Lawyers for Caroline Wyly, who is also in her early 80s, have said the IRS lacks evidence that she systematically deceived the agency for 22 years. She was married to Charles Wyly for 56 years before his death in a 2011 car crash in western Colorado. She has said her husband’s death left her insolvent.
Caroline Wyly also testified that she and her husband never discussed taxes, trusts or any sort of business or financial matters. She said she knew nothing about how items for herself and her children were paid for, and that she didn’t know until three months ago that some of the art and jewelry in her possession was owned by an offshore trust.
During cross-examination, IRS lawyer John Blacker showed her a document she had signed related to the offshore trusts and annuity payments and asked Wyly whether she asked questions before signing it.
“I never asked a single question -- never,” she said. “I trusted my husband.”