Posted June 9, 2024 by James Billings
Introduction to Business Trust Law
Ever since TrustArte became number one for business trust videos about seven years ago, we’ve seen a surge in business trust attorneys emerging like spring wildflowers.
The Expertise of James Billings in Business Trusts
People often ask, “Well, James, are you an attorney?” My answer is always, “If I were, I wouldn’t know how to do this.” My experience spans across holding professional licenses in the securities and real estate industries. Over the years, I have utilized private trusts for high-value assets in many of my own transactions well before I ever did it for clients.
The Decline of Trust Law in Legal Education
Here’s a significant issue: trust law was phased out from law schools and the bar exam several decades ago in the United States. Today, lawyers, attorneys, and judges primarily focus on corporations, LLCs, and partnerships. If they knew about business trusts, their knowledge would typically only extend to using them for private contracts to achieve anonymity. This gap in the legal education system is precisely why I founded TrustArte twelve years ago.
Beware of Misleading Business Trust Promotions
A troubling trend is the rise of business trust promoters online, claiming tax exemptions and other dubious benefits under special sections of the Internal Revenue Code. These claims are often misleading and potentially dangerous. Think of it as the ambiguity of The Wizard of Oz—lots of proclaimed expertise with little transparency.
Essential Questions to Vet Trust Experts
To discern the experts from the novices, consider asking potential legal advisers or promoters detailed questions about:
- Trust naming conventions
- Trustee roles and responsibilities
- Domicile pros and cons
- Requirements for opening bank accounts
- Specific language needed in real estate deeds to maintain anonymity
These questions can help reveal the depth of their knowledge beyond mere buzzwords.
Conclusion and Next Steps
Most attorneys and promoters I’ve encountered lack depth. They’re familiar with the lingo but often fall short in practical application. This widespread issue underscores the need for qualified professionals in the field of business trust law, which motivated the inception of TrustArte. Beware of false confidence indicated by impressive titles or credentials without substance.
Get your free copy of the LLC versus Business Trust comparison chart here.
If you have any questions, please contact James Billings, founder and owner of TrustArte, at james@trustarte.com or 619-537-8625. Visit my YouTube channel for video content.