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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:
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