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This Organization Is A 123455 Canadian Non-Profit Organization That Educates & Empowers Individuals With Wealth Building Strategies.
The Vault
TRUST YOUR ASSETS
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TRUST
PRODUCTS
LEGACY TRUST
BUSINESS TRUST (Basic)
BUSINESS TRUST (Advanced)
CHARITABLE TRUST
REAL ESTATE TRUST
WHAT IS A TRUST?
Basic Trust Information
TRUSTS legal entities that can be used to transfer and manage property or assets. It is an ingenious entity empowering Trustees of the Trust to have and hold all control over that property or assets. The terms and conditions of the Trust strictly define the form of the trust used and the needs of the people it is created to serve.
TRUST ESTABLISHMENT consideration of some type is transferred from a Settlor to another person (known as the trustee) with the understanding that the recipient will hold the property and assets or use them in a way that is directed or established as laid out in the terms and conditions of the trust. Anyone who benefits from the use of the property or assets is known as the beneficiary.
TRUST ESTATE The property or assets that are transferred to a trust becomes the trust corpus. The Trustee of a trust is the only entity that can affect the transfer of assets, property or monies to a trust. A trust estate consists of all of the property (tangible or intangible), assets, cash, rights and obligations that are transferred to the trust. The trust estate is managed in accordance with the terms and conditions of the documents creating the trust. Because the property is held in trust it is generally not subject to turnover*.
PARTIES TO A TRUST
The SETTLOR sometimes called the Creator, Grantor, Settlor or Trustor, is any person who creates a trust for the benefit of beneficiaries. To establish the trust, and realize the protection afforded, the trust should be established through an initial funding by a settlor, someone who cannot be the trustee or the beneficiary. After the trust is established, the trustee may convey additionally assets, tangible and intangible, to the trust for the benefit of the beneficiaries.
The TRUSTEE is a person, financial institution (such as a bank or trust company) or managing entity that holds the legal title in trust for the trust estate. There may be one or more trustees. If a trustee is unable or unwilling to serve then a successor trustee steps in to hold and manage the trust estate. The trustee is obligated to act in accordance with the terms and conditions of the trust for the benefit of the trust beneficiaries.
The BENEFICIARIES are the persons or entities which benefits from the trust estate. The rights of beneficiaries depend on the terms and conditions of the trust. Beneficiaries have no “equitable title” only a “beneficial interest” in the property or assets held in the trust. Beneficiaries have no right of management of the trust nor have any right to have access to business records or knowledge of trust business or actions.
* There are limited exceptions to being protected from creditors. It varies from state to state. For example, a statute in Texas allows a court to garnish child support payments from a spendthrift trust.
COPYRIGHTED SPENDTHRIFT TRUST
Basic Information
Trust Parties
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Settlor has no rights or beneficial interest in the Trust.
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Trustee may disburse funds to the beneficiaries in equal amounts, unequal amounts or not at all at his/her absolute discretion.
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Beneficiary may be anyone or any organization named in the Trust Documents.
Compliance Overseer
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Can be the trustee (as long as he/she is not the Settlor of the trust).
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Can appoint another party to be the trustee; however, they can still replace the trustee that he/she has appointed.
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Can appoint or remove any beneficiary at will.
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May never be a beneficiary.
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Can appoint his/her successor at any time during his lifetime.
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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.
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.
Taxes
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When money or assets are given 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.
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Monies paid to 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. IWS Trust Format is a discretionary trust and complies with this IRS regulation.
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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.
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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.
“The Secret to Success is to Own Nothing,
but Control Everything!” Nelson Rockefeller
MAIN ADVANTAGES OF SPENDTHRIFT TRUSTS
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It is EASY TO ESTABLISH, can be maintained by you and involves minimal paperwork. It greatly reduces or eliminates fees.
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Every aspect of it is LAWFUL & GUARANTEED by the U.S. Constitution, Supreme Court and other court decisions.
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It is LAWFUL IN EVERY STATE. Spendthrift Trusts properly established in one state can operate in any other state.
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It is MADE IRREVOCABLE to avoid any questions as to ownership of the assets.
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It PREVENTS ANY INFORMATION FROM BECOMING PUBLIC regarding your assets, liabilities and heirs.
