Unregistered Trust Checklist

Unregulated trust

An unregulated trust is not regulated by a government or regulatory body
E.g. Unit trust, family trust, discretionary trust, deceased estate, managed fund

Details we need

  • Full name of trust
  • Full business name of the trustee (if any)
  • Full name of the settlor of the trust (unless initial settlement was less than $10,000 or settlor is deceased)
  • Full name of each beneficiary of the trust (or details of the class)
  • The type of trust
  • Industry in which trust operates
  • Tax residency information – including countries of residency and tax identification number
  • Tell us if the company earn more than 50% of its income from investing activities

Documents we check

  • ID for yourself, each individual trustee, each corporate trustee (if any), all beneficial owners1 of the trust and anyone else you’d like to operate the account.
  • If you have a Trust Deed, we’ll need an original, certified copy (or certified extract) of it, showing trust name, trustee names, beneficiaries, settlor name and where necessary, the amount
  • If your trust doesn’t have a Trust Deed, we’ll need an original or a certified copy (or certified extract) of notice from the Australian Tax Office (that’s less than 12 months old)
  • If you have any corporate trustees, they will also need to bring documents relevant to their business structure. E.g. If the corporation is an Australian Domestic Proprietary Limited, they should refer to the Australian Domestic Proprietary Company checklist

Who needs to visit a branch with ID?

  • You
  • Each individual trustee
  • Each corporate trustee (if any)
  • All beneficial owners1 of the trust
  • Anyone else you’d like to operate the account

Personal ID

These are the documents we need to see to verify your identity.

One of these

  • Passport
  • Australian or New Zealand drivers licence

or
Two of these non-photographic documents

  • Australian or foreign birth certificate
  • Australian or foreign citizenship certificate
  • Centrelink pension or health card

or
One of the listed non-photographic documents and one of these

  • A Commonwealth, State or Territory-issued notice issued to you that clearly shows your full name and residential address
  • An Australian Tax Office notice that clearly shows your full name and residential address
  • An utilities notice from a local government body or utilities provider that clearly shows your full name and residential address
  • Your overseas drivers licence (we don’t accept digital drivers’ licenses as personal ID)
Trust FAQ
  1. Question:Why would I need a Trust?

Answer: is the foundation of wealth generation because it protects the estate that you are creating & stops any attack by a potential pirate or parasite. Most people take a lifetime, if ever these days, to accumulate one property & have it paid off. Just one attack by a pirate or parasite could garnish your property. Do you have two lifetimes to recover your financial disposition.

  1. Question:Why is your Trust better or different? What’s the difference between your Trust & a Registered Trust?

Answer: A Registered Trust is within the public realm & therefore “owned” & “controlled” ultimately by the public. It is subject to legislation & must comply with & uphold various obligations, responsibilities & liabilities. Our product is a hybrid & is Non Registered, making it private & without all the public obligations, responsibilities & liabilities. Eg No annual audits, no annual ASIC reporting, No tax obligations, No annual dispersal of the productivity of labour it has received, No minutes of meetings required & more.

  1. Question: Why can a Trust protect the Estate?

Answer: A Trust protects the estate because all titles, real estate titles, share certificates, gold certificates etc, consist of two components;

  • Legal title – or ownership, vested with the Trustee/s, and
  • Equitable title – use & possession – vested with the Beneficiaries.

Because the title is split between a number of parties, any Creditor to any one party of the Trust must obtain the consent of all other parties to the Trust to lawfully & legally garnish the Estate held in Trust. If the Creditor wishes to recover debts from the one party to the Trust, the “debtor”, it cannot garnish the equitable interests of other parties to the Trust’s. To do so is legally “theft”. Trust law is upheld in all courts, as this writer has personally experienced on two occasions.

  1. Question: I heard Trusts can be busted by the Tax office. Is that true?

Answer: Yes & No!

Yes, if you and/or your lawyer don’t know what you’re/they’re doing or you/they remain silent when an offer to garnish the Estate held in Trust by a pirate or parasite is “offered”.

