| By
Gary Scott
Here is yet another of the popular
trust scams that seem to be everywhere.
Popular Trust Scams Letter
Recently a dear friend wrote
to me:
"Gary, I want to move my
business to Nevada as an llc or an S Corporation, in preparation for forming an
IBC, when the funds are available. I also have a pure trust in Nevada. Through
the internet there are businesses that form Nevada corporations, including resident
agent services.
Before I do it - do you know
a business or professional you trust who provides this service? Is this consistent
with your business practices?"
Popular Trust Scams Reply
Here was my reply.
"I was on the forefront
of using International structures for years, both in investing and in using overseas
structures. We were using promoting and managing Cayman, Panama, Isle of Man companies
decades before they became a rage. We were in Belize almost 20 years ago. What
we used to be able to do legally was amazing, but slowly legislation eroded what
can be done for most individuals unless they have really large businesses or estates.
"Unless you plan to do business
out of the U.S. or have volumes in the many millions, an IBC won't accomplish
a thing, nor will an overseas trust. The rules have become so complicated and
compliance so onerous that I have shut down all my overseas structures. I use
only a Nevada Limited Partnership and a Florida Corporation.
"There are so many scam operators
in this business now that you really have to really beware. Using them actually
makes it more dangerous and visible than not, for the peculiar reason that the
IRS had toned itself down within the U.S.
"The IRS has softened its stance
in the US but because of this to raise revenues has hardened its focus on overseas
structures, especially on promoters of such structures. I have seen several of
my readers get in trouble just because they used the wrong promoter.
"I fear that what you mean by
a pure trust might indeed mean a trust that does not comply with US tax regulations.
"I am happy to recommend you
to my attorney Joe Cox. His address is jcox@coxnici.com
"He is a specialist in tax and
estate planning, a dear friend and would not mind at least telling you if what
you have really works or could get you into trouble.
"The attorney I use in Nevada
is David Johnson. His email is firm@james-law.com.
I started using him about ten years ago when he was with the largest firm in Las
Vegas, but he is with a smaller firm now. I have never met him, but have been
satisfied with the simple statutory work that he has done for me and believe that
the advice he would give would be legitimate.
"This is an area fraught with
danger. I am really experienced in this stuff. In fact I am the guy that many
of the scam artists have copied. The difference is that when I talked about this
stuff it was legal. Now it is not. Now much of the stuff offered is just popular
trust scams. What I have seen has caused me to back away from this area and this
is because I know this business and popular trust scams so well. I would not want
to see you and all the positive things you are doing get hurt by believing someone
who is not honest or does not know what they are talking about as they promote
popular trust scams.
Don't hesitate to ask any questions."
Yet I was not finished. I asked
my friend Joe Cox to confirm that what I thought was correct. Here is his reply.
Popular Trust Scams Warning
"Gary, the pure trust is
a scam and a fraud. Some people who sold popular trust scams just went to jail.
Don't even consider it. However, I enjoy looking at this stuff just to see how
bad people can be. I just spoke to the IRS criminal division last week on this
issue, our good friend, whom you know Aaron, now works for them."
Avoid Popular Trust Scams at
All Costs
Another great attorney who specializes
in legitimate trusts that are legal and do work is Richard Duke and his email
address is richard@assetlaw.com
Gary
My novel the 65th Octave looks
at scam protection issues. The hero is a scam catching expert who works for big
banks. The book outlines why scams work and why suckers always lose. I recommend
you read the book. It has some in depth economic information but is also a fast
paced, fun read.
Order the 65th Octave
at
GaryScott.com
Sometimes one picture is worth
a thousand words
To avoid scams balance
yourself in nature like this cabin at Gary and Merri Scott's Merrily
Farm where you are welcome to visit and stay at Little
Horse Creek. |
