Marvin L. Barmes and Barbara J. Barmes - Page 33

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                    If you, as the original Exchanger (Settlor) are                   
               the only Trustee and a Successor Trustee has already                   
               been named, you do not need a Protector.  A Protector                  
               eliminates a need to go to Court to change Trustees.                   
                    Trustees hold the legal and equitable title to the                
               property in Trust, for the benefit of the Beneficia-                   
               ries/Capital Unit Holders.  They do not, however,                      
               actually own the property.  A Trustee cannot also be a                 
               Beneficiary/Capital Unit holder.  Trustees have no                     
               rights to the “beneficial interest” in the form of                     
               income and profits.  However, they can receive a con-                  
               tractually agreed upon compensation in return for their                
               Trustee services.  Trustees have Management Control of                 
               the Pure Trust Organization.  There can be one Trustee                 
               or as many Trustees as desired.  All of the Trustees                   
               can work together in managing the Trust or any or all                  
               Trustee(s) can delegate management authority to one or                 
               more Managing Trustee(s) to transfer property, open and                
               operate and bank accounts, and take care of the day to                 
               day operations.                                                        
                    Adversarial (Unrelated) Trustees                                  
                    In order to maintain the tax immunity qualities of                
                    the Pure Trust Organization, it is important that                 
                    it is not considered a “Grantor” Trust, which is                  
                    required to file a 1041 Form.  According to the                   
                    I.R.S.: “The title of ‘grantor trust’ arises when                 
                    there is no trustee with averse interest.”  The                   
                    words “adverse” or “adversarial” mean unrelated.                  
                    The rule of structure is that; “the majority of                   
                    trustees must have an interest ‘adverse’ or unre-                 
                    lated to that of the beneficiaries/capital unit                   
                    holders.  This means that if the beneficiaries are                
                    your wife/husband/children, the majority of trust-                
                    ees cannot be related to them.  Therefore, for                    
                    example, if you were a man and wanted to be a                     
                    trustee and make your wife and children beneficia-                
                    ries, you must also have at least two other unre-                 
                    lated Trustees.  If you and your wife both want to                
                    be trustees, there must also be at least three                    
                    other unrelated Trustees. Our company can provide                 
                    adversarial (unrelated) trustees for you at a                     
                    minimal cost.  These trustees will delegate the                   
                    authority to your Managing Trustee to open the                    

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Last modified: May 25, 2011