- 43 -
Although petitioners make multiple references on brief to
HGRCT as an “IRC �4947(a) non-exempt charitable trust”, these
appellations smack of a dubious and belated attempt to reframe
the scenario and lend legitimacy to HGRCT. More importantly, the
characterizations do nothing to alter the fact that petitioners
were not bound by the paper structure they created but chose to
function under an alternative arrangement. In any event, when
considering a factual scenario and claims virtually
indistinguishable from those at hand, this Court saw no reason to
afford credence to the purported charitable trust. Muhich v.
Commissioner, T.C. Memo. 1999-192. The persuasive power of the
record here is no greater.
To summarize, the factors typically considered by this Court
in assessing the economic reality of a trust structure counsel
that HGAMC and HGRCT do not warrant recognition for tax purposes.
12(...continued)
Aegis materials as follows:
The way you would save money on your taxes is
you’d set up an asset management company, and then
you’d set up a charitable trust, so you would put your
money into an asset management company, and then you’d
pay your expenses out of that for your house and for
your living expenses.
* * * * * * *
But anyway, the charitable trust was something
that you put your excess money into it was told to me,
and you had to pay out the five percent each year to a
charity, but then it was explained to me that you
essentially would become your own charity, and that was
to be our retirement plan.
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