As a real estate attorney, I learned that only an individual or a legal entity can sign a contract or own real estate. You cannot own property as “Joe’s Bar and Grill” for example. The same concept applies to the U.S. government, as only a state or the United States of America are legal entities, not the IRS or the attorney general. They have the power only to do what Congress has specially given them the power to do.
Regarding the recent $1.776 billion settlement between President Donald Trump and the IRS, Congress has given the Justice Department the power to dismiss lawsuits by paying settlements. What Congress has not done is given the DOJ the power to promise never to investigate or prosecute Mr. Trump or his family for present or future crimes. The agency can informally promise not to do such things, but this would not have the force of law and have no effect after there is a new president. We can hope only that Mr. Trump will be prosecuted then.
There is another problem with setting up the slush fund: Any settlement would be with Trump personally and would make him personally liable for any income tax on the $1.776 billion. He cannot just pass the income to another person or entity to avoid tax. The legal effect of the slush-fund payments would be political contributions or gifts made by Mr. Trump personally, not the government. This would be a good thing, because it would take the government out of the payments.
