Unique Power of Trusts
Trusts are unique, powerful legal instruments. The following words from the famous legal historian F.W. Maitland reveal how significant the creation of trusts has been to modern prosperity.
If we were asked what is the greatest and most distinctive achievement performed by Englishmen in the field of jurisprudence I cannot think that we should have any better answer to give than this, namely, the development from century to century of the trust idea.
— F.W. Maitland, Legal Historian
Three Important Features
Though there are many types of trusts, nearly all have three important common features. First, trusts provide “invisible” ownership — in other words privacy — because beneficiaries are never disclosed. And secondly, trusts provide a “liability” shield from personal hazards (tax liens and judgments) because they isolate you personally from the assets legally owned by the trust. And third, they provide simple transfer of ownership.
Real Estate Trusts provide an excellent example of the benefits that legal separation can provide you. If you own rental property in a Chicago Title (real estate) Land Trust, the public tax records reflect only the name of the trust and trustee, not you — the beneficiary. And the liability of the rental property is contained within the trust asset itself — it rarely extends to you personally. Holding Trusts (personal property such as bank accounts or aircraft) have similar characteristics. Business Trusts are never recorded in the public record. Yet all trusts have common protections and benefits. The curtain of “invisible” ownership and the containment of “liability” within a single trust are often enough to discourage lawsuits before they can begin. This can also mean strategic advantage.
Trusts Have A Dual Nature
Another way to illustrate the useful separation that trusts create between you personally and your other assets is the metaphor of a coin. Like the two sides of a coin, trusts have a dual nature. A trust allows you to enjoy the entire coin while assigning special properties to each side — one side of the coin is the legal “title”; the other side is the “benefits” of the asset. This basic division is central to the power and privacy that trusts offer.
Three Simple Facts
- A private trust is a written agreement, or contract.
- Anyone can create a trust and — provided it is correctly executed — it is a recognized legal contract in every state in the country.
- Five hundred years ago people created trusts without an attorney. You can do the same today, they’re optional. Your constitutional right allows you to protect and organize assets in private trusts. You are entitled by law to own a car, a home, or other property, in any legal format.
How a Trust Is Created
- When you create a trust you are designated the – creator, settlor, or grantor. You decide what asset goes into the trust. You decide upon a name. You select a trustee who now holds legal title to that asset. You select beneficiaries.
- You direct the trustee to manage the asset owned by the trust on behalf of the beneficiaries, under any terms you choose.
- Depending upon your objective, you can also be a trustee and/or a beneficiary.
Setting Up Multiple Trusts
Sometimes it’s smart planning to use multiple trusts. Place individual assets into separate trusts because it keeps them safely isolated from each other. It avoids cross contamination. Trusts that are never registered in any public record only “live” as private paper documents in your files. Yet in the event of a challenge, your strategy is in place. Did you ever imagine this type of safety plan?
Creator Can Also Be the Beneficiary
There are certain circumstances when the creator of the trust is also the beneficiary of the trust – most often the living trust.
Who Can Benefit from a Trust?
Anyone whose possessions include one or more of the following:
- Class A Motorhomes
- Yachts and Watercraft
- Fine Jewelry
- Automobile Collections
- Wine Collections
- Antiques and Artwork
- Bank and Financial Accounts
- Real Estate
- Patents and Copyrights
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.
Our Open Philosophy Trust Arte will openly engage with other professional advisors such as tax specialists and accountants to develop the most effective solutions for our clients. Should their services be of value to you, our trust professionals will work with your other advisors. This “open architecture” philosophy, which is reflected throughout our organization, allows us to build closer relationships with our clients and offer them the best solutions.