Protect All That You Value

Individual Holding Trusts

Holding Trusts: Superior Privacy and Safety

  • Aircraft
  • Class A Motorhomes
  • Yachts and Watercraft
  • Fine Jewelry
  • Automobile Collections
  • Wine Collections
  • Commercial Equipment
  • Antiques and Artwork
  • Bank and Financial Accounts
  • LLCs and Corporations
  • Utilities

Owning valuable assets in your personal name exposes you to risk and invasion of your privacy. A few people with a basic knowledge of trusts place their ownership of such assets into a living trust — which is a better way. Others use LLCs and Corporations. However, did you know the best way is to set up a series of private trusts which “hold” (own) your high value assets? They are also known as “personal property trusts.”

Safety for Your Assets in Holding Trusts

Holding trusts for each of your assets legally and safely isolates them from you, personally. You still maintain complete control. It’s smart because it creates a layer of protection against liability claims while retaining your privacy. You also get flexibility in directing the use of and ownership of the asset. Holding trusts are suitable for all types of personal property in the list above. (excludes real estate because those trusts are of a different design) Assets in holding trusts also avoid probate.

Holding Trusts: General Benefits

  • Privacy: Owner’s personal identity and residency is by design invisible to public records and most government agencies.
  • Protection: Makes it hard for anyone to establish a direct connection between you and the asset, or your other assets. Naming a different beneficiary for each trust further divides assets and enhances privacy.
  • Flexibility: You can add or remove beneficiaries any time. Change the percentage or dollar amount of distribution to them.
  • Variety: You can create multiple trusts to hold a variety of assets.
  • Taxes: None unless a financial account that generates income. Obtains a tax ID number and files trust return. It sends money and issues a K-1 to the beneficiary. The asset is removed from your personal tax return which is a lower profile.
  • Beneficiary: You can designate your living trust or anyone else as your beneficiary. Immediate transfer of asset upon death. That is especially helpful for split families. Avoids probate.

Benefits for Specific Kinds of Assets

Note: Benefits common to all of the assets mentioned below, when placed in holding trusts, is their ownership isolation from each other and the ability to have unique beneficiaries.

Aircraft

Whenever you fly an aircraft in the national airspace system within the United States, it’s departure point and destination along with live tracking are displayed on numerous online public databases. Your FAA registration number is the key index which includes aircraft ownership details. Busybodies, competitors and the media can track your every flight. It doesn’t matter if you fly a Gulfstream, Falcon or KingAir. Corporate or LLC registration still provide clues to the owners. Nothing but a private holding trust can totally obscure the true owners. Yet those legal entities for corporate tax benefits or LLC liability protection can work with your trust.

If you need aircraft privacy, setup your Holding Trust because it will conceal the true owner’s identity and location. It gives you peace of mind.

Class A Motorhomes

Buyers of premium coaches such as Newmar are often methodical about planning these large dollar purchases. One important item is title, registration and sales tax because it’s different in each state. But in cases where the owner may reside in multiple locations, one state may offer distinct advantages. Yet conflicts arise which can lead to the creation of a an LLC or Corporation for establishing residency. However, they require filings, annual fees, recordkeeping, etc. When time to sell the coach, all records and authorizations must be up to date to close the deal. This is tedious for a single asset. It’s an even bigger hassle if complicated by a probate sale.

Why disclose your personal name and address to the DMV, or anyone? Your Holding Trust eliminates corp/llc maintenance and fees, personal disclosures and probate. It’s useful in any state. Your paperwork is done once and sales/transfers are simple. Isn’t this much easier for you?

Yachts and Watercraft

Pleasure vessels can have ownership issues. People slip and fall while aboard which may have serious financial consequences. Do you own the yacht in your personal name the same as your other financial assets? This is financially hazardous. An LLC as the owner offers statutory protection yet has public visibility and state requirements. Your vessel owned by a Holding Trust can slow down or even stop lawsuits and liens because of their unique design. You can also safeguard the boat’s net value from your personal finance misfortunes. Plus you get flexibility for quiet transfers. Ownership privacy remains your best ally.

Take the next step and change the title records. Add a new layer of protection. You’ll look back and realize the many benefits of trust ownership.

Brokerage and Bank Accounts

Many investors have account relationships at commercial banks, credit unions, and mutual funds or brokerage houses. Each account may have a different legal owner depending upon individual circumstances. A living trust can own the account but it legally remains yours, personally. What if you’d like to safely segregate an account with a business partner or split family member? Using a corporation requires a tax return plus state filings. Even the LLC must comply with the state. But placing your account in a Holding Trust avoids corporate and LLC obligations. Isn’t this better? Meanwhile, it legally insulates the account from your other personal and business affairs. It also avoids probate and immediately transfer upon death.

Did you also know that the IRS can easily access your personal brokerage and bank accounts? This is because your SSN is the key index. If you are audited, a review of your personal bank account activity is normal procedure for investigators. If there is a serious dispute about taxes owed on your personal account, the IRS does have the power to seize funds. Financial institutions issue interest income 1099-INT forms to account holders with a copy to the IRS. If you have a direct deposit tax refund that bank account information is retained. A Holding Trust account with its own tax ID number is legally independent from your SSN account. Any trust income distributed to you includes a K-1 form. However, that trust account is not listed on your personal tax return nor connected to your SSN.

