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)!
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