Nelson Rockefeller famously said, “The secret to success is to own nothing, but control everything.”
“This company focuses on a special type of trust,” says Chief Compliance Officer and IRS Enrolled Agent, Matthew Jennings. “It’s a non-grantor, irrevocable, discretionary, complex with a simple provision spendthrift trust. And I know that’s a mouthful.”
But when broken down, Jennings says Economic Strategists’ copyrighted trust is a nobrainer to achieve one’s financial goals. Jennings says, “In this particular trust, there is a separation between a grantor and a trustee.” Most trusts cannot provide this because they are grantor trusts, primarily established to avoid probate. Thus, most trusts miss out on the one-two-punch… that is the attractive tax advantages and asset protection.”
But how does this patented trust really work?
Jennings says when the trust is established, “Assets, homes, cars, boats, whatever, are sold to the trust. So now those assets no longer belong to that person, but they can control them.” In this instance, ownership actually changes hands. Essentially, the trust becomes something similar to a holding company where the trustee is simply managing the assets that are now owned by the holding company.
“With this particular type of trust, a person can dictate what’s taxable and what’s not taxable,” says Jennings. “So now they can control the asset without the taxation and the liability of ownership.” Which, in essence, means if you ever get sued, controlling the assets without having ownership renders you uncollectible, because it’s all owned by the trust.