Fair point. However, if that's the case, why not leave more of it in the trust - he's automatically "blowing" 35% of that 5% (350k+) in taxes every year. EDIT

Fair point. However, if that's the case, why not leave more of it in the trust - he's automatically "blowing" 35% of that 5% (350k+) in taxes every year. EDIT: Here's the real answer - http://news.ycombinator.com/item?id=976759 http://news.ycombinator.com/item?id=976759