This seminar will provide information about abusive domestic trust tax shelters. Such trusts include the family estate trust (aka a pure, constitutional or equity trust), the business trust, the equipment or service trust, the family residence trust, the charitable trust, the final trust and trusts used to qualify for exception for welfare benefit funds. All of these trusts have been identified by the IRS as abusive trust tax shelters.
Topics to be discussed include:
- IRS Enforcement Strategy
- Origin Of The Family Estate Trust
- How The Family Estate Trust Is Promoted
- Federal Income Tax Issues
- Federal Estate Tax Issues
- Federal Gift Tax Issues
- Termination Of Family Estate Trust
- Counseling Clients Against Using The Family Estate Trust
8:30 a.m. - 9:45 a.m.
A. Definition Of Abusive Trust
B. Abusive Trust Arrangements
C. IRS Enforcement Strategy For Abusive Trusts
D. Family Estate Trust
9:45 a.m. - 10:30 a.m.
II. Origin Of The Family Estate Trust
A. Tax Protest Movement
B. Illegal Tax Protester
C. Purchase Trust Package
D. Grantor's Personal Expenses
E. On-Going Sales
F. Characteristics Of A Family Estate Trust
G. Structure Of The Family Estate Trust
H. Operation Of The Family Estate Trust
I. Promoters Written Information
10:30 a.m. - 10:40 a.m.
10:40 a.m. - 11:20 a.m.
III. How The Family Estate Trust Is Promoted
A. Dr. Martin A. Larson
B. Market Names
C. Common Law Trust
D. Promoters Come And Go
E. Reliance On Case Law
F. Benefits Claimed
G. Answers To 'Common Questions'
H. Fraudulent Statements
11:20 a.m. - 12:00 p.m.
IV. Federal Income Tax Issues
A. Earned Income
B. Association Taxes As A Corporation
C. Deduction For Personal Expenses
D. Assignment Of Lifetime Services
E. Family Estate Trusts Are Grantor Trusts
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 2:30 p.m.
V. Federal Estate Tax Issues
A. Case Study
B. Analysis Of IRC Section 2033
C. Analysis Of IRC Section 2036
D. Analysis Of IRC Section 2038
2:30 p.m. - 2:40 p.m.
2:40 p.m. - 3:10 p.m.
VI. Federal Gift Tax Issues
A. Federal Gift Tax
B. Completed Gift
3:10 p.m. - 3:30 p.m.
VII. Termination Of Family Estate Trust
A. Nontax Considerations
B. Tax Considerations
3:30 p.m. - 4:15 p.m.
VIII. Counseling Clients Against Using The Family Estate Trust
A. How To Advise Against The Family Estate Trust
B. Advising Client About Existing Family Estate Trust
C. Steps In The Extrication Process
D. Terminate Family Estate Trust
4:15 p.m. - 4:30 p.m.
IX. Conclusion And Questions