TDIU and Trustee fees

[hurryupnwait]

I was a non-professional successor trustee to my father's trust.  I did not pay self employment tax on this money.  

Here is 

"According to Rev. Rul. 58-5 Generally, nonprofessional fiduciaries (that is, for example, persons who serve as executor or administrator in isolated instances, and then as personal representative for the estate of a deceased friend or relative) will not be treated as receiving income from a trade or business unless all of the following conditions are met:(a) There is a trade or business among the assets of the estate,(b) The executor actively participates in the operation of this trade or business,(c) The fees of the executor are related to the operation of the trade or business."

Would this money be considered sheltered income for TDIU purpose?  I am appeallng a TDIU claim for an earlier effective date and 3 of those years were during the time I received trustee fees as a successor trustee.  

 

This is from the HillandPonton.com website

 

"Sheltered employment involves holding a job but in a protected work environment.  In this case, you’re maintaining a position where the employer makes accommodations for your disability.  

In other words, while you may not be able to work at another job, you’re able to keep this one due to your accommodations. These accommodations may include diminished quotes, additional time off, extra breaks, the ability to leave work at will, etc.

Sheltered employment essentially is a job where you are not working under regular expectations.  It may be a job where you are expected to do the most you can and whenever you are able. Generally, with a sheltered employment position, you are held to a different set of standards due to any limitations you may have resulting from your service connected disabilities.  

The employer may have also developed the job specifically for you to allow you to keep working. For example, you may have permission to go home due to a migraine or are allowed to work individually if you have severe anxiety or other mental health condition.

Family businesses are a common example of sheltered work environments, since you’re still employed but likely receive extra accommodations for your specific impairment. "

 

Again,  there was no trade or business and I was not an employee nor was I self employed.  I did pay taxes on the money. It was categorized as other income.  I was able to work at my own pace and quit whenever I needed.

 

I do not think this was Substantial Gainful Employment.

 

Any comments or suggestions as to how to approach this?

 

Happy Trails,

 

Paul 

 

 

[broncovet]

Did you get denied tdiu on this basis (income from trustee fees)?  If you were denied, I suggest appealing.  If you are just considering applying, well go for it.  It sounds like you have done your homework, and covered the 5 p's, "as long as" you checked your records and your doc said you were "unable to work due to (SC conditions).  

Sometimes (usually) you have to demonstrate you cant do any job, not just your last job, and you may need a voc rehab assessment for that.  

[hurryupnwait]

Broncovet 

 

What are the 5 P's you mention?  

[broncovet]

Proper Preparation Prevents Poor Performance.  It sounds like you looked up the regulation (part of preperation), but you may need to check both your decisions and medical records to see if your doc made statements that you were unable to work due to sc condions.  

[hurryupnwait]

I have a letter from my doc stating that I was unable to work due to SC conditions in those years.

I also have a Vocational expert opinion that says i was unable to work during that time frame. 

On the other hand,  I would not be surprised if the VA claimed that since I was able to work as a trustee, then i was employable. How does one prepare for this? 

 

[john999]

Do you work as a trustee full time?  Who are you a trustee for?  I think you should definitely go for it.  I am 100% and I am a small investor.  I manage my own money.  Does that mean I am able to work full time.....hell no.

[broncovet]

The IRS defines "earned income".  Many, many Veterans, TDIU have "income", such as income from dividends on an investement.  

You did not work for that. 

"If" the trustee fees amounted to under $13,000 in a year, (likely), then you dont have much to worry about.  

The VA defines SGE (substantial gainful employment) to mean  you earn less than the poverty level.  (about 13,000 per year) https://www.va.gov/pension/veterans-pension-rates/

"If" your trustee fees exceeded 13,000 per year, then you could show your tax returns, showing that the trustee fees were not earned income, assuming you filed taxes those years.