Creating The ONE TRUE Common Law Trust Aligned With The Divine
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Under the Pure Trust Organization indenture, the Church of England (one institution that the King perpetually hesitated to bother), took over the assets, managed them and paid out income to the creator and his heirs after death without disturbing the trust organization estate. Over the years many versions of the Pure Trust Organizations were developed, but their basic goals were preserving family estates -- keeping them out of the King's hands then and out of probate and tax collectors' hands today.
According to a California attorney, Pure Trust Organizations arrived in America with the colonists, and the first Pure Trust Organization on record here was drafted by the attorney Patrick Henry in 1765 -- 24 years before the adoption of the Constitution -- for Governor Robert Morris of the colony of Virginia, who was later a prominent financier of the American Revolution. In the Morris trust, known as the North American Land Company, lands belonging to Governor Morris were transferred to the Pure Trust Organization.
William Bingham, a man reputed to be the richest American when the thirteen colonies won independence, started a Pure Trust Organization for his vast estate in 1804. At one time the pure trust indenture owned two million acres in Maine, much of which were sold about the time of the Civil War. Besides being a very large landowner, Bingham was a Senator of the Second United States Congress from Pennsylvania. This pure trust indenture was terminated by the trustees in 1964 after more than 160 years of operation. It ceased because of the multiplication of beneficiaries (then 315) and the sale of the last properties involved. Throughout the years, the income from property or proceeds from the sale of the land was distributed to the beneficiaries.
At the time of liquidation, it had no termination date. The rule against perpetuity did not apply in this case. The trust organization estate was not affected by death of the creator or of succeeding trustees, by probate procedures, or by death transfer taxes.
One of the outstanding examples of the Pure Trust Organization is the Mesabi Trust, which owns the reserves of the famous Mesabi iron deposits in Minnesota. This trust organization receives the royalty payments from the iron deposits and then distributes the royalties to Mesabi's certificate holders. Mr. Arnold Hoffman was then president of the Mesabi Iron Company which transferred the assets of the company to the Pure Trust Organization – and then announced in the Wall Street Journal on March 14, 1961, that the Commissioner of the Internal Revenue had ruled the trust organization would not constitute an association of persons taxable as a corporation. The Certificate Units are traded daily on the New York Stock Exchange.
Edward H. Hines, a multimillionaire building supplier, established a $12 million family trust organization 1914-- he headed his business until his death in 1931. His two sons, Ralph J. and Charles, succeeded the elder Hines as trustees of the family Pure Trust Organization, and retained trusteeship of their father's trust organization after a court fight instituted by two nieces, a sister, and a nephew -- all seeking to break the trust organization by claiming that the administration of the family estate had been erroneous. The court ruled that the family Pure Trust Organization was not an erroneous method of managing the assets -- and in fact was a valid and legal arrangement for the estate. Please understand this. The Hine pure trust organization owned assets once owned by the Hine family. The trust used the Hine family as trustees. The judge ruled that having family members act as trustees did not violate any laws and fell within the legal limitations of pure trusts. Ralph J. Hines, the eldest son and head trustee, died in 1950-- and again the family assets in the Pure Trust Organization were not disturbed by estate and inheritance taxes. The younger brother, Charles, subsequently became head trustee handling the trust organization for many years.
In the normal operation of probate – if there were a norm -- how much of this family estate would have been left after two deaths in the family without a Pure Trust Organization? Yet the Edward H. Hines Lumber Company (A Trust) is still operating today, preserved for future generations intact.
Another example of the Pure Trust Organization used as a family trust is that of the Joseph Kennedy family. Kennedy, father of John F. Kennedy, originally established a Pure Trust Organization to own the famous Chicago Merchandise Mart, wherein the elder Kennedy engaged in all sorts of activities he wanted to keep out of the scrutiny of the authorities. The Kennedy family is known to maintain several other Pure Trust Organizations for tax shelter purposes as well. One such trust organization was reported with the caption, "KENNEDY DIVIDES MERCHANDISE MART" (Chicago Tribune, March 22, 1947). A trust organization agreement in which Kennedy's wife, Rose P. Kennedy, and a long time friend and associate, John J. Ford, joined as trustees of this trust organization formed several years before, helped materially in distributing ownership in this Thirty Million Dollar ($30,000,000) Merchandise Mart, among members of his family. It is said that this and many trust organizations are domiciled in the Fiji Islands of the South Pacific.
William Waldorf Astor, owner of the Waldorf Astoria, created a Fifty Million Dollar
($50,000,000) trust organization estate, by a conveyance to trustees, recorded in New York (August 15, 1919), and saved the heirs several million dollars which would have gone for inheritance taxes had the estate been distributed by the court instead of trustees.
The Rockefeller family has used various kinds of trusts as a means of minimizing inheritance taxes and maximizing privacy. Before his death in 1937, John D. Rockefeller tucked much of his fortune into about 70 trust organizations for his descendants. The vast web of individual and group funds represents assets of considerably more than $1 billion. Nelson A. Rockefeller and his generation are believed to be reducing their personal holdings by the creation of still more trust organizations for their own grandchildren and great-grandchildren. It has been reported that two of the Rockefeller brothers spent a considerable sum for information on Pure Trust Organizations. According to one source, there are "well over 100 and perhaps 250 individual Rockefeller trust organizations by now.” Many of these trusts are known to be Pure Trust Organizations, which place the funds beyond the reach of the probate and inheritance tax laws.
