Trusts are legal entities that can be used to transfer, hold, and manage property, cash, and other assets. Unlike most statutory entities, (Corporations, LLCs, etc.), a trust is formed by contract. The terms and conditions of the trust contract strictly define the form of the trust used and the needs of the people or entity it was created to serve.
For example, a trust can take the form of a simple, grantor, revocable trust or it can take the form of a complex, non-grantor, irrevocable trust. There are literally hundreds of different combinations that can be used to form a trust. Herein lies the value of a trust contract and those professionals paid to form it.
Sovereign Trusts are derived from the only known copy-written spendthrift trust format in the U.S. Its copyright covers “special” wording that makes it comply with a specific IRS rule that allows for long-term deferment of current taxes on interest, dividends, capital gains, rental income, and royalties.