Trust and Business Build-Out Packages

Our Trust and Business Build-Out services balance expertise, compliance rigor, and client expectations. Explore our tiered pricing, designed to be competitive and profitable while ensuring high-quality service for your unique needs. All package prices below reflect a special 35% discount!

Key Factors Influencing Price

  1. Complexity of Assets: Simple (single LLC/property) vs. complex (multi-state entities, international holdings).
  2. Jurisdiction: States with stricter compliance (e.g., CA, NY) may require more legal work.
  3. Customization: Standard vs. bespoke trust terms (e.g., dynasty provisions, ethical mandates).
  4. Ancillary Services: Coordination with CPAs, asset transfers, or post-setup maintenance.

Basic Foundation

Was: $4,500 – $6,500 $2,925 – $4,225 (35% OFF!)

For: Clients with straightforward assets (1–2 LLCs, 1–2 properties, no litigation risk).

Includes:

  • Drafting of 508(c)(1)(A) trust documents.
  • Transfer of 1 LLC and 1 property into the trust.
  • Basic compliance checks (UCC lien search, title review).
  • 1-hour consultation to finalize terms.
Value Proposition:
  • Competitors often charge $5,000–$15,000 for basic trusts.
  • Our pricing undercuts national averages while delivering exceptional value for simple cases.

Advanced Growth

Was: $7,500 – $12,000 $4,875 – $7,800 (35% OFF!)

For: Clients with 3–5 entities, multi-state properties, or moderate privacy needs.

Includes:

  • All Basic Foundation services.
  • Coordination with CPA for tax-neutral transfers.
  • Layered LLCs for enhanced privacy (e.g., Wyoming holding LLC + trust).
  • Custom spendthrift/anti-Bartlett clauses.
  • 2–3 hours of client consultation.
Value Proposition:
  • Reflects added complexity (e.g., multi-state filings, tax coordination).
  • Aligns with boutique law firms but avoids their $15k+ premiums.

Elite Enterprise

Was: $15,000 – $25,000+ $9,750 – $16,250+ (35% OFF!)

For: High-net-worth clients (6+ entities, international assets, dynasty trusts).

Includes:

  • All Advanced Growth services.
  • Multi-jurisdictional compliance (e.g., NY trust reporting, CA LLC rules).
  • International asset coordination (foreign bank accounts, offshore entities).
  • Annual trust maintenance (amendments, IRS filings).
  • Priority support and encrypted communication.
Value Proposition:
  • Justified for clients needing ongoing, specialized support at the highest level.
  • Comparable to private wealth attorneys charging $20k–$50k, now at an exceptional value.

Add-On Services (À La Carte)

    Service Options

    Our Services

    • LLC/Corporation Formation: $500–$1,500/entity (depending on state & preferred legal posture).

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    • Title Transfers: $300–$800/property (deed preparation, recording fees).
    • Annual Compliance Review: $1,200–$3,000/year (IRS filings, trustee reports).
    • Litigation Risk Audit: $2,000–$5,000 (creditor claim analysis, lien resolution).

Why Our Approach Works

1. Transparency & Value: Discounted flat fees (not hourly) we want to build trust and offer clear value upfront.
2. Scalability: Tiered options let you "self-select" based on needs, now with even greater affordability.
3. Enhanced Profit Margins (Internal):
  • Basic Package: Strong value proposition for the future of your family and heirs.
  • Premium Package: Leverages our proven network of paralegal support giving you ironclad confidence in operating within all compliance standards.
4. Market Positioning:
  • Significantly positioning your trust to withstand most all market conditions vs. online DIY tools that lack customization & due consideration for your specific needs and businesses).

Justifying Your Investment

Value Comparison:

"A single lawsuit or IRS penalty could cost $50k+; this trust and business structure mitigates that risk for a fraction of the price."

Tax Savings & Asset Protection:

508(c)(1)(A) benefits and robust asset protection strategies tailored to your situation.

Comprehensive Support:

Post-setup compliance checks and amendments available, in all tiers.

Our Recommendation

With our current 35% discount, the Basic Foundation Package offers an incredible entry point.

(Note: In the consideration of generational wealth and tax incentives we're ultimately talking about potentially hundreds of thousands of dollars in savings over the life of the trust. The established value in your legal standing will be beyond question.

Pro Tip: Ask about our 10% discount for referrals or bundled services (e.g., trust + multiple LLC formations) for even greater savings on top of current promotions!

Common Questions & Answers

Understanding the nuances of trust formation and business management is key. Here are answers to some frequently asked questions.

