Determining Your Needs
According to American law, the government cannot regulate or impose a tax upon a “right”. Our “right to contract”, according to the U.S. Constitution, Article 10, is indivisible. This means that it is beyond the rights or powers of the government, even for a judge or court, to change even one word of a Contract of Trust. Once the trust is funded and active, and the first property or asset is transferred into the Spendthrift Trust Organization, it is subject to its own indenture, which governs and protects all properties or assets held by it. Also, assets conveyed into trusts are not gifts, and may not be considered as such because there is no equitable title conveyed to any person or entity. All assets are technically held in the corpus for the benefit of the beneficiaries. As we mentioned before, they may hold a beneficial interest but no title to the assets.
Beneficial Trust
Beneficiaries do not have any management or control of any trust assets EVER in a Spendthrift Trust. A Spendthrift Trust Organization is “created” or given life through a “contract” in the form of a manifestation of intention in the terms and conditions of the trust, often referred to as the “instrument” or “trust instrument”. In addition to this, these “contracts” or “instruments” do not owe their existence to any acts of legislature. The authority for its creation is the common law right to contract by each party.
Beneficial and Business Trust
The beneficiaries only own the assets in the trust if they are transferred to them by title or deed by the trustee. But, until that happens, they own nothing in the trust. They do however have rights to the benefits, proceeds and profits of the assets or properties, if the trustee allows it. One thing to remember is that the trustee is responsible for all the assets, and this is a spendthrift trust, meaning the beneficiaries only are allowed what is “given to them”, and it’s at the complete discretion of the trustee. So, when the trustee allows this access, it is called “beneficial interest”. This beneficial interest is contractually non-assignable interest, and it’s for that reason specifically that any creditor of the beneficiaries may never legally attach trust assets to a debt obligation of the beneficiary. Also, assets conveyed into a trust is never a “gift” to the trust. Because the assets in our trust hold no “equitable title”.
