Differences Between Statutory and Constitutional Trusts

Worthington Group in their continuing effort to inform and educate the reader, has engaged IRA to research the differences between Statutory and Constitutional Trusts. Therefore the following information was gleaned from IRA research on the subject matter requested. Please know however, that the information presented is in no way the last word on the subject, and is not meant to serve as any type of Legal Advice, either by IRA or Worthington Group.

Common Law relates to those customs and rules of antiquity which are in but necessarily limited to, court cases which set precedent in their decisions, rather than language of legislated enactments. The difference between Constitutional right, and statutory privilege is that in Constitutional one is FREE to do anything except what is prohibited, and in a statutory position, one must look carefully to 'statutes' to see what is required and/or expected.

We have heard in repeated in conversations, that "all trusts are the same", and their is no need to understand the workings of trusts, that is what attorneys are hired for. Nothing could be further from the truth. Most attorneys who attend law school and graduate, have not been trained in the area of Common Law, and Constitutional Trusts.

Additionally, even if they were aware and trained in this area, it would adversely effect their income. The reason being, Constitutional Trusts do not require the assistance of attorneys as their is no probate function at death. Most attorneys glean a large part of their income from probate work. Also, the need of a will is negated, as Constitutional Trusts also take the place of wills.

Statutory Trusts derives their existence from, and is governed and regulated by statutes by which it must conform.

Constitutional Trusts are derived from Constitution in the form of 'contract'. This right of contract is derived from The United States Constitution, Article I, Section X, which states: " No state shall, pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts" (Ex post facto law is defined as 'done or made afterward', from the thing done afterward').

Constitutional Trusts are created and operate under the Law of Contract established through the United States Constitution. The essential elements of the Law of Contract are absent in the creation of Statutory Trusts, but are present in the creation Constitutional Trusts.

4) All confirmed 'tied together' by a meeting of the minds or the understanding of the two involved parties;

Basic comparisons between Statutory and Constitutional Trusts are varied, some are displayed in the below charts.

Statutory Trust	Constitutional trusts

1) Merely holds property till death	1) Owns property in 'fee simple'
2) Is usually a revocable trust	2) Is always irrevocable trust
3) Has a statutory termination date	3) Cannot be terminated by statute & can be renewed each 20 years
4) Protects and conserves property only	4) Can operate as any business
5) Arises from statutory provision/regulations	5) Arises from the law of contract
6) Legal and equity title is split	6) Legal and equity title not split
7) Consideration not involved	7) Consideration is involved
8) Exercise of a privilege	8) Exercise of a right

Constitutional Trusts have been utilized by the very wealthy for hundreds of years. It also believed by Worthington Group that it has been the very wealthy who have perpetrated the image that one must be very wealthy in order to take advantage of Constitutional Trusts.

Privacy and Fiscal Secrecy is a benchmark associated with Constitutional Trusts, and is far from being 'illegal', it is the complete opposite, and acts as a means which enable citizens to exercise their lawful right to complete autonomy.

Below we list three court citings which affirm the use and validity of Constitutional Trusts, Contracts, and Constitutional Contract Rights.

" A Pure Contract Trust is established by contract, and any law or procedure in its operation, denying or obstructing contract rights, impairs contract obligation and is therefore violative of the United States Constitution".

"A Trust organization created under the United States Constitutional right of contract cannot be abridged". [Emphasis added]

IRA hopes this brief text i.e.: Constitutional Trusts vs. Statutory Trusts, and explanations contained herein has been and is of value to the reader and to Worthington Group the entity who constructs these Constitutional Trusts for it's clients.