What is a PTO?

The "Pure Trust" is a Common-Law Contract in Trust Form. The Pure Trust is a contract at common-law in equity created in trust form. Unlike the Trust, the PTO receives the assets by exchange, meaning there is a full and adequate exchange for the assets. In other words each party gives something and receives something in return, and the agreement has a stipulated duty to perform that all parties must adhere to. This is the contract form. In addition, unlike the trust, the contract has an expiration date, not to violate the law of perpetuities, which is a prerequisite for contracts. This is also contract form. The Exchanger exchanges the assets to the Trust for Trust Certificate Units (TCU's). The Creator appoints at least two Trustees to manage the trust. The Trustees can appoint a General Manager to oversee the day-to-day business activities of the Trust. The Exchanger has no control over the Trustees, the business of the Trust or the income stream. The Trustees are in total control and the Exchanger has no reversionary interest in the Trust. There are no beneficiaries. The Exchanger is a certificate holder holding the TCU's in the Trust, similar to stock in a corporation, but has no management ability and no say in the operation of the Trust. Therefore the Certificate Holder and the Trustees are not associates. This entity has the substance of contract and the form of Trust.

What is a Trust?

A Trust is an instrument created by one person to hold assets for someone else, normally called beneficiaries. The Creator, called the Settler, transfers the assets to the Trust. The Trust can be written to distribute funds to the beneficiaries on a yearly basis or it can hold the assets to distribute them at a later date. The Creator of the Trust will appoint a Trustee or Trustees to manage the Trust. The Trust cannot operate a business. It is only a holding and distribution entity. There is a title split with a Trust with the Trustees holding legal title to the assets and the beneficiaries holding equitable title; therefore the Trustees and the Beneficiaries are associates. If the Trust earns income it is taxed at normally a 39% rate. The Trust comes under IRS regulations IRC 641-680.

What is a Contract?

A contract is an agreement between two or more persons for value which is legally enforceable. It includes a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty. In a contract each party must receive compensation for what is put forth by each in the contract. There must be full and adequate consideration for each party to the contract. A contract must also adhere to the law of perpetuities, meaning there must be a date to commence the contract and a date when the contract will end, and this time period must be considered reasonable.

What is a Pure Trust?

The Pure Trust is a contract at common-law in equity created in trust form. Unlike the Trust, the PTO receives the assets by exchange, meaning there is a full and adequate exchange for the assets. In other words each party gives something and receives something in return, and the agreement has a stipulated duty to perform that all parties must adhere to. This is the contract form. In addition, unlike the trust, the contract has an expiration date, not to violate the law of perpetuities, which is a prerequisite for contracts. This is also contract form. The Exchanger exchanges the assets to the Trust for Trust Certificate Units (TCU's). The Creator appoints at least two Trustees to manage the trust. The Trustees can appoint a General Manager to oversee the day-to-day business activities of the Trust. The Exchanger has no control over the Trustees, the business of the Trust or the income stream. The Trustees are in total control and the Exchanger has no reversionary interest in the Trust. There are no beneficiaries. The Exchanger is a certificate holder holding the TCU's in the Trust, similar to stock in a corporation, but has no management ability and no say in the operation of the Trust. Therefore the Certificate Holder and the Trustees are not associates. This entity has the substance of contract and the form of Trust.

What makes the PTO so powerful?

The PTO is not governed by Trust law and does not have to adhere to the Restatement of Trust Act. Instead it is governed by contract law. The most powerful vehicles in our nation are contracts, not trusts. Courts are bound by the Constitution to uphold lawful contracts. The PTO can do many things a trust cannot. For example, it can hold and operate a business. The PTO has the legal capacity to do anything a corporation can do but without the normal restrictions set upon corporations. Once a PTO is created it cannot be set aside by any court or legislative intent or will. And, the actual law that governs the PTO is the indentures of the trust contract, so the Trustees are making their own law, not the state.

Why should I put my assets in a PTO?

Owning valuable assets in today's world is a risk no one should want to take. We live in a very litigious society and anything you own can be lost in a lawsuit, or be taken by the IRS. If you own it, you can lose it. If all of your assets are in PTO's, you control them but you don't own them; therefore, in a lawsuit they cannot be reached, and the IRS cannot get at them either. In addition, you have complete privacy. No one knows what you really own.

