The DIFFERENCE BETWEEN COMMON LAW AND MERCHANT LAW |
In 1938, the united States supreme Court blended Common Law with Merchant Law. In the Erie Railroad v. Tompkins case the court declared that, from that time on, the "Common Law" was blended with "Equity Law." |
[NOTE: The designation of "united States supreme Court" is correct. It designates the supreme court of the sovereign republics who joined in the union of states. To capitalize "united" creates a formal title, which designates only the federal district ("United States" as defined in federal law as the "District of Columbia"). |
In that case, a man had sued the Erie Railroad for damages when he was struck by a board sticking out of a boxcar of a passing train as he walked along the tracks. The District Court had decided on the basis of Commercial (Negotiable Instruments) Law that this man was not under contract with the Erie Railroad, and therefore he had no standing to sue the company. Under the then existing Common Law, if the court had allowed it to be introduced, he would have been damaged and would have had the right to sue. |
This "statutorizing" of the Common Law overturned a standing decision of over one hundred years. Swift v. Tyson in 1840 was a similar case, and the decision of the supreme Court was that in any case of this type, the court would judge the case on the Common Law for the State where the incident occurred -- in this case Pennsylvania. But in the Erie Railroad case, the supreme Court ruled that all federal cases will, from that date forward, be judged under the Negotiable Instruments Law. There would be no more decisions based on the "common law" at the federal level. So here we find the blending of LAW and EQUITY. What this means, in a nutshell, is that all of our courts since 1938 have been "Merchant Law" courts and not "Common Law" courts |
THE SOLUTION TO THE BASIC PROBLEM THAT PREVENTS SUCCESSFUL ESTATE PLANNING |
There is no need for you and your family to be burdened by these barriers to building and preserving your estate. You can LEGALLY avoid excessive taxation in order to build a financially secure estate; dramatically reduce your liabilities; gain the ultimate in personal and business privacy; and eliminate all the estate and inheritance taxes plus probate costs. |
This previously "secret" method has been successfully utilized by the nation's wealthiest families: the Rockefellers, the Hunts, the Kennedys and others, plus leading oil and industrial companies. All of these have demonstrated that it is a POSSIBLE, LEGAL, and EFFECTIVE solution to avoid estate shrinkage. |
First, this is possible because the united States of America is founded on the principle that the peoples' unalienable rights are originally received directly from our Creator! This is why we acknowledge our country to be a "NATION UNDER GOD" ("of the people, by the people, and for the people"). |
Embodied in this principle is the "Key" to total protection of your personal and business assets - the Constitution. It recognizes our inalienable rights by the use of the Law of the land by which we protect our freedoms, and our property. |
Our most precious right is the sacred UNLIMITED RIGHT OF CONTRACT. This unalienable Right of Contract actually pre-dates the Constitution, and is the very foundation of the Constitution itself! Using this, we can join the wealthy "Country Club" Americans by setting up the LIBERTY PURE TRUST. |
Few attorneys or accountants have adequate knowledge of Trust law. Legal firms that specialize in trusts sometimes put their wealthy clients through awkward and costly maneuvers to establish civil (statutory) trusts. They profit best when their clients know nothing about the superior option of the LIBERTY PURE TRUST. |
Thus, if you seek the advice of attorneys or accountants, you'll probably be counseled to stay in the system they know, and from which they profit! Fortunately, since not all of these professionals are self-serving, some will enthusiastically recommend the PURE TRUST for estate planning. But this is done only after extensive research and at great expense! |
There are TWO kinds of property which can be included in a Trust, be it statutory or Constitutional. |
1.There is REAL property, which refers to land, buildings, homes, crops or mineral rights. |
2.There is PERSONAL property, which consists of movable objects such as furniture, vehicles, jewelry, stocks, etc. |
There are basically two MAIN categories of trusts and many variations of these which are established for different purposes. However, for our purposes we will focus on the two main categories: Civil Trusts and PURE TRUSTS. Both can be either domestic or foreign trusts, and may be created in America or a foreign country. |
CIVIL TRUSTS |
Civil Trusts must be registered regardless of where they are created. A copy is kept with the Registry and a Registry number is issued. Civil Trusts are statutory trusts and are generally called "Grantor Type Statutory Trusts". This Trust has a "Grantor", which means a gift or (or giver) of property or assets. Although the Trustees are not required to reveal the name of the Grantor, the Grantor does not have the privacy privileges granted to the Trustee(s). In Civil Trusts, equitable title and legal title by law must be separate. When they merge, the Trust will end and estate and inheritance taxes must be paid. So the tax burden is not relieved for the heirs. |
Also, in Civil Trusts your actions are governed by statutory law. That is, the operation of the Trust is limited to those functions which are specifically permitted by an existing written law. Another way of saying it is that the Trust is limited to the functions which are granted to it by the legislative government. Thus, both flexibility and creativity are definitely limited! |
PURE TRUSTS |
This is very different from the statutory Trust. It is not controlled by any law, other than the Constitutionally guaranteed "right to contract."That is because the PURE TRUST IS a contract. |
