Parents want to co-invest in my fund?
My fund allows associates to co-invest (at the fund level, not on a deal-by-deal basis) in our fund and my parents want to invest. Can they do that under my name? I'm going to put in some of my own savings, but from a tax / reporting / whatever perspective how complicated would it be to do this?
Don’t drink the kool aid
Best way would be for them to “gift” you the money (can do 15k each so 30k total a year) each year, and you gift it back over time. Haven’t heard of funds letting non-employees co invest so I think it would be have to be through a gift like this
Your parents can give you 11m each tax free through their life. You can gift back 30k as noted above. Inheritance can be given tax free while Alive. Only catch is if it’s property and there’s in built capital gain the tax basis doesn’t get stepped up until death
pls consult cpa given state tax nuances
Often not allowed, read the docs carefully. In practice, no one will know if you handle it between yourselves and the money is in your name
The fund docs can’t stop you from inheriting money then investing said money. The fund docs can’t stop you from gifting any investment gains. You are allowed to inherit will parents are alive.
the taxman can’t stop you or take anything if you inherit 22m and gift 30k per year
Do you have any other enlightening contributions captain obvious?
If it’s so obvious this thread wouldn’t exist. If it’s so obvious you wouldn’t have said the fund docs don’t allow because as I made crystal clear the fund docs cannot stop the steps I described. So in reality the fund docs do not stop you from doing what I said.
if that was all so obvious why did you post what you did?
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