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Mr. A
Mr. A
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Suppose a person who is a beneficiary of a trust holds assets generating $100,000 annual income in one irrevocable trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%.

Suppose all beneficiaries and the trustee(s) agreed to the following:

What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

Suppose a person holds assets generating $100,000 annual income in one trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%.

What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

Suppose a person who is a beneficiary of a trust holds assets generating $100,000 annual income in one irrevocable trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%.

Suppose all beneficiaries and the trustee(s) agreed to the following:

What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

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Chris W. Rea
Chris W. Rea
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Suppose a person holds assets generating $100,000 annual income in one trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%. What

What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

Suppose a person holds assets generating $100,000 annual income in one trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%. What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

Suppose a person holds assets generating $100,000 annual income in one trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%.

What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?

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Mr. A
Mr. A
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What's to stop a person from forming multiple trusts in order to split their taxable income?

Suppose a person holds assets generating $100,000 annual income in one trust, and they are taxed by the IRS at about 37% of all income above about $12500. The marginal tax rate for income between $0 and $2500 is only 10%. What section of code or law would prevent this tax payer from splitting all of his assets into 40 separate trusts, each with income of only $2500 each, and obtaining the 10% tax rate for all of his income?