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It CAN OPERATE ANY LAWFUL BUSINESS ANYWHERE IN THE WORLD. It has limited liability and most of the advantages of a corporation with none of the disadvantages.
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It has NO PERIODIC REPORTS OR ACCOUNTING to make to any state or government.
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It has the SAME CONSTITUTIONAL RIGHTS AS AN INDIVIDUAL, that is, the right to privacy, freedom from unwarranted search and seizure, to refrain from self-incrimination and all other rights.
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When the Spendthrift Trust is used in a legal manner and under the provisions of the Spendthrift, it is TOTALLY IMPENETRABLE by creditors, agencies, governments and is immune from transfer by operation of law.
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Your personal BANKRUPTCY HAS NO EFFECT on the Spendthrift Trust assets.
The Internal Revenue Code States Plainly
Internal Revenue TITLE 26, Subtitle A, CHAPTER 1, Subchapter J, PART I, Subpart A, Sec 643 (a)(3),(4),(7) and (b) states:
“(3) Capital gains and losses. Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642 (C). Losses from the sale or exchange of capital assets shall be excluded, except to the extent such losses are taken into account in determining the amount of gains from the sale or exchange of capital assets which are paid, credited, or required to be distributed to any beneficiary during the taxable year. The exclusion under section 1202 shall not be taken into account. (4) Extraordinary dividends and taxable stock dividends For purposes only of subpart B (relating to trusts which distribute current income only), there shall be excluded those items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, does not pay or credit to any beneficiary by reason of his determination that such dividends are allocable to corpus under the terms of the governing instrument and applicable local law. (7) Abusive transactions The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this part, including regulations to prevent avoidance of such purposes. If the estate or trust is allowed a deduction under section 642(c), the amount of the modifications specified in paragraphs (5) and (6) shall be reduced to the extent that the amount of income which is paid, permanently set aside, or to be used for the purposes specified in section 642(c) is deemed to consist of items specified in those paragraphs. For this purpose, such amount shall (in the absence of specific provisions in the governing instrument) be deemed to consist of the same proportion of each class of items of income of the estate or trust as the total of each class bears to the total of all classes. (b) Income for purposes of this subpart and subparts B, C, and D, the term "income", when not preceded by the words "taxable", "distributable net", "undistributed net", or "gross", means the amount of income of the estate or trust for the taxable year determined under the terms of the governing instrument and applicable local law. Items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, determines to be allocable to corpus under the terms of the governing instrument and applicable local law shall not be considered income.”
WHO CAN BENEFIT
EVERYONE !
PROFESSIONALS - DOCTORS, DENTISTS,
CHIROPRACTORS, ENGINEERS, ETC.
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Reduce or eliminate the need for liability insurance
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Render yourself virtually judgment-proof
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Potentially controls your taxes
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Maintain privacy
RETIRED PERSONS
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Potentially reduce income taxes
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Maintain privacy
FOREIGNERS
Maintain privacy while enjoying the benefits of controlling Real Estate in the United States
INVESTORS
Protect your investments from a financial reversal
Copyrighted Spendthrift Trust Change Strategy
Because of these key factors and the characteristics, our special copyrighted (intellectual property) Spendthrift Trusts have now become the preferred entity for asset protection and tax planning. The copyrighted trust provides tax advantages and ease of management that meets the requirements and standards necessary to enjoy these advantages.
The old strategy of leveraging cash gifts in irrevocable trusts, shifting or reducing the value of assets, and the implementation of programs to take advantage of income and estate tax deductions for gifts to charity have become antiquated and often ineffective. Estate planning specialists stress that there are two types of taxpayers: informed and uninformed. The less informed you are, the more taxes you pay as a general rule. The uninformed are vulnerable to claims of liability and the informed are protected and often immune to claims of liability against effecting property and assets. Spendthrift Trusts can reduce the burden of taxes, deter claims and limit liability.
INVESTMENT & CONFIDENTIALITY
Trustees have unique powers allowed by law with a properly created trust allowing investments in real or personal property of any nature.
Probate requirements for wills often result in making a public record of the terms and distribution requirements of the will. Trusts however are not filed and are not on any public register. Legal Trusts are registered with the IRS through an EIN number. While the legal trust must file a 1041 tax return each year, it remains confidential as it is not public record.
