Private Asset Trust and Personal Privacy
Can I get Personal Privacy with a Private Asset Trust?
It has been increasingly difficult to maintain any sense of privacy, especially as computers have become the standard, companies and government sharing information, and social networking. Trying to undo exposure or remove history is mostly a waste of time.
Changing your name or creating a whole new identity can be done, but may not be effective, or even legal. The correct method that most beginners employ is to create a corporation or similar organization like a Limited Liability Company (LLC). There are many options.
Creating a new organization is one way to get some privacy. This could mean starting a corporation, a Limited Liability Company, a partnership, a trust, or a few other variations of new entity.
Creating a new entity usually creates limited privacy, but will not accomplish much overall.
Basically, if you create it, or use your own address, or your phone number, or register it, or pay a fee to make it exist, or use your credit card, it can be easily found.
Some people use international organizations seeking privacy. Until recently, there were "tax haven" countries designed specifically to manipulate taxes, privacy, and sometimes crimes. This is now almost impossible in today's world simply because of the threats of terrorism. Most governments openly share all information and that now applies to taxes and non-crimes.
Recently, almost all tax haven countries agreed to the elimination of privacy for clients between nations. Using international companies and organizations for personal or small business purposes is now a great way to be labeled a criminal, before any facts are actually known. You are often assumed to be guilty until proven innocent.
The interesting thing is that for most individuals and companies there is not any true advantage to "go offshore". You can create privacy and operate privately within your own country. The real criminals will still be subject to exposure, yet the private citizen doing their own private business can have real privacy, by just following the rules.
PRIVACY - The Privacy Rules:
- Never use your personal name to own assets
- Never sign up for contests, newsletters, subscriptions, using your personal name
- Never sign up for utilities, phones, or mail services using your personal name
- Use cash for the small transactions
- Use money orders for larger transactions
- Use private organizations for larger transactions
- Use a Private Asset Trust to hold title to a valuable asset
- Only hold one valuable asset in each Private Asset Trust
- Title the trust similar to the asset, such as “1111 FLOWER STREET TRUST”
- Never use your full name in the title of the trust
- Only share the trust existence and trust information when necessary
There are more things that affect privacy, but it depends on the level that makes you comfortable. For battered ex-spouses, we have helped them with other techniques for total privacy (for free). Keep in mind, we will not assist people that break the law or evade taxes.
- Never re-use a trust when the asset is gone, such as put a new car in an old trust
- Use different managers on different trusts
- Have different purposes for different trusts
- Have different beneficiaries for different trusts
- Have a succession plan within the trust rather than a expiration or termination
A Private Limited Liability Company (LLC), Private Corporation, or Private Asset Trust can be a major tool to attain privacy and protection. The initial costs of each are similar. The ongoing costs are lowest with a Private Asset Trust. After the initial entity is created, additional corporations and LLCs cost the same to create. A Private Asset Trust can be replicated faster, more privately, and at less cost.
History dictates that there are traditional types of entities that are used for certain purposes. For instance, a corporation is normally used to run and own a business, but a trust is usually more passive like using it as the organization to collect royalties or own stock, or manage funds, or hold real estate.
Laws and requirements vary according to local and national laws and governments. Almost all require permission and fees to exist, and annual reporting, and more fees.
Trusts are different. Trusts are exempt from permission to exist, fees, reporting, and annual requirements. Trusts are special because they are created on the basic right to create contracts and agreements. Trusts can make up their own rules almost without limits. Trusts can create special powers, special purposes, provide for special circumstances, change managers, change beneficiaries, change jurisdictions, change assets, and can survive for generations. Trusts can hold and manage stock, partnerships, inventory, funds, vehicles, savings, investments, retirement, collectibles, insurance, inheritances, ventures, real estate, or almost any asset.
That does not give trusts complete exemption. Some jurisdictions have required trusts to register, or pay fees, or do reporting, or fit into other requirements. They usually accomplish this by stating that they withhold a benefit (such as a tax exemption or ability to have a license) if you do not comply with the requirement. Many times this can be easily solved, or you can select a different place to hold the trust. Corporations and LLCs have the same choices and many have selected Nevada, Delaware, or other jurisdictions for their organization.
Trusts do not (in most cases) eliminate taxes, even though you can get privacy (who pays, and tax payments). For instance, a person with tax problems can pay taxes privately through a trust without mixing or identifying his identity. It may also be possible to reduce tax amounts by pointing the taxable income to a person in a low tax bracket. The main rule is that it is wrong to create and use trusts purely for tax purposes.
Today, you must create your own privacy. You can accomplish massive privacy with the use of most organizations, but the easiest, fastest, least costly and ultimately most flexible is the use of Private Asset Trusts.