You have recommended for us to keep our trust activities quiet. This seems to imply keeping a low profile and not operating businesses and activities outside the trust that might draw the scrutiny of the tax man. Is this correct and if so, do you have broad guidelines as to what might raise unnecessary tax scrutiny (waving a red flag in front of a bull)?
No, I didn’t say you need to “keep a low profile”. You could do so if you wish, but that’s not necessary to stay out of trouble. What I said was to simply avoid volunteering contact with the tax people. The top of their hierarchy has a time-tested policy of not attacking these trusts, but most of the minions and underlings don’t know that. All they know is their computer system doesn’t give them the prompts to go after these trusts. The very few times they did go after common law trust promoters was due to weaknesses in those trust designs, combined with excessive shout-it-from-the-rooftops publicity by the promoters. Then of course the tax bosses told their underlings, “Go get ’em.”
We stay out of that profile. You have surely noticed we don’t promote our trusts with “be free of those nasty income taxes” emblazoned in some high-profile headlines. We keep it quieter – – embedded way down in the middle of smaller text, and stated correctly, factually, professionally, and conservatively. We have no anti-tax or anti-government language anywhere in our trusts or in our marketing materials.
If you become an NLT operator, we would encourage you to do the same. Just live peacefully and go about your business. Don’t be foolish enough to go reaching out to the tax people and asking them anything about these trusts. It’s none of their business and it is most certainly not their expertise. If they were to contact you about it, which would be most rare and unusual, of course we would help you with how to respond. But as long as you don’t volunteer to mention it to them, and if you just live peacefully, it is 99+% likely that they will never bother you.