Charitable Remainder Trust Problems

Charitable Remainder TrustCharitable Remainder Trust Overview:

1) Trust status cannot extend to beneficiaries and participants

The point for all to grasp is that whatever the legal, juridical and tax status of funding structures, that status cannot extend to beneficiaries and participants as individuals. That is why a trust is quite useless to beneficiaries and participants. Besides it is a Passive Foreign Investment Company (PFIC) of the sort that the US Justice Department has targeted in its Swiss Bank Program.

2) The better answer is the US IRS acknowledged 402(b) plan because we know exactly where we stand instead of guessing or relying not on specific IRS rulings but on legal opinion or worse, tax promoters.

3) There is much consternation with International Trusts, given its tainted criminal history and portrayal in the mainstream media.

4) Charitable Remainder Trusts are full of risks:

  • Abuse of charity laws because no charity ever benefits
  • Tax abuse vehicle
  • Not a positive response to the law
  • Deprives family and susceptible to clawback for estate taxation
  • Designed to evade tax
  • Unrelated Business Income Tax (UBIT) left right and center

IRC 402(b) compliant removes all of the above.

A typical Self-Directed IRA is where you place your IRA with a custodian and he agrees to take your suggestions and investment requests under advisement. He generally offers a wider range of investment options than a traditional IRA. The Fairbrook Alliance (F/A) self directed IRA (SDIRA) gives you control.

Other IRA trustee’s will refuse to make transfers outside the USA The Internal Revenue Service, the U.S. Treasury and FATCA acknowledge this entity’s exemption on IRS Forms 3520, IRS Form 8957 and on W-8BEN-E.

SDIRA-vs-FASDIRA - Invest Offshore in Marco Polo Pure China Fund
SDIRA-vs-FASDIRA - Invest Offshore in Marco Polo Pure China Fund
SDIRA-vs-FASDIRA - Invest Offshore in Marco Polo Pure China Fund
SDIRA-vs-FASDIRA - Invest Offshore in Marco Polo Pure China Fund


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