Can Anyone Trust The Grantor / Friend / Neighbor - What If They Try To Steal The Trust's Assets
If a grantor/friend/neighbor tries to make a grab for a trust's assets - do not worry. A trust means the grantor must lose ownership AND control. Finally, what will a grantor care about signing a piece of paper granting a grain of sand to The Board of Trustees (that's all it takes to create a trust)? One can search the documents for The Peppercorn Rule to understand this intricacy in detail.
Additionally, in the trust indenture, one will read that all the powers are held by The Board of Trustees. Further, one cannot replace any Trustee on The Board of Trustees unless gross negligence is shown in court (how can this be shown when the trust is 100% private and grantor has nothing to do with the trust's affairs?)
Finally, even if gross negligence were able to be shown (one would have to do some pretty ILLEGAL things to have this happen) the court can only remove "that trustee" which has shown gross negligence and the Bulletproof Trust must acquire a new Trustee to replace the old one. There will still be TWO OTHER TRUSTEES to manage the trust. The replacement Trustee cannot be chosen by the grantor or the court but by the Protector Trustee (who was selected by The Board of Trustees to make this decision). Therefore, the grantor can NEVER reclaim or "go after" trust assets.
NOTE: It is suggested one obtain one friend/neighbor for one trust, and another friend/neighbor for another trust - ad infinitum. At that point it becomes a shell game. Does the "bad friend/neighbor" know which trust holds which assets? And even if they did, can they guarantee there isn't a filed/non-filed UCC-1 + Private Security Agreement to take all those assets away from the trust that is in danger, within a single instant? It should also be noted that after a single lawsuit, most Plaintiffs (that bad friend/neighbor) end up with ~$100,000+ in legal fees - just to find out there is NOTHING to collect from the trust. It really deflates all their hopes and dreams and leaves them in years of debt (oh sweet justice/karma)!
Does One Really Need A Friend or Neighbor To Create The Trust - Can One Use A Family Member
Yes, one must use a friend or neighbor in order to pass The Control Test. A family member, partner (even if homosexual marriages are not legal in one's state) or significant other is considered "too close" to pass The Control Test.
How May The Grantor Create a Trust Without Owning Any Assets
The trust is a private contract, and the consideration needed to create a legal contract falls under The Peppercorn Rule. This rule is a metaphor for a very small cash payment or other nominal consideration, used to satisfy the requirements for the ...
Can A Trust Be The Grantor of Another Trust
Yes, a sui juris (independent) trust can be the grantor for another trust; however, there are often complications that arise from such a structure. Many often use this type of trust to create a trust web, which could inadvertently create multiple ...
Can LLC or Corporation Be A Grantor for A Trust
A Corporation and LLC can be grantor for a statutory trust, but not a private express trust (i.e. Bulletproof Trust). Private express trusts require a living human being to be grantor. If the goal of using these statutory entities as grantor is to ...
Can Someone Be Grantor/Creator + Trustee + Beneficiary
No. A contract between only (1) party is invalid, contracts require (2) or more parties to be considered valid. One can be Grantor and a/the Beneficiary. There is no conflict of interest being Grantor & Beneficiary because Beneficiary cannot ...