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Financial Planning / Tax Strategies
|Subject: Re: Need tax consequences advice please||Date: 1/29/2013 4:40 PM|
|Author: TMFPMarti||Number: 117584 of 121223|
My trust is a Personal Asset Trust, (or PAT).
Just in case old Dobbin has a breath left in him, here goes.
At least two Fools have posted links to descriptions of PATs, and I googled another. I find it interesting that all, each from a different law firm, use exactly the same verbiage to showcase the whiz-bang-wow factor of this instrument which hardly any lawyers know about. Call me a cynic, but
Danger, Will Robinson! Danger!
I am no doubt prejudiced from spending too much time debunking tax scams which "nobody knows about but us," but borrowing from Peter's advice about types of investments, I'd be leery of anything my own attorney couldn't explain to me.
Why should you care? Well, you can't figure out what your tax responsibilities are as trustee until you figure out the nature of the beast you're trustee of. The only thing I feel comfortable saying at the moment is that IRS is going to be looking for a 1041 from the trust if more than $600 of income is reported under its EIN.
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