Q. What are the primary compliance concerns and litigation risks with a 508(c)(1)(A) trust and its businesses?

Compliance Concerns:

  • Proper Formation & Operation: The trust must be established and operated *exclusively* for exempt purposes (religious, charitable, educational, etc.) as outlined by the IRS for 508(c)(1)(A) status. This is distinct from 501(c)(3)s
  • State Laws: Adherence to state-specific trust laws, including any registration or reporting if applicable (though 508(c)(1)(A)s often have exemptions, this varies).
  • Business Formalities: Any businesses held by the trust (e.g., LLCs) must maintain their own compliance (licenses, permits, EIN, separate bookkeeping). Failure to do so can risk "piercing the veil."
  • UBIT (Unrelated Business Income Tax): If the trust or its businesses engage in regular trade or business not substantially related to its exempt purpose, the income may be subject to UBIT.

Litigation Risks:

  • Challenges to Trust Validity: If not formed or operated correctly (e.g., lack of genuine charitable purpose, commingling funds), its status can be challenged by creditors or even the IRS. This is why how we properly structure your organization and trust saves you from undue anxiety associated with questionable trust structure foundation.
  • Creditor Claims: While trusts offer asset protection, improperly transferred assets or situations where the trust is deemed an "alter ego" of an individual can expose assets. This is again why we properly structure your organization and trust saves you from undue anxiety associated with questionable trust structure foundation.

Q. How does choosing a personal guarantor impact my business and the trust structure?

A personal guarantor is an individual who agrees to be personally responsible for a business's debt if the business defaults. This significantly impacts both the individual and potentially the trust:

  • Potential Strain on Trust Protection: If a trustee or a key individual linked to the trust personally guarantees a loan for a business owned by the trust, and that business defaults, the guarantor's personal assets are targeted first. If the trust structure was intended to protect those personal assets, a personal guarantee can circumvent that protection for that specific debt.
  • Trustee as Guarantor: Generally, a trustee should avoid personally guaranteeing debts of a trust-owned business if they are acting in their trustee capacity. It can create a conflict of interest. If the trust itself has the power to guarantee and does so (rare and complex), that's different from a personal guarantee.
  • Beneficiary as Guarantor: If a beneficiary (in the traditional sense, though 508s are different) personally guarantees a loan, their personal assets are at risk, which could impact their financial stability.
  • Strategic Considerations:
    • Aim for non-recourse loans where possible (loans secured only by the business assets, not personal guarantees).
    • Clearly understand the terms, scope, and duration of any guarantee.
    • Structure businesses within the trust to build their own creditworthiness over time to reduce reliance on personal guarantees.
    • Ensure that any guarantee does not inadvertently pledge or encumber trust assets in a way that violates the trust's terms or exempt purpose. We help you secure this through proper autograph and signature management.

Q. Who should be the trustee(s) for my trust? Can I choose family, friends, or associates?

Choosing a trustee is one of the most critical decisions in trust formation. The trustee holds significant legal and ethical responsibilities (fiduciary duties) to manage the trust assets and carry out its purpose.

  • Family Members:
    • Pros: Deep understanding of your values and intentions, potentially lower cost, strong personal commitment.
    • Cons: May lack financial or legal expertise, potential for emotional decision-making or family conflicts, susceptibility to undue influence, perceived bias by other stakeholders.
  • Trusted Friends or Associates:
    • Pros: May possess specific skills (e.g., business acumen), trusted relationship.
    • Cons: Similar to family members; the relationship could be strained by trustee duties, expertise might still be limited for complex trusts, potential conflicts of interest if they also have business dealings with the trust.
  • Professional Trustees e.g., one of our Nominee Directors. Our Nominee Officer Service offers Complete Privacy and Asset Protection (Yearly) $2,424 on our do-it-yourself page. CLICK HERE or you can go with Trust Companies, Attorneys, CPAs specialized in trust administration.
    • Pros: Expertise in trust law, investment management, tax, and compliance; impartiality and objectivity; continuity (an institution won't die or become incapacitated); often insured.
    • Cons: Can be more expensive, may feel less personal than an individual known to you.
  • Co-Trustees: A popular option is to appoint a combination, such as a family member alongside a professional trustee. This can balance personal insight with expert administration.
  • Key Qualities to Look For:
    • Integrity and Honesty: Paramount.
    • Financial Acumen & Prudence: Ability to manage assets wisely.
    • Understanding of Fiduciary Duties: Awareness of legal obligations.
    • Willingness and Capacity: Time and ability to perform duties diligently.
    • Impartiality: Especially important if there are multiple interests or charitable aims.
    • Attention to Detail: For compliance and record-keeping.
  • Successor Trustees: Always name one or more successor trustees in case the initial trustee(s) cannot serve.

