Revocable Trust Application for IRS Section 42 Disposition Bond
Instructions
A Revocable Trust Application should be completed if your Section 42 property ownership is through a Revocable Trust.
A Revocable Trust is a Trust where Grantor(s) place all the assets in the Trust and personally utilize any tax credit that the Trust receives. The Trust is revocable at any time and the Trust's taxes are filed under Grantor's social security number. Variations of Revocable Trusts are sometimes called "Grantor's Trust" or "Living Trust." It is common for the "Grantor(s)" to also be the "Trustee(s)" of the Trust.
The Revocable 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 Revocable Trust Application, including separate Individual Information Applications and Indemnity Agreements for each Trustee and each Grantor of the Revocable 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 Revocable Trust Application. The 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 the bond is approved, CSD&Z 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 the 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] Revocable Trust Application | [Word Doc] Revocable Trust Application |
