date:Sep 18, 2013
AT pays an annuity back to the person who set up the trust, rather than to a charity.
The trusts were set up to last for two years, and to pay out $217 million in stock and cash to Audrey Walton. If the stock rose in value so that money was left over at the end, it would go to her daughters tax free.
Coin toss
Heres the catch: Walton claimed she owed no gift tax when she set up the trusts, because, under the IRSs valuation formula, nothing would remain for her daughters. She claimed, in essen