WHAT IS AN IRREVOCABLE TRUST & WHAT ARE ITS TAX ADVANTAGES?
When you create a trust, you decide whether the trust will be revocable or irrevocable. A revocable trust can be changed or even dissolved by the Creator at any time. An irrevocable trust, however, can never be changed. The consideration, property or assets, you put into it must stay there. The property and assets are managed by the trustee. The IWS Spendthrift Trust utilizes a Compliance Overseer© to ensure that the trustee fulfills its fiduciary duties.The Compliance Overseer Office© is unique to IWS's Copyrighted Trusts. Why, then, choose to make your trust irrevocable? The answer is simple: Potential tax advantages and legal protection from all liability. If set up properly irrevocable trusts do not pay taxes on capitalization and endowment and are generally beyond the reach of creditors and judgments with limited exceptions. Conversely, revocable trusts offer no tax benefits at all and may be reached by creditors to satisfy judgments. If you want lots of flexibility, poor tax consequences and no legal protection, make your trust revocable. But if you want good tax consequences and legal protection, you must forego flexibility and form an irrevocable trust instead.
SPENDTHRIFT TRUST REQUIREMENTS
To enjoy the benefits of the Spendthrift Trust mentioned above, it cannot be altered, changed, modified or revoked after its creation in any manner whatsoever. Any contributions or endowments to the trust are irrevocable. The Settlor/Grantor or Trustee may never be a beneficiary of the Trust. The Settlor/Grantor can never have day-to-day management of the trust.
Interesting Facts
A contract in the form of a Spendthrift Trust Organization, DOES NOT OWE ITS EXISTENCE TO ANY ACT OF THE LEGISLATURE. The authority for its creation is the common law right of the parties to enter into a contract which the Constitution recognizes. According to American law, the government cannot regulate or impose a tax upon a right. Our "RIGHT TO CONTRACT" according to the Constitution of the United States, Article. §10 is UNIMPAIRABLE. That means that it is not within the power of the government or even a judge to change one word of a Contract of Trust. Once the property is transferred into a Spendthrift Trust Organization, it is subject to its own indenture, which governs and, protects the property held by it. The government can ONLY regulate and tax entities it creates.
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A Spendthrift Trust Organization has the income tax requirement to pay only the tax on the income money that the corpus or endowments of the trust earns unless deemed to be paid to the corpus according to the terms and conditions of the trust. If set up properly, all capitalizations or endowments of the trust are nontaxable. Like corporations, Revocable Living Trusts are statutory and are subject to legislative control and taxation. A Revocable Living Trust is required to file a 1041 Form each year. While the income in a corporation is taxable and the endowments to a Revocable Living Trust are taxable, capitalizations or endowments to a Spendthrift Trust are not.
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In Weeks v. Sibley DC 269£, 155, Edwards V. Commissioner. 41512£!, 532 10th Cir. (1969) and Philips v. Blanchard 37 Mass 510, the courts ruled that a Spendthrift Trust Organization is not illegal even if formed for the express purpose of reducing or deferring taxes Edison California Stores, Inc. v McColgan. 30 Cal 26472.183 P2d 16. ruled that persons may adopt any lawful means for the lessening of the burden of income taxes; The Department of the Treasury, IRS Handbook for Special Agents § 412, Tax Avoidance Distinguished from Evasion states; “Avoidance of Taxes is not a criminal offence. Any attempt to reduce, avoid, minimize, or alleviate taxes by legitimate means is permissible”.
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Pursuant to Narragansett Mut. F. Ins. Co. v. Burnhamun 51 r1371, 154 a 909, It is not an evasion of legal responsibility to take what advantage may accrue from the choice of any particular form of organization permitted by law.
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A Spendthrift Trust is not considered a taxable "Association" pursuant to tax law. Black's Law Dictionary defines Association as follows: "What is designated as a trust or a partnership may be classified as an association [only] if it clearly possesses [all] corporate attributes. Corporate attributes include: [1] centralized management, [2] continuity of existence, [3] free transferability of interest, [4] limited liability. A Spendthrift Trust Organization is not an "association" or an “unincorporated association," because it does not possess the same attributes of a corporation, such as continuity of existence and free transferability of [beneficial] interest. Further, unlike a corporation, a Spendthrift Trust Organization is not an "artificial entity" nor does it owe its existence to the charter power of the State.