What assets can be exchanged to a PTO?

Your business, real estate, automobiles, boats, airplanes, investments, jewelry, art, stamps, coins, gold, diamonds, just about anything of value or anything you want to protect.

Can my home be put into a PTO?

For the reasons stated above, no one in America should own their home in their own name. If you have a financial crunch and cannot pay bills for a time, creditors can put liens on your home. If you find yourself owing back taxes, the IRS can and will put a lien on your home. If you or a family member have a car accident and are sued for more than you have in insurance, your home is at risk. In a divorce, your home is at risk. If you or a family member are involved in any criminal indictment, your home is at risk. Knowing all of this, you shouldn't be able to sleep at night if you own your home. When you put your home in the PTO, you no longer legally own it. You pay rent to the Trust that owns the home; therefore, your home now falls under rental property category and the mortgage, property taxes, insurance, renovations and maintenance on the home are now 100% tax deductible. Think of the value of this benefit alone. This could give the average family an additional $20,000 per year in tax write-offs which could reduce taxes $3000 to $5000 a year. And you can sleep at night worry-free.

Why should I exchange investments to a PTO?

As with your home, your investments are a valuable asset that needs protection. They are probably ear-marked for savings, retirement, college tuitions or some future goal and you want them to be there. In a lawsuit or back taxes or creditors, they can be reached, and anyone who has a legal judgment to go after your assets will want to go after the liquid assets first. In addition, once the investments are owned by the PTO, they no longer go on your tax return and the PTO has no tax filing requirement, so forget the IRA or 401-K that the government is in charge of. How about no penalty for early withdrawal, how about using the money when you want to or need to, not when you reach a certain age? How about you in control of your money and not the government?

Can I put my car into a PTO?

All rolling assets, cars, trucks, RV's, boats, airplanes etc., can create a lot of liability. When they are in the PTO, you shed that responsibility. In addition you can save money on insurance by lowering your coverage to the state minimum because you now have no concern about lawsuits.

Can I put my business into a PTO?

If you have your own business and are like most Americans today, you probably operate the business through a corporation, S-corporation, partnership or L.L.C. These entities are a creature of the state and a benefit from the state. If you accept a benefit from the government you will perform the way government tells you. Your business is an open book: there is no privacy and the state can see your records anytime they want. These are fictitious entities and therefore have no constitutional guarantees or protection. If your business is operated through a PTO, you owe the state no duty; you don't have to list officers and certificate holders. It is total privacy. In most cases you will not need a business license or mercantile license and your business is not registered anywhere. It's private. There are no state reporting requirements and you can operate in any other state without registering with the Secretary of that state. And you can do anything any of these other entities can do.

When did the PTO start?

