The Advantages and Power Of Our Unique Spendthrift Trusts
OVERVIEW / FACTS
- Lawful in every state – can operate in any state and many countries throughout the world.
- Every aspect of our Spendthrift Trust is guaranteed by the U.S. Constitution, the Supreme Court, and other court decisions.
- Provides complete privacy.
-
Requires minimal paperwork, therefore reduced operational
costs, and is easy to establish and maintain. -
No periodic reports or accounting to make to
any state, only files an annual 1041 Trust return. -
Assets held in the Trust are not subject to
turn over orders from any court.
FACTS About Our Trusts
- Lawful in every state – can operate in any state and many countries throughout the world.
- Every aspect of our Spendthrift Trust is guaranteed by the U.S. Constitution, the Supreme Court, and other court decisions.
- Provides complete privacy.
-
Requires minimal paperwork, therefore reduced operational
costs, and is easy to establish and maintain. -
No periodic reports or accounting to make to
any state, only files an annual 1041 Trust return. -
Assets held in the Trust are not subject to
turn over orders from any court.
- 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 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.
- 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.
- 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
Non-Grantor Trust
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.
Contract Law
Our Spendthrift Trusts are based on Contract Law, upheld by the Constitution, the Supreme Court as well as many other courts. All agreements – such as Bills of Sale for assets, Quit Claim Deeds, Lease Agreements, Assignment of Notes, etc – will be notarized or witnessed.
Asset Transfer
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. Control and management of the assets are 100% in the hands of the Trustee(s), who hold these assets in trust for the benefit of beneficiaries.
Personal Expenses
Non-trust expenses – such as groceries, clothing, personal vacations and elective medical procedures – while not covered by the trust, can be paid for in other ways that do not require the Trustee to take a salary from the trust.
Rent and Vehicle Use
Trustees shall pay rent (lease) for the personal use of a home owned by the Trust, and personal use of a vehicle owned by the trust. A simple lease agreement is drawn up to accomplish this.
Passive Income
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.
Domestic Banking
No Off-Shore accounts are authorized, and all banking must be done through a recognized US bank.
Trustee ID
All trustees must have a US SSN or ITIN.
Irrevocable Trust
Our Spendthrift Trust is also made Irrevocable; as such, you are the Trustee, not the Owner, of the assets. These assets are unassailable.