Asset Protection Services of America Trust

Irrevocable Spendthrift Trust

Asset Protection Services of America Trust is an Authorized Agent of Benson Financial Trust copyrighted materials. On November 29, 1999, the first "Master Spendthrift Trust", which is a "Non-Grantor, Irrevocable, Complex, Discretionary, Spendthrift Trust", was filed with the U.S. Copyright Office and Copyright Registration Number TXu928247 was issued for it as an original work. The Copyright Office noted that it was the first and only trust in American history that had ever been copyrighted.

The substance and form of the original "Master Spendthrift Trust", and the current "Benson Financial Trust", were first constructed in the early 1950’s. The original series of Master Trusts were created by Robert N. Benson, Esq., who was a Harvard educated attorney and a protégé of Professor Austin Wakeman Scott who taught at Harvard Law School. Professor Scott is the renowned author of “Scott on Trust Law” recognized as the leading treatise and authority on Trust Law in the United States. Mr. Benson studied and taught classes under the guidance of Professor Scott. After graduating from Harvard, Mr. Benson became a partner in a prominent Wall Street Law Firm providing his legal acumen to high-net-worth individuals to plan and protect their estates through various Irrevocable Spendthrift Trusts which are the predecessors to the subsequently copyrighted Master Trusts, copyrighted under the authority and approval of Mr. Benson.

In approximately 1995, Mr. Benson partnered with Tarrant County Judge George W. Boring who, utilizing paralegal Richard Ronald, formed a new Law Firm offering Trusts to everyone - not just the wealthy. Mr. Richard Ronald partnered with attorney Robert N. Benson to refine and copyright various trusts, including the "Master Spendthrift Trust", which subsequently became the current "Benson Financial Trust". Over 100,000 people have taken advantage of Mr. Benson's trusts created and sold over the last 50+ years.

Our Trust is Not

To comprehend what our trust is, it's first helpful to understand what our trust is Not:
This is Not a Revocable Trust.
This is Not a Grantor Trust.
This is Not a Simple Trust.
This is Not a Pure Trust.
This is Not a Statutory Trust.
This is Not an Offshore Trust.
This is Not a Self-Settled Trust.
This is Not a Testamentary Trust.
This is Not a Common Law Trust.
This is Not a Non-Discretionary Trust.
This is Not a Taxable Association or Corporation.
This is Not a Trust Formed under any State Laws.
This is Not a Trust Subject to Legislative Restrictions.
This is Not a Trust Subject to Distributable Net Income (DNI).

What Our Trust IS

Our proprietary and copyrighted non-grantor, irrevocable, complex, discretionary "Benson Financial Trust" with spendthrift provisions, IS best explained by the following:

'Right to Contract' as Enshrined in the U.S. Constitution
Our Trusts are created based largely on your 'Right to Contract' as enshrined in the United States Constitution, under Article 1, Section 10, Clause 1:
"No State shall... pass any... law impairing the Obligations of Contracts."
–> The United States Supreme Court ruled in Fetcher v. Peck (1810) that a "Contract no matter how obtained may not be invaded by State legislation."
–> The government is prohibited from regulating or imposing a tax on a "right".

Separation of Creator / Settlor / Grantor and Corpus
The Creator / Settlor / Grantor is intentionally separated from the Trust's corpus (ie. assets), and the moment the first asset enters the Trust it becomes funded and valid. Legal separation occurs at this point, safeguarding the corpus (which is Latin for body) from claims by Settlors, Trustees or others. In short, the irrevocable transfer of the assets cannot revert to the person making the endowment or transfer.

"Non-Grantor"
The Grantor is the person who sets up the Trust. Grantor status typically arises when the Grantor retains management of the corpus or benefits from the same trust, and can give an attorney or judge just cause to investigate and overturn that trust as an alter ego of the Grantor.
A Non-Grantor Trust is a trust where the grantor is not a beneficiary of the trust and is typically not the trustee of the trust either.
–> Our grantor has no ability whatsoever to amend or terminate the trust, is never the trustee or a beneficiary, and relinquishes full control of the trust property once the trust is established. Therefore, among other reasons, our Trust is designated as a Non-Grantor trust and is exempt from any alter ego status.
–> The Grantor of our Trusts is a dis-interested third-party who transfer their interests (ie. $10 of good and valuable consideration) to the incoming Trustee and then "Departs".
–> All assets that enter our trusts follow a contract or "Bill of Sale" with an accompanying "Promissory Note". This practice prevents the trustee from inadvertently creating a Grantor Trust by giving or gifting assets after trust creation.

"Irrevocable"
A trust is irrevocable if the terms of the trust cannot be revoked or changed.
–> The Trust is irrevocable by its express language. It cannot be revoked by the grantor or otherwise changed or modified.
–> Irrevocable trusts do not pay taxes on capitalization, and endowments are generally beyond the reach of creditors and judgements.

"Complex"
A complex trust, by IRC (Internal Revenue Code) definition, is any trust that retains some of its income and does not distribute all of its income to beneficiaries, or which distributes some or all of the principal to the beneficiaries or charities. Our Trust provides that no income will be distributed unless directed by the trustee and the trustee must make sure the trust stays in compliance with IRC Section 643(b).

"Discretionary"
A discretionary trust is one in which the Trustee in his sole and absolute discretion can determine when to make distributions, and no distributions may be forced by a beneficiary even in a court of law. Our Trust meets this standard and provides that the Trustee must conform with IRC Section 643(b) and allocate extraordinary dividends to corpus rather than distribute them to the beneficiaries.