If you’ve been wondering how to segregate funds or quietly keep a backup account, a Holding Trust offers you great flexibility and safety.

Artwork, Antiques & Jewelry

Your special personal possessions can easily be overlooked in the process of planning your estate. Think about family heirlooms passed down the generations. Maybe it’s a special necklace, family portrait, or antique dining room table? Few people even think about making a written list of such possessions. They may get listed in a living trust which results in transfer after death. But what if you placed select possessions in a holding trust today? It would allow for a “present-day” sale, gift, or transfer for tax reasons or to a select beneficiary. And being independent of your estate, you can minimize any potential conflicts among heirs.

If a charitable gift, the holding trust can provide anonymity for the donor. Can you see how the Holding Trust features might benefit you?

Establishing Provenance

Have you ever wondered how to prove ownership of an untitled possession? A holding trust can establish the provenance (birth certificate) for artwork, antiques, or jewelry, etc. You now have legal ownership papers for that item – to sell, inventory, or transfer. Maybe you prefer to remain the discrete owner? The Holding Trust will do that for you too yet validates existence of that special item.

Wine Collectors

California and Bordeaux cult wine collectors can segregate various lots or libraries of wine by title. Have you ever thought about ownership beyond the bill of sale? Most people own wine personally for their pleasure. However, while many wine collectors are proud of their cellar, others prefer privacy for a variety of personal reasons. This may include religious and or economic circumstances.

With the Holding Trust a collector can buy, hold and sell wine with complete anonymity. Might you prefer ownership independent of your living trust or other affairs? When high value wines are sold at Meadowood, Sotheby’s or Christie’s auction, privacy can equal strategic advantage for you.

Automobile Collectors

Select automobiles continue to have value as worldwide collectibles. Unique design, race history, celebrity ownership and a variety of other factors have created this exciting market. Yet ownership title is often overlooked. Vehicles are generally owned in personal name by default – it’s easiest. But personal injury blamed upon a wealthy owner can have financial consequences. Did the estate of Paul Walker sue the Carrera GT owner? A Holding Trust can provide you with a layer of protection and safety.

Events such as those at Pebble Beach or Villa d’Este are high profile for collectors and the media. Strategic buying and selling is enhanced with privacy. Personal ownership is revealing and can be risky. Your ownership with a Holding Trust offers many benefits.

Heirs Trust

If you are giving a financial gift, such as equities or property to an heir, setup a holding trust. This can provide a repository for future gifts and safely isolate those assets in one place for the beneficiary heir. Early gifting can allow profits and gains to grow outside the donor’s taxable estate.

Commercial Equipment

Business owners with hazardous equipment can reduce their liablity exposure with holding trusts. By placing equipment such as machinery, service vehicles, or other items that can cause personal injury.

LLCs and Corporations

Keep your name off secretary of state annual filings. Rather than you personally, use a Holding Trust as the Director, Officer, or Managing Member. This complies with their requirements for each position, yet slightly alters the reporting.

Create Bearer Shares – If you have a corporation or LLC, use a Holding trust to conceal your ownership. Have your registered stock issued to your Holding Trust. Or have your LLC membership issued to your Holding Trust. Haven’t you in effect created bearer shares? Yes, because your transfer of the Holding Trust is beneath a stock transfer or member share.

Limit Your Liability and Costs

Your single asset trust might carry liability insurance. Unlike bank accounts or investments, motor vehicles are dangerous in terms of liability because they can cause personal injury. This is exactly why you want them separated from your other financial assets. By isolating your risky assets from each other, you can accept a lower level of insurance coverage because any liability suit will be taken only against that asset. Yet be forewarned, insurance does not cover all perils.

Utilities

You might buy an income property in a real estate trust but neglect to safely open a vendor or utility account. Do not use your personal name. Use a trust for safety from tenants and the public in general. Naming of these small accounts are where mistakes occur which can open the proverbial can of worms. And if you’ve had personal credit problems, bankruptcy, or other financial challenges, establishing utility accounts can require large deposits. Setting up the account for any utility (i.e. water or electricity) in the name of a trust is a good way to develop and re-establish credit-worthiness plus it’s private.

IMPORTANT TIP: If you have real estate in a real estate trust but have the electric bill in your name, you’ve created a leak in your confidentiality.


Tap into the Unique Power of Trusts

To tap into the unique power of trusts for ensuring a secure financial future you need an expert, and we are the experts across a broad range of infinitely valuable private trusts. TrustArte is here to personally assist you. We’re here to educate you. We’re here to give you the financial privacy you not only deserve, but need.

Request a Personal Consultation

Our Philosophy – Investment advisers, attorneys, accountants, hedge fund managers, family offices and individuals seek out James to design effective solutions for clients. This “open architecture” philosophy, which is reflected throughout our organization results in closer professional relationships.