Legal Question in Civil Litigation in District of Columbia
Setting up a legal defense fund
I am being sued by a former employer attempting to tie me up in court and keep me out of his industry. While I have retained counsel and they seem confident that his claims will ultimately fail, they have suggested that I need to budget over $100,000 for my defense. Question: how can I set up a legal defense trust fund? How are donations to this trust treated for tax purposes? Thank you.
1 Answer from Attorneys
Re: Setting up a legal defense fund
You may wish to either consult the attorneys who are representing you in the matter currently under litigation or your tax attorney, if you have one, as to how you would proceed in establishing such a trust fund and for information regarding the tax consequences for donors to such a fund.
If you are currently being represented by attorneys from a law firm, there may, also, be attorneys associated with this firm who practice in the area of tax law and who may be able to advise you on this issue.
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