Income As A Trustee - Is It Tax Obligated

Income As A Trustee - Is It Tax Obligated

In short, money paid from the Trust to a Trustee has no tax obligation (avoiding the income tax). This follows the Legal (and Biblical) Maxim "A worker is worthy of his wage". Even statutory trusts can do this, but a Bulletproof Trust goes further in it's protection by its ability to function as an Article IV § 2 citizen of United States via its Trustee, not a 14th Amendment citizen. (1) This citizen is understood in constitutional law as the private citizen. (2)

Last but not least, due attention must be paid to the Internal Revenue Service, for they are the lawful, legal entity, duly authorized to collect association dues (income taxes) from 14th Amendment citizens and other persons volunteering and availing themselves of the “privileges and immunities” regarding non-payment of debts in the system implemented under former H.J. Res. 192, 12 U.S. Code § 95(a), and 15 U.S. Code, ch. 41, § 1602(c)(d)(e). “They [participants] are considered as a debtor/creditor in a social security association (unchartered, unincorporated commune) whereby each person insures everybody else in the association by agreeing never to demand payment for debts. [It is] [u]nder this volunteer arrangement [that] these persons become primarily a U.S. citizen, secondarily a state citizen, ‘subject to’ clause 1 of the 14th Amendment, while the literal 10th Amendment rights are forfeited.” (3)

(1) See FARMERS LOAN & TRUST CO. V. C. &. A. RY. CO., 27 Fed. 146 (C.C.Ind. 1886); and SHIRK V. CITY OF LAFAYETTE, 52 Fed. 857 (CC.Ind. 1892). For an understanding of the profound superiority of Article IV § 2 citizenship over 14th Amendment citizenship, see Lee Brobst et al.
(2) See HALE V. HENKEL.
(3) Brobst et al.
    • Related Articles

    • Does A 508(c)(1)(A) Receive Tax-Deductible Donations

      According to the IRS, yes it does! But a donor can only give a maximum of 50% of their income as tax-deductible donations. Additionally,  Here is a quote from page 2 from the IRS Tax Guide for Churches and Religious Organizations: "Churches and ...
    • What About Personal Income Taxes

      Yes it's true that Steve Miller, former Director of the Internal Revenue Service (IRS ) admitted at a Congressional hearing that the taxes collected by the IRS are not mandatory – but voluntary. When questioned at the House Ways and Means Committee ...
    • Is Trustee Compensation Reported To IRS

      Trustee compensation is a separate contract whose obligation is protected under Article 1, Section 10 of the Constitution for the United States of America. All Federal excise tax and state organization and franchise taxes are legally avoided except ...
    • Income Taxes and Lawful Money

      Under its power to borrow money, Congress is authorized by the Constitution to contract debt, and whenever something is borrowed it must be returned. When Congress spends the contracted private credit, each use of credit is debt which must be ...
    • Can Homes, Cars, Etc. Be Donated Into A Trust For Tax Deductions

      Yes, assets can be donated into a CHARITABLE TRUST or a CHARITABLE ORGANIZATION, but rather than obtain a tax-deduction it is better to avoid the taxes 100% via a Bulletproof Trust, as stated here.