The Pure Trust dates back to the Roman Empire. It is the oldest business form in existence. The Romans had their slaves in trusts. The trust was revived in thirteenth century England with the common-law and created as a common-law entity so the King and the land barons could not grab their property. The first Pure Trust that we know of created in America was the Mayflower Compact. The first Trust created after our new government was formed was created by Patrick Henry for John Morris, then Governor of Virginia. That trust is still in force today. In the early part of the twentieth century, the trust was revived by people like John D. Rockefeller, J.P. Morgan, Carnegie, Mellon, Rothschild, DuPont, Joseph Kennedy, Warburg and many more. In 1913 when the income tax was supposedly set in motion via the 16th Amendment, the wealthiest families knew they had to do something and their only protection was the PTO. In 1917, John D. Rockefeller was hauled into federal court for antitrust. It seems as though John D., owned all the oil companies and just about anything that had to do with oil. John D., with his attorneys, created five Trusts and split up the oil companies himself instead of the government doing it. These Trusts were known as Chevron of California, Standard Oil of Indiana, Standard Oil of Ohio, Esso of New Jersey, and Mobile Oil. Hence, John D. escaped the antitrust suit. He did not own any of it. The Rockefeller family controlled all of these companies up through the late 1960's and they are still major stockholders in several. John King, the oil tycoon, filed Chapter 7 bankruptcy with over $200 million in debt, and still lived in a $10 million dollar home and had expensive vacation homes in Hawaii, Florida and Colorado, living the rest of his life - you guessed it - like a "King." Jimmy Carter was elected President in 1976 and owned a substantial peanut farm in Georgia. The farm business had government contracts; therefore, as President he could not own the farm or the business while he was President of the U.S. Government. So Mr. Carter exchanged the farm to a 'Blind Trust' (PTO) to avoid any potential problems. Former Presidents Kennedy, Johnson, Carter, Reagan, Bush and Clinton are just some of the heads of state we know of that used the PTO to protect their assets from potential onslaughts. Many Senators, Congressman, Governors and the wealthiest citizens of our nation have and currently use the PTO to their obvious advantage. This is one reason why Judges will do their best to protect your PTO for you - if it is good for the goose (them), it is good for the gander (us). The super-wealthy were able to keep the PTO a secret from average Americans for well over a century. In 1984 while doing legal research, Ron Ottaviano and Jeff Lind accidentally stumbled across the PTO and had no idea what they had found. It was mind boggling. After a few years of intensive research, Asset Protection Group was created in 1987 to bring the PTO advantages to middle class Americans. APG was the early pioneer to bring the PTO to this level of awareness with a massive marketing campaign. In the 1990's with the advent of the internet, many copy cats started to market and bastardize the PTO, resulting in the subsequent warnings from the powers to be. You now need to be very careful. More people are doing it wrong than right. The fast buck artists are alive and well. Most charge twice as much or more than we do - and offer you a seriously substandard product.

How long has the PTO been around?

The Pure Trust has stood the test of time. In the United States of America alone this Trust has been used for over 200 years by people wanting to protect their assets. This is the oldest business form in existence. Through the 1800's the trust was rarely used, so it was out of sight, out of mind, if you will. The reason for this is in the 19th century we had no income tax, no IRS, and the constitution was alive and well. If you look at court cases of the time, you will find that judges ruled on law, not commercial contract procedure. In addition, frivolous lawsuits were very uncommon. Judges would not tolerate the lawsuits that are allowed to be filed today and people were responsible for their own behavior. Around 1911, with talk of the pending income tax that was put in 1913 via the 16th amendment, the super-wealthy brought the Pure Trust out of the moth balls, dusted it off, and put it to use to protect their fortunes. This tax was a tax that 70% of Americans were in favor of, and urged their congressional representatives to vote for. Farmers lobbied for it and Unions and their membership threatened lawmakers with defeat if they didn't vote for it. THE PUBLIC WANTED THIS TAX! WHY? Simple, this was a soak-the-rich tax. Only the rich, people like Rockefeller, J.P. Morgan, Carnegie, Mellon, etc., were to be taxed under this new tax and that is always popular with the huddled masses. Then came World War II and the chance for Roosevelt to tax the poor and middle class. In 1942, they put in the Victory Tax and the slogan was Pay Your Fair Share So Our Boys in Europe will have weapons and hot meals. Who is going to say no to that? Hence, withholding was instituted, but at the end of the war it was never repealed, we are still paying the Victory Tax today. And the tax was never apportioned; therefore it was an unconstitutional direct tax, so in 1954 they implemented the Internal Revenue Code, brought the judges in line, brought forth commercial law and maritime law to replace the common law and changed the curriculum in the law schools so the new breed of lawyers would be as uninformed as the rest of us. And it worked. Therefore, the Pure Trust is needed more today than when John D, and his friends found it necessary. A new breed of cat called CPA's were trained. These poor folks did not know that they did not know the real truths. In all my extensive travels and meetings with professionals, the most stubborn people I have ever dealt with had CPA after their name. In the 1970's we became an extremely litigious society, basically because law schools were overcrowded, entrance requirements were decreased and we had too many lawyers. I remember in the middle 1970's until about 1982, for the first time in history unemployment became a problem in the legal profession. Therefore, the judges started allowing frivolous lawsuits that in past years they would have thrown out and admonished the lawyer for bringing. They stopped allowing fees and actually encouraged these suits, all to keep their brethren working. Therefore the Pure Trust became popular again. As long as the super wealthy were the only ones doing it, the government didn't have a problem, but, when the middle class started using this trust the government became annoyed. After all these are the people paying the taxes. So, the government with the IRS as the spearhead put on an aggressive campaign to make everyone think this trust is illegal. They got CPAs and lawyers to tout the danger and illegality of doing this. They wanted to scare people into not doing it. And for the most part it worked. We even had some clients who had us unravel their trusts and put them back in statutory custody. One client comes to mind. We had his business, his home, vacation home, and investments in the PTO. After two years of operating this way, he came to us and said, I want you to dissolve all of this, I'm scared to death. Then he showed us all the IRS reports he had found about PTO's and some writings from Tax Attorneys that made him feel this way. I did what he asked and three years later the IRS audited his business (now a corporation) and sent him a deficiency for $480,000. They seized all his business equipment and trucks, seized his bank accounts and investments and put a lien on his home. (By the way, the tax he owed was only $142,000 the rest was interest and penalties.) He went to a lawyer for help. Unfortunately he got a real bright lawyer, one of the few that understood the PTO. While the lawyer was looking over all his papers and books, he came across the old trust documents and said, what's this? When my former client explained, the lawyer said, My God man, if you had kept this CONTRACT in force you would have no problem, they couldn't have seized anything and probably wouldn't even have audited you. We had another client who is a farmer; we put the farm in a PTO, the farm equipment in another PTO, and a business PTO to operate the business of the farm. This guy saw all of the abusive trust propaganda by lawyers and the IRS on the internet, went to an attorney and the attorney told him, if you don't dissolve all of this you will go to jail! The lawyer called us and we told him why the trust was legal and even sent him volumes of case law which he chose to ignore. This farmer had a lot of money and the lawyer could smell it. We also told the lawyer and his CPA that if he dissolved these trusts, he would have a tax consequence that could cost the client several hundred thousand dollars. The lawyer and the CPA told the client I was crazy, I did not know what I was talking about. After all we are not CPA's, who are we to give tax advice. (Sounds good). About a year later, I ran into another farmer who had originally referred this farmer to us and he said that the client never dissolved any of the trusts, they were still operating. He said the lawyer found out that there would be a large tax backlash if they did dissolve them, (sound familiar?). So, the lawyer became the Trustee and is charging the client $2,000 per month for maintenance fees! We were only charging him $800 per year! Many of the lawyers who have websites touting the PTO to be illegal and an abusive trust we have found are either former IRS lawyers now in private practice or they have an agenda to get you to do a Living Trust, L.L.C., or some other form.

