It's worth noting that this specific situation is only possible due to the insane complexity of gift tax laws. Payments made into a trust are supposed to be gif

It's worth noting that this specific situation is only possible due to the insane complexity of gift tax laws. Payments made into a trust are supposed to be gifts, and taxed accordingly. However there's a number of ways to get around this. This strategy doesn't work if you have to pay a 40% tax on transferring your assets into a trust, and another 40% tax when you want to transfer those assets into another trust.