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FREQUENTLY
ASKED QUESTIONS (FAQ'S), OR ALL YOU NEED TO KNOW ABOUT THE
GRENADA
PROSPER TRUST
Q - WHAT IS A TRUST AND WHEN DID IT BEGIN?
A - Originally developed in the English Courts in Medieval times. In
essence a trust is an arrangement, an agreement whereby one person a
"SETTLOR" causes a second person, "TRUSTEE" to become the legal owner
of property which he holds for the benefit of a third person the, "BENEFICIARY".
The Trust property may include anything which is capable of being transferred
such as land, buildings, money, shares, bonds (including shares of offshore
companies).
Q - WHY WOULD I WANT TO SET UP A TRUST IN AN OFFSHORE COUNTRY?
A - If you like the idea of having a Trust let me explain why another
country could be advantageous to your financial well being. In the United
States of America, there are so many UNCLEAR rules, statutes and codes
that people believe are all laws. Everyone seems to believe in different
ways when it comes to the laws of income tax reporting, citizenship
and sovereignty, to name a few. This creates a host of problems for
those of us that insist on living under Common Law as we do. Even though
a Common Law Trust is written to be used as the basis of business dealings
and ownership of assets, you may end up dealing with certain uneducated
people anyway. This can cause you undue hardship and inconvenience.
However, with an Offshore Trust, if a problem arises, you simply notify
the interested parties that they're dealing with an Offshore entity
and that eliminates half of the problems they think exist. The other
half of the problems will probably go away once they realize they'll
have to hire a Grenadaan attorney to pursue it any further.
Q - WHY WOULD I WANT TO CHOOSE PROSPER TRUST OVER ANY OTHER TRUST?
A - The Prosper Trust agreement was based on the Belize Trusts Act,
1992 is EXTREMELY CLEAR on what is allowed and what is not. It makes
writing an Offshore Trust much more practical. It leaves very little
room for uncertainty. In 1992, Belize rewrote their laws to be more
clear, concise and above all, more in tune to what people desire of
an offshore entity. They have some of the most liberal laws I've seen
for Offshore Trusts that give you so much more flexibility in what can
be done. They are an English speaking country. They are actively seeking
the offshore business, and rapidly becoming one of the best tax havens!
Their confidentiality and privacy laws have been recently tested and
the Belize courts have stood squarely behind them. The same applies
to Grenada, the Country we now chose as the site of the Prosper Trust.
Q - ARE THERE ANY HIDDEN COSTS THAT I WILL INCUR IN SETTLING AN
OFFSHORE TRUST?
A - No! The only additional cost is a nominal annual maintenance fee
paid to the Trustee.
Q - WHAT IS MEANT BY AN "EXEMPT" TRUST?
A - It simply means that you are not taxed by the Situs Country (Grenada)
on the income that the Trust earns. The Trust is not taxed on capital
gains nor is any duty charged on any estate through the Trust.
Q - WHAT DETERMINES AN "EXEMPT" TRUST?
A - The SETTLOR, PROTECTOR and BENEFICIARY may not be resident of the
Situs Country (Grenada), any portion of any calendar year, in order
to remain an exempt Trust.
Q - HOW SAFE IS AN OFFSHORE TRUST?
A - The risk you take with any Offshore Trust is that the country is
going to remain stable enough for you to maintain constant access to
your dollar account. Because Grenada has a stable economy and was founded
on English Common Law, its biggest advantage is it's clarity in the
system of developed law. As a former British Crown Colony, they adopted
the Common Law of England and thereby inherited what some believe to
be the greatest and most distinctive achievement performed by Englishmen
in the field of jurisprudence, which is the most outstanding creation
of equity, the Trust.
Q - WHO KEEPS COPIES OF THE TRUSTS THAT I CREATE?
A - The only copy is the one you have.
Q - HOW PRIVATE ARE THE RECORDS?
A - Think about it. The records are extremely private and confidential
and protected by the laws of Grenada. If anyone wants to pursue the
Trust with a lawsuit, they'd have to rely on information being available
in Grenada . They would have to track down the Trustee of the Trust,
wherever they may be and pursue in the courts of Grenada and subject
to the laws of Grenada. The jurisdiction may be moved by the Trustee
and the Protector to further confuse the issue.
Q - DO I NEED A TRUSTEE FROM GRENADA?
A - No, that is not necessary. Under the terms of this Trust, a resident
of Grenada is not necessary to perform the role of the TRUSTEE. The
TRUSTEE can be resident of any other country in the world.
Q - CAN I STILL USE MY OWN ASSOCIATES TO FILL THE KEY POSITIONS
OF THE TRUST?
A - Yes, however, we do not recommend that you take this approach. Our
Trustee has been selected after years of due diligence and we stand
behind him 100%.
