Trust Scams and How They Affect the Uniformed
Posted by: Eric Hundin in , Estates, Wills, Trusts, Career Information, Blog CarnivalThis Article was brought to you by:
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The word “trust” has a ring of confidence to it. The dictionary describes the word trust as have confidence or faith in. Human nature tells us that we should trust and most of us are trusting. Many scam artists will play upon us to sell or take advantage in a way that will cause emotional and financial harm. One such scam is called “the pure trust.”
This trust involves a non-existing form of trust and it is known by a number of names such as the Common Law Trust, Constitutional Trust, Patriot Trust, Business Trust, Common Law Trust Organization, Foreign Common Law Trust Organization and others. The pitch is generally for the benefit of tax avoidance or asset protection.
The scam artists who sell these as asset protection will argue that there are numerous options to reach the goal when in reality these trusts are easily attached and broken by creditors. Once the reason for the trust is known (tax evasion) the courts will allow creditors to attach and seize the assets within the trust. The IRS is well experienced in how these trusts work and will immediate begin proceeding to end the trust and expose the assets. In addition to the assets being seized, heavy fines and jail time are normally the result for the participants.
Pure trust advocates will explain the three tier system for the organization of the trust which would appear to place the assets out of reach but over and over again the IRS has won in tax court. These cases are well documented and are explained away by the trust salesperson as “not like theirs.”
The greater question is why these trusts are so appealing to some people. The target market for selling these trusts are usually those the most vulnerable such as seniors, immigrants and those who have a natural hatred for our tax system.
The usually point of interest to using the “pure trust” concept is these:
Privacy, the need to keep everything secret. The trust salesperson will stress this point that a trust is totally secret and no one will ever know what is in the trust.
Hatred of the government and its tax collecting system, the IRS. These people feel they are being swindled by the government and become an easy mark for the trust sale.
Hatred of lawyers and of our legal system.
A belief they are beating the system and have outsmarted the government.
A feeling of supremacy and that the rich people know nothing that the trust owners do not. The selling point with the trust salesperson is that “all the rich people” all ready use these trusts and it has always been their secret.
If you are approached by a trust opportunity I would strongly suggest you obtain legal and tax advice before considering it. These trusts are not what they seem and they can create future trouble and legal expense.
Bill Broich heps seniors manage their retirement savings. Visit his website for more information: Annuity
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At least redirecting mail in advance would be one thing off your mind.
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