Before going any further we need to make the definition of a private trust clear: People who are looking for this kind of structure are looking for a legal way to keep their assets private and hidden from those who would like to take them in some way. They are also looking for a legal way to shelter their investments from taxes until something is paid out to them. Private trust services claim they can provide these legal strategies.
We did find that most trust services cater to the wealthy and so we had looked high and low for one that will help anyone no matter how much money they have. If you are familiar with other private financial services you know that they charge very very high fees to set up legal structures for their clients. This service provider charges low fees to make a private trust available to the average person.
It’s not uncommon for this special kind of structure they offer to cost between $4,000 and $15,000 + to set up, plus a percentage of the assets under management usually makes up the annual fees. This can mount up to huge fees each and every year. How can you achieve private trust financial freedom when the trustee is taking so much money?
Save $1,000 with their private trust services
Private Trust Freedom Services are very inexpensive, - only $975 to set it up and a FLAT $165.00 annual management fee which is charged quarterly. Furthermore, their trust structure can have a FREE and unique banking and investment system for tax-free compounding. Plus, the trust obtains some FREE exclusive investment opportunities for the client.
You may be thinking to yourself: “Well, my country has made tax-free private trusts almost unusable with all of their rules and regulations. It is impossible to have one of these since the tax authorities rule they are a sham."
And they claim that for MOST TRUSTS this is true! However, with their service you are neither the trustee, settlor, creator, protector, or beneficiary of the tax-free private trust. All you have is a contractual consulting agreement with the trustee. When you are paid for your consulting or research services then you may have taxes to pay depending on your residency and citizenship. It is ultimately up to you.
Through the contractual consulting agreement you can make investment and other recommendations. Furthermore, this tax-free private trust can reimburse you for the expenses generated by looking after its affairs, including lodging, food, travel, and transportation etc.
They claim the private trust is domiciled in a bullet-proof jurisdiction, and thus enjoys the anonymity and other protections this jurisdiction guarantees. Your name will not show up on any public record, and they claim the trust enjoys the protection of the strong courts AND the best trust laws in the world for asset protection and privacy. If this jurisdiction ever capitulates to freedom robbing global powers, then the trustees can move the trust to another jurisdiction that is bullet-proof.
AGAIN, these private trusts are not recorded at all, and are totally private which helps insure that your desired goals are accomplished.
The private trust is started with property of nominal value, in accordance with the trust instrument. Subsequent funding with trustee approval can be done by anyone via gifts, loans, or other arrangements. It is NOT required that transfers of cash or other assets, at fair or less than fair market value, to these structures be reported. This feature assures your privacy and asset protection also.
The assets of a private trust can be invested in total privacy into the numerous investment opportunities available to companies and individuals. Any investment returns can compound completely tax-free according to them, allowing a significantly greater rate of growth than if the returns were taxed. The time-frame in which sizeable sums are able to be generated is thus significantly compressed.
They claim that the legal foundations of their services are exceptionally sound, but their practical effectiveness in providing tax freedom, asset protection and other benefits depends critically on the conduct of all parties involved with this private trust. They claim that it is the legal way they appoint the special beneficiary that allows for the tax free investment compounding and legal non-reporting of asset transfers that distinguishes their trusts from other trusts.
They also steer clear of the so called "foreign grantor trust" option, which allows a foreign attorney to act as a grantor on behalf of the client. This is a sham by the very definitions given in the US tax code and would be ignored by the IRS for U.S. clients -- an attorney acting on your behalf is the same as you taking an action yourself. Such does not remove the reporting requirements of the structure for US citizens. They claim that their private trust is not like this at all and they ask you to steer clear of the hucksters who promote defective structures.
Relative to the private trust instrument, the client is a non entity. Again, the trustee may hire you as an advisor to the trust. This would be accomplished using a special contract and the relationship would not be disclosed or covered in the trust document itself. It would not be recorded in any government database.
If you are running an active business, you may advise to have the private trust acquire or start an ibc , or foreign llc , or a foundation, with the structure owning part or all of this other entity. This way, onshore or offshore asset protection is secured and your privacy is completely protected according to them.
So, is their private trust structure legal? The one Achilles heel in this whole thing is that each and every trust that is ordered is set up for each and every client that orders one. So, the trust is actually an alter ego of the client and the set up is tailor made so the client can avoid paying taxes. This is how most tax authorities would view the establishment of the kind of trust and structures suggested above. They would be labeled a sham for attempted tax free investing and the person could get big fines or even jail time.
We have discovered an offshore structural arrangement that is much better than a private trust and provides bullet proof asset protection, tax free investing, compounding, and income for an already established charitable foundation. It also provides independent contractor benefits for the lucky donor who made a contribution to the charitable foundation and afterward discovered this little known tool and one of the only legal loopholes available to those looking for true asset freedom. Click here now to discover this little known but effective legal tax freedom strategy.