Marvin L. Barmes and Barbara J. Barmes - Page 29




                                       - 29 -                                         
                    A “Trust” is defined by Black’s Law Dictionary as,                
               “a right of property, real or personal, held by one                    
               party for the benefit of another.”  The “Trustee(s)”                   
               hold the legal and equitable Title to the property for                 
               the benefit of the Beneficiaries/ Capital Unit Holders.                
               Although the trustees hold the property title, they do                 
               not own the property.  The Trustee(s) is/are delegated                 
               the management authority for the Pure Trust Organiza-                  
               tion.                                                                  
                    The Beneficiaries/ Capital Unit Holders also do                   
               not own the property but they have the right to all of                 
               the benefits, proceeds and profits of it.  This is                     
               called the “beneficial interest.”  In a Sovereignty                    
               Pure Trust Organization the “beneficial interest” is                   
               contractually non-assignable and for that reason a                     
               Creditor may not legally attach it.  The Beneficiaries/                
               Capital Unit Holders do not have any management control                
               of the property.                                                       
                    A Pure Trust Organization is “created” and given                  
               life, though a “Contract in the Form of a Pure Trust                   
               Organization” which is referred to as the “instrument.”                
               [Reproduced literally.]                                                
               Under the heading “A Pure Trust Organization has No Income             
          Tax Requirements”, the Sovereignty promotional materials stated             
          in pertinent part:                                                          
                    Like Corporations, Revocable Living Trusts are                    
               statutory and are subject to legislative control and                   
               taxation.  A Revocable Living Trust is required to file                
               a 1041 Form each year.  As confirmed by the Chief of                   
               Accounting for the IRS, * * * “A Pure Trust Organiza-                  
               tion has no tax requirements.”  Therefore, there is no                 
               legal requirement for a Pure Trust Organization to file                
               a tax return.                                                          
                  *       *       *       *       *       *       *                   
                    A Pure Trust is not considered a taxable “Associa-                
               tion” pursuant to tax law.  Black’s 6th Law Dictionary                 
               defines Association as follows:  “What is designated as                
               a trust or a partnership...may be classified as an                     
               association [only] if it clearly possesses [all] corpo-                
               rate attributes.  Corporate attributes include:                        





Page:  Previous  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  Next

Last modified: May 25, 2011