Irrevocable Trust, For Itself And: Fill & Download for Free

Depends on the context.If the IRS has assessed a liability against you, and you think you will avoid payment by transferring your assets to an irrevocable trust, you might want to think again, and consider the notion of transferee liability under Internal Revenue Code §6901, which you can read about here: Transferee liability under Sec. 6901In addition to transferee liability, there are theories of nominee liability and alter ego that may apply:While related, the concepts of “nominee”, “transferee”, and “alter ego” are independent bases for attaching the property of a third party in satisfaction of a delinquent taxpayer's liability. “A nominee theory involves the determination of the true beneficial ownership of property. An alter ego theory focuses more on those facts associated with a ‘piercing the corporate veil’ analysis. In contrast, a transferee theory requires (1) an intent to defraud the Internal Revenue Service as a creditor or (2) a transfer without consideration which rendered the taxpayer insolvent. These issues are fact-intensive and involve imprecise legal rules.” William D. Elliot, Federal Tax Collections, Liens and Levies ¶ 9.10[2] (2nd Ed.2000). Specific property in which a third person has legal title may be levied upon as a nominee of the taxpayer if the taxpayer in fact has beneficial ownership of the property. See, e.g., Towe Antique Ford Foundation v. Internal Revenue Service, 791 F.Supp. 1450, 1454 (D.Mont.1992), aff'd w/o opinion, 999 F.2d 1387 (9th Cir.1993). Under the alter ego doctrine, however, all the assets of an alter ego corporation may be levied upon to satisfy the tax liabilities of a delinquent taxpayer-shareholder if the separate corporate identity is merely a sham, i.e., it does not exist independent of its controlling shareholder and that it was established for no reasonable business purpose or for fraudulent purposes. See United States v. Jon–T Chemicals, 768 F.2d 686 (5th Cir.1985). Cause to believe that a third party is holding particular property of the taxpayer as a nominee, without cause to believe alter ego status, justifies a levy upon the property of the third party only with respect to that specific property held as a nominee.Oxford Capital Corp. v. United States, 211 F.3d 280, 284 (5th Cir. 2000)But there are many, many situations where an irrevocable trust can be legitimately set up that will not be subject to IRS attack — except for the tax liabilities of the trust itself.The establishment of irrevocable trusts and related tax compliance issues are not games for amateurs relying on general answers to questions on internet forums. If someone is contemplating establishing an irrevocable trust, or wondering about its suitability for addressing tax issues, consult a tax professional with relevant experience. All too often, clients tell me, “I didn’t consult a professional because I was trying to save money.” In fact, they didn’t save money at all; their blunders proved much more expensive than having the correct advice.

With everything handled professionally, yes, it could be done within a week, especially with a team of lawyers and financial advisors pushing everything through.You can bet a billionaire would have it in a trust, for both tax reasons and ease of transfer.Trusts avoid probate court (where all willed assets go, and usually all non-probate assets also need to be reported), which takes months and is extra complicated for property because unlike everything else in the estate, property always falls under the local probate court’s jurisdiction rather than the court where the billionaire’s primary residence is.Here’s a decent primer if you’re interested in more (just a note that a trust can also take it out of the estate itself, avoiding probate court and estate taxes).Should I Put My House Into an Irrevocable Trust?Also- lawyers can write any condition you can think of into a trust, which may or may not be a useful creative tool for you. I know one man who restricted his kids from having visible tattoos, else their inheritance payouts for the year would go to charity, until they got the tattoo removed and sent proof to the trust company.

The answer is almost certainly “maybe.”The trust instrument itself may provide for a means by which a beneficiary can change the trustee.There may be grounds for removal or replacement of trustee, but without more information, one can’t tell what state’s law would govern.The correct way to address this issue is to consult a local probate/trust attorney.