G. Kierstead Family Holdings Trust, et al. - Page 3

               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and the attached exhibits are                      
          incorporated herein by reference.  Petitioners resided in                   
          Vacaville, California, when they filed this petition.  Petitioner           
          trusts both used addresses in Lansing, Michigan, on their Tax               
          Court petitions.                                                            
               In 1998, with the assistance of National Trust Services                
          (NTS), petitioners established the G. Kierstead Family Holdings             
          Trust and the G. Kierstead Family Trust.  Petitioner Glenn                  
          Kierstead assigned all rights to his lifetime services and future           
          earnings to the trusts.  Petitioners deducted inter alia their              
          personal living expenses and depreciation of their residence on             
          Form 1041, U.S. Income Tax Return for Estates and Trusts, filed             
          for the years at issue.                                                     
               In early 2001, upon learning that one of the promoters of              
          NTS stole money from an investment promoted by NTS, petitioners             
          sought advice about the legality of the trusts from attorney                
          David Kallman.  Mr. Kallman provided petitioners with information           
          about the classification of business trusts for Federal income              
          tax purposes.  He advised petitioners to consult David Carter, an           
          attorney who is also a certified public accountant (C.P.A.)                 
          regarding the income tax issues of the trusts.  At petitioners’             
          request, Mr. Kallman amended the terms of the trusts in July                

Page:  Previous  1  2  3  4  5  6  7  Next 

Last modified: November 10, 2007