Several Chicago-area people were indicted on tax fraud charges (right before 4/15 tax day) for selling expensive domestic and off-shore trusts to avoid income tax. Aegis Co. sold trusts at $10,000 to $75,000 per package. Clients funneled money through a series of trusts with the promise that the funds would be tax-free on returning to the client. They also deducted personal expenses as business expenses. Homes were written off as “world headquarters” of the business (thereby deducting as an expense everything related to the house including utilities, vacations and kids’ tuition).
For a good summary of why you should ALWAYS avoid any trust that claims to free you from income tax try the quatloos site that does a great job at summarizing tax scams.