Q - DOES THE DEATH OF ANY PERSON AFFECT THE TAXES OF THE TRUST?
A - No! The Trust is not liable for any estate, inheritance, succession
or gift tax or duty by reason of any death in a calendar year.
Q - WHO IS THE TRUSTEE OF THE TRUSTS WE CREATE?
A -P.I..L.L recommends that you appoint P.I.L., Pierre Gauthier, MBA
CFP as managing director. However, you may appoint anyone you wish.
Q.-IS THERE A NEED FOR ME TO OBTAIN AN AGENT IN GRENADA?
A.-No, P.I.L.L. has already done this.
Q - WHO HAS A VESTED INTEREST IN THE TRUST FUNDS?
A - Only the TRUSTEES, not individually, but collectively as the Board
of Trustees.
Q - CAN THE TRUST BE IN EXISTENCE FOR MORE THAN 120 YEARS?
A - No. 120 years is the limit. It can be established for a shorter
period of time but the maximum is 120 years, with no exceptions.
Q - HOW DO I GAIN CONTROL OF THE TRUST?
A - You should not be in control, that is what makes a trust vulnerable.
You should only use the "Letter of Wishes" to your Trustee.
Q - IS THIS AN IRREVOCABLE OR REVOCABLE TRUST?
A - This is an IRREVOCABLE Trust, meaning that the SETTLOR can not change
his mind and take control over his property again or withdraw the terms
of the contractual agreement between him and the TRUSTEE.
Q - IS THIS TRUST THE SAME AS A PURE TRUST THAT WE WOULD FIND IN
THE U.S.?
A - No, this can not be compared to the Pure Trust offered in the U.S.
because Grenada Laws are written differently and they purposely address
new issues that are of concern to modern business persons. Grenadian
Law was completely revised for the specific purpose of attracting new
Trust business that would satisfy those modern requests and situations.
Q - WHAT IS THE JURISDICTIONAL LAW OF THE TRUST?
A - The jurisdictional law of the Trust is the Trust Act of Grenada.
Q - WHAT IS MEANT BY A "SPENDTHRIFT" OR "PROTECTIVE" TRUST?
A - In the event that the BENEFICIARY becomes insolvent or any part
of his property becomes liable to seizure or sequestration for the benefit
of his creditors, the Trust has the right to minimize the BENEFICIARY's
interest in Trust funds to a degree necessary to prevent such action
from hindering the smooth operation of the Trust. It is designed to
protect the BENEFICIARY against his own incompetence or inability to
properly handle money or property.
Q - HOW PROPRIETARY IS THIS INFORMATION IN THE TRUST DOCUMENT?
A - The information contained in the Trust Minutes is VERY CONFIDENTIAL
AND PRIVATE! The TRUSTEE is NOT allowed to disclose this information
to outsiders without just cause.
Q - WHO IS ENTITLED TO SEE THE TRUST DOCUMENTS?
A - Since you have the only copy you can decide who to distribute it
to.
Q - HOW IS THE "INTEREST" OF A BENEFICIARY CLASSIFIED AND DEALT
WITH?
A - The "interest" is classified as "personal property" and can be sold,
traded, charged, or otherwise dealt with in any manner whatsoever.
Q - WHO MAY BE THE SETTLOR?
A - Any person who has, under the law of Grenada, the capacity to own
and transfer property may be the SETTLOR of the Trust. The SETTLOR may
also be the TRUSTEE, BENEFICIARY, or PROTECTOR, although this is not
recommended.
Q - WHAT ARE THE SETTLOR'S DUTIES ONCE THE TRUST IS FORMED?
A - The SETTLOR's position is this: He is the person who initially wants
to settle the Trust. He contracts with the TRUSTEE to accept his initial
contribution of money into the Trust. After that, the SETTLOR steps
out of the picture. He no longer has any active management duties or
ties to the Trust funds.
Q.-DOES THE SETTLOR HAVE TO LIVE IN
GRENADA?
A.-No. The SETTLOR cannot be a resident
of Grenada to comply with the "exempt" ruling.
Q - WHO MAY BE THE TRUSTEE?
A - Any person, who has, under the law of Grenada, the capacity to own
and transfer property, may be the TRUSTEE of the Trust. The TRUSTEE
may also be a corporate or artificial entity. The TRUSTEE may also be
the SETTLOR, BENEFICIARY, or PROTECTOR.
Q - WHAT ARE THE TRUSTEE'S DUTIES ONCE THE TRUST IS FORMED?
A - Once the Trust is formed, the TRUSTEE has the daily duty of maintaining
the Minutes concerning any activity of the Trust. If the Trust decides
to purchase or sell some of it's assets, these things must be recorded
in the Minutes of the Trust. If the TRUSTEE should so choose, he may
decide to delegate some of the day-to-day operations of maintaining
the Trust to another person called the General Director or the General
Trust Manager. If no other person is appointed, the TRUSTEE retains
those duties.
