- 12 - taxpayer respected the restrictions placed on the trust’s operation as set forth in the trust documents; i.e., whether the taxpayer felt bound by any trust restrictions or the law of trusts. See, e.g., Markosian v. Commissioner, supra at 1243- 1244; Muhich v. Commissioner, supra. As discussed below, each of these factors supports a conclusion that Lucky Kirt Trust did not have any economic substance. A. Raymond Roemer’s Relationship to Lucky Kirt Trust There is no indication that Raymond Roemer’s relationship to the land he transferred to Lucky Kirt Trust before or after the formation of the trust differed in any material way. Petitioners did not provide any evidence of any material change in Raymond Roemer’s relationship to the land after the trust’s formation. The transfer of land to the trust failed to alter “any cognizable economic relationship” between Mr. Roemer and the property transferred. See Markosian v. Commissioner, supra at 1241. Petitioners did not provide the trust agreement or any evidence to the contrary. Consequently, it is apparent that Raymond Roemer retained his same relationship to the property after the transfer that he had before the transfer. B. Independence of Lucky Kirt Trust Trustee Petitioners have failed to establish that the trustee was actually independent of Lucky Kirt Trust. Mr. Chisum, as the Prudent Man Trustee, claimed to be the original trustee for the trust. Then, he claimed that Hall and Strong was the trusteePage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011