No, if you know how to hold your position when an offer to garnish the Estate held in Trust by a pirate or parasite is “offered”. Eg. “I’m only one party to that Estate, held in Trust. Is that not theft in any court in any country if that property/Estate is garnished for a liability or obligation that I, or my legal name, has to the Creditor?” This is expressing a form of your objection & non consent to (financial) rape & pillage.

  1. Question: Is your Trust a discretionary Trust, what is a discretionary Trust?

Answer. Yes it is. A discretionary Trust is where the Trustee/s have absolute total discretionary & discretionary powers to run the Estate held in Trust, like a Director of a company, & can direct when, where & to whom funds are directed or assets dispersed etc.

  1. Question: What is the role of the Trustee/s?

Answer: That is the realm of an appointment to clarify all the roles, obligations, responsibilities & liabilities of the various parties.

  1. Question: What’s the difference between your Trust & a foundation?

Answer: A Foundation is totally private & a firewall to the public. Great trading entity. Being totally private, it cannot hold title/s. Our Trust can. Title to anything.

  1. Question: Can your Trust hold other assets to real estate?

Answer: Yes, any title.

  1. Question: Can I trade through your Trust?

Answer: Yes, it’s a perfect structure to trade through & is a

firewall to the public.

  1. Question: Does your Non Registered Trust have obligations to pay tax?

Answer: No. It is a Non Registered Trust, hence a private structure & cannot incur tax liabilities or pay tax, unless the Trustee/s implicate or incriminate themselves, such as using intellectual property owned by the public, such as the word “income” or “profit”. One public liability for a public entity is stamp duty. It is suggested the trustee/s pay stamp duty on property or other transactions, only so as not to otherwise uphold the settlement of the transaction.

  1. Question: I already have a property. How do I transfer the title of that property from my name into the trust?

Answer: You are the trustee. Just take your Deed of Trust into the titles office (or whatever it is called in your country/state) and tell the clerk that you wish to transfer the title of your property from your name into the Trust. Simply complete the transfer documents & pay the stamp duty at the Office of State Revenue.

  1. Question: The Trust has two Trustees. Is it ok for us to sign separately using a witness who knows us both?

Answer: Yes

  1. Question: My house has a mortgage on it and I want to put it into a Trust. Is this possible and how would I do it?

Answer: Yes, it is possible, but it is at the discretion of your bank/lender. The property remains the collateral for the loan. You would first need to go to your bank/lender and ask them if it is possible to have the property moved over into a Trust. You would also be required to pay stamp duty and a transfer fee again if that is applicable in your country. Check with your Tax Office/Office of State Revenue to confirm this.

  1. Question: Can the Non Registered Trust obtain a loan?

Answer: No, it is Non Registered & is not part of the “public” system & cannot obtain its benefits & privileges. However, the Trustee/s can borrow on behalf of the Trust, using the property as collateral for the loan.

  1. Question: I have a SMSF. Can this go into my Trust.

Answer: Yes it can.

  1. Question: What would happen if I were to die? Is the Trust liable for my mortgage? Does that put any beneficiaries of the mortgage at risk of having to take on the debt?

Answer: No, the Trust is not liable as it’s in the private. There should be mortgage insurance to cover the event for death. Beneficiaries are never liable for the debts of the estate. If no death cover insurance then the estate could be sold up unless the remaining or incoming nominated Trustee responsibly takes over the mortgage. An appointment may be required to more thoroughly investigate & qualify this question before delivering an appropriate answer.

If the Trustee passes away the remaining Trustee will assume all obligations of the Trust, including the appointment of another Trustee if the obligations are more extensive than the remaining Trustee can address alone.

  1. Question: Do Beneficiaries have to be registered?

Answer: No. Only a trustee must be a registered party. The Birth Certificate name is registered, as is a public Trust or a company.

  1. Question: Do beneficiaries have to be 18 years of age or over?

Answer: No. Any party can be a Beneficiary, even pets & charities.

  1. Question: Will my Trust be mailed to me in the Trust name or my own name?

Answer: Whatever name is nominated by the Trustee/s. It is usually mailed in the name of the Trustee/s.

  1. Question: I am trying to open my Trust account with the Bank and they say that it must be registered. Is this correct.

