Untrustworthy Trusts

If you search online for various topics regarding trusts you will find websites and individuals who make various tax claims. We call them “untrustworthy trusts.”

They advocate using ‘pure trusts’ or avoid paying taxes. It doesn’t work.

Various people and federal codes are weaved into a personal story that ‘proves’ you need not pay taxes. Again, it doesn’t work.

Trusts are great for holding title to a wide variety of assets. There are many unique features and benefits available to those who adopt their usage. In some cases you can get anonymity.

But “untrustworthy trusts” are those who profess zero income tax.

There are legal ways to lower taxes. For example moving the domicile of your trust to a lower taxed jurisdiction. But there is no escape from income taxes.

Remember the 80/20 rule – 80% of your profits come from 20% of your efforts. But to squeeze that remaining 20% profit will demand 80% of your efforts.

What is more expensive than paying taxes? It’s called TIP – which stands for taxes, interest & penalties. Other times you might check into the Greybar Motel.

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