Q - IS THE TRUSTEE LIABLE FOR ANY MISTAKES OR BAD JUDGMENTS OF THE
TRUST FUNDS?
A - No, not really. As long as the TRUSTEE can show reasonable care
in selecting his options and making decisions, he is not personally
responsible to the Trust for any shortcomings from those bad judgments.
Q - WHAT IS THE MINIMUM AND MAXIMUM NUMBER OF TRUSTEES ALLOWED?
A - At least one (1) and not more than four (4) TRUSTEES.
Q - WHO MAY BE THE BENEFICIARY?
A - A BENEFICIARY may be identified by name or by reference to a relationship
to some other person, whether living or not at the time of creation
of the Trust. A BENEFICIARY may also be a certain "class" of individuals.
A BENEFICIARY may also be the SETTLOR, TRUSTEE OR PROTECTOR; although
this is not recommended.
Q - WHAT IS THE BENEFICIARY'S OBLIGATIONS OR RIGHTS ONCE THE TRUST
IS FORMED?
A - Since the Trust assets are not yet vested in the BENEFICIARY, he
has no voice in the management or the day-to-day operations of the Trust.
This is also because of it being a "spendthrift" type of Trust, which
is designed to protect the BENEFICIARY more than a normal type of Trust.
The BENEFICIARY does, however, have "Interest Bearer Shares" that can
be traded, put up as collateral, sold, or dealt with in any manner whatsoever.
This does give the BENEFICIARY some present benefit of being a BENEFICIARY.
Q - CAN A BENEFICIARY BE REPLACED ONCE APPOINTED?
A - Yes, The TRUSTEE reserves the right to replace or appoint additional
BENEFICIARIES at will. Most offshore Trusts have this stipulation that
people are not aware of. The Protector may also perform this function.
Q - ARE THERE ANY ADDITIONAL RIGHTS OR POWERS DUE A SHAREHOLDER?
A - The BENEFICIARY may give to the TRUSTEE, a letter of wishes with
regard to the exercise of any functions conferred on the TRUSTEE by
the terms of the Trust. But remember the TRUSTEE does not have to respect
those wishes and will not be accountable in any way for his failure
or refusal to do so. Without the BENEFICIARIES being vested of Trust
assets, they have no further obligations or powers until such time as
the assets are distributed.
Q - WHO IS THE PROTECTOR?
A - AvantGuard Trust Incorporated is the PROTECTOR of the Trust.
Q - WHAT IS THE FUNCTION OF THE PROTECTOR AFTER THE TRUST IS FORMED?
A - The PROTECTOR's job is to watch over the TRUSTEE and make sure they
perform their role as per the wishes of the SETTLOR. The PROTECTOR has
the power to remove and/or appoint a new or additional TRUSTEE. The
PROTECTOR may also be the SETTLOR, TRUSTEE or the BENEFICIARY.
Q - CAN THE PROTECTOR FIRE A TRUSTEE FOR NO REASON?
A - Yes, The PROTECTOR can get rid of a TRUSTEE if this becomes advisable.
Q - CAN ANY OF THE OFFICERS HOLD MORE THAN ONE POSITION IN THE TRUST
STRUCTURE?
A - Yes, as noted above, all the positions: SETTLOR, TRUSTEE, BENEFICIARY,
and PROTECTOR can be held by one (1) person or entity.
Q - CAN AN OFFICER RECEIVE COMPENSATION FOR MORE THAN ONE POSITION?
A - Yes, the Trust Indenture allows for remuneration for a Trust officer
holding more than one position within the structure.
Q - BECAUSE CERTAIN TRUST OFFICERS ARE VESTED OF THE INTEREST OF
THE TRUST ASSETS, DOES THAT MAKE THE TRUST ASSETS A PART OF THEIR INDIVIDUAL
ESTATE?
A - No! Under no circumstances are the assets of the Trust Estate to
be included in the estate of the Trust officers, individually or separately.
Q - IF A TRUSTEE BECOMES INSOLVENT OR HIS PROPERTY IS LIABLE TO
DISTRAINT, SEIZURE OR SIMILAR ACTION, CAN THE CREDITORS ATTACH TRUST
ASSETS?
A. Absolutely not! The Trust is a distinct and separate entity, apart
from the TRUSTEE's personal estate.
Q - CAN A MULTI-LAYERED STRUCTURE BE SET UP WITH A GRENADA
TRUST?
