Irrevocable Trust Application for IRS Section 42 Disposition Bond
Instructions
An Irrevocable Trust Application should be completed if your Section 42 property ownership is through an Irrevocable Trust.
An Irrevocable Trust is a Trust where Grantor(s) irrevocably place assets into a Trust for the future benefit of other parties. Once the assets are placed in the Trust, they are no longer the Grantor's assets and cannot be retrieved by the Grantor. Trust tax credits are either used by the Trust itself or by the Trust's beneficiaries.
The Irrevocable Trust can be the direct owner of the property or it can be an investor in a partnership that owns the property.
The application must be completed in its entirety. Incomplete applications cannot be underwritten. Parts or all of this application may be duplicated. You will have to duplicate the Individual Information Section and Indemnity Agreement Section so that each required individual can complete a separate application and indemnity. There are instructions at the top of each section of the application to guide you through completion.
A COMPLETED APPLICATION should include:
- Completed Irrevocable Trust Application, including separate Individual Information Applications and Indemnity Agreements for each Trustee and each Beneficiary of the Irrevocable Trust.
- Copy of the Trust provisions that identify (a) type of Trust, (b) name of all Trustees, and (c) authority and power of Trustees.
- Signed Trust Attorney Letter (see sample letter in Section VI of the Trust Application)
- Signed Trustee Letter (see sample letter in Section VII of the Trust Application)
SEND YOUR COMPLETED APPLICATION TO:
Jack Walsh
Cobb Strecker Dunphy & Zimmermann
4726 East Towne Blvd, Suite 230
Madison, WI 53704
(800) 996-2550 or (608) 242-2550
jwalsh@csdz.com
UNDERWRITING PROCESS:
Upon receipt of the necessary documents, CSD&Z will proceed to underwrite your Irrevocable Trust Application. Our normal underwriting process includes obtaining credit reports on all applicants and their spouses. CSD&Z will make an underwriting decision within two weeks of receipt of your completed application.
After your bond is approved, we will send you an offer letter with a premium quotation. If you decide to purchase the bond, simply return the bond premium payment in the envelope provided with our offer letter. Within two weeks, CSD&Z will send the properly executed surety bond for your signature along with detailed instructions on how to file the bond with the IRS.
Download Application Form
[PDF] Irrevocable Trust Application | [Word Doc] Irrevocable Trust Application |
