Wondering what type of trust to open to protect your assets?
Yesterday you got to hear Paula’s open and honest opinion of some fraudulent trust educators out there. And based on our own experience – we couldn’t agree more.
Today we continue to pull back the curtain on fraudulent trust educators and the type of trusts to avoid by reviewing Brilliance in Commerce.
Just by looking at their website you’d think they’d be very knowledgeable about finance & trusts.
However the biggest issue with Brilliance in Commerce is that they’re teaching people to establish grantor trusts although they’re promising the same benefits of private irrevocable (express) trusts.
Why to Avoid the Grantor Type of Trust (Grantor Trust)…
Again, as we mentioned earlier this week – a grantor trust is considered a revocable living trust.
The biggest issue with a revocable trust is that it offers little to NO asset protection from creditors or lawsuits due to the fact that one maintains control over the assets and may act as the grantor, trustee AND beneficiary.
You want to avoid this type of trust.
In most cases, the law considers grantor trusts to be little more than an “alter-ego” or ‘DBA’ of the grantor which won’t pass the ‘control test’ and won’t hold up in court allowing the trust to be ‘pierced’ and assets to be seized.
That’s a pretty big deal-breaker (if you ask us) and probably the most common trust mistake we see people make.
After all, what’s the point in having a trust if it isn’t going to protect your assets, right?
You can’t be the grantor, trustee AND beneficiary because you never relinquished control. But a trustee can still be one of multiple beneficiaries.
For the courts to see it as a valid type of trust, the grantor/settlor must relinquish control over whatever they’re granting into the trust.
Think of it this way – there has to be trust for there to be a trust.
Learn What Bulletproof Trust Secrets Can Do for You
In another post we’ll finish ‘Trust Scams to Avoid’ with part 3 where we’ll share six types of fraudulent or sham trusts you’d be wise to steer clear of.
Your friends in finance,
Private Wealth Academy
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