Answer: No. Tell them that it is a non-registered Trust and a lot of banks have clients with accounts held in Non Registered Trusts. Ask them if that is just Bank policy or the law. They will say that it is Bank policy so you just say, “Thank you but I’ll stick with the law.” A clerk may claim the Bank will charge 40% tax on the interest earned on the account. Never argue. However all you need to know is a Non Registered entity cannot be taxed. Our Trusts do not attract any tax.

  1. Question: What do I do once I go to the Bank to set up my Trust?

Answer: If they ask you for an ABN # or whether it’s registered, tell the Bank it is a non-registered Trust and it doesn’t need an ABN. Take with you your original deed plus ID for the Trustee. Instruct the Bank to photocopy the pages that they need. Do not give away your originals. It’s a business account and you need to apply for a debit card attached to the account. If the Clerk asks you what the purpose of the Trust is, tell them it is for estate/asset protection.

  1. Question: Would I be able to move existing assets like bitcoin and other crypto’s into this trust and are there tax benefits in doing so?

Answer: Maybe If it came from a private account into BC then back to a Trust Account, if its a smaller amount – $5,000 or less, it likely won’t attract attention. The key would be to withdraw smaller amounts over a period of time

If its $10,000 or more it will likely attract attention from certain pirates. One can recover the amount initially deposited without any tax obligations.

Naturally we only use trust accounts & yes, it bypasses the parasites because being non registered, it is outside of the pirates jurisdiction.

23. Question: Is this available to other countries?

Answer: Yes it is available for English speaking countries. Mark has set up Trusts for Canada, UK, Ireland, USA, Sweden and Denmark. The Trusts are really for any Country within the Commonwealth but some others may be able to be set up as long as they are English speaking as it can be very hard to translate.

PRIVATE (NON REGISTERED) TRUSTS BRIEF GENERAL OUTLINE

PRIVATE (NON REGISTERED) TRUSTS

BRIEF GENERAL OUTLINE

Discretionary trusts are structures (not legal entities) used for purposes of asset, privacy and sustenance protection.

A trust is an equitable obligation binding a person or company (the “Trustee”) to deal with property over which he/it has control (called the “Trust Property”) for the benefit of named beneficiaries or classes of beneficiaries (called “Beneficiaries”). Ownership of property is vested in the Trust on behalf of another party/ies for purposes of asset and privacy protection.  The obligation relates to the Trust Property and requires the Trustee to exercise control over the Trust Property for the benefit of the Beneficiaries. A discretionary trust empowers the Trustee to determine the distribution of sustenance and capital of the Trust. This discretion usually relates to whether sustenance or a certain type of sustenance will or may be distributed and to whom it will or may be distributed for purposes of legally minimizing taxation obligations for one or more parties named in the Trust. Any funds attained by the Private Trust is not subject to tax.

A Discretionary Trust ‘Deed’ is the formal and legal instrument that documents the formal and legal arrangements and obligations between the parties within it and most often contains the following features:-

  • It is established by a Settlor, that is, the person or entity who formally settles or creates the Trust by the payment of a nominal sum to the Trustee which constitutes the initial Trust Property.
  • The terms of the Trust are contained in a deed executed by the Settlor and the Trustee called the Trust Deed.
  • The Trustee may be, but is not commonly, a limited liability company established for this purpose. Most Trustees are individuals. The Trustee is vested with:
  • a discretion to allocate sustenance or capital (as the case may be) to all or any of the specified Beneficiaries referred to in the Trust Deed, or to accumulate the sustenance; and
  • a wide range of powers to address a variety of situations and transactions.
  • The Beneficiary/ies may be entitled to both capital and sustenance distributions with a number of defined classes of persons which typically include parents, children and grandchildren, spouses of children and grandchildren and more generally, any company, trust, religious or charitable institution in which any of the beneficiaries have a beneficial interest. These Beneficiaries are categorized into 3 classes. These are Primary, Secondary and Tertiary Beneficiaries. Each class has different expectations or rights to receive distributions.
  • For legal reasons, a Trust must terminate and does so on a date known as the “vesting date”. The vesting date is the earlier of the date of expiration of a period of eighty years from the date of execution of the Trust Deed. A Trust may also be wound up at an earlier date. There is a formal process that must be undertaken to do so. A Trust’s life may be extended a further 80 years & perpetually if so desired by majority at a chorum of a meeting where minutes are recorded.