Is a PTO legal?

Is the PTO legal? The answer is no; it is not legal, but, it not illegal either. That is what is so great about it. The Supreme Court put it this way: The fact that a Business Trust is not regarded as a legal entity distinct from its Trustees, if a true trust may result in this advantage to the Trust, which a corporation does not possess. So the court is saying that the PTO is not legal, and that is a good thing. Let's explain: first we have to define legal. Most people think they know what that word means but they do not. The word legal is a legal term. If something is legal than there is a law (statute) allowing it. But many things are lawful that are not legal. For instance, is it legal to eat a banana on Wednesdays? No it is not. You see there is no law that says you can eat a banana on Wednesdays, but there is no law that says you cannot; therefore it is lawful to eat a banana on Wednesdays or any other day for that matter. If something is legal it is statutory. Black's Law Dictionary defines Legal: 1. Of or relating to law; falling within the province of law 2. Established, required, or permitted by law. And Lawful 1. Not contrary to law. So the trust, like the banana, is not legal, but it is lawful. The Corporation, L.L.C. are legal, meaning there is a statute that you can incorporate, and you must do it the way the state says and they will control it. That is legal. The PTO is a contract written in trust form. It cannot be illegal because you have a constitutional right to contract and the courts are bound by the constitution to uphold lawful contracts. (Contracts, by the way, are not legal either.)

Who has used a PTO?

Rockefeller, Louis B. Mayer, Kennedy, Kellogg, J.P. Morgan, John King, Astor, Rupert Murdoch, H.L. Hunt, Donald Trump, Vanderbilt, Ronald Reagan, Carnegie, Lyndon Johnson, Rothschild, George Bush 41, Warburg, Jimmie Carter, Henry Ford, Forbes, Dupont, William Clinton, Edward Hines, Richard Nixon, Paul Mellon, Bass, P.T. Barnum, And many more...

