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Thomas McJD
Thomas McJD, Attorney
Category: Legal
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Experience:  Legal Expert
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I want to protect a friends money from being taken by IRS.

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I want to protect a friend's money from being taken by IRS. He owes taxes, they have a lien on his home, he has Alzzheimers, he has to sell the house this year and I'm doing an offer in Compromise. BUT he has no savings except approximately $4,000.00 left over from his severence pay. (He was "let go" from a 20 year job in January due to his memory problems and he doesn't expect he will be able to get another job because of his condition.)
Can I set up a trust account in his name as a separate entity and place the $4000.00 in that until this IRS issue is settled?

TMcJD : Hi, I will be happy to assist you, and it is my goal to make you a very satisfied customer! This may take a few minutes, so thanks for your patience.
TMcJD : Sorry To Hear About Your Friends Dilemma. Unfortunately, Since He Owes The Taxes Currently, Any Attempt To Move The Assets And Prevent The Irs From Accessing Those Funds Is Considered A Fraudulent Transfer And WIll Be Undone. Thus, There Unfortunately Is Not A Way To Prevent The Irs From Getting To Those Funds.
TMcJD : If The Money Was Someone Elses And Not Your Friends, You Could Create A Trust For His Benefit And Prevent The Irs Taking The Funds, But He Cannot Do That With His Own Money.
Customer: OK. Thank you.
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