I know there has been much discussion through the years
regarding allowing a "Living Trust" as a partner and I agree
with most of the comments in favor of allowing it in your
partnership agreement. But, my one concern is that
creditors can go after a "Living Trust". For the clubs that
currently allow "Living Trust" as partners, what are your
thoughts?
Thanks,
Beth Smith
jack on
Creditors can go after (serve a Writ of Attachment, Execution, or
Garnishment; whichever is appropriate in your state) on the person's
interest in the club partnership regardless of whether it is owned in an
individual capacity or in a living trust. Therefore, it is not a reason to
avoid having a person hold their interest in the partnership in a living
trust.
Jack
I know there has been much discussion through the years regarding allowing a
"Living Trust" as a partner and I agree with most of the comments in favor
of allowing it in your partnership agreement. But, my one concern is that
creditors can go after a "Living Trust". For the clubs that currently allow
"Living Trust" as partners, what are your thoughts?
Thanks,
Beth Smith
mp on
FWIW, all of our partners are trusts, none are persons. Makes life easy for the partnership, we anticipate, when a partner becomes unalived.
-Michael Peachey
On Fri, Feb 6, 2026 at 12:42 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote:
Creditors can go after (serve a Writ of Attachment, Execution, or
Garnishment; whichever is appropriate in your state) on the person's
interest in the club partnership regardless of whether it is owned in an
individual capacity or in a living trust. Therefore, it is not a reason to
avoid having a person hold their interest in the partnership in a living
trust.
Jack
I know there has been much discussion through the years regarding allowing a
"Living Trust" as a partner and I agree with most of the comments in favor
of allowing it in your partnership agreement. But, my one concern is that
creditors can go after a "Living Trust". For the clubs that currently allow
"Living Trust" as partners, what are your thoughts?
Thanks,
Beth Smith
Elizabeth A. Smith 6/97 on
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith
Laura M on
Our club, which is small, has decided not to allow Trusts as a member. Otherwise, we would not be able to opt out of CPAR.
It's something I wanted as treasurer. BIVIO recommends opting out for various reasons. The important one for me was that if we ever had to file an amended return, the return would be simpler if we opted out and BIVIO would assist with that return. If we did not opt out of CPAR we would have to work with an accountant to file the amended tax return. This information is from BIVIO's Dec 2025 webinar on "Getting Ready for Tax Season" and on pages 32-34 of handouts.
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith
mp on
At the risk of sounding flippant, CPAR isn't that scary. A club with Trust partners can just wait until they have all of their tax forms and file a correct return. Unless they have a bunch of alternative investments like VC or CRE or art that provide K-1s to the partnership, preparing and filing a return and partner K-1s from a couple of 1099s isn't that hard with modern software. And, in the unlikely event that your broker gave you an amended 1099 in September, your biggest problem is annoying the partners with amended K-You don't *need* an accountant to file an amended return even if you end up having to change something and push it out to partners.
Our club, which is small, has decided not to allow Trusts as a member. Otherwise, we would not be able to opt out of CPAR.
It's something I wanted as treasurer. BIVIO recommends opting out for various reasons. The important one for me was that if we ever had to file an amended return, the return would be simpler if we opted out and BIVIO would assist with that return. If we did not opt out of CPAR we would have to work with an accountant to file the amended tax return. This information is from BIVIO's Dec 2025 webinar on "Getting Ready for Tax Season" and on pages 32-34 of handouts.
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith
ira smilovitz on
Amending a return under CPAR is not simple. Take a look at Form 8082 and see if you can figure out how to prepare it. Whether the complexity is enough to lead a club to prohibit living trust members is a club decision.
At the risk of sounding flippant, CPAR isn't that scary. A club with Trust partners can just wait until they have all of their tax forms and file a correct return. Unless they have a bunch of alternative investments like VC or CRE or art that provide K-1s to the partnership, preparing and filing a return and partner K-1s from a couple of 1099s isn't that hard with modern software. And, in the unlikely event that your broker gave you an amended 1099 in September, your biggest problem is annoying the partners with amended K-You don't *need* an accountant to file an amended return even if you end up having to change something and push it out to partners.
Our club, which is small, has decided not to allow Trusts as a member. Otherwise, we would not be able to opt out of CPAR.
