E. W. H.
Special needs trust was shrouded in commercial hue, and thus did not satisfy operational test under statute governing tax-exempt status under Internal Revenue Code (IRC), pursuant to which organization had to be operated exclusively for exempt purposes, where trust did not mitigate costs to its beneficiaries by soliciting charitable contributions, trust’s increasing profit margin appeared more as product of growing commercial enterprise than tool for expanding pooled investments that enabled beneficiaries to reap greater return or enjoy reduced fees, and trust’s services provided marketable product for trust’s founder, who was elder law attorney, to offer to potential clients that was more than incidental non-exempt purpose of trust. 26 U.S.C.A. § 501(c)(3); 26 C.F.R. § 1.501(c)(3)–1. Family Trust of Massachusetts, Inc. v. U.S., 892 F. Supp. 2d 149, 2012-2 U.S. Tax Cas. (CCH) P 50582, 110 A.F.T.R.2d 2012-6046 (D.D.C. 2012).