The PURE TRUST was initiated thousands of years ago. Records show that Plato used a PURE TRUST contract to finance his university about 400 B.C. As far back as 800 B.C., the Romans recognized their use. |
Today's PURE TRUST draws its authority from the ancient COMMON LAW of England. During medieval times, Lords had, occasionally, reasons why they wanted to leave their castles, manors, and estates, and venture forth -- sometimes on a quest. They went on Crusades to the Holy Land in attempts to "liberate" the holy land from the "infidels" who lived there. Or, just like in the story books, they went on a Quest for the Holy Grail (the cup used by Jesus at the Last Supper). When they left, the King would often declare their lands vacant and would appropriate them for himself. He would also confiscate the towns, animals, serfs, and other treasure and wealth which was on the land. The Nobility became increasingly infuriated at this "theft" by the Crown. On June 15, 1215, the Lords of the kingdom cornered King John on a small island in the middle of the Thames river named Runnymede and forced him to sign the Magna Carta. This "Grand Charter" first stated that the common man possessed certain guaranteed rights. This was the foundation of the English COMMON LAW. One of these "rights" was the Right of Contract. This "Right"said that each person has the unalienable right to, with free will, enter into a contract -- and was then bound by it. This revolutionary idea continued down through history until it served as the founding cornerstone for our nation, first in the Declaration of Independence, and then in the united States Constitution. |
The PURE TRUST is a carefully constructed CONTRACT and is superior in estate planning. It is the main type of Trust used by the truly wealthy because it can accomplish the avoidance of inheritance, estate taxes and probate, plus obtain income tax savings, privacy and limited liability along with other special benefits. |
The PURE TRUST is not registered with the government. The Trustee(s) (or their delegate -- such as a General Manager) holds the only original copy of the PURE TRUST for safekeeping. It may be notarized for authenticity. It is not organized under any statute, and derives no power, benefit or privilege from any statute. Therefore, you are not limited to a law permitting only certain actions. So you can, in fact, write your own controlling rules and regulations in the minutes of the PURE TRUST, as long as it is not against any existing law or against public policy. You can then operate creatively to your own best advantage. |
The PURE TRUST is an entity in its own right like any individual. Therefore, it can buy, own, sell, spend, and earn profits from some enterprise. It is also private since its assets and functions do not have to be recorded for any state, federal body, or country. The PURE TRUST assets cannot be lost due to a trustee's divorce, creditors, liens or judgments against him personally. |
The PURE TRUST is a specifically designed CONTRACT which uses Trust terminology. It can be used in place of a corporation to operate a business since its structure can consist of a Trustee or group thereof, acting like a board of directors, using meetings, taking minutes and being empowered to act on behalf of the company. It does not have a preponderance of corporate characteristics. 13 Am Jur 2d says that one of the objects of business trusts is to obtain for the associates most of the advantages of incorporation, without the authority of any legislative act and with freedom from the restrictions and regulations generally imposed by law upon corporations. |
How can you tell if you are dealing with a True PURE TRUST? Ask five questions: |
1) Is the trust based on "COMMON LAW?" 2) Is the trust REGISTERED anywhere? 3) Is a federal ID number of some sort obtained? 4) Does the "trust" have a "Beneficiary" interest? 5) Does the "trust" have an "Executor, Protector or Grantor"? |
If the answer to any of these questions is "YES," you are dealing with either a "statutory" trust, or you have a fraudulent instrument which is indefensible in court! |
WHY? |
1) The Common Law no longer exists as a seperate legal forum in this country. Any instrument based upon it is false! 2) Any instrument that must be "registered" with the State is a "privilege" of the State (statutory), and therefore not a realPure Trust. 3) Any instrument which possesses a federal ID number is a "federal" instrument, and so NOT a real Pure Trust. 4) A real Pure Trust does not have any beneficiaries, because it is not a "trust agreement" between three parties -- but is a Contract between the Trustees and the General Manager. 5) Only "statutory" trusts have Executors, Protectors or Grantors. These are unnecessary, phoney positions created to provide full employment for lawyers! |
ANYONE who tells you they have a "Pure Trust" which violates ANY of these five points, is BLOWING SMOKE at you, and does not know what they are talking about! This is very important for you to know -- there are a number of people representing themselves as having "Pure Trusts" for sale. THEY DO NOT! In most cases they are salesmen who have found a document from some source, rewritten and copied portions, and are selling them as "Pure Trusts." These people CAN NOT support, defend or explain them to you. |
Don't be lulled by price. If it costs more, or if it costs less, if the instrument you get doesn't work, where's the bargain? |
Remember, the two most powerful aspects of a PURE TRUST are: PRIVACY and TAX-EXEMPT STATUS. |
You already know that the "common law" ceased to exist as a legal forum in 1938. When the trust is REGISTERED (usually at a county recorder's office) you have violated the PRIVACY so desirable in a PURE TRUST. Then, if a federal ID No. is obtained (EIN, 31#, etc.), you have volunteered that the trust is a federal citizen, and is fully TAXABLE! When you have destroyed both the PRIVACY and the TAX-EXEMPT status of the trust, why do you need a trust? IF it is also based on "common law," it is built on sand, and you DO NOT have a true PURE TRUST! |