In addition to safeguarding your privacy and assets, there are many reasons to set-up a private Trust.  Below are some general examples:

  • Avoid probate, avoid courts, delays and legal fees,
  • Keep assets in friendly hands in case of incapacity,
  • Give assets to your children,
  • Encourage advanced education by providing for tuition costs
  • Reduce income and estate tax,
  • Provide security for loved ones,
  • Provide medical care for loved ones,
  • Provide assisted living or long term convalescent care,
  • Provide bank account(s) for a minor,
  • Keep or facilitate a transfer of a family business to younger generations
  • Provide management for minors, the handicapped, or seniors,
  • Provide lifetime income for a surviving spouse,
  • Select preferred chosen heirs, and limit others,
  • Defer, reduce, or eliminate estate tax,
  • Provide security and liquidity for heirs,
  • Maintain family assets for generations,
  • Set and maintain family goals for generations,
  • Provide retirement income,
  • Provide equity and security for surviving spouse,
  • Avoid capital gains tax,
  • Transfer assets to charity,
  • Provide income during term of the Trust,
  • Provide use of a house during the term of the Trust,
  • Keep assets in your family for future generations,
  • Benefit charity, church, schools, medical causes,
  • To protect and advance your religious beliefs

Eligible Assets That Can Be Repositioned to Your "Personal Firewall" with our Trust and Privacy Services

There are “no dollar limitations” or the type of assets that can be repositioned from you to your specialized Trust.

Your Trust may own:

  • Your Personal Residence
  • Other Real Estate, including your vacation home 
  • Investment Grade assets (stocks, bonds, collectibles, antiques, boats, planes, etc.)
  • Your Life Insurance Policy
  • Your Automobiles (especially if you have under age drivers, as it may reduce your insurance premium, or eliminate the need of an umbrella policy)
  • Your Business(es), whether it's your corporate stock, or LLC units. The Trust will be the only entity that can own your sub “S” stock.

Our "Personal Firewall" is an absolute asset protection fortress when it owns a Limited Liability Co. (LLC) or is the General Partner in a Limited Partnership.

The U.S. legal system ensures that every American who feels they have been injured or victimized is able to seek justice through the court system -- clearly a noble and necessary protection. However, in recent decades the United States has earned the nickname as the most "litigious society" out there, in part due to major increases in lawsuits involving everything from hot spilled coffee to neighbors' disputes.


In fact, Americans spend more on civil litigation than any other industrialized country, according to a study in the Economic Journal, and twice as much on litigation as on new automobiles.

Why the disparity? Part of the reason, according to the Economic Journal study, has to do with incentives to sue, of which Americans have plenty. While in most European legal systems the loser in a suit must pay a large portion of the winner's legal fees, in America each party pays their own. So, simply speaking, in America there's nothing to lose.

Why consider a 508(c)(1)(A) FBO Trust?

One of the fundamental rights we have in the United States of America is the right to religious and political freedoms, in fact our country's Founders proclaimed this in the United States Constitution. In the spirit of maintaining this 'separation of church and State' a little known law allows for the formation of Trusts specifically for Faith Based Organizations (FBO).

The use of a 508 Trust does not require that you have a physical place of worship, nor an actual congregation, only that your Trust (as are all trusts) is used for it's intended purposes.  In this case that your 508 Trust is based on a religious establishment of two or more people with the interest of maintaining their privacy while supporting their ministry.  Following are examples supporting case history.

A United States Supreme court case, Everson vs. Board of Education, 330 US 203.91, LEd 2nd 711, gave us a decision that held that the ‘establishment of religion’ of the First Amendment means this: Neither a state nor the Federal Government can set up a church.  Neither can they pass laws which aid one religion, aid all religions, or prefer one religion over another.  Neither can they force nor influence one to go to or to remain away from a church [ministry] against their will or force him to profess a belief or disbelief in any religion.  No one can be punished for entertaining or professing religions beliefs or disbeliefs, for church [ministry] attendance or nonattendance.

In Title 26 of the United States Code and Income Tax Regulations – June 26, 1977 Edition, published by Commerce Clearing House Section 1.511-2(ii) volume 1, page 33, 471, 472, and in the Law of Tax Exempt Organizations by Bruce Hopkins, page 107, it states: The term “Church” [ministry] includes a religious order to a religious organization if such order or organization (a) is an integral part of a church, and (b) is engaged in carrying out the functions of a church, whether as a civil law corporation or otherwise.  (Note, “or otherwise” you do NOT have to incorporate and thus become a creation of the Government.)

In our opinion, all Faith Based Organizations (FBO), whether made up of two people or twenty thousand people or more, should strongly consider the additional privacy and autonomy their ministry would benefit from (including the ability to practice their religious beliefs without the burdensome reporting requirements of maintaining a typical 501(c)(3) non-profit corporation.


Circular 230 disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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