Can LLC or Corporation Be A Grantor for A Trust

Can LLC or Corporation Be A Grantor for A Trust

A Corporation and LLC can be grantor for a statutory trust, but not a private express trust (i.e. Bulletproof Trust). Private express trusts require a living human being to be grantor.

If the goal of using these statutory entities as grantor is to protect their assets, it is better to put the entity or business itself into the trust. For an LLC, the trust would be made (sole) owner. For a C-Corporation it would be the (sole) shareholder, with any trustee(s) being listed as the corporation's officer(s). For an S-Corporation a private express trust may not own any shares, but trustees may serve as officers of the corporation. Speak with an attorney to explain the available options.

    • Related Articles

    • Can An LLC/Corporation & Trust Have Same Name

      Yes; however, the difference will be easily distinguished by the company information proceeding the name. The LLC will show as "ACME LLC" but the Trust will show as "ACME Trust" as is required by law. In fact, no company may contain the word "TRUST", ...

    • Will Grantor's Death Affect A Corporation Owned By The Trust

      Living trusts and testamentary trusts may only hold S-Corporation stock for 2 years after the date of death of the grantor. After death, the trusts become ineligible shareholders and the corporation will lose its S-election due to the grantor's ...

    • What Kind of Tax Return Does One File with LLC, Corporation or Trust

      IF IT IS PERSONAL: A Form 1040 is used to report any personal income (consult a CPA to learn which form is right for the situation). One may not need to file for their person if they did any of the following: Redeemed in lawful money all year As an ...

    • When Is an Irrevocable Trust a Grantor Trust

      An irrevocable trust can become a grantor trust if the trust meets certain IRS requirements. If any of these requirements are met, the trust will no longer be considered a separate tax entity and the grantor is taxed on trust income. 1. The Grantor ...

    • Can a US-Based Trust Own a Corporation in Canada

      Both entities can belong to separate jurisdictions; however, a Corporation, LLC or other entity will always be subject to the country it was created in despite being owned by a trust in another country. For lawful money redemption, a US-based entity ...