By reason a Trust’s lifespan is eighty years, when any key title/office holder pass away, the integrity of the Trust and its estate remain intact such that it protects the estate from being dispersed as a result of having to meet any financial obligations arising from the death of the title/office holder. The Trust may be the source of the expression ‘the rich get richer while the poor get poorer.

  • The Trust Property may be classified as either “sustenance” or “capital” and may be split into a variety of categories so as to most effectively minimise each of the Trustee’s and Beneficiaries’ tax liability.

THE SETTLOR

The Settlor should be an independent person or entity who should not be either a Beneficiary; or a Trustee. The Settlor contributes a nominal sum to establish the Trust (usually $10.00), being the “settlement sum”. The Trust is an agreement, between the Settlor, the Trustee/s & the Beneficiary/ies. The payment of the settlement sum should be recorded in the books of the Trust, and be the first amount deposited into the new bank account established for the Trust. This amount is never repaid to the Settlor.

THE TRUSTEE/S

It may be desirable that the Trustee be a company. One of the major attractions in using a corporate Trustee is that the liability of each shareholder is limited to the value of their own shares. In regard to Trusts, a Trustee is personally liable for any debts or liabilities it incurs in the course of carrying on a business for the Trust. The Trustee does, however, hold a right of indemnity from the Trust Property to satisfy liabilities incurred in its capacity as Trustee. Establishing a corporate Trustee provides a mechanism to limit such liability. Our Trust expresses any Trust liability to the Trustee/s is limited to $50 Australian.

The shareholders of the company may also be Beneficiaries. If, at any time, the Trustee is to be replaced, a formal deed of appointment and retirement of the Trustee will be required.

The powers and discretions conferred upon the Trustee are extensive.

         THE BENEFICIARY/IES

There are different classes of Beneficiaries known as Primary, Secondary or Tertiary Beneficiaries. Careful consideration should be made as to who you wish to be placed in each of these classes as the decision effects many parameters such as taxation, wills, obligations of office etc.

Normally, the Primary Beneficiaries are those persons who you wish to specifically name as Beneficiaries. The Secondary Beneficiaries may include their spouses, parents, nephews, nieces, children and grandchildren. Tertiary Beneficiaries are a step more remote and include such things as related companies etc.

A Trust Deed:

  • provides that the Trustee must distribute any Sustenance in default of a determination or allocation of the sustenance by the Trustee in any year; and
  • provides for the distribution of the capital of the Trust to a certain class of Beneficiary if the Trustee does not make an allocation of all the capital of the Trust before the Trust terminates. Among other things, this prevents the Trust Property passing to the Settlor should the discretion not be exercised.

THE PRINCIPAL/S

The Principal is the person or entity who effectively controls the Trust. The Principal may or may not be a Trustee but has the power to appoint and remove the Trustee/s and, therefore, indirectly controls who makes decisions concerning the Trust. The Principal has the power to remove the Trustee and appoint a new Trustee of his choice. Should the Principal die, or become liable to be dealt with under any law relating to mental health then this power can be exercised by his personal representatives. If the Principal becomes bankrupt or if the Principal is a company and has a receiver appointed, is wound up or is placed into liquidation, then that Principal is automatically removed and the Beneficiaries have the power to appoint a new Principal.

SUMMARY

A private discretionary trust can provide a great deal of flexibility in terms of the amount and/or character of distributions of sustenance.

Accordingly, it is a tool which provides an opportunity to bypass obligations to the public that public registered Trusts incur. As a bonus, a properly structured and administered trust is likely to provide a practical solution to the trade-off between the risks of engagement in commerce and the need for protection of assets, privacy and sustenance.

(For Trust Services see last page of book)

http://www.scribd.com/doc/182550247/The-Complete-Book-of-Wills-Estates-Trusts