All Trusts are NOT created equal!

 

   You may have heard that a trust is the best path to asset protection of your land, cars, valuables etc., yet you’ve been overwhelmed or confused when searching to set up your trust and questioned, “Which type of trust do I need?”

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  There are many, many types of trust structures that can be used in many different ways depending on your overall goals.

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   Today we want to narrow it down to a very unusual type of trust which you very likely have not seen before, but according to our 15+ years of research and implementation of this type trust, we feel it just may be the best trust structure to use.

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  Take note that we do not offer “Legal Advice” but simply share with you our own findings and experiences using this type of trust structure.

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   Below we will break down the 3 most commonly known types of trusts, including average set up costs, the #1 trust being our most highly recommended go to for all types of applications.

 

✅ 1. Foreign Grantor Trust with a 98-Series EIN & No IRS Filing Requirements and operated under (508(c)(1)(a) as an Ecclesiastical Ministry.

🔍 Summary

A Foreign Grantor Trust:

•              Formed under foreign or international law (e.g., Cook Islands, Nevis, etc)

•              Has a trustee who is non-US citizen

•              Has obtained a 98-series EIN (foreign entity)

•              Has documented no-filing requirements from the IRS (often via private ruling or correspondence)

•              Claims religious/humanitarian exception under IRC 508(c)(1)(a)

•              Is ignored for income tax purposes. We have received written confirmation from the IRS stating, “In general, a Grantor Trust is disregarded for income tax purposes.” In addition, several of our trustees have contacted the IRS directly and were informed that this type of trust has no tax filing requirements, provided that all exchanges are designated as private exchanges between parties and claimed as lawful money pursuant to 12 U.S.C. § 411. These exchanges are not considered income and therefore fall under the scope of the Lawful Money Act, as income and lawful money are distinct legal concepts.

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📌 Key Characteristics

Attribute             Description

Legal Basis:        Foreign or International law (established outside of US)

Jurisdiction:         Non-U.S. (trust formed and administered offshore)

Grantor:               Can be a U.S. person or trust, but trust is considered foreign due to foreign trustee

IRS EIN:              Often (not always) uses a 98-series EIN (identifies foreign entities/trusts)

IRS Status:          IRS has acknowledged grantor trust is not required to file 1040-NR, 1041, or 3520/3520-A under its                                    current operations

Mission:               Humanitarian outreach

508(c)(1)(a):        Applies to religious or humanitarian organizations that are automatically tax-excepted without filing                                      Form 1023

Taxation:              None required if structured properly and no U.S.-sourced income (12 USC 411)

Reporting:            No FATCA, no FBAR, no 3520-A (per IRS acknowledgement)

Control:                Trustee has legal control; grantor may have influence via "Protector" role

Asset Protection: Very high (due to foreign jurisdiction and discretionary trust nature)

Setup Cost:          IN United States Averages between $15,000–$50,000+

Credibility:            High if properly documented, but may trigger scrutiny if used incorrectly.

Use Cases:          Mission operations, humanitarian outreach, offshore headquarters address.

 

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✅ 2. Pure Trust (aka Common Law Trust, Contract Trust, Natural Law Trust)

🔍 Summary

A Pure Trust is a non-statutory, private contract-based entity often promoted as a means of asset protection and tax avoidance. These are not recognized by the IRS or any state statute, and their promoters often claim the trust exists above U.S. law.

