Trust Comparison – What Types of Trusts are there?

 

There are many types of Trusts available in the United States.  Each Trust type has its own purpose.  Care should be taken when choosing a Trust type.  It is also important to understand that you MUST purchase a Trust from an Attorney lest the vendor of the Trust be charged with practicing law without a license by the courts.  We encourage you to also ask your Trust vendor if the Trust which you are purchasing is IRC Section 643 compliant.

Master’s Trust Copyrighted Spendthrift Trusts – no tax, asset protection, no court control, Trustee is controlled by a Compliance Overseer and Trust Assets are not subject to turn over orders of a court.  IRC Section 643 Compliant.

Masters Trust sells the Family Legacy Trust, The Business Trust, The Charity Trust, and the Real Estate Trust.  Each Trust is a Copyrighted Spendthrift Trust but is used for different purposes.

Common Law Trusts – The Uniform Commercial Code replaced common law and therefore common law trusts are not valid.

Living Trusts – Taxable, no asset protection, court control, Trustee control only, subject to turn over orders of a court.

Irrevocable Life Insurance Trusts – Taxable, no asset protection, limited court control, Trustee control only, subject to turn over orders of a court.

Crummey Trusts – Taxable, asset protection, court control, Trustee control only, subject to turn over orders of a court.

Generation Skipping Transfer Trusts – Taxable, asset protection, court control, Trustee control only, subject to turn over orders of a court.

Dynasty Trusts – Taxable, asset protection, court control, Trustee control only, subject to turn over orders of a court.

Family Limited Liability Company – Pass Through Tax, limited asset protection, court control, no Trustee control, subject to turn over orders of a court.

Charitable Remainder Trust – Taxable, no asset protection, limited court control, no Trustee control, subject to turn over orders of a court.

QPARTS GRATS – Taxable, no asset protection, limited court control, no Trustee control, subject to turn over orders of a court.

Stretch Out IRAs – Taxable, no asset protection, court control, no Trustee control, subject to turn over orders of a court.

Zero Estate Tax Plan – Taxable, no asset protection, court control, no Trustee control, subject to turn over orders of a court.

Private Family Foundations – Taxable, no asset protection, court control, no Trustee control, subject to turn over orders of a court.