Paralegal Office of
Robert L. West
The Tools of Planning, Organizing, Directing & Controlling
Planning, Organizing, Directing & Controlling is the definition of Management.
Can you think of anything better to manage than your life, your business enterprises most importantly, your tangible and intangible family assets and values?
Use trusts to best manage:
The ultimate benefit of using our trusts is that they can separate assets from the imperfect characteristics of being human i.e.: catastrophic illness, incapacity, incompetency, and death.
An arrangement whereby one person sets aside property for the benefit of another in which, either because of a direction of the settlor (one who creates a trust) or because of statute, the beneficiary (one who profits from the act of another) is unable to transfer his or her right to future payments of income or capital, and his or her creditors are unable to subject the beneficiary's interest to the payment of his or her debts.
The specific trust described below encompasses numerous trust law elements in addition to the spendthrift clause in reference. It's history dates back nearly seventy years, and originated by a professor at Harvard Law School. .
The Specialized Non-Grantor Irrevocable Discretionary
Dual-Track Spendthrift Trust,
Designed Specifically for BOTH Asset Protection and Tax Reduction
This Trust Separates Assets from the Liabilities and Creditors of Trustees and Beneficiaries.
Our Process has a Unique Origin
The "Trust Protector" function is a unique party to this trust construction. It can be an entity or a natural person. (It can also be the trustee as long as he/she is not the settlor of the trust).
The Trust Protector can appoint another party to be the trustee. However, the Trust Protector can still replace the trustee that he/she has appointed.
The Trust Protector can appoint or remove any beneficiary at will. A Trust Protector may never be a beneficiary.
Beneficiaries in a Spendthrift Trust may be any natural person, entity or any organization named in the trust documents.
The Trust Protector can appoint his/her successor at any time during his/her 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 Trust Protector does not appoint a successor, then the office disappears upon his/her death. Yet, the existing appointed trustee and the beneficiaries remain the same.
When the settlor, or anyone else, like the Trust Protector, directs 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 in trust earn, unless the income is deemed to be paid to the corpus according to the terms and conditions of the trust, which is discretionary. (Reference IRC 643)
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.
Taxable events occur when distributions are made by the trustee and/or when the trust terminates, if not renewed in accordance of the trust document provisions.
Only the monies that a trust earns from the endowment (or any contractual income arrangement i.e. leases and rental agreements) and are undistributed to the beneficiaries - are taxable to the trust.
If the income is retained by the trust, and deemed to be paid to the corpus according to the terms and conditions of the trust, the income is deemed to be an extraordinary dividend and is not taxable.
This Copyrighted Scott Compliant 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, this Spendthrift Trust is a dual purpose complex trust and the capitalization or endowments of the trust are not taxable events if deemed to be paid to the corpus according to the terms and conditions of the trust.
Capitalization or endowments are retained indefinitely. They are only distributed by the trustees of the trust to the beneficiaries at the sole and absolute discretion of the trustees.
The Safeguard Living Trust
This unique estate planning living trust is written by Attorney K. Gabriel Heiser, JD.
K. Gabriel Heiser, J.D., focused exclusively on estate planning and Medicaid eligibility planning, including trusts, estates, gifts, and related tax issues, after graduating from Boston University School of Law in 1983. He also practiced in Massachusetts, where he was Chairman of the Estate Planning Committee of the Massachusetts Bar Association, and in Tennessee, where he was the founder and first Chairman of the Nashville Bar Association’s Estate Planning Committee and where he served as President of the Middle Tennessee Planned Giving Council (1997). Although recently retired from the active practice of law, during his 25-year career he was a member of the National Academy of Elder Law Attorneys (NAELA), an ACTEC Fellow—the highest designation for trust and estate attorneys in the U.S. —and was AV®-rated by Martindale-Hubbell®, the country’s preeminent lawyer rating service.
This trust has Living Trust features built on an Irrevocable Trust format. Among its features of asset protection and probate avoidance, it is flexible allowing grantor control with a distribution feature that is quite unique in the field of Estate Planning.
The Safeguard Trust was developed for and is annually updated for Cornerstone Estate Plans, Inc. a private membership group. Members enjoy personal legal advice via their licensed preferred attorney network for a $30/year membership, which includes no fee updates to their documents and estate settlement assistance when requested.
The VIP Insider is a member/manager for Cornerstone Estate Plans, Inc.
The Retirement Trust
Over 95% of trusts designed for retirement life are Revocable Living Trusts. While they serve privacy and distribution purposes important tax and asset protection needs are omitted.
A newer format of this specialty trust has been created that is specifically designed to serve Retirees, and frankly anyone planning for their later years. It's purpose is to preserve and protect their assets and estates. The structure of this trust is quite similar to the Spendthrift Trust discussed above yet varies because the Settlor of the Trust is the one who conveys property, assets and funds to this Trust.
Once the Trust is created the Settlor of the Trust becomes the Protector, to assure that their appointed Trustee of the Trust follows the wishes of the Settlor, to assure the Settlor's Beneficiaries will be the ultimate receivers and/or users of the estate held in the Trust.
It also allows the Settlor, as Protector, to remove and replace Beneficiaries if the need arises. If the Trustee is not acting according to the wishes of the Settlor, they may remove the Trustee and appoint another trustee to serve in that capacity.
The Settlor may never be a Trustee or Beneficiary of the Trust. This establishes a complete separation that is irrevocable and final between the property, assets and funds of the Settlor.
This separation is done in a novel, unique way accomplished by design and Copyright.
The Settlor legally sells their [entire] estate to the Trust through a “Bill of Sale” and receives a “Demand Promissory Note” (DPN) in return, that has special provisions (under copyright protection) that separates the properties and estate from the seller, legally and beyond any legal challenge. The Bill of Sale and DPN are then recorded with the County Clerk in the respective County were the sale was consummated. This legally and publicly records the sale of the estate for legal recording purposes. The DPN value is set at the original cost basis of the Settlor's combined assets, not the current market value of the sum of the assets sold. This is important.
The Settlor may then be paid by the Trust for the value of the note, over time if desired, and funds may be requested on demand, on an as needed basis. Payments received by the Settlor are in after tax dollars, representing the net after tax basis of the DPN, and is not taxable income to the Settlor.
The only legal requirement for the Settlor is that they be in expectation of reasonable health and of competency to sell the property at the time of the sale. Once the estate is sold and the documents recorded, no entity may seize or lien the properties nor exercise any claw back action.
There is no law against a person selling what is theirs [to sell] and a Trust can make a purchase. The seller has the authority to sell the property and/or their equity in that property if not fully owned.
Other special provisions of the Trust ensure that no creditor of the Settlor or any other agency or entity can exercise any authority to gain access to or claim to the properties. By law no court may issue a turn over order against the Trust due to the Spendthrift Provision. Therefore, this special Retirement Trust protects the entire estate of an individual(s) effectively passing it on to the loved ones of the Settlor of the Trust.
Millions of people across the nation are reaching retirement age and have little or no effective way to assure their estate(s) will survive should catastrophic illness, incapacity, incompetency, or death occur. Many simply want to protect their estates in the most prudent manner. This special Copyrighted Trust is specifically designed to accomplish the needs of people described above.
There is no other structure that offers the benefits and bullet proof advantages of our Copyrighted Retirement Trust.