What businesses use a PTO?

United Airlines, Chicago Merchandise Mart, Sony, American Express, Mesabi Iron Co.

What makes the PTO lawful?

The Pure Trust Organization or its acronym (PTO) as we like to use, is a Contract and under our Constitution Article I Section 10 no state shall pass any legislation impairing the right to contract. Therefore, it is your fundamental right as an American to be able to contract. There are different types of contracts. The PTO is a Common-Law Contract in Trust Form. This means that the substance of the PTO is contract and its form is Trust. There is a legal principal known as form over substance, this means that the courts don't care what you call it (the form) they are concerned with how you operate it (the substance). If it has more characteristics of a trust than a contract then the courts will treat it as a trust. Therefore it is necessary for the PTO to have more features of a contract. A contract is more elastic than a trust, meaning you can mold it in any way you choose and for any lawful means that you aspire to. So, what law governs where the PTO is involved? The answer is contract law. Contract law gives you the elements that a contract must have but does not dictate what the contract is about as long as it is for lawful purposes this is what makes a contract the most elastic vehicle we have. In addition, the PTO is governed by case law. Because there are no statutes governing this entity, the courts will rely on decisions of previous courts concerning the PTO. Mostly Supreme Court decisions as opposed to popular belief case law from lower courts is not law on the other hand this does not mean that judges will not give them wait in their decisions. So, what makes the PTO lawful? The constitution and case law rules at bar here. We know from the above paragraphs what the constitution says and if you click on the link case law you will see what the courts say. In the Restatement of the law of trusts 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. There are other rules applicable to only business trusts. The business trust (PTO) is a special kind of business association and can best be dealt with in connection with other business associations. The American Law Institute multi-volume study of trust fails even to discuss the irrevocable business trust! Why? They won't discuss it because it really isn't a trust, and the rules for trusts just don't apply to it. In reality, it is a contract on the form of a trust. As business people, we all want security. We want security for our business and we don't want someone else telling us how to organize our business. We conduct business by entering into contract. An irrevocable Pure Business Trust permits us to organize our trust upon the principal of contract rather than quasi-legislative privilege. Article I Section 10 of the Constitution provides that; No state shall pass any law impairing the obligation of contracts. That section in the Constitution provides in a nutshell, the sum strength and structure of the irrevocable Pure Business Trust. Any other position serves only to weaken the essential nature of the business trust. Indeed, the courts have ruled that:: A Pure Trust is not so much a Trust as it is a contractual relationship in Trust Form. (Berry v. McCourt, 204 NE2d 235). The right to contract is protected, as we have pointed out, by the constitution: A Pure 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. (Smith v. Morse, 2CA 524) And again the right to create the Pure Trust is based on the common-law right to contract by individuals establishing it. (Cleason v. McKay, 134 Mass 419)

Do I need a business license?

The PTO is a private business, to understand this we have to look at other business forms. When you have a Corporation, L.L.C., LP., are these considered a private business? NO! These business forms are a benefit from the state they are public record and therefore the state is in charge. So, if your municipality requires a business license, mercantile license and so forth you must have one.

What if I already have a business license?

If you have a license issued by the municipality to operate your business then that government entity can dictate policy to you and tax you on a business tax as well. With the PTO, you are not receiving a benefit from the state and therefore you owe no duty to the state, therefore you don't need a license and do not have to pay any business tax and do not have to operate your business by the whims of any government agency. It is a private business.

What are the benefits to having a PTO?

Create comprehensive asset protection, become a rich pauper... own nothing yet control everything: own property as joint tenants even if you're not married! Create a retirement plan without an IRA, annuity or 401-K Retire at any age - take distribution of money anytime you want! No tax or penalty for early withdrawal! Protect yourself - never be exposed to the IRS, lawsuits or collections -better tax path. Reduce all taxes 50% or much more... Best pre-nuptial and post-nuptial contract -this can't be set aside! Reduce your family's auto insurance coverage -big time. Reduce malpractice insurance premiums to almost nothing! Achieve total privacy and a transparent existence! Bank in privacy without using a social security number!

