Trusts
Trusts stand in a body of law called equity, which stands above statute. A Trust is an intent. A contract, created by a settlor to an entrusted trustee or trustees, to ensure that the trustee/s administer the property for the benefit of the beneficiaries.
In order for a Trust to stand in a court of law, three certainties are to be met:
1) the certainty of intention
2) the certainty of objects
3) the certainty of the subject matter.
what are trusts?
Origins
Stems from 12th century Knights who went off to battle (crusades). On their return, they found that their property had been stolen in their absence. To avoid this happening, they would leave their property ‘in trust’ with another trustee whilst they were away. Upon their return, the ownership would return to the Knight from the trustee.
Modern day perception
Considered as legal instruments to help rich people avoid taxes. Holds property titles off-shore so that capital gains tax can be avoided. The richest families in the world hold trusts within trusts to protect their assets and privacy.
what makes a trust?
3 objects/offices are required:
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Settlor - The individual/s putting the property into a trust
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Trustee - Holds the legal title and looks after the property
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Beneficiary/ies - Benefit from the property
what is a private trust?
There is a difference between public and private. When something is private, it is kept away from the fictional public realm.
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Property title is split into two. ‘legal’ (public) title AND ‘beneficial’ or ‘equitable’ (private) title.
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The legal title is held by a trustee or trustees.
The equitable title is held by the beneficiaries (who own the real tangible property).
Correct trust structure
Knight v Knight 1840 + Lord Langdale: For a Trust to hold up in a court of law, there must be adherence to the three certainties.
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Certainty of intention
The intent of the settlor must be certain, i.e. to hold the property for the benefit of offspring etc.
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Certainty of subject matter
The property to be held in trust must be certain, i.e. identifiable.
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Certainty of objects
Settlor, trustee/s, beneficiary/ies.
how do trusts protect assets?
If the trust is properly structured, the property can not be taken from the beneficiaries.
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No longer ‘owned’ by the settlor, nor is it ‘owned’ by the trustees.
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The trustees hold the legal title.
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If you don’t ‘own’ your property, it cannot be taken from you.
Trust Provision
The Sovereign Project has partnered with Private Trusts Direct, a trusted Trust provider, so our members have access to the best.
Private Trusts Direct have crafted a private, express, irrevocable trust
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Remains in the private
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Not regulated
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Not designed for tax avoidance, however, there are other benefits
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Long-term support
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It’s not enough to have a Trust declaration or deed on its own, you will need to be able to enforce the Trust and know your rights.
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They provide a 6 weeks course on how to administer your Trust
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Once you sign up for the course, you can access the precious recording and come on the re-run of the course as many times as you like
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Workshops on specific queries such as putting assets and cars into trusts, how to protect assets with the land registry etc.
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A dedicated telegram support group with people who have the exact same trust, where we all learn together and post questions to each other
If you are not confident to learn trusts law, then they have other options available
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A year’s support - Up to an hour a month to help you administer your trust
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Professional Trustee duties - Up to an hour a month administering your trust for you
Their Trust provision is affordable and available on payment or equitable terms if required. They would require a half hour zoom call with interested parties before you embark on the journey together, and then they can provide the donations required. However, to give you an indication of how reasonable their donation level is, you can access the trust documentation and course for less than £1,000.
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They also offer bundles as they provide a fully comprehensive asset protection service, including
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Trust declaration, administrative documents, affidavits, memorandums, sub-trust templates and public notices
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Private Trust 6 week course (one-off fee no matter how many times you access) and workshops
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Drafting Wills & Will Trusts (Single and Mirror)
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Power of Attorney (Single and Mirror)
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Title transfer with land registry
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Restrictions with land registry
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Private Members Associations (Unincorporated Associations)
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PMA 6 week training course
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Professional trustee services
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Support
Contact Private Trusts Direct
They are friendly and approachable, they will hold hands with anyone who struggles and there are no stupid questions.
They're looking forward to working with you and helping you own nothing, but controlling everything.