If you are actually doing what you describe then you are breaking the law and will eventually be caught and hit with a gigantic bill for back taxes plus a hefty fine.
Not at all. Setting up trusts like this is what family offices do for wealthy people. The goal is to legally structure everything so that the total tax bill is minimized. High net worth individuals never just have a big fat bank account and a stock portfolio, there is always an array of trusts typically set up as LLC's to minimize tax exposure. It's unfortunate that he's being downvoted into invisibility (presumably due to the irritated tone of his post) but the fact is that he is correct in his assertion.
