Homer L. Richardson - Page 43

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               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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