The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Need tax consequences advice please||Date: 1/29/2013 12:24 PM|
|Author: Wradical||Number: 117581 of 120462|
(Phil:)In my salad days it would have taken me less than 5 minutes to pop this one under alter ego theory to collect a tax liability. I would hope that less powerful creditors would also be able to reach the assets.
I would hope not, since that would seem to thwart the intent of the OP's parents, who established the trust for her benefit.
I'm sure you'd have tried, back in your salad days, as IRS agents' contempt for the actual law is well-known.
But seriously, this does seem a little shaky from an asset-protection viewpoint, as the trustee and the beneficiary are one and the same. A 3rd-party trustee, even a family member, would be better. An independent financial institution would be better yet.
The literature suggests that maybe Delaware and Alaska trusts provide the best asset protection. The ultimate, at least in the English-speaking world, is probably the Cook Islands (British territory east of New Zealand.) A law firm in our area would set you up with a trust company down there. None of our clients have done it yet though.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|