A - Absolutely! There are numerous ways to establish a multi- layered
structure. The easiest is setting up a second Trust as the BENEFICIARY
of the first Trust. Then setting up a third Trust as the BENEFICIARY
of the second Trust. You can have one umbrella Trust having multiple
subsidiaries off of that or have one of the Trusts be an underlying
umbrella by being the BENEFICIARY of multiple brother-sister Trusts.
Everybody has his or her own preferences.
Q - CAN THE BENEFICIARIES FORCE A TRUST TO TERMINATE AND DISTRIBUTE
THE FUNDS?
A - Normally they could, but since we wanted the TRUSTEE to remain in
total control, we elected to write this as a "spendthrift/protective"
Trust that excludes the ability of the BENEFICIARIES to take control
with a majority vote.
Q - WE ALREADY ESTABLISHED THAT THE TRUSTEE DOES NOT HAVE TO HONOR
A LETTER OF WISHES FROM THE BENEFICIARIES. DOES THE TRUSTEE HAVE TO
HONOR A LETTER OF WISHES FROM THE SETTLOR?
A - Again, no. The TRUSTEE has total control of the Trust Estate and
does not have to report or justify to anyone, his actions, so long as
he does not endanger his fiduciary relationship he has with the BENEFICIARIES.
Q - CAN I GET A CREDIT CARD TO USE IN MY OWN COUNTRY TO DRAW UPON
THAT TRUST ACCOUNT?
A - Yes, we have connections that will allow you to set up a credit
card account whereby you can transfer funds from the trust to the account
and draw upon it throughout the month.
Q - DOES THE TRUST NEED AN EIN OR A TIN TO OPEN THIS ACCOUNT IN
IT'S NAME?
A - No, There is no identifying information necessary.
Q - IS MY SOCIAL SECURITY NUMBER REQUIRED IN ANY WAY TO OPEN THAT
ACCOUNT?
A - Not at all! Your personal social security number is never required
on any paperwork whatsoever to accomplish this task.
Q - HOW SAFE ARE THE FUNDS IN THE BANK?
A - Grenada's economy is quite stable and we do not foresee any problems
with their monetary system or we wouldn't be establishing this program
at this time. We've looked at a number of offshore countries and we
are confident in having chosen Grenada as our choice.
Q - DO I STILL MAINTAIN CONTROL OVER MY FUNDS?
A - Yes, and no! Your Trustee has control! Your access is through a
"Letter of Wishes".
Q - WHO HAS ACCESS TO THE TRUST FUNDS?
A - Only the TRUSTEE of that Trust will have access to the funds.
Q - FOR WHAT REASON WOULD I WANT TO "REGISTER" MY TRUST?
A - I really don't know why someone would go through the trouble of
establishing a private relationship through a Trust, settled in a foreign
country, and then go ahead and register it with that government if they
didn't have to. You may have different thoughts on this though. You
have a choice.
Q - WHAT IS THE EASIEST WAY TO TRANSFER A HOUSE INTO THE TRUST?
A - The easiest way is to use something similar to a "Quit-Claim" deed.
This relinquishes your ownership in the real property but does not remove
your obligation to the "note" in which you promised to pay the entire
balance. As long as the payments are still being paid, the Mortgage
Company should not call the note due.
Q - WHAT IS THE EASIEST WAY TO TRANSFER AN AUTOMOBILE INTO THE NAME
OF THE TRUST?
A - One of the easiest ways to avoid the minimum tax on the transfer
of the title is to go down to the registration / tag office and pay
the small fee to "add" a name to the title. Then, you wait about 30
days and go back down and pay the fee again to "remove" your name from
the title, thus leaving only the Trust name on it.
Q - HOW DO I TRANSFER PERSONAL GOODS AND HOUSEHOLD FURNISHINGS?
A - Simply use a "Bill of Sale" form. It clearly states a value and
date that the transfer was made. It is made a part of the Trust documents
and Minutes, which become a part of the permanent record of the Trust
Activities.
Q - AS FOR BUSINESS TACTICS AND STRATEGIES, HOW CAN THISTRUST HELP
ME?
A - TRUSTEE can borrow funds in the name of the Trust. TRUSTEE and BENEFICIARY
can borrow from the Trust. TRUSTEE can designate third parties to hold
funds in their name if necessary. TRUSTEE can hire outside agents, etc.
without previous permission. TRUSTEE can use Trust funds to buy anything
he feels is necessary, including real property and the improvements
thereon. TRUSTEE can make interest-free loans to people including the
BENEFICIARY. TRUSTEE can provide Trust property (i.e. real property)
rent-free to persons if necessary. TRUSTEE does not have to honor "letter
of wishes" from either the SETTLOR or the BENEFICIARY, but he may do
so. TRUSTEE may distribute Trust funds to any one Beneficiary as necessary.
Anyone loaning or advancing funds to the Trust is not obliged to see
the application thereof.
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