- 32 - segregated into separate trusts. NAMING THE PURE TRUST ORGANIZATION: Unless you are creating a Family Trust, do not use your last name or the word “Trust.” Name your business as if it were a Sole Proprietorship. This will protect your privacy and will also make doing business and transferring property simpler. THE TRUST IDENTIFICATION NUMBER: Because a Pure Trust Organization has no tax requirements, it has no need for a Federal Employer Identification Number or a Social Security Number, which are necessary for tax reporting purposes only. The Pure Trust Organization will be issued a nine- digit, internally generated, identification number for banking and identification purposes, unrelated to taxes. This Trust Identification Number is private and will not be linked to any Federal or State Government agency. It will be included on your final Pure Trust Organization Document(s). Each Trust will be issued a separate number. NAMING TRUSTEES AND BENEFICIARIES The most important rule to remember when structur- ing your Trust Organization is that one individual cannot be BOTH a Trustee and a Beneficiary/Capital Unit Holder. It is the complete separation of these two entities that affords the Pure Trust Organization its protections. If the same person who holds the legal and equitable title, also has the beneficial interest or the right to proceeds, no trust has been created. The entity then is said to be operating as an “alter- ego” or as a “nominee” of the trust. THE PROTECTOR: The Protector has the power to terminate Trustees and/or appoint new Trustees. The Protector may also appoint “Successor Trustees” in the event a Trustee dies. A Protector cannot have any other position in the Pure Trust Organization. A Protector can be any- one, related or unrelated to you.Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Next
Last modified: May 25, 2011