"Spendthrift"
A spendthrift provision in a trust protects the assets of the trust from a beneficiary or their creditors. A beneficiary cannot assign their interest in the trust to any other person or entity before the interest is distributed and cannot be pledged as collateral or other security interest.
–> “Trust property cannot be held under attachment nor sold upon execution for the trustee's personal debts." Hussey v. Arnold 182 U.S. 461,21 S. Ct.645
–> The fact that the trustees hold the property does not mean that the trustees own the personal property. Trust property cannot be held under an attachment nor sold upon the execution of trustee's personal debts. Trustees and beneficiaries cannot be held liable for debts incurred by the trust. If in fact, a trust has been created, the certificate holders are not liable on the obligation incurred by the trustees or managing agents appointed by the trustees. Hussey V. Arnold 70 NE 87: Mayo V. Morin, 24 NE 1083
–> "Property of the judgment debtor that is not assignable or transferable is not subject to the enforcement of a money judgment”. California Civil Procedure Code §695.30(a)

Protection for Distributions
–> Distributions from Spendthrift Trusts are protected from turn-over orders because the property is received from an "exempt source". The Texas Appellate Court case Burns v. Miller, Hiersche, Martens & Hayward, P.C. 948 S.W.2d317 (Tex. App-Dallas 1997 writ denied) reversed holding that beneficiary's interest in Spendthrift trust assets are exempt property under the turnover statute (Civ. Prac. & Rem. Code §31.002). The creditor pointed out that once the trustee pays or delivers the trust assets to the beneficiary, they are no longer exempt. Trust Code §112.035 (a). However, the turnover statute provides that a court may not enter or enforce an order that requires the turnover of "the proceeds of, or the disbursement of, property exempt under any statute." Civ. Prac. & Rem. Code §31.002(f). "Thus, even when property is no longer exempt under any other statute, if it represents proceeds or disbursements of exempt property, it is not subject to a turnover order." (Emphasis Added) Burns at 323.

Lawful Tax Avoidance
Our Trusts are fully tax-compliant with the Internal Revenue Code.
–> In Weeks v. Sibley DC 269F. 155, Edwards V. Commissioner. 415F.2d, 578, 582 10th Cir. (1969) and Philips v. Blanchard 37 Mass 510, the courts ruled that a "Spendthrift Trust Organization is not illegal even if formed for the express purpose of reducing or deferring taxes."
–> A Spendthrift Trust is not a taxable association or corporation pursuant to tax law, as it does not possess all-four required corporate attributes, being: 1.) Centralized Management, 2.) Continuity of Existence, 3.) Free Transferability of Interest, and 4.) Limited Liability.
–> “Avoidance of Taxes is not a criminal offense. Any attempt to reduce, avoid, minimize, or alleviate taxes by legitimate means is permissible."
The Department of the Treasury, IRS Handbook for Special Agents p. 412
–> "Persons may adopt any lawful means for the lessening of the burden of income taxes." Edison California Stores, Inc. v McColgan. 30 Cal 26472.183 P2d 16
–> "It is not an evasion of legal responsibility to take what advantage may accrue from the choice of any form of organization permitted by law."
Narragansett Mut. F. Ins. Co. v. Burnhamun 51 r1371, 154 a 909

Compliant with 8 Categories of Trust Law
These 8 categories played a crucial role in the shaping of our trusts and ensuring that trust corpus is safeguarded from turnover orders by any court or judge.
1. Scott on Trust Law - Insights from Scott's expertise guide the trust's foundations.
2. Restatement of Trusts - This authoritative document clarifies trust principles.
3. Internal Revenue Code - Tax regulations directly impacting the trust's structure.
4. Uniform Trust Code - Ensures uniformity across jurisdictions.
5. Uniform Prudent Investor Act - Balances prudence and investment choices.
6. Uniform Commercial Code - Governs transactions and fairness.
7. Statute of Frauds - Guards against receipt through written agreements.
8. Rule Against Perpetuities - Measures time preventing perpetual control.

Primary Benefits

• Courts may not issue a turn-over order whether it be from an outside lawsuit or an inside lawsuit.
• No Capital Gains Tax, thus no need for another 1031 Exchange and/or paying 20% short-term or 15% long-term capital gains tax.
• If the amount of equity in a principle residency exceeds $250,000 as an individual or $500,000 as a married couple, our trust enables 100% of the capital gain to go "into corpus" without being subject to Capital Gains Tax.
• Why pay Capital Gains Tax on the sale of any piece of real estate if you don't have to?
• No Passive Income Tax, as all gains are allocated to the Trust corpus.
• Expenses and business affairs conducted on behalf of the Trust may be paid by the Trust and are not considered income to the person receiving these payments.
• Trust expenses can include housing, utilities, homeowners’ insurance, property taxes, housing repair and maintenance, vehicle insurance, taxes, repairs and maintenance.
• Beneficiaries can be provided food, clothing, medical, education, transportation, wellness, and everything else without limitation.
• The Trust can provide medical, education, transportation, and wellness for adult Trustees. This is not income to them if this income is paid on behalf of the Trustee and not paid directly to the Trustee.
• The Trust shall provide a K-1 to the Trustees for any cash, food, fun, fashion, facials and fitness, which are all taxable events to the Trustees.
• True anonymity at the local, state, federal and international levels.
• The Trust may be renewed every 21 years, for perpetuity.
• No 5-Year "Look-Back" with Medicaid.
• There are no Trust estate taxes.
• Client Testimonials

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