OHIO INCOME TAX
Ohio income tax
person creating a trust may be unwilling to put significant assets in the hands of a foreign trustee and leave those assets completely at the mercy of a foreign court, the scheme calls for the creator of the trust to retain a degree of control by serving as co-trustee. ohio income tax Florida sales tax. In addition, the trust document also names a "trust protector," who has the ability to remove trustees, possibly veto actions by the trustees and move the trust to another jurisdiction. Thus, if legal action is started by a creditor in the foreign country, the trust protector moves the assets to another country, forcing the creditor to start proceedings anew. In many cases the person creating the trust also serves as trust protector. ohio income tax Irs publications forms. However, "anti-duress" provisions give the foreign trustee the right to remove the settlor from the position of co-trustee or trust protector. A recent case in Nevada shows just how dicey these trusts can be. A husband and wife (the defendants) became involved in a telemarketing venture. ohio income tax Filing taxes. They had created an asset protection trust in the Cook Islands. It was believed that their profits from the telemarketing venture flowed into that trust. The Federal Trade Commission commenced action against them after investors in their venture claimed to have lost considerable amounts of money. The district court issued a temporary restraining order and a preliminary injunction, which required the defendants to repatriate any assets held for their benefit outside of the United States. The defendants then instructed the Cook Islands trustee to comply with the preliminary injunction. At this point, the trust worked as was intended. The Cook Islands trustee removed the defendants as trustees and refused to repatriate the assets. The court countered by holding the defendants in civil contempt. The defendants appealed, claiming that it was impossible for them to comply with the court''s order. The 9th Circuit affirmed the district court. As a result, the defendants faced a serious threat of spending time in jail. Whether this opinion sounds the death knell for offshore asset protection trusts is still uncertain.
Ohio income tax
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