Orneal and Martha Kooyers, et al. - Page 17

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          affg. T.C. Memo. 1980-568; Vnuk v. Commissioner, 621 F.2d 1318              
          (8th Cir. 1980), affg. T.C. Memo. 1979-164; Wesenberg v.                    
          Commissioner, 69 T.C. 1005 (1978).  These cases involved facts              
          strikingly similar to the facts here.                                       
               In the cited cases, family trusts were set up using forms,             
          materials, and step-by-step instructions bought from promoters of           
          trust schemes.  Generally the wife conveyed her real and personal           
          property to the husband.  The husband then conveyed all family              
          property, including the family residence and vehicles, to the               
          trust, along with the right to receive income derived from his              
          lifetime services.  In return, the husband received the entire              
          beneficial interest in the trust evidenced by beneficial interest           
          certificates.                                                               
               Initially, the wife and a third party (usually the promoter)           
          were designated as trustees.9  Within a day or two, however, the            
          husbands also were named as trustees.  The husband and wife then            
          became sole trustees, with the trusts to bear all their                     
          trust-related expenses.                                                     
               Shares of the beneficial interest were then divided between            
          the husband and wife and/or other family members.  Any                      
          disbursement of trust income would be made pro rata in accordance           
          with the beneficial interests as evidenced by the certificates,             


               9See Markosian v. Commissioner, 73 T.C. 1235, 1244 n.7                 
          (1980), where a trustee who served only 1 month without                     
          performing any duties was disregarded as a mere nominee.                    





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