H.L. Hunt, the Texas oil billionaire, is reported to have paid $75,000 for the setting up of the first Hunt family Pure Trust Organization. Hunt's attorneys then copied this first trust organization indenture and formed at least 25 additional trust organizations. The trust organizations seem to follow the names of the Hunt family members such as:
1. Ruth Ray Hunt Trust Estate: this trust organization owns a large percentage of the Hunt Oil Company and is worth an estimated $1 billion plus.
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2. Caroline Hunt Sands Trust Estate: this trust organization is estimated to be worth at least $100 million.
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3. Ray Lee Hunt Trust Estate: this trust organization bought the Jefferson-Dallas Hotel in downtown Dallas, Texas. This transaction was reported on the Dallas Morning News with the purchaser being a "Mystery Buyer," thought to be a Hunt Family Trust controlled by Ray Hunt. Ray Hunt called the purchase by his family's trust and kept it secret because the City of Dallas wrote off $21,491 on real estate taxes owed on the Jefferson-Dallas Hotel, a few weeks before it was revealed that H.L. Hunt family interests were involved.
4. Nelson Bunker Hunt Trust Estate
5. Ruth Jane Hunt Trust Estate
6. Helen Hunt Kreiling Trust Estate
7. Swanee Hunt Trust Estate
8. Hassie Hunt Trust (Estate): this trust is involved in the new exploratory oil drilling efforts in the Permian Basin of West Texas and Southwestern New Mexico.
Some persons who claim to have been close to the Hunt family estimate that there may be as many as 200 Hunt family trust organizations now in existence. H.L. Hunt recently passed on, leaving an accumulated fortune of several billion dollars. Much of this fortune is invested in offshore oil wells. It will be interesting to see whether the Hunt family has to liquidate many of these assets to pay enormous estate and inheritance taxes. (This, of course, will never happen -- because the rich arrange their affairs so that their estates increase generation after generation instead of drastically diminishing.)
The above are but a few of the many family estates that are preserved generation after generation through the use of the Pure Trust Organization.
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The following chart is a brief summary of some of the differences between a business or pure trust and a corporation. Remember, a statutory trust and a corporation are both artificial persons, created by the State and under its total and absolute control, and having no rights. On the other hand, a business or pure trust is seen by the laws as a natural person, with all the rights of an individual.
“…a business trust is a citizen of every State in which its shareholders reside…”
Navarro Savings Assn. v. Lee, 446 U.S. 458 (1980)
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Corporations Business Trusts
Artificial person Sovereign person
Subject to statutory law Subject to a higher law (Common Law)
Board of Directors (managers) Board Of Trustees (owners)
Shareholders (“beneficiaries” and owners) Certificate Holders (only beneficiaries)
Subject to lawsuits from many directions Not subject to lawsuits unless laws
are broken by the trustees
Acountable to the shareholders Not accountable to the certificate holders Management can lose their jobs for many reasons Trustees can lose their job only for illegal
activities
“Taxpayer” by IRS definition Not a “taxpayer” by IRS definition
Many federal filing requirements No federal filing requirements
All transactions are reviewed by govt No transactions are reviewed by govt
Directors operate within narrow limits Trustees operate within wide limits
Directors are accountable for results Trustees are accountable for intent
Corporations must distribute dividends regularly Trustees never need to distribute funds,
but can for many reasons
Corporations may ONLY distribute dividends Trustees may distribute whatever funds
for whatever reason the indenture allows
Corporations continue indefinitely unless Trusts exist for 99 years, subject to renewal
disbanded or bankrupt
Management compensation subject to review Trustee compensation (both the manner
and the amount) not subject to review
Owner (shareholder) liability is limited Owner (trustee) liability is limited
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“No State shall . . . pass any bill . . . or law impairing the Obligation of Contracts."
U. S. Constitution, Article I, Section 10
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Restatement of the Law of Trusts, 2d, American Law Institute, Washington, D.C.:
"The Restatement of this subject does not deal with business trusts . . . “
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"Matters excluded: A statement of the rules of law relating to the employment of a trust as a device for carrying on business is not within the scope of the Restatement of this subject. Although many of the rules applicable to trusts are applied to trusts, yet many of the rules are not applied, and there are other rules businesses which are applicable only to business trusts. The business trust is a special kind of business association and can best be dealt with in connection with other business associations."
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Internal Revenue Regulation,
" Business Trusts -- There are other arrangements which are known as trusts
because the legal title to property is conveyed to trustees for the benefit of
Beneficiaries, but which are not classified as trusts for purposes of the Internal
Revenue Code, because they are not simply arrangements to protect or conserve the property for the Beneficiaries."
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United States Supreme Court Justice Brown, Hale v. Hankel, 201 U.S. 43 at 74 (1905):
“The individual may stand upon his constitutional rights as a citizen. He is
entitled to carry on his private business in his own way. His power to contract is unlimited. He owes no duty to the State or to his neighbors to divulge his business, or to open his door to an investigation. He owes nothing to the State since he receives nothing there from beyond mere protection of life and property. His rights are such as existed by the law of the land long antecedent to the organization of the State. He owes nothing to the public so long as he does not trespass upon their rights." (Emphasis added)
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