Thank you Mid-Atlantic

I have a farm in South Jersey formerly owned by my mother. Mom also had close to half a million dollars in mutual funds. Through my Attorney and CPA I found out that if Mom went into a nursing home I could lose the farm and the investments... or at least 60% of the value. Mom had Alzheimer's and we knew what was inevitable. I met with Mid-Atlantic; they created 3 PTO's for me. 8 months later Mom went into a nursing home and we applied for Medicaid. The government challenged. We went to court and the Judge ruled... the assets in these Trusts are not available to Mrs.Snyder, WE WON! Medicaid paid Mom's bill for 7 years until she passed away. I still have the farm and my sister has the Investments - all intact, the way Mom & Dad wanted...

-Dion S

 

I'll recommend Mid-Atlantic anytime.

I own a self storage property in North Jersey that I inherited from my father. Dad paid under 1 million for the property. I was offered over 8 Million from 'Storage USA' and wanted to sell. My attorney told me that it would cost me over 2 Million in capital gains to sell. Then with a little luck, I was referred to Mid-Atlantic. They put the property in a PTO so it would receive a stepped-up basis. I sold the property 6 weeks later and paid no tax. It has now been 8 years and I still haven't paid any capital gains tax. The IRS has never questioned it. My lawyer said it was crazy, but he is a believer now! I had the guts to go against my lawyer's advice, good thing!

-Manny N

 

Mid-Atlantic you're the 'Doctors' of Asset protection...!

My partners and I exchanged our Medical Practice to a PTO, the equipment to another PTO, our employees work for a third PTO, and a fourth PTO was set up to manage everything. Henceforth, we have saved over $20,000 a year in Malpractice Insurance, about $15,000 in withholding from employees, and about $50,0000 in income taxes. The piece of mind is... priceless! To say the least, life is beautiful.

-Dr. B Fischer.

 

Mid-Atlantic, you're a lifesaver !!!

My name is Rick and I am an Independent Contractor producing sales with several Insurance Companies. I used to pay over $28,000 in income tax and about $9,000 in SS tax. I now have a Limited Partnership and it is licensed to sell insurance. However, now the companies pay the 'LP'... not me! I set up 2 PTO's through Mid-Atlantic and they contract with the 'LP'. My house is in a separate 3rd PTO. Now I pay about $4,000 in Income tax and about $2,500 in SS tax. The difference of $6,500 that used to go to SS tax now goes to my private retirement fund... in a PTO. Of course that will give me an income close to 10 times what SS will!!! Recently the IRS sent me a deficiency for $84,000; they say I owe them from previous years, yeah right! They put a 'Notice' of federal tax lien on me. Big deal, it's not on my home and they can't levy my earnings! After all the home isn't mine and neither are the insurance commissions...

-Daniel S.

 

Mid-Atlantic is the BOSS!

I own 14 apartment buildings just outside of Philadelphia PA. I knew there was a probable divorce coming so I consulted with Mid-Atlantic. They put all 14 buildings in separate PTO's with 2 management PTO's. Two years later my wife filed for divorce and it wasn't nice... I offered her the house plus $500,000 in cash and $4,000 per month. She said forget it, my lawyer said we'll go through those trusts like a hot knife through butter and clean you out! I was terrified... This went on for close to a year and a half! Mid-Atlantic kept telling me don't sweat it - but it was big time to me. They dragged me through court after court until finally they exhausted all legal remedy and couldn't pierce Mid-Atlantics PTO system! I settled with my wife for the house and $300,000 in cash. No $500,000 and none of my earnings!

-Gary F.

 

Thank you Mid-Atlantic and God bless you folks for everything you do for us!

I had tax problems and the IRS kept sending me threatening letters. I knew it was a matter of time until I received a deficiency and a 'Notice' of federal tax lien on my house. A colleague recommended Mid-Atlantic. They created a PTO for my home and a PTO for my business. Some 10 months later two IRS agents went to the County where I live in Indiana. I know this because the County Clerk is a friend of mine. They couldn't find any property I owned in the County to put a lien against. I couldn't believe it! My house is safe, my earnings are safe and the IRS is still sending me letters. You know where I tell them to go? It's very hot there... And I sleep like a baby at night because Mid-Atlantic takes care of everything!!!

-Robert F.