Do you have any questions?
We are always eager to understand and address your unique business challenges. If you have any questions or specific needs, we encourage you to reach out to us.
Our team is dedicated to providing adept solutions tailored to your situation. By engaging with us, you’ll benefit from our commitment to understanding your objectives and crafting strategies that align with your goals.
Contact us today, and let’s explore how we can collaborate to find the most effective solutions for your business. Your success is our priority, and we are here to support you every step of the way.
A Private Contract in a Trust is a Trust in the form of a Contract for the benefit of a third party, known as the beneficiary or certificate holder.
A LIVING Trust can be operated by the same person who benefits from the Trust structure. In a Private Contract in a TRUST, you can't do that. Generally there has to be a minimum of three entities. The CREATOR, the First Trustee and the Beneficiary or Certificate Holder. The TRUST is set-up by the Creator/Settler and the First Trustee for the benefit of the Beneficiary. The EXCHANGER passes property to the trust organization by way of an "exchange" for shares of Beneficial Interest called Trust Certificate Units. This allows the newly created trust to escape having to pay a "gift" tax on receiving the initial assets.
A Living Trusts does not provide protection against the federal estate tax which can be 50% of estate assets, lawsuit or government asset seizures, neither does it have any estate, gift or income tax saving benefits, since it is revocable and deemed a Grantor Trust under the Internal Revenue Code, and is considered a Statute Trust. The Private Contract in a Trust is irrevocable. In a Private Contract Trust the Exchanger completely relinquishes ownership.
Living Trusts are governed by statute law in the state where they are set up. The Private Contract Trust is a contract and as such is governed by Common Law, and is a Contract Instrument and protected under the Constitution for the united states of America.
Most Living Trusts do not qualify as contracts for the following reasons:
a) Usually there are not two different parties. One party is usually the Grantor and the Trustee. Therefore, there is no “contract” between two different parties in the sense of the constitutional meaning. Also the government generally recognizes husband and wife as one entity.
b) Living trusts are revocable, thus the Grantor never gives up control over the assets, and the Trust lacks consideration between the parties.
A Private Contract in a Trust qualifies as a contract for the following reasons:
a) There is an offer and acceptance between two or more parties who are legal age and competent.
b) There is consideration paid between the parties, including a legal object.
c) There is a termination date, usually 25 years, but the Private Contract Trust can be renewed indefinitely.
The Private Contract Trust is a Common Law "identify (lawful person) based on the unlimited right to contract, established in Equity, and not dependent upon statutory jurisdiction. Most states do have a Statute that will recognize a Common Law document.
Yes. You can operate under the control of US Common Law. If you wish to establish jurisdiction under any other State, Province or Country, simply change the situs address by appropriate Minute.
The "situs" is the dominating or controlling address that sets the jurisdiction of the Trust. You can change the situs, if you wish the jurisdiction to be set in another State, Country or Territory.
Yes, you are free to move the situs to any location you choose. You must only document it through appropriate Minutes.
Yes, you can change the mailing address to any address in any state or Country that you prefer. Just do so with the appropriate Minutes. Some people prefer to only change the mailing address and leave the Situs address.
They are written under Common Law with no preference to the jurisdiction of Statute Law. There are some statutes mentioned that give it guidelines but no jurisdiction. The Trust specifically mentions that certain Statutes are only applicable if they allow the Trust to remain under the jurisdiction of Common Law.
Yes, properly written a PRIVATE CONTRACT Trust can operate almost any type of business. If more than one business is desired, there should be a Trust for each business. There is no limit to where a Trust can conduct its business. It can do business in any and all states regardless of its domicile.
A trust organization can certainly be used for so much more purposes e.g. holding property in title (vehicles, boats, house, rental property, things, etc., and more), bank accounts, setting up businesses in the name of a trust, family trust(s), insurance, utility bills, holding trust, administrator of things, management purposes. Trusts can even create wills, partnerships (if necessary), foundations, charitable ministry, etc. Contracts Trust Organizations are very versatile devices in most any circumstance setup in their usages.
