Q: What is a "non statutory, non grantor,irrevocable, discretionary,complex, spendthrift" trust? Social media scams?
I'm seeing a lot of social media "gurus" tout this specific language when referring to set up a trust. They say a lawyer cannot set these up and the only way to sue the trust is in the supreme Court.
It's very obvious that this is a scam but without a legal background I don't know how to protect my clients (I'm in wealth management).
I'm primarily looking for resources to help combat these types of scams.
A:
The IRS released a memo on August 9, 2023, discussing non-grantor, irrevocable, complex, discretionary, spendthrift trust.
The memo was limited to rebutting the promoters misinterpretation of IRC 643 on the avoidance of income tax. The link to the memo is below.
https://www.irs.gov/pub/lanoa/am-2023-006-508v.pdf
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