Charitable Trust

Master’s offers a variety of Trusts that fit all purposes and designs to meet the needs of those who need privacy, elimination of liability and the ability to navigate the complex world of regulations. In the society we live in today many are in need of help as the decline of society reaches new heights.  The poor languish trying to struggle to meet daily needs without any hopes of a future that could provide for their families or even feed them as the cost of living increases.

The middle class once able to support giving in all levels of society are now struggling to make ends meet themselves. The wealthy are holding on to their money for themselves as they see the decline of prosperity across the board affecting everyone. This makes it extremely difficult for 501(c) 3 Foundations to gather the funds needed to foster their projects. The regulations binding these organizations are extremely strict and subject to rules and laws that restrict political views and other activities.

With this in mind, and to solve these and other problems, if was determined by the Trustees of Master’s Trust to make its Copyrighted Charitable Trust available to clients. Unlike Foundations there are no strict IRC Regulations that govern the operation of the Charitable Trust. It enjoys the freedom to take donations, endowments and assets into the corpus of the Trust, invest them and grow the size of the corpus to no upper limits. This generates the needed funds for the chosen projects of the Charitable Trust and keeps it solvent and growing continuously over time. The benefits and increases of the invested assets generate funds to distribute to the Beneficiaries of the Trust.

The Trust meets all requirements of the Internal Revenue Code, Trust Law and is in full compliance with all federal, local and state regulations and laws. It is an Irrevocable, Discretionary, Complex, Non-Grantor, and Charitable Trust with special Spendthrift provisions making it immune from judgements or turn over orders by any court. It registers with the IRS, receives an EIN Number and files a 1041 each year showing the activities of the Trust. Since the donations, endowments, and assets received by the Trust are made to the corpus of the Trust under the IRC; a Trust meeting Discretionary Rules according to the governing instrument, may declare these as Extraordinary Dividends which qualifies them as not income to the Trust. This allows the corpus of the Trust to grow in order to meet the needs of the Beneficiaries.

There are numerous advantages of the Charitable Trust. Individuals, organizations, groups, causes, education, provided health benefits, Foundations and other Charities, and any cause the Trustees determine and are named may receive benefits. The Trust is judgment proof because of the Spendthrift Provision unique to this particular Trust and not subject to any turnover order by any court. Its Discretionary nature provides the ability to disburse the assets or funds to the Beneficiaries as the Trustees deem necessary. There is no penalty in holding funds in the corpus of the Trust for indefinite periods of time. This provides a continuous stream of funds for causes and Beneficiaries which never depletes and grows in value through investments. When invested in stocks the dividends paid to the Trust are not income and therefore not taxable.

The Trustees have absolute control and authority over the property, funds and assets of the Trust providing the ability to disburse the assets, property, or funds for the benefit of the Beneficiaries as the Trustees deem necessary. The Spendthrift Provisions eliminate mandatory distributions as does the Discretionary nature of the Trust.

A huge advantage is this; the Trust assets are not subject to capital gains tax. This means property or assets held in Trust may appreciate over time to no upper limits and be free of the capital gains tax that can amount to as much as 39% of the value of the asset or property. Religious causes and Churches may be Beneficiaries of the Trust providing much needed funds for evangelism, crusades, missionaries, Christian educational grants or support, foreign work or local community activities and the like.

A special feature of the Trust is the ability to add or remove Beneficiaries, to increase or decrease the distributions and to control the frequency by which Beneficiaries receive benefits. It establishes quickly and easily and may be used immediately receiving donations and endowments to make immediate disbursements unlike Foundations that take as much as a year to be authorized by the IRS. The Charitable Trust may be used internationally and is not restricted as to who may be named as Beneficiaries of the Trust. The Trust is registered with the IRS and domiciled in the United States if created here and complies with the law of the United States. If created in other countries it follows the laws and regulations of that land. Whether created in this country or another it may still operate in the United States.

The Trustees of the Charitable Trust may be compensated in amounts determined only by the agreement of the Trustees. They may receive expenses, be provided insurance policies for health and life, be provided residences, offices, transportation, travel, living expenses and other paid items from the Trust. This is all classified as taxable income to the individual Trustee and must be reported as income to them for tax purposes.

In summary, this unique structure is easy to use, exempt from liability, immune to any court turnover order, non-taxable and totally secure and private. The nature of the Trust to gather donations and endowments provides the ability to solicit donations and endowments to cover all costs of establishing the Trust and cover all the operational cost of its expenses. Simply gather the needed funds to establish the Trust from any source, establish the Trust and conduct the activities, disburse to the Beneficiaries, cover all expenses of the Trustees and conduct business affairs. Our associate accountants and tax advisors will guide you through all necessary compliance.