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Zachary
Zachary, Attorney
Category: Legal
Satisfied Customers: 3814
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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My parents started an LLC on some oil & gas profits and split

Customer Question

My parents started an LLC on some oil & gas profits and split the money six ways being they have four children. When we all got together to receive our certicate as part of this LLC. I was told my money is being put into a trust, in which no terms or agreement was explained to me and getting funds has been hell. Is this legal? And what can I do if no ageement is put in place? Also I don't believe the LLC has an Operating Agreement, if not is their a way to by law get to the money or get trust voided?
Submitted: 1 year ago.
Category: Legal
Expert:  Zachary replied 1 year ago.
You say the money was to be split six ways. However, did you ever actually receive the money into your possession?
Customer: replied 1 year ago.


No, was put into trust.Don't know what kind of trust. Have asked for a copy of trust and nothing has been done .

Customer: replied 1 year ago.


Hello

Expert:  Zachary replied 1 year ago.
Thank you for the response.

Because the money was never actually in your possession, you never gained ownership of it. Thus, your parents were free to put it into a trust.

You may contest a trust, but because you were not the donor of the money making the trust, you would have to be able to prove that your parents did not have the capacity to make the trust. Under the facts you stated, there does not appear to be a good claim to contest the trust.

However, as a beneficiary, you do have a right to the trust documents. If the trust has in fact been formed, you may demand to know who the trustee is and to a full copy of the documents.

Please let me know if you have further questions. Please also remember to rate my answer positively so that I am compensated for my work by the website.

Thanks,
ZDN
Customer: replied 1 year ago.


But if I'm part owner in this LLC, dosn't an operating agreement have to state that money goes to trust and what if the LLC has no such agreement?. And what happen's when a person/manager die with no such agreement?

Expert:  Zachary replied 1 year ago.
Do you have any document which states you are a member of the LLC?
Customer: replied 1 year ago.


Yes ,the certificate of LLC my percentage in the oil but it does read as follows To: XXXXX XXXXX Linhart 2012 Trust. With that being put like that am I really the owner or is the trust the owner of this money?

Expert:  Zachary replied 1 year ago.
Are you saying that the LLC certificate states that the owner of the membership is the Trust and not you individually?

If that is the case, then the trust is the owner of the LLC membership and the money.
Expert:  Zachary replied 1 year ago.
Please let me know if there is any other information you need or if you would like me to review any documents that you have. Please also remember to rate my answer positively so that I am compensated for my work on your question by the website.

Thanks,
ZDN
Zachary, Attorney
Category: Legal
Satisfied Customers: 3814
Experience: Lead trial/International commercial attorney licensed 11 yrs
Zachary and 14 other Legal Specialists are ready to help you
Customer: replied 1 year ago.


So am I not responsible for any taxes under my name/ssn.And so if not a member of LLC and a trust under my name means what to me, just that they are using my name and it means nothing as to rights to the money?

Customer: replied 1 year ago.

pLEASE JUST ANSWER ONE LAST QUESTION I SENT

Customer: replied 1 year ago.

You still with me ZDN ?

Expert:  Zachary replied 1 year ago.
Hi,

Sorry for the delay in getting back to you.

That would be correct that you would not be responsible for any of the taxes on the income to your trust. The trust itself would be responsible for handling all tax issues. As the money is given to you in trust, you will be able to receive the money according to the terms of the trust. Since you do not have a copy of the trust documents at this time, you do not know what those payments will be scheduled like.

The first thing you should do is ask your parents to identify the trustee and then ask the trustee for a copy of the trust documents.
Customer: replied 1 year ago.

Well this is a shocker I was lied to about this and it didn't even dawn on me til talking with you and carefully reading this a certicate that I guess this document really means nothing to me does it?


 

Customer: replied 1 year ago.


That is that with me personally I have zero involvement in this LLC or the money? So any money from trust is given to me as what a gift or what is it to me ?

Customer: replied 1 year ago.


Guess it all comes down to the trust documents say.

Expert:  Zachary replied 1 year ago.

Hi, It does indeed come down to what the trust documents say. I would only be speculating at this point if I were to try to tell you what you might be entitled to under the trust.

 

Please let me know if you need any further information. Please also consider rating my answer positively so that I might receive compensation for my work from the website.

 

Thanks

 

-ZDN

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