OVERVIEW / FACTS

You'll find a wealth of information in the short, content-rich documents above - click on the links to read them and/or download them. As well, here are more facts about our unique, copyrighted Spendthrift trusts:

A Settlor has no rights or beneficial interest in the Trust.
The Compliance Overseer can be the trustee (as long as he/she is not the Settlor of the trust). The Compliance Overseer can appoint another party to be the trustee; however, the Compliance Overseer can still replace the trustee that he/she has appointed.
The Compliance Overseer can appoint or remove any beneficiary at will. A Compliance Overseer may never be a beneficiary.
Beneficiaries in a Spendthrift Trust may be anyone or any organization named in the Trust Documents.
The Compliance Overseer can appoint his/her successor at any time during his lifetime.
The trustee may disburse funds to the beneficiaries in equal amounts, unequal amounts or not at all at his/her absolute discretion.
If a Compliance Overseer does not appoint a successor, then upon his/her death, the office disappears. Yet, the existing appointed trustee and the beneficiaries remain the same.
When the Settlor or anyone else gives money or assets to the trust for it to be capitalized or endowed, no taxable event has occurred. The trust pays taxes only on what the assets earns unless deemed to be paid to the corpus according to the terms and conditions of the trust, which is discretionary.
Any monies that the trustee distributes from the original endowment of the trust to the beneficiaries are a nontaxable event for the trust. The monies that the trust earns are taxable unless deemed to be paid to the corpus according to the terms and conditions of the trust.
Once the assets are placed into the trust, no court or entity can remove them. Spendthrift Trusts have proven to withstand court judgments, divorces, bankruptcies and lawsuits. These trusts have been successful in preventing creditors from attaching trust assets.
Trusts can own and trade government securities, stocks, and bonds, gold precious metals or any other form of asset. The trust can hold, buy or sell real estate.
The monies that are paid to the beneficiaries are a taxable event to the beneficiary from the endowment funds of the trust according to their income level if earned income is the distribution; only the monies that a trust earns from the endowment and are undistributed to the beneficiaries are taxable to the trust if retained by the trust unless deemed to be paid to the corpus according to the terms and conditions of the trust. Our Unique Trust is a discretionary trust and complies with this IRS regulation.
Trusts are required to file federal income tax returns. Form 1041 is used. However, a Spendthrift Trust is a complex trust and the capitalizations or endowments of the trust are not taxable events and deemed to be paid to the corpus according to the terms and conditions of the trust.
Capitalizations or Endowments are retained indefinitely and only distributed by the trustees of the trust to the beneficiaries at the sole and absolute discretion of the trustees only. All capitalizations or endowments of a trust that are retained in the corpus are not a taxable event.

ADDITIONAL FACTS OF NOTE

Our Spendthrift Trust is a Non-Grantor Trust and as such the grantor has no management or administrative function in the trust and can NEVER be a Trustee, Compliance Overseer or Beneficiary.
Our Spendthrift Trusts are based on Contract Law and all actions must be in the form of a legal contract – Notarized Bills of Sale for all assets, Notarized Quit Claim Deeds for all real property, Witnessed Lease Agreements, Witnessed Assignment of Notes and other liabilities, etc.
All assets are legally sold to the spendthrift trust through a notarized Bill of Sale and witnessed Letter of Transfer. Real Property must also have a notarized Quit Claim Deed or other form of notarized deed. Ownership, control and management of the asset is given up.
Our Spendthrift Trust is also an Irrevocable Trust and as such the document is irrevocable and sales of assets to the trust are also irrevocable. Assets could be sold from the trust, but the original owner can never “take back” the asset.
Personal expenses – such as groceries, clothing, personal vacations and elective medical procedured – are not authorized expenses of the spendthrift trust.
Trustees must pay rent (lease) for the personal use of a spendthrift trust owned home and vehicle and a witnessed Lease Agreement must be drawn up.
Only Passive Income authorized by IRS Code Section 643 can be declared (on a witnessed declaration form) extraordinary dividends and allocated to the corpus, and to be taxed IF, and when distributed to a beneficiary.
No Off-Shore accounts are authorized, and all banking must be done through a recognized US bank.
All trustees must have a US SSN or ITIN.

