COPYRIGHTED SPENDTHRIFT TRUST

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1. A Settlor has no rights or beneficial interest in the Trust.
   
2. The Compliance Overseer can be the Trustee (as long as he/she is not the Settlor of the trust).  The Compliance Overseer can appoint another party to be the trustee; however, the Compliance Overseer can still replace the Trustee that he/she has appointed.
   
3. The Compliance Overseer can appoint or remove any beneficiary at will. A Compliance Overseer may never be a Beneficiary.
   
4. Beneficiaries in a Spendthrift Trust may be anyone or any organization named in the Trust Documents.
   
5. The Compliance Overseer can appoint his/her successor at any time during his lifetime.
   
6. The Trustee may disburse funds to the Beneficiaries in equal amounts, unequal amounts or not at all at his/her absolute discretion.
   
7. If a Compliance Overseer does not appoint a successor, then upon his/her death, the office disappears. Yet, the existing appointed trustee and the Beneficiaries remain the same.
   
8. When the Settlor or anyone else gives money or assets to the trust for it to be capitalized or endowed, no taxable event has occurred.  The trust pays taxes only on what the assets earns unless deemed to be paid to the corpus according to the terms and conditions of the trust, which is discretionary.
   
9.  Any monies that the trustee distributes from the original endowment of the trust to the beneficiaries are a nontaxable event for the trust. The monies that the trust earns are taxable unless deemed to be paid to the corpus according to the terms and conditions of the trust.
   
10. Once the assets are placed into the trust, no court or entity can remove them.  Spendthrift Trusts have proven to withstand court judgments, divorces, bankruptcies and lawsuits.  These Trusts have been successful in preventing creditors from attaching the Trust assets.
    
11. Trusts can own and trade government securities, stocks, and bonds, gold, precious metals or any other form of asset.  The Trust can hold, buy or sell real estate.
    
12. The monies that are paid to the Beneficiaries are a taxable event to the Beneficiary from the endowment funds of the Trust according to their income level if earned income is the distribution; only the monies that a Trust earns from the endowment and are undistributed to the Beneficiaries are taxable to the Trust if retained by the Trust unless deemed to be paid to the Corpus according to the terms and conditions of the Trust. Master’s Trust Format is a discretionary Trust and complies with this IRS regulation.
    
13. Trusts are required to file federal income tax returns. Form 1041 is used. However, a Spendthrift Trust is a complex Trust and the capitalizations or endowments of the Trust are not taxable events and deemed to be paid to the Corpus according to the terms and conditions of the Trust. Capitalizations or Endowments are retained indefinitely and only distributed by the trustees of the Trust to the Beneficiaries at the sole and absolute discretion of the Trustees only. All capitalizations or endowments of a Trust that are retained in the Corpus are not a taxable event.

Copyright © 2024 Legacy For All Trust, LFA Trust, LFA Trusts - All Rights Reserved.

No part of this material may be reproduced, initiated, or utilized, in whole or in part, in any form or by any means, electronic or mechanical, including but not limited to photocopying, recording, or by any information storage and retrieval system, without the express permission in writing from Legacy For All Trust. Violators are subject to both civil & criminal liability. See 17 U.S.C. § 501-506, which includes civil liability for damages, loss of profits, statutory damages up to $150,000, and atty fees. See 18 USCS § 2319, which includes imprisonment of up to 10 years.

NOTICE: Legacy For All Trust (“LFA”) strongly encourages the purchasers of a Benson Trust Product to be mindful of all rules and regulations that apply and should be followed in structuring, implementing, and operating any of the various Benson Trust Products. Accordingly, LFA strongly urges each trustee and/or their authorized agent or representative to at all times be knowledgeable of, and compliant in all material respects with the provisions of Trust by: (1) not engaging in any type of fraudulent activity in connection with the administration of the Trust, (2) not taking any action in contravention to the Trust, local law, state law, and/or federal law, (3) timely filing an accurate income tax return with the Internal Revenue Service (and where required the filing of an accurate income tax return with all local and state governments), and (4) not understating income or overstating a deduction on an income tax return. By purchasing a Benson Trust Product, directly or indirectly, the purchaser agrees that he, she, it, is solely responsible for consulting with their own tax advisor as to the tax consequences associated with the income and principal distributions made from this trust and that you the purchaser assume sole responsibility, to the complete exclusion of LFA for the tax consequences resulting from the use of the Benson trust product including specifically with respect to income and principal distribution and IRC Section 643 treatment and application. The tax rules governing Non-Grantor, Irrevocable, Complex, Discretionary, Spendthrift Trusts are complex, change frequently, and depend on each individual taxpayer’s situation. By purchasing A Benson Trust Product, you the purchaser acknowledge that any tax liability or other tax consequences to you resulting from the establishment of this trust is solely your responsibility. Purchaser further acknowledges that he, she, or it, bears sole responsibility for the structure, implementation, and operation of any of the various Benson products purchased by you, directly or indirectly, and that you, to the express exclusion of LFA, shall bear sole responsibility for any adverse consequences for improperly structuring, implementing, and operating, a Benson Trust Product or otherwise improperly using a Benson Trust Product.

Copyright © 2024 Legacy For All Trust, LFA Trust, LFA Trusts - All Rights Reserved.