It's something I wanted as treasurer. BIVIO recommends opting out for various reasons. The important one for me was that if we ever had to file an amended return, the return would be simpler if we opted out and BIVIO would assist with that return. If we did not opt out of CPAR we would have to work with an accountant to file the amended tax return. This information is from BIVIO's Dec 2025 webinar on "Getting Ready for Tax Season" and on pages 32-34 of handouts.
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith
mp on
Hi Ira, you know a lot about this stuff.
* is 8082 prepared and filed by the club with its 1065, and therefore something a club treasurer worries about. Or is it prepared and filed by a partner with their 1040/1041?
* is 8082 ever filed by a partner who has a correct K1? Or, is it a form filed by a partner who believes the partnership issued a defective K1 and for whatever reason is not waiting for the partnership to issue a corrected version.
Thanks for your ongoing guidance in this forum. We've all learned a lot over the years.
Amending a return under CPAR is not simple. Take a look at Form 8082 and see if you can figure out how to prepare it. Whether the complexity is enough to lead a club to prohibit living trust members is a club decision.
At the risk of sounding flippant, CPAR isn't that scary. A club with Trust partners can just wait until they have all of their tax forms and file a correct return. Unless they have a bunch of alternative investments like VC or CRE or art that provide K-1s to the partnership, preparing and filing a return and partner K-1s from a couple of 1099s isn't that hard with modern software. And, in the unlikely event that your broker gave you an amended 1099 in September, your biggest problem is annoying the partners with amended K-You don't *need* an accountant to file an amended return even if you end up having to change something and push it out to partners.
Our club, which is small, has decided not to allow Trusts as a member. Otherwise, we would not be able to opt out of CPAR.
It's something I wanted as treasurer. BIVIO recommends opting out for various reasons. The important one for me was that if we ever had to file an amended return, the return would be simpler if we opted out and BIVIO would assist with that return. If we did not opt out of CPAR we would have to work with an accountant to file the amended tax return. This information is from BIVIO's Dec 2025 webinar on "Getting Ready for Tax Season" and on pages 32-34 of handouts.
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith
ira smilovitz on
After reviewing my old notes, I have to revise my comment about having to file Form 8082 to amend a return if your club didn't/couldn't opt out of CPAR. Form 8082 is only required if you want to file the amended return electronically. If you paper-file, you can use Form 1065-X.
However, to answer your questions, the club files Form 8082 to amend its return. A member files Form 8082, if that member has reason to report the items shown on his/her K-1 differently on their personal 1040.
* is 8082 prepared and filed by the club with its 1065, and therefore something a club treasurer worries about. Or is it prepared and filed by a partner with their 1040/1041?
* is 8082 ever filed by a partner who has a correct K1? Or, is it a form filed by a partner who believes the partnership issued a defective K1 and for whatever reason is not waiting for the partnership to issue a corrected version.
Thanks for your ongoing guidance in this forum. We've all learned a lot over the years.
Amending a return under CPAR is not simple. Take a look at Form 8082 and see if you can figure out how to prepare it. Whether the complexity is enough to lead a club to prohibit living trust members is a club decision.
At the risk of sounding flippant, CPAR isn't that scary. A club with Trust partners can just wait until they have all of their tax forms and file a correct return. Unless they have a bunch of alternative investments like VC or CRE or art that provide K-1s to the partnership, preparing and filing a return and partner K-1s from a couple of 1099s isn't that hard with modern software. And, in the unlikely event that your broker gave you an amended 1099 in September, your biggest problem is annoying the partners with amended K-You don't *need* an accountant to file an amended return even if you end up having to change something and push it out to partners.
Our club, which is small, has decided not to allow Trusts as a member. Otherwise, we would not be able to opt out of CPAR.
It's something I wanted as treasurer. BIVIO recommends opting out for various reasons. The important one for me was that if we ever had to file an amended return, the return would be simpler if we opted out and BIVIO would assist with that return. If we did not opt out of CPAR we would have to work with an accountant to file the amended tax return. This information is from BIVIO's Dec 2025 webinar on "Getting Ready for Tax Season" and on pages 32-34 of handouts.
Jack,
Thank you for your words of wisdom! Can you please share
the language that we should amend our by-laws in order to
allow a living trust as a partner. I do realize that such a
change to our by-laws will need to be approved by our
members according to the current by-laws.
Beth Smith