6person) member LLC with the co-manager members death in 2016, how do i change his shares (using his SSN) over to his trust with an EIN #?

A few comments:

  • You will need to complete a K-1 for the member who died through the date of death.  This income will be included on this individuals 1040.
  • You will then set-up a new K-1 for the trust and allocate the income / loss to the trust for the period post death.
  • From an internal book keeping perspective, you will transfer this individuals capital account balance over to the trust.  This needs to be done "after" the allocation of the part year income or loss.  This will zero out the capital account for the individual and "transfers" it to the trust.
*A reminder that posts in a forum such as this do not constitute tax advice.*
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