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Copyrighted
The Internal Revenue Code states this plainly saying;
The Internal Revenue Code states this plainly saying;
In 1999 specialized terms and conditions for Irrevocable Spendthrift Trusts were created that were unique in that for the first time a control position was placed within the trust format that would allow a selected person to govern the actions of a trustee and the conduct of the beneficiaries. These trusts meet the requirements of the IRS, the concepts of the late Professor Austin Scott of Harvard Law School, the nation’s foremost authority on trust law and the codes and relevant statutes of the legal system of the United States.
The trust documents were copyrighted, beginning in 1999 and completed in the year 2000. Additional documents have been copyrighted in 2012.
The copyrighted trust provides asset protection, since the trust assets are generally exempt from a turnover order from any court of law or judge when created and used properly*.
Generally, when funds or endowments are properly conveyed to a trust, there are no tax consequences to the party contributing the funds or endowments, the beneficiaries, or to the trust itself. The funding/endowment is called a capitalization that is called the corpus of the trust. When assets, cash or property are distributed to a beneficiary of the trust, it is not a taxable event for the trust. All capitalization or endowments, and capital gains, extraordinary dividends, real estate transactions and stock dividends realized in an irrevocable discretionary trust are not considered income to the trust when allocated to the corpus.
The Internal Revenue Code states this plainly saying;
The Internal Revenue Code states this plainly saying;
The Internal Revenue Code states this plainly saying;
Internal Revenue TITLE 26, Subtitle A, CHAPTER 1, Subchapter J, PART I, Subpart A, Sec 643 (a)(3),(4),(7) and (b) states: “(3) Capital gains and losses. Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c). Losses from the sale or exchange of capital assets shall be excluded, except to the extent such losses are taken into account in determining the amount of gains from the sale or exchange of capital assets which are paid, credited, or required to be distributed to any beneficiary during the taxable year. The exclusion under section 1202 shall not be taken into account. (4) Extraordinary dividends and taxable stock dividends For purposes only of subpart B (relating to trusts which distribute current income only), there shall be excluded those items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, does not pay or credit to any beneficiary by reason of his determination that such dividends are allocable to corpus under the terms of the governing instrument and applicable local law. (7) Abusive transactions The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this part, including regulations to prevent avoidance of such purposes. If the estate or trust is allowed a deduction under section 642(c), the amount of the modifications specified in paragraphs (5) and (6) shall be reduced to the extent that the amount of income which is paid, permanently set aside, or to be used for the purposes specified in section 642(c) is deemed to consist of items specified in those paragraphs. For this purpose, such amount shall (in the absence of specific provisions in the governing instrument) be deemed to consist of the same proportion of each class of items of income of the estate or trust as the total of each class bears to the total of all classes. (b) Income for purposes of this subpart and subparts B, C, and D, the term “income”, when not preceded by the words “taxable”, “distributable net”, “undistributed net”, or “gross”, means the amount of income of the estate or trust for the taxable year determined under the terms of the governing instrument and applicable local law. Items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, determines to be allocable to corpus under the terms of the governing instrument and applicable local law shall not be considered income.”
Because of these key factors and the characteristics, our special copyrighted (intellectual property) Spendthrift Trusts have now become the preferred entity for asset protection and tax planning. The copyrighted trust provides tax advantages and ease of management that meets the requirements and standards necessary to enjoy these advantages.