ombskid Posted August 25, 2020 Share Posted August 25, 2020 Company owner and plan trustee wants to lend part of his asset in plan to a person who will co-own a private home for the 2 of them. Does the purchase make this person a 10% or more partner or joint venturer? Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted August 25, 2020 Share Posted August 25, 2020 36 minutes ago, ombskid said: Company owner and plan trustee wants to lend part of his asset in plan to a person who will co-own a private home for the 2 of them. Does the purchase make this person a 10% or more partner or joint venturer? Why wouldn't this be a PT? Luke Bailey 1 Link to comment Share on other sites More sharing options...
ombskid Posted August 25, 2020 Author Share Posted August 25, 2020 Does owning a private home make them 10% or more partners (in capital or profits) or joint venturers? That's the only question. Link to comment Share on other sites More sharing options...
Lou S. Posted August 25, 2020 Share Posted August 25, 2020 So the Trustee is going to lend money to someone to purchase the home that the Trustee is going to live in? Do I have that correct? If so, see RatherBeGolfing above. Luke Bailey and BenMgr 2 Link to comment Share on other sites More sharing options...
JOH Posted August 26, 2020 Share Posted August 26, 2020 There are so many different factors to consider regarding this situation but strictly staying on the question "Does owning a private home make them a 10% or more partner or joint venturers?" I just have a quick question, is the private home going to own in the name of the individuals or are they doing it through a LLC? Link to comment Share on other sites More sharing options...
Luke Bailey Posted August 26, 2020 Share Posted August 26, 2020 On 8/25/2020 at 2:43 PM, ombskid said: Company owner and plan trustee wants to lend part of his asset in plan to a person who will co-own a private home for the 2 of them. Does the purchase make this person a 10% or more partner or joint venturer? ombskind, you really need to provide more detailed facts, i.e., explain how one person can "co-own a private home for the 2 of them." You mean A will loan to B and then B will use the funds to purchase a home the title to which will show that A and B are co-owners (either co-tenants or joint tenants)? Will the loan be secured? Please spell it out step-by-step, document by document. Having said the above, regardless of the details it seems virtually certain that there will be a PT. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
BG5150 Posted August 27, 2020 Share Posted August 27, 2020 In any case, I would get a written statement from an attorney that this isn't a prohibited transaction before you go ahead and do it. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
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