Frequently Asked Questions
Find answers to common questions about our membership, services, and processes.
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Yes. Trusts are expressly recognized under U.S. law at both the federal and state levels. The primary legal frameworks include:
- Uniform Trust Code (UTC, 2000) — adopted in whole or in part by more than 35 states; codifies the formation, administration, and modification of trusts.
- Restatement (Third) of Trusts (American Law Institute, 2003) — the authoritative treatise relied upon by courts and practitioners nationwide.
- Internal Revenue Code §§ 641–685 — Congress expressly taxes trust income, confirming federal recognition of trusts as legal entities.
- Arizona Trust Code, A.R.S. § 14-10101 et seq. — Arizona's statutory framework governing trust formation and administration.
Estate-planning attorneys, courts, universities, hospitals, and major investors routinely use trust structures. Consult a licensed attorney for guidance on which trust type is appropriate for your situation.
The IRS and the courts draw a clear line between legitimate trusts and abusive trust arrangements. Key distinctions:
- Legitimate trusts are taxable. IRC §§ 671–679 (grantor trust rules) and § 641 require trusts to file Form 1041 and pay applicable taxes. Any arrangement claiming a trust eliminates federal income or self-employment tax is fraudulent.
- The IRS explicitly warns against "pure trust" promoters. IRS Publication 4381 (Abusive Trust Tax Evasion Schemes — Promoters are Lying) identifies schemes that claim a trust can convert personal expenses into deductions or eliminate tax obligations — these are illegal.
- Semper Facilis does not promote tax-elimination strategies. We prepare business-purpose trust documents for asset management, operational separation, and privacy. Our documents do not make claims about eliminating taxes or circumventing legal obligations.
- Sovereign-citizen and "pure trust" rhetoric has no legal basis. U.S. courts have uniformly rejected arguments that common law trusts exempt individuals from federal tax law.
If you encounter a trust promoter claiming their documents eliminate your tax liability, that is a red flag. Semper Facilis is a document-preparation service. We always direct members to qualified CPAs and attorneys for tax and legal questions. Sources: IRS Pub. 4381; IRC §§ 641, 671–679; IRS Notice 97-24.
Legal Framework & Compliance
Trust law in the United States is grounded in a layered framework of common law, statutory codification, and federal tax law:
- Uniform Trust Code (2000) — model legislation adopted in 35+ states that standardizes trust creation, modification, and termination.
- Restatement (Third) of Trusts (ALI, 2003) — the leading secondary authority cited by courts to resolve gaps in statutory law.
- IRC §§ 641–685 — federal tax treatment of estates and trusts, including §§ 671–679 (grantor trust rules).
- Arizona Trust Code, A.R.S. §§ 14-10101 to 14-11102 — Arizona's comprehensive trust statute.
- IRS Form 1041 — the tax return required for non-grantor trusts with $600+ in gross income per year.
These authorities confirm that properly formed trusts are legal, taxable entities — not a means to evade obligations. Semper Facilis prepares documents consistent with this framework. Not legal advice. Always consult a licensed attorney.
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