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📌 Key Characteristics

Attribute             Description

Legal Basis:        Claimed “common law right of contract” (not codified in state or federal law)

Jurisdiction:         U.S., but outside normal trust statutes

Grantor:               Typically, an individual trying to retain control while avoiding taxes

IRS EIN:              Sometimes issued, but no legal weight if used to evade taxes

IRS Status:          Not recognized; often considered fraudulent or abusive tax shelter

Purpose:              Tax avoidance, asset protection (claims), privacy

508(c)(1)(a):         Often falsely claimed to be a religious organization under this clause

Taxation:              IRS usually disregards the entity and taxes the grantor

Reporting:            Required but often ignored by promoters

Control:                Creator retains control, defeating the purpose of the trust

Asset Protection: Extremely weak; courts routinely pierce the structure

Setup Cost:          $1,000–$5,000 (often from unqualified promoters)

Credibility:            Extremely low; many IRS warnings and case law against them

Use Cases:          Promoted to the uninformed for tax evasion; legally dangerous

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✅ 3. Typical Domestic Trust (Revocable or Irrevocable, Set Up by U.S. Attorney)

🔍 Summary

This is the most widely used trust structure in the U.S., governed by state laws, courts, IRS, and financial institutions. Comes in many types (revocable, irrevocable, charitable, special needs).

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📌 Key Characteristics

Attribute             Description

Legal Basis:        U.S. state trust laws (e.g., Uniform Trust Code) (Not private)

Jurisdiction:         U.S.

Grantor:               U.S. person

IRS EIN:              Yes, if irrevocable or non-grantor

IRS Status:          Fully recognized and reported via Form 1041 annually

Purpose:              Estate planning, probate avoidance, asset protection (irrevocable), tax strategy

Church:                If forming a church ministry use 501(c)(3) (Government controlled)

Taxation:              Transparent (revocable) or separate taxpayer (irrevocable)

Reporting:            Full IRS compliance via 1041, K-1s, etc. MUST FILE TAXES

Control:                Grantor (revocable) or trustee (irrevocable)

Asset Protection:  Limited (revocable), good (irrevocable)

Setup Cost:          $2,000–$10,000 (depends on complexity)

Credibility:            Very high—used by high-net-worth families, advisors, CPAs

Use Cases:          Personal estate planning, asset segregation, tax-efficient gifting

 

As illustrated in the comparison above, a Foreign Grantor Trust offers significant advantages for those seeking greater privacy and fewer administrative burdens than are typically associated with domestic trusts. This type of trust may hold land, vehicles, and other assets conveyed into its name, while supporting a wide range of outreach and operational activities.

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For example, a trustee may appoint ministers under a 508(c)(1)(a). These ministers may be family members or anyone who possesses useful skills and desires to participate in the trust’s projects. The next step is to identify the skills held by your trust members.

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One person may be skilled in growing food, another in carpentry, another in interior design—any skill that can improve someone else’s life. That is the essence of ecclesiastical ministry: doing something that enhances, supports, or beautifies another person’s life or living space in any meaningful way.

In truth, we are all ministering in one way or another every day. Yet many have been conditioned to see themselves as mere units of labor, obligated to give their energy to corporate systems that do not value them. This mindset breeds imbalance—personally and collectively. When people recognize their inherent value and begin serving through their gifts, that imbalance can begin to correct itself.

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Outreach, however, is not meant to be one-sided. Under universal principles, giving and receiving are interconnected. This is where private exchanges between parties arise. Such exchanges may involve Federal Reserve notes, food, clothing, services, or anything else mutually agreed upon. Some form of exchange is necessary to maintain balance; without it, the natural order of reciprocity is disrupted.

 

So, if you agree, between parties, that you will minister to them by fixing their plumbing or repairing their car or creating documents or washing windows or providing housing etc. in exchange for notes or money, it is a private exchange never to be considered income, therefore no corporate entity has any right to interfere in that private business of exchange between parties as this exchange is truly claiming lawful money under 12 USC 411.

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At ANPC International, our mission is to equip you with the best tools we can identify so that you may experience genuine freedom to live and minister according to your conscience and calling. We believe our trust structures and strategies are among the most effective available. As a service to our fellow man, we strive to offer them through the most affordable exchanges possible, so that you, in turn, can extend the same opportunities within your own communities.

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We trust this explanation has helped clarify the different types of trusts and how they function.

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To get started with this important step toward freedom, fill out the application below. Wishing you much peace and joy on your life journey!

    ~Your friends at ANPC International.