A trust has been defined in case law as "the right to the beneficial enjoyment of property, the legal title to which is vested in another." Bowes v. Cannon, 116 P 336.
In general, the standard definition of a trust is: an agreement in which the Creator transfers real or personal property (or both) to one or more Trustees to be held and/or managed for one or more Beneficiaries.
There are many types of trusts in use today, each of which is established to accomplish a certain financial objective. Most of the ones you hear about are statutory trusts in that the government is a, sometimes unwanted, third party to the contract that creates the trust. Needless to say, if the government is a party to the contract, they will be intimately involved in how the trust is managed. In a Pure Contract Trust, the government is NOT a party to the contract so the trust is managed in accordance with the contract itself and not according to the sometimes arbitrary rules of the government.
In setting up a Pure Contract Trust, the parties to the trust are exercising their "unlimited right to contract" for any lawful purpose (see Hale v. Henkel, 201 U.S. 43 at 47 (1905)). Don't be concerned about the fact that Hale v. Henkel was a decision made in 1905 because it has been cited in over 1600 cases since then and has never been overturned. It is still a valid decision. Also, "lawful purpose" refers to what is lawful under Common Law (see below) and not what is "legal" under statutory law. In setting up a Pure Contract Trust, the parties agree that the Certificate Holders only have rights which reside in and arise from the contract itself and not from the property or what is defined in statutory law. In the case of a conventional trust, there are beneficiaries who have a legal right to the trust corpus (body) itself but this does not hold true for a Pure Contract Trust.
A Pure Contract Trust is more commonly known as a "contractual agreement" which is guaranteed by Article 1, Section 10 of the U.S. Constitution which states in part that we have the right to contract and that no state or legislature shall pass any laws impairing our right to contract. A Pure Contract Trust is a contractual agreement between private persons, each of whom has the constitutional right to contract.
A Pure Contract Trust is defined in case law as "If it is free of control by certificate holders, then it is a Pure Trust." Schuman-Heink v. Folsom, 159 N.E. 250 (1927).
Since we are forming the Pure Contract Trust under Common Law, it behooves us to know what it is. Here's a definition from Black's Law Dictionary, Sixth Edition, that should give you a good idea of what Common Law is.
As distinguished from law created by the enactment of legislatures, the common law comprises the body of those principles and rules of action, relating to the government and security of persons and property, which derive their authority solely from usages and customs of immemorial antiquity, or from the judgments and decrees of the courts recognizing, arming, and enforcing such usages and customs; and, in this sense, particularly the ancient unwritten law of England. The "common law" is all the statutory and case law background of England and the American colonies before the American Revolution." People v. Rehman, 253 C.A. 2d 119, 61 Cal. Rptr. 65, 85. "Common law consists of those principles, usages, and rules of action applicable to government and security of persons and property which do not rest for their authority upon any express and positive declaration of the will of the legislature." Bishop v. U.S., D.C. Tex., 334. F. Supp. 415, 418.
As distinguished from ecclesiastical law, it is the system of jurisprudence administered by the purely secular tribunals.
Calif. Civil Code, Section 22.2 provides that the "common law of England, so far as it is not repugnant to or inconsistent with the Constitution of the United States, or the Constitution or laws of this State, is the rule of decision in all the courts of this State."
In a broad sense, "common law" may designate all that part of the positive law, juristic theory, and ancient custom of any state or nation which is of general and universal application, thus marking off special or local rules or customs.
As a compound adjective "common-law" is understood as contrasted with or opposed to "statutory", and sometimes also to "equitable" or to "criminal".
So we can see that Common Law is firmly entrenched in the case law of the United States so you should have no qualms about basing a contract on it. In fact, you will be in some very sophisticated company. Families such as the Kennedy's, the Bunker Hunt's, the Paul Mellon's, the Rockefeller's, the Lyndon Johnson's, the James Carter's, the George Bush's and two million other people in the united States all have created one or more trusts based upon contract under Common Law.
