X-Message-Number: 9859
From: 
Date: Fri, 5 Jun 1998 21:56:32 EDT
Subject: Ben Best on trusts

Ben Best has an interesting article on trusts (among other money matters) in
the current issue of Canadian Cryonics News. Anyone contemplating setting up a
trust for funding suspension/reanimation, in whole or in part, if not already
thoroughly conversant in the field, would do well to read it and its
references.

Some things remain unclear to me. For example, Ben seems to indicate that,
after CryoCare failed to get 501 ( c )3 status (tax exempt as scientific,
educational, or charitable), it tried to get 501 ( c) 13 (cemetery) status and
failed in that also. He says, "But after a long court battle, the IRS ruled
that neither CryoCare Foundation nor the Independent Patient Care Fund (IPCF),
could have cemetery status, because they are in the reanimation business." 

If there was a court battle, then the court ruled, not the IRS. In any case,
Ben goes on to say that "CryoCare/IPCF is now facing the necessity of
individual trusts for its members." He discusses some problems, including the
fact that an individual trust in Liechtenstein would have a minimum (annual?)
fee of $4,500, plus a tax of $750. Pooled trusts could pay only one minimum
fee, but Ben's comments seem to indicate that IPCF cannot pool the trusts
because of the IRS ruling. 

Of course, I am already somewhat  biased against trusts for funding (except
the revocable living trust that CI lawyers have drawn for those who want to
use certain types of assets without losing control); but it appears to me that
the continuing trust route is not a simple "sign here" proposition with an
assured outcome, but just another complex set of options with their own
special possible advantages and possible drawbacks.  

Robert Ettinger
Cryonics Institute
Immortalist Society
http://www.cryonics.org

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