Understanding the Trust Web

Understanding the Trust Web

The trust web is the structure of one's estate plan that allows for the protection of wealth through the use of the Irrevocable Private Express Trust and the redemption of lawful money. The web is created by the execution of the Operating Trust, Pass-Through Trust, and Holding Trust. What we refer to as the Operating Trust is simply the document within public view (see the circle on the far right of the diagram below). If one has an LLC, S-Corp, or C-Corp, it may take the place of the Operating Trust. This is explained in detail in Section 3 Trust Web Secrets in the Bulletproof Trust Secrets program. A quick view of a trust web is as follows:

To ensure that the trust assets are protected, the following steps must occur after one has signed the trust documents:

1. The Pass-Through Trust (creditor) will have a filed (perfected) UCC-1 & Private Security Agreement over the Operating Trust or corporate entity (debtor).
   
2. The Holding Trust (creditor) will have a non-filed UCC-1 & Private Security Agreement over the Pass-Through Trust (debtor). The Pass-Through Trust may have an EIN and bank account.

Only trusts with a bank account require an EIN. A Private Security Agreement (notarized) serves as the official contract allowing for a UCC-1 to be legally filed. This is all one needs to do to create the trust web. The Holding Trust will be the creditor on the UCC-1 with Pass-Through as the debtor and it will not be filed.