One of our attorney members added the following comments to my
response about a CPA who was asked to pay bills for a foreign trust
and to use her SSN as the identifying information for the bank.

--- In JacobsReport@yahoogroups.com, "Vernon K. Jacobs"
<vernjacobs@...> wrote:
>
> QUESTION: I have a client who has an Educational Trust in the Cayman
> Islands. They want me to set up a bank account for this Trust to
pay routine expenses and provide an accounting of those.

1. The trust generates expenses, if for no other reason than those
associated with maintaining an offshore trustee and paying annual
situs renewal fees. It is hard for me to believe that the trust
doesn't also generate some income. However, as long as all necessary
filings are made to the IRS, I suppose no harm no foul. I can't help
but wonder, though, if no income is generated, whether some future
beneficiary or contingent beneficiary might bring an action for
wasting the assets of the trust.

2. If your own SSN is used on the bank account payments any income
may need to be reported on your own tax return to the IRS. I would
be very hesitant to set up an account in my own name for the benefit
of another merely to avoid a minor inconvenience. It is better form
to go through the formalities and provide trust documents; put it in
the name of the true owner.

Robert Giffin
Attorney at Law
rgiffin@...

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