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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
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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