A Banking Trust deals the peculiar banking policies. A Banking Trust allows you to go to your favorite bank and open an account under the Trust name. A Family Trust is for managing your personal assets (Home, car daily purchases, etc…), similar to a Management Trust.
- Set up a Private Contract Trust. Operating in your own name leaves you vulnerable to many liabilities. A frivolous lawsuit alone could wipe out the best of independent entrepreneurs.
Usually you will need an EIN from IRS to open a bank account for the Trust; you can apply for this number “without prejudice.” A Trust setup as a holding Trust, holding real property does not need to have an EIN, because it’s just a holding Trust.
Nothing. Since you don't own the assets placed into the Trust, they cannot be touched by a lawsuit against you. However, you must establish the Trust before you get into legal difficulties.
The Private Contract Trust is never liable for the personal debts of Trustees.
A Trust is NOT life insurance and and/or any other insurance for that matter. However, when setting up life insurance you can set up the life insurance in the name of the trust. Note: Depending on the life insurance company and their regulations, they may want the life insurance in the person’s name. One major benefit when setting up life insurance, since life insurance is based on the Beneficiary receiving the life insurance, certainly a Trust (holding trust perhaps) can be setup to receive the life insurance and the Trust itself can assign many Beneficiaries. This is what you call Private Asset Protection vs. Public Knowledge. It’s all based on being private. Note: When signing the life insurance forms the one who sets it up can sign as the Trustee of the Trust since the Trust will be the Beneficiary.
Yes. If someone has wronged the well-being of the TRUST, the TRUST can sue in court for damages it feels are justified. A trust can do anything a natural human can do.
As a Trustee, you going bankrupt will have no effect on the assets of the TRUST because you do not own those assets.
As a Trust
A divorce has no effect on the assets of the Trust. Trust property cannot properly be part of a property settlement. Private Contract Trusts are best utilized by those persons who have a strong family commitment. If you feel there is a divorce in your future, it would be best for you to work out your family problems first before considering a Trust.
ee, you going bankrupt will have no effect on the assets of the TRUST because you do not own those assets.
Trusts have been in use for centuries. The super rich use trusts all the time to preserve their assets and let them accumulate. Of course they do not advertise their secrets; thus their strategies, for the most part, have remained private and exclusive. Most attorneys will not inform you about Trusts either, because of their lucrative probate business. Despite this effort of suppression, more and more people are becoming aware of Trusts and benefiting from their usage.
You are free to choose any name you wish. Most people use a name that partially describes what they are doing or they simply use a name of a city or location and add the extension "Holding Trust" or "Management Trust" "Family Trust" etc…
Initially it is the person who owns the assets called the Exchanger or Settlor. After the Trust is established by the Creator and First Trustee, anyone can place additional assets into the Trust organization.
Anyone you trust. If you have expatriated and repatriated, you can be the First Trustee. If you choose not to be the First Trustee, you may request the First Trustee hire you as the Trust Manager. The daily operational duties are usually delegated to the Trust Manager.
The Creator should/can be someone neutral, whether it is a friend, associate or partner or a husband or wife if necessary. Someone, obviously, that you trust considerably. Even though they won't have any day-to-day duties of maintaining the TRUST, they can provide great initial input. The Creator will be someone that signs the initial settlement papers (the original document) and then steps out of the picture for the most part or not depending on the setup of the TRUST.
The Protector looks out for the interest of the Beneficiary(ies). The Protector is the person who watches over the manner in which the Trust organization is administered. If for any reason the Protector does not think the Board of Trustees, or an individual Trustee, is operating in the best interest of the Trust Certificate Unit Holders, then the Protector can dismiss, fire and terminate the Board of Trustees, or any individual Trustee, and appoint a new Trustee in their place, or not depending on the setup of the TRUST.