The trust form of ownership is popular and problematic, especially when sole trustees forget formalities. I can’t say that Richard K. Archer, MD, forgot or neglected appropriate formalities when running Richard K. Archer M.D. P.A. Profit Sharing Plan & Trust, acting through its sole Trustee and Administrator Richard K. Archer. And I can’t ask him, because he’s dead.

Howbeit, the late Richard petitioned a retirement plan disqualification, before becoming the late Richard. But he petitioned sub nom. Richard K. Archer, Docket No. 11375-20R, filed 7/12/24. IRS objects, saying the trustee is the real party in interest, acting for the trust, and Judge Elizabeth A. (“Tex”) Copeland agrees.

When an individual dies, Rule 63(a) lets a duly authorized successor substitute in and prosecute the case. Burt the late Richard is a trustee, not an individual, and the trust itself is facing the consequences. Still, the individual decedent situation is the nearest analogy Judge Tax Copeland can find. And the late Richard’s adm’r says they can’t represent the trust.

“Most retirement plans, as entities, have other individuals who can represent their interests before this Court in the event one of the representatives or fiduciaries passes away. The same is true with most employers that sponsor retirement plans. However, that is not the case here. Dr. Archer, the plan trustee and administrator when the Petition in this case was filed, was the only individual with capacity to act on behalf of Petitioner and had complete control over the retirement plan.

“Without a representative who can further Petitioner’s interest, this case must be dismissed, and the determinations made in Respondent’s … Final Revocation Letter must be upheld.” Order, at p. 2.

Trust disqualified for years commencing after 12/31/11. Could be very expensive.

Warning to those with self-settled trusts of whatever kind: get a backup. And tell ’em Richard sent ya.