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OVERVIEW / FACTS

You'll find a wealth of information in the short, content-rich documents above - click on the links to read them and/or download them. As well, here are more facts about our unique, copyrighted Spendthrift trusts:

A Settlor has no rights or beneficial interest in the Trust.

The Compliance Overseer can be the trustee (as long as he/she is not the Settlor of the trust). The Compliance Overseer can appoint another party to be the trustee; however, the Compliance Overseer can still replace the trustee that he/she has appointed.

The Compliance Overseer can appoint or remove any beneficiary at will. A Compliance Overseer may never be a beneficiary.

Beneficiaries in a Spendthrift Trust may be anyone or any organization named in the Trust Documents.

The Compliance Overseer can appoint his/her successor at any time during his lifetime.

The trustee may disburse funds to the beneficiaries in equal amounts, unequal amounts or not at all at his/her absolute discretion.

If a Compliance Overseer does not appoint a successor, then upon his/her death, the office disappears. Yet, the existing appointed trustee and the beneficiaries remain the same.

Any monies that the trustee distributes from the original endowment of the trust to the beneficiaries are a nontaxable event for the trust. The monies that the trust earns are taxable unless deemed to be paid to the corpus according to the terms and conditions of the trust.

Once the assets are placed into the trust, no court or entity can remove them. Spendthrift Trusts have proven to withstand court judgments, divorces, bankruptcies and lawsuits. These trusts have been successful in preventing creditors from attaching trust assets.

Trusts can own and trade government securities, stocks, and bonds, gold precious metals or any other form of asset. The trust can hold, buy or sell real estate.

Trusts are required to file federal income tax returns. Form 1041 is used. However, a Spendthrift Trust is a complex trust and the capitalizations or endowments of the trust are not taxable events and deemed to be paid to the corpus according to the terms and conditions of the trust.

Capitalizations or Endowments are retained indefinitely and only distributed by the trustees of the trust to the beneficiaries at the sole and absolute discretion of the trustees only. All capitalizations or endowments of a trust that are retained in the corpus are not a taxable event.

ADDITIONAL FACTS OF NOTE

Our Spendthrift Trust is a Non-Grantor Trust and as such the grantor has no management or administrative function in the trust and can NEVER be a Trustee, Compliance Overseer or Beneficiary.

Our Spendthrift Trusts are based on Contract Law and all actions must be in the form of a legal contract – Notarized Bills of Sale for all assets, Notarized Quit Claim Deeds for all real property, Witnessed Lease Agreements, Witnessed Assignment of Notes and other liabilities, etc.

All assets are legally sold to the spendthrift trust through a notarized Bill of Sale and witnessed Letter of Transfer. Real Property must also have a notarized Quit Claim Deed or other form of notarized deed. Ownership, control and management of the asset is given up.

Our Spendthrift Trust is also an Irrevocable Trust and as such the document is irrevocable and sales of assets to the trust are also irrevocable. Assets could be sold from the trust, but the original owner can never “take back” the asset.

Personal expenses – such as groceries, clothing, personal vacations and elective medical procedured – are not authorized expenses of the spendthrift trust.

Trustees must pay rent (lease) for the personal use of a spendthrift trust owned home and vehicle and a witnessed Lease Agreement must be drawn up.

Only Passive Income authorized by IRS Code Section 643 can be declared (on a witnessed declaration form) extraordinary dividends and allocated to the corpus, and to be taxed IF, and when distributed to a beneficiary.

No Off-Shore accounts are authorized, and all banking must be done through a recognized US bank.

All trustees must have a US SSN or ITIN.