Q. Who can be "beneficiaries" of a 508(c)(1)(A) trust involving family or associates?

This is a critical area where 508(c)(1)(A) trusts differ significantly from private family trusts. The primary "beneficiary" of a 508(c)(1)(A) is its exempt purpose (e.g., religious, charitable, educational). It cannot be set up for the primary private benefit of specific individuals, including family.

  • No Private Inurement: Trust assets and income cannot be used to unfairly enrich individuals connected to the trust (trustees, family members, etc.).
  • Permissible Benefits (Aligned with Exempt Purpose):
    • Individuals (including family or associates) can receive benefits if they fall within a charitable class the trust is designed to serve (e.g., scholarships to eligible students, aid to the needy, disaster relief to affected persons). The criteria must be objective and non-discriminatory in favor of insiders.
    • Reasonable compensation can be paid to individuals (family or otherwise) for legitimate services rendered to the trust or its businesses (e.g., a salary for managing a trust-owned business, fees for professional services). This compensation must be comparable to what would be paid for similar services in the open market.
  • Distinction from Private Trusts: Unlike a private family trust where distributions are often made for the personal support, education, or general welfare of named family beneficiaries, a 508(c)(1)(A) must direct its resources towards its stated public or charitable mission.
  • Careful Structuring Required: If family members are involved in carrying out the trust's mission or managing its activities, the trust document and operational procedures must be meticulously structured to avoid any appearance or reality of private benefit. All transactions must be at arm's length and well-documented.
  • Focus on Purpose, Not Persons: The ultimate "who benefits" question for a 508(c)(1)(A) should always circle back to "how does this serve the exempt purpose?"

It's highly recommended to seek expert legal counsel to navigate these rules, as violations can have severe consequences for the trust's status.

Glossary of Trust Terminology

Navigating the world of trusts involves understanding specific legal and financial terms. This glossary provides clear definitions for common terminology.

508(c)(1)(A)

A section of the Internal Revenue Code that provides mandatory exceptions from the normal 501(c)(3) application process for certain organizations, primarily churches, their integrated auxiliaries, and conventions or associations of churches. These organizations are automatically tax-exempt if they meet the requirements of 501(c)(3) without needing to file Form 1023.

Asset Protection

Legal strategies and structures designed to shield an individual's or entity's assets from claims of creditors, lawsuits, or other liabilities, without engaging in concealment or fraudulent transfers.

Beneficiary

The person, group of people, or entity (or in the case of charitable trusts like a 508(c)(1)(A), the exempt purpose itself) for whose benefit the trust is created and managed. Their rights and interests are defined in the trust document.

Charitable Purpose

A purpose considered to benefit the public or a sufficiently large segment of the community. Examples include relief of poverty, advancement of education or religion, promotion of health, and governmental or public works.

Compliance

The act of adhering to all applicable laws, regulations, standards, and internal policies and procedures relevant to trust formation, administration, and any associated business activities.

Corpus (Principal)

The assets, such as money, property, or investments, that are transferred into and held by the trust. These assets generate income for the trust.

Dynasty Trust

A long-term trust designed to hold and manage assets for the benefit of multiple generations of a family, often structured to minimize estate taxes and provide asset protection over many decades or even perpetually (where state law allows).

EIN (Employer Identification Number)

A unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities (including trusts that operate businesses or have employees) for tax identification purposes.

Fiduciary Duty

A legal and ethical obligation of a person or entity (the fiduciary, e.g., a trustee) to act in the best interests of another party (e.g., the trust beneficiaries or exempt purpose). Key duties include loyalty, prudence, impartiality, and accountability.

Grantor (Trustor/Settlor)

The individual or entity who creates the trust and transfers assets into it. The grantor establishes the terms and conditions of the trust through the trust document.

Income (Trust)

The earnings or profits generated by the trust's principal/corpus, such as interest, dividends, rent, or business profits. How this income is distributed or used is governed by the trust document.

Integrated Auxiliary (of a church)

An organization that is closely affiliated with a church (or convention/association of churches), is internally supported, and whose principal activity is exclusively religious, furthering the church's mission.

Irrevocable Trust

A trust that, once created, generally cannot be altered, amended, or terminated by the grantor. Assets transferred to an irrevocable trust are typically removed from the grantor's taxable estate and may offer greater asