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As a single taxpayer my intent is to reduce my dividend income and capital gains exposure.

It seems to me one of the problems with trusts is that the gifts must be irrevocable. Secondly, if the gift is over 10K in any one year the giver has a tax liability.

Why not transfer some assets to a child over 14 who is in a lower marginal tax rate than myself via a interest free Demand Note and pay taxes for the child. I would think if the account were setup as a Custodian Account for XXXXX it might work. However, I do not think setting it up as a Uniform Gift to Minor Act account would make sense since it wasn't a gift.

This would allow me to reduce my income tax liability and not give up complete control of the assets.

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