What is a settlement trust and why would I use that instead of my personal banking services? A trust involves a trustee who owns the property, but the individual who acts as the trustee is not the owner, he is the owner “as trustee”. This only works with a beneficiary, so the trust is formed when someone (grantor) conveys (gives) property to the trust. The grantor can also be the trustee and the law views each as different individuals with different rights and obligations. It is the fact that this arrangement is created for the benefit of the beneficiary that divests the grantor from his rights (and liabilities).
If I have $1,000 and I owe money to someone. He can sue me for the $1,000 and get the court to issue a writ and take the money to pay the debt. This is because I owed the money and I had all the rights over the money to use for my own personal interests. The settlement trust separates these ownership rights so that if someone were to sue, he might get the writ from the court, but because the cash is now held in trust, the trust would have no obligation to pay the money and the person who sued would not be able to get the money, not even the court can issue a writ to get the money from my trust to pay my personal debt.
In today’s banking system, the entire system is designed to help the banking system collect debts. If you are a signer on a personal account, you have no protections. If you are the signer as trustee on a trust account, you can use the account the same way, but no one can take the money for your personal debts, including the most evil organizations such as the IRS, Department of Education for student loans or the state collect collection authorities.
Why are you still signing for your bank accounts as being personally liable? It’s very easy to open a trust account using a settlement trust and completely avoid this problem. If you ask most attorneys about this, they will laugh and say there is no such thing and you can’t avoid bank levies or debt collections this way. The reason they will say this is because they are not selling it to you, and most of them don’t use these types of strategies for clients. Instead, most attorneys think they solved your debt problems when they get you into a payment plan. This is malpractice in my opinion, and most would agree.
It also does not create any new tax consequence because you either use it for “after-tax” money or you simply report any pre-tax money just like you would if it were paid directly in your name. The settlement trust does not require you to file any new tax returns, it’s quite simple for such a life changing benefit.
Why not totally eliminate the risk of a bank levy using a settlement trust and never think about it again? You can use one settlement trust and open several bank accounts, and they are very easy to open as the people at the bank recognize them very easily.
It takes about 7 days to create a settlement trust and it comes with instructions on how to use it. Send me a request with “Settlement Trust” in the subject line, to johnjaysingleton@mail.com and I’ll answer your questions and set one up for you.