June 13, 2017

June 12, 2017

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Trump Foundation Admits to Self-Dealing

The rules and regulations surrounding the operation of family foundations contain traps for the unwary and prohibit self-dealing transactions.  We regularly help families navigate the complex rules regarding self-dealing transactions for private foundations.

These self-dealing rules tripped up the Donald J. Trump Foundation, which has admitted that it has engaged in self-dealing.  How do we know?  A private foundation is required to file a Form 990-PF each year and that return requires a foundation to answer questions regarding its activities and transactions.  The following question caused issues for the Trump Foundation: “During the year did the foundation (either directly or indirectly): Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person)?  By answering “Yes,” the Trump Foundation has admitted that a self-dealing transaction occurred.  The Trump Foundation’s Form 990-PF (and many other foundations’ returns) are available through www.guidestar.com.

Copyright Holland & Hart LLP 1995-2017.

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About this Author

Kelly Dickson Cooper, Holland Hart, Estate Litigation Lawyer, Fiduciary Management Attorney, Probate
Partner

As a probate and trust specialist, Ms. Cooper understands the unique relationship that fiduciaries have with their beneficiaries. Clients trust her experience and knowledge to help them build strong, long lasting business and personal relationships through creative problem solving and effective tax planning.

Ms. Cooper concentrates her practice in all areas of trusts and estates litigation and administration, including estate and gift tax, fiduciary-related disputes, litigation, probate, and estate and trust administration. As part of the...

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