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In February 2018, Kenton Crabb, founder of the Restricted Property Trust (RPT), faced an unexpected challenge—a full-scale IRS investigation into the tax strategy he had built his career upon. The Restricted Property Trust, a tool designed to provide high-net-worth individuals with a tax-efficient way to fund life insurance and retirement benefits, suddenly found itself under scrutiny. The investigation focused on IRC Section 6700, questioning whether Crabb had been promoting an abusive tax shelter, and over the following six years, the Restricted Property Trust became a controversial topic within both financial and public circles.
The news of the investigation led to significant media attention, with headlines suggesting that Crabb’s tax strategy was questionable and potentially illegal. The public perception of the Restricted Property Trust began to shift, and even among financial professionals, doubts were raised. The investigation cast a shadow over Crabb’s work and put his entire career under the microscope. Crabb, however, refused to be swayed by public opinion and remained steadfast in his belief that the Restricted Property Trust was compliant with tax regulations.
Throughout the investigation, Kenton Crabb worked closely with his legal team to defend the integrity of the Restricted Property Trust. His attorney, who had spent over a decade working in the IRS National Office of Chief Counsel, brought a wealth of experience to Crabb’s defense. The investigation itself was exhaustive, examining every aspect of the Restricted Property Trust and Crabb’s promotion of the strategy. Yet Crabb and his team remained confident, knowing that the Restricted Property Trust had been developed with a firm legal foundation and that it complied with all tax laws.
The investigation finally came to an end in February 2024, with the IRS dropping the case against Crabb. The decision came as a huge relief, not just for Crabb but also for the financial community that had watched the investigation unfold. Crabb’s attorney noted that in his entire career, he had never seen an investigation like this conclude without any consequences. While the IRS clarified that the decision to drop the case did not amount to an endorsement of Crabb’s actions, it was a significant moment for Crabb and the Restricted Property Trust.
The conclusion of the investigation had far-reaching implications for the financial community. The Restricted Property Trust had been under a cloud of suspicion for six years, and many financial advisors were hesitant to recommend it to their clients. Now, with the IRS ending the investigation, the Restricted Property Trust’s legitimacy was reaffirmed, and Crabb was eager to get back to business. He emphasized that the Restricted Property Trust had always been a compliant, effective tool for tax efficiency, and the IRS’s decision to drop the investigation only strengthened its credibility.
Reflecting on the six-year ordeal, Crabb stated, “The investigation was challenging, but I never wavered in my belief in the Restricted Property Trust. It’s always been about providing a compliant, effective tool for our clients.” With the investigation now behind him, Crabb was focused on the future and was ready to bring the Restricted Property Trust back into the spotlight as a trusted option for high-net-worth individuals.
The media’s portrayal of Crabb during the investigation had a significant impact on public perception, and now, with the investigation concluded, Crabb is hopeful that the financial community will view the Restricted Property Trust differently. He believes that the lessons learned during the six-year investigation can help reinforce the importance of compliance and transparency in financial planning. Crabb is committed to using his experience to help others in the financial community navigate complex tax regulations and ensure that their clients have access to legitimate, effective financial tools.
As Crabb looks to the future, the challenges of the past are still fresh in his mind, but so is the sense of accomplishment that comes with having defended the Restricted Property Trust successfully. For Crabb, the victory is not just about clearing his name—it’s about reaffirming the value of the Restricted Property Trust for the clients who need it most. The IRS investigation, though difficult, has ultimately helped to strengthen the Restricted Property Trust, providing it with a renewed sense of legitimacy and setting the stage for future success.