A trust consists of the following elements:
There is no limit within the United States to where a trust can conduct its business. It can do business in any and all states, regardless of its domicile. "Once the Pure Trust (contractual agreement) has been recorded in one county, it can conduct business in any county in any given state." Shirk v. Lafayette, 52 F. 957. The trust can also conduct international business as long as the contracts state that they shall be interpreted in accordance with the Common Law of the united States of America and the United States Constitution.
So there's no question as to the ownership of trust property, the Pure Contract Trust must be irrevocable. A revocable trust is one in which the Exchangor can change his mind and cancel the whole transaction, thereby taking back all assets placed into the trust. Unfortunately, a revocable trust provides no protection of the estate from future claims against the Exchangor. Say, for example, that someone sued you for no reason at all but for some reason they obtain a judgment against you personally. If you had set up a revocable trust, the judgment creditor could force you to revoke the trust to allow him to get at those trust assets to satisfy his judgment, regardless of how the judgment was obtained in the first place. Since the purpose of the trust is to preserve and enlarge the estate, you would not want this type of attack to diminish the assets of the trust.
In addition, if you revoked the trust and got the assets back, you have gained nothing in probate or tax savings at all. Even if you die before the trust expires, in some jurisdictions the value of the revocable trust estate is placed in your estate for probate and tax computations. Under federal law, the total value of a revocable trust is placed in your estate for federal estate tax purposes.
To maximize the benefits of a trust, it must be irrevocable.
There is available a series of ten reports that cover the above information, and additional information, in much greater detail than above. If you still need more information, you can read the reports online for free at http://www.buildfreedom.com/dirtrst.htm.
If you purchase the right to manage a trust from WEPIN, you will be offered a contract with the Trustees to manage the trust in their stead and you cannot be removed from that position for any reason other than violating the terms of the trust indenture. The contract will grant you broad powers to manage the trust as you see fit plus you will be granted certain benefits such as housing, a generous expense account, and an allowance. You will also have the use of all of the trust assets. Of course, you must manage the trust assets in such a way that the trust can afford these items, and these trusts usually start out with very few assets, but this is your job anyway. So if you do a good job, you will have lots of benefits. If you don't, you won't. The Trustee(s) will basically leave you alone to do your job but will be available if you need them to validate your actions, approve the aquisition of real estate, or to extend the period of the trust. Part of the cost of the trust is to compensate WEPIN for keeping track of Trustees, Managing Directors, and Trusts.
As a Managing Director of a trust, you will be charged with managing the assets of the trust. However, as noted above, trusts usually start out with very few assets. So how then does the trust obtain the assets you are to manage? Stated very simply, assets must be exchanged with the trust. (It is very important to use the process of exchange rather than sale, gift, or transfer.) The first exchange is when the Exchangor exchanges something of value for the creation of the trust by the Creator. Subsequently, anyone can exchange real or personal property into the trust. (Even you, as the Managing Director, can exchange assets into the trust. You can exchange assets into any trust. You just happen to select the one that you manage.) The next major exchange is done during the first meeting of the Trustees when they pass a resolution to exchange the property in an attached 'Schedule'. The initial property exchange is done this way so that what property is exchanged can be kept confidential. (The minutes are confidential and are not to be disclosed without unanimous consent of all Trustees.) From that point on, more property can be exchanged into the Trust at any time by anyone or the Trust can obtain property in the traditional way by purchasing it using the Trust assets.
Pure trusts were formerly available only to the very rich since you needed an attorney to set one up. Most attorneys don't even know about pure trusts and those that do charge a premium to set them up. It was not uncommon for a pure trust to cost in excess of $100,000. Now, however, the cost of setting up the pure trust is within reach of everyone. The pure trusts created by WEPIN are based on rock solid case precedents and constitutional principles. You can purchase the right to manage a pure trust for only US$1249. The trust package will come to you complete with all required notarized signatures, except yours, and with the whole package properly recorded in El Paso County, Texas. All you have to do when you get the package is to sign (in the presence of a notary) the Managing Director contract and the Acknowledgement of Appointments. From that point on, you're in control of the trust and it's assets.
Copyright at Common Law, West El Paso Information Network, 1998