Forbes has published an article, “The Complex Trust Is Simply the Criminal Tax Evasion Device Known as The Pure Trust Repackaged”, which discusses the Complex Trust which scam artists sell under the premise that a buyer will be able to pay less taxes.. The article begins as follows:
The so-called pure trust scheme was a criminal tax evasion ploy that widely circulated from roughly 1995 to 2005. Promising a form of trust which negate the payment of all taxes, the promoters of the pure trust sold these things by the tens-of-thousands to (former) taxpayers who used them for a while until the IRS caught up with them, and sent literally hundreds of promoters and taxpayers alike to nice vacations at Club Fed.
With the IRS and DOJ on the hunt for both sellers and users of pure trusts, the sales of these vehicles dramatically tailed off and I had not heard much of any about them until recently when I had the occasion to cross the path of a promoter of pure trusts, but now referred to as complex trusts. This promoter had the same old marketing materials as went around two decades previously, including representations that John D. Rockefeller used one to avoid paying his income taxes (he didn’t, at least when there was an income tax during his lifetime), and these trusts are only known to the super-wealthy, etc. and etc.
Click here to see the full article: “The Complex Trust Is Simply the Criminal Tax Evasion Device Known as The Pure Trust Repackaged”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal