How to Track Alternative Investments Across LLCs and Trusts

How to track investments across entities is a bookkeeping problem, not a formation problem. One deal can have many owners: the LLC that wired the capital call, the trust that owns the LLC, and a personal book that pastes the same fund NAV again. Count the position once. Raziel's how to track alternative investments guide is the single-book setup. This page is the multi-entity roll-up: cash owner, tax owner, and NAV counted once.

This is not legal, tax, or investment advice. Do not use it to choose an LLC versus a trust. Copy the names on the wire, the subscription, and the K-1. Raziel's family office alternative investment management page is the product view. This page is the ledger.

Cash owner is who wired. Tax owner is who the return follows

Write two fields on every holding. Cash owner is the name on the bank or wallet that sent the money, and the name on the subscription if those differ. Tax owner is who the IRS treats as reporting the income. They are often not the same row.

The IRS limited liability company page: depending on elections and the number of members, an LLC is a corporation, a partnership, or part of the owner's tax return (a disregarded entity). A domestic LLC with at least two members is a partnership unless it files Form 8832 and elects corporation. A one-member LLC is disregarded as separate from its owner for income tax, unless it files Form 8832 and elects corporation.

IRS Publication 3402 (March 2020): if the LLC is disregarded, income, deductions, gains, losses, and credits are reported on the owner's return, and the LLC should not file an income tax return. For income tax reporting, a single-member disregarded LLC must use the owner's SSN or EIN, including on Form W-9, not the LLC's EIN. The LLC can still have an EIN to open a bank. That bank name is the cash owner. The owner's return is the tax owner.

If a trust sits above the LLC, log tax owner only after you copy how the CPA treats it. The IRS grantor-trust overview: if a trust is a grantor trust, the grantor is treated as the owner of the assets, the trust is disregarded as a separate tax entity, and all income is taxed to the grantor. All revocable trusts are by definition grantor trusts. The 2025 Instructions for Form 1041: a grantor type trust is generally not required to file Form 1041 if the grantor reports the items on Form 1040.

The 2025 Partner's Instructions for Schedule K-1 (Form 1065): the partnership reports the partner's share, files a copy with the IRS, and the partner may owe tax on that share whether or not cash was distributed. The K-1 names the partner of record. If the fund's LP is the LLC, the K-1 belongs on the LLC. Intake of those PDFs is Raziel's K-1 tracking page.

Count NAV once when both books show the fund

The usual failure is paste. The LLC book has the fund at last NAV. The personal or trust book has a membership interest in the LLC, and someone also drops the same fund line onto that book because "we own it." Summing those two NAVs double-counts the deal. Keep the fund on the limited partner of record.

ILPA's Reporting Template v. 2.0 (January 2025) is one Capital Account Statement per LP interest. The Suggested Guidance walks Beginning NAV to Ending NAV with contributions, distributions, fees, expenses, offsets, and accrued carried interest, then Beginning Unfunded Commitment to Ending Unfunded Commitment. That pack is one NAV. Attach it to the LLC or trust named as the LP. Do not attach a second copy to the grantor and add the numbers.

Two separate subscriptions are different. If HoldCo LLC committed on one line and a sibling trust committed on another line to the same fund, those are two capital accounts. Sum them. Double-counting is one capital account copied onto two owners.

How the roll-up should look

Open one row per legal interest, not per brand name.

• Entity legal name and EIN, copied from the subscription or K-1 Part I.

• Tax class, copied from the CPA: disregarded LLC, partnership LLC, grantor trust, or non-grantor trust.

• Cash account: bank or wallet that wired, with the date and amount.

• LP of record: the name the GP has on the capital account.

• Look-through owner: who owns this entity, with a percent if the CPA gave one.

• Include in consolidated NAV: yes on the LP row. No on the owner row for the same fund.

Sum NAV on rows flagged include, grouped by look-through owner. The LLC's fund NAV flows through the membership interest. It does not appear twice. ILPA's glossary: paid-in capital is the amount of committed capital an LP has actually transferred (the cumulative takedown). Paid-in, unfunded, and NAV live on the LP row. Estate-transfer language belongs on Raziel's estate planning and wealth transfer page. Here you only log who the tax owner is.

Attach the packet to the entity that moved

Capital-call notices, wires, and bank or wallet exports sit on the cash owner. Subscription documents, the ILPA capital account, and unfunded live on the LP of record. The K-1 sits on the partner named on the form.

A workbook holds this if the include-in-NAV flag is honest and the fund line has one parent entity. It fails when the personal book pastes the GP look-through on top of the LLC capital account, or when a disregarded LLC and its owner both carry the same NAV.

Raziel's alternative-asset dashboard is the book those entity rows already sit on: IRR and MOIC, valuations, AI document ingest, capital calls, and wallets or bank linking. Raziel does not form entities and does not give tax advice. Post the next call to the LLC that wired, and roll NAV up once.