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A Spendthrift Trust Organization is also not an alter ego or a nominee for any trustee or beneficiary because no one individual holds both legal and equitable title and beneficial interest.
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Another major advantage to operating a Spendthrift Trust Organization as a business is that, because it is not a creature of the legislature, it is not subject to the myriad of strangling legislative controls, rules and regulations that are applicable to corporations and other legislative entities. The Supreme Court case Eliot v. Freeman 220 US 178 ruled that a Spendthrift Trust Organization is not subject to legislative control. The Supreme Court holds that the trust relationship comes under the realm of equity based on common law and is not subject to legislative restrictions as are corporations and other organizations created by legislative authority.
Spendthrift Trust Organization
The best time for estate planning and asset protection is NOW… before you need it. A Spendthrift Trust Organization provides the surest and safest road to freedom, providing you tax advantages, asset protection, privacy and estate planning. By transferring assets into a properly structured Spendthrift Trust Organization, the Trustee can maintain complete control of the trust assets without the inherent liabilities. Assets "held in trust” are generally not effected by bankruptcy, divorce, lawsuits, liens, levies or death.
A "Trust" is defined by Black's Law Dictionary “as right of property, real or personal, held by one party for the benefit of another.” The trustee(s) hold the legal and equitable title to the property for the benefit of the beneficiaries. Although the trustees hold the property title, they do not own the property. The trustee(s) is/are designated the management authority for the Spendthrift Trust Organization.
The beneficiaries also do not own the property but they enjoy the benefits, proceeds and profits of it. This is called the "beneficial interest” in the Spendthrift Trust Organization. The "beneficial interest" is contractually non-assignable and one of the reasons a creditor generally may not legally attach it. The beneficiaries do not have any management control of the property. A Spendthrift Trust Organization is "created" and given life, though a "Contract in the form of a manifestation of intention in the Terms and Conditions of the trust of a Spendthrift Trust Organization” which is often referred to as the "instrument”.
PROPERTY PROTECTION
Property held by a properly structured contract in the form of a Spendthrift Trust Organization is generally protected from tax liens, levies, and seizures, lawsuits, divorce claims and bankruptcy. The Spendthrift Trust Organizationis not liable for the debts of the trustees or the beneficiaries and the assets held by the trust generally cannot be seized to satisfy their debts*. Further, the trustees and beneficiaries are not liable for the debts of the Trust Organization.
“Trust property cannot be held under attachment nor sold upon execution for the trustees personal debts” Hussey v. Arnold 182 U.S. 461, 21 S. Ct.645
The fact that the trustees hold the property does not mean that the trustees own the personal property. Trust property cannot be held under an attachment nor sold upon the execution of trustee's personal debts. Trustees and beneficiaries cannot be held liable for debts incurred by the trust. If in fact, a trust has been created, the certificate holders are not liable on the obligation incurred by the trustees or managing agents appointed by the trustees. Hussey V. Arnold 70 NE 87: Mayo V. Morin, 24 NE 1083.
Pursuant to 695.30(a) of the CPC for the State of California and similar Civil Procedure Codes of other states; "property of the judgment debtor that is not assignable or transferable is not subject to the enforcement of a money judgment”.
STATE ACTIONS ENHANCING FUNDAMENTAL TRUST LAW
All the states have enacted legislation generally confirming that the interest of a beneficiary under a trust is not subject to execution or attachment by his creditors. There are also many decisions of state court supporting this concept. We have not found any to the contrary.
TOTAL PRIVACY
One of the most fundamental American rights is our "right to financial privacy”. Although Spendthrift Trust Organizations are subject to certain Federal Tax Id requirements to conduct banking, the privacy of the Spendthrift Trust Organization is still kept intact. An individual’s financial affairs are maintained in total privacy and paper trails to the individual are virtually eliminated.
PLAN ESTATES AND ASSET PROTECTION BEFOREHAND
The best time for estate planning and asset protection is NOW, before a crisis overtakes you. The Spendthrift Trust Organization provides a sure and safe road to freedom providing the ultimate in tax advantages, asset protections, and privacy. Spendthrift Trust Organizations have been one of the best-kept secrets of wealthy, financially sophisticated Americans for years. Now they are available to all everyone.