You may choose to invest in a Glencrest Generations project as an individual, through a trust, LLC or other type of entity. In many cases, the use of an entity can provide estate planning benefits, e.g., revocable trusts can dramatically reduce or eliminate the need for probate on one's death in some states.
You will give us the details related to the entity through which you'll be investing in the subscription process for any given deal. This way, the tax identification number, bank account info, etc., will be entered into our system securely and we reduce the risks associated with sending sensitive information over email.
In the Basic Information step of the subscription process, you will specify the "subscriber identity." This is where you will articulate the type of entity you'll be using and information associated with that entity.
Once you've invested with us, the information you used for prior deals will show up as a selection under the "Who will be subscribing?" question to save you time.
Choosing the entity type
There are multiple options available to you under the "What type of legal entity is the subscriber?" question. The most commonly used are:
Individual - choose this option if you are investing as an individual and not through an entity such as a trust or LLC or with another person, e.g., your spouse
Joint tenancy with right of survivorship - often used for married couples investing together where the parties own the assets together while both are living but they transfer to the surviving party on the death of one of the parties. Learn more here
Trust - any trust other than employee benefit trust or IRA, which would be specified be selecting radio button labeled as such
LLC - a limited liability corporation with one or more members
Specifying the data associated with your entity
The options for name, tax ID, etc. further down the form are dependent on the type of entity through which you'll be investing. Here are some explanations to commonly asked questions relating to each of the most common entity types listed above:
Individual
Subscriber's legal name - your name. Please enter your name as you'd like it to appear in communications and tax forms, e.g., use your full legal name and don't enter in all caps unless that's what you prefer
Date of birth - it's not necessary to enter your DOB unless you'd like to receive a birthday card from us one day
US person - see the IRS definition of a US person; in the vast majority of cases, you'll select Yes
Tax ID - this will be your social security number
Mailing address - the address to which you'd like mail sent. This might be a PO Box or you might choose to have mail sent to your office
Domicile address - where you actually live. We need to know where you actually live so we can be sure to send you appropriate state tax forms, e.g., in cases where you might live in one state (southern CT or NJ) but have your mail sent to another (NY)
Joint tenancy with right of survivorship
Subscriber's legal name - your name. Please enter your name as you'd like it to appear in communications and tax forms, e.g., use your full legal name and don't enter in all caps unless that's what you prefer
Disregarded entity - this is an entity type that is not recognized for tax purposes as being separate from its owner. You should check with your tax advisor on whether or not your joint tenancy would be disregarded for tax purposes. If it is, you'll need to specify the partner who is the ultimate beneficial owner (basically - the one whose SSN will be on the K-1s we issue each year)
Joint owners - you'll see that you're able to specify each of the owners towards the bottom of the form (the first will be pre-filled for you based on the information we had when we sent you the subscription invitation). Simply click the + Add another owner link to, well, add another owner.
Trust
Subscriber's legal name - the legal name of the trust (sometimes this includes the name of the trustees and date it was established or revised). Please enter the name as you'd like it to appear in tax forms, e.g., don't enter in all caps unless that's what you prefer
US person - see the IRS definition of a US person; in the vast majority of cases, you'll select Yes. This is confusing because it's not intuitive that a trust would be a person but the emphasis here is on US vs. non-US, not person vs. entity.
Tax ID - if the trust is a revocable trust, the tax ID will generally be the social security number of one of the trustees. If it's an irrevocable trust, the entity will have an EIN.
Disregarded entity - this is an entity that is not recognized for tax purposes as being separate from its owner. You should confirm with your tax advisor on whether or not your trust would be disregarded for tax purposes. In general, a revocable trust is disregarded for tax purposes while an irrevocable trust is not. If the entity is disregarded, you'll need to specify the partner who is the ultimate beneficial owner (basically - the one whose SSN will be on the K-1s we issue each year)
Grantor trust - this is a term used by the IRS to describe "any trust over which the grantor or other owner retains the power to control or direct the trust's income or assets. If a grantor retains certain powers over or benefits in a trust, the income of the trust will be taxed to the grantor, rather than to the trust...All 'revocable trusts' are by definition grantor trusts." (learn more here)
Subscription permitted - we do not ask investors to share their trust documents with us but we do ask that you certify, by checking this box, that your participation in the Glencrest investment is authorized under the terms of your trust. If you're not sure, please check with your tax or estate advisor; we won't be able to help you interpret your trust agreement.
Signatories - by default, the first signatory will be filled out with the information we used for the subscription invitation. If your trust only has one trustee or allows a single trustee to sign agreements like ours, you don't need to add another signatory. If you want, though, you may add additional signatories by clicking the blue + Add another signatory link. All signatories specified in this section will need to sign, by DocuSign, the agreements to subscribe to the investment.
LLC
Subscriber's legal name - the legal name of the LLC. Please enter the name as you'd like it to appear in tax forms, e.g., don't enter in all caps unless that's what you prefer
US person - see the IRS definition of a US person; in the vast majority of cases, you'll select Yes. This is confusing because it's not intuitive that a trust would be a person but the emphasis here is on US vs. non-US, not person vs. entity.
Disregarded entity - this is an entity that is not recognized for tax purposes as being separate from its owner. You should confirm with your tax advisor on whether or not your trust would be disregarded for tax purposes. A single-member LLC that has not elected to be treated as a corporation will be disregarded for tax purposes. If the entity is disregarded, you'll need to specify the partner who is the ultimate beneficial owner (basically - the one whose SSN will be on the K-1s we issue each year)
Signatories - by default, the first signatory will be filled out with the information we used for the subscription invitation. If your LLC only has one member or allows a single member to sign agreements like ours, you don't need to add another signatory. If you want, though, you may add additional signatories by clicking the blue + Add another signatory link. All signatories specified in this section will need to sign, by DocuSign, the agreements to subscribe to the investment.