Tax protection question

Reply #5

Jack-C — Sun, 10 May 2009 20:09:50 GMT

One way to not pay future taxes is the same as the rich (Mohammad Ali, John D. Rockefeller, etc.) do. They put their money into municipal bonds. True, they don't pay a lot of interest, but it is completely tax free. That is done so people will put money into them to help local governments.

Reply #4

BaristaExpress — Sun, 10 May 2009 20:02:54 GMT

Look if your wanting to lessen the tax burden you can do that, but to stop paying them it won't happen! But one smart thing to do for the future generations to follow you is to start a Legacy Trust . The true words spoken from a true industrialist and philanthropist, John D. Rockefeller once said Own nothing, control everything. And you do that through different types of trust!

Let me ask this question. How do the famously rich (Kennedy's, Rockefeller's) stay rich after two or three divorces... [ More ]

Reply #3

awaitingmyturn — Fri, 08 May 2009 20:57:57 GMT

I'm sorry maybe I was not clear enough, the article i read said the money was divided into other trusts, to prevent Future taxes, not what would be expected to be paid now.

That's what I wonder about, I know when it's my turn I'll have to pay taxes on the payout amount, but I was looking down the road 2+ years later.

Reply #2

SpanaUnlimited — Thu, 07 May 2009 21:34:06 GMT

An LLC doesn't stop the obligation of paying taxes. He is still gonna be forced to have 25% withheld by the feds and 8.5% withheld by DC. Plus he is still gonna have to make estimated taxes on the remainder until he fulfils the 35% commonly charged to the top bracket

The way a LLC works is it helps keep the individual anoymous to an extent. It also protects the indidual from greedy people trying to make an easy buck via frivolous lawsuits, etc. The LLC is a seperate entity in a way than a sim... [ More ]

Reply #1

Jack-C — Thu, 07 May 2009 20:49:41 GMT

You need to read it again. The money was claimed by an LLC (Limited Liability Corporation) and the LLC divided the money into trusts.

As far as taxes are concerned, the LLC nor the trusts get him out of taxes.

Tax protection question

awaitingmyturn — Thu, 07 May 2009 20:40:54 GMT

Considering that I live in the Peoples Republic of Maryland, and feeling like I work just to pay taxes. I began to wonder after reading about the recent PB winner from DC, I began to wonder about the future tax complications.

It was reported that the winner claimed the winnings as a blind trust ( i will too, when its my turn). It was then said that the monies were then placed into three separate trusts, in order to prevent additional taxing, over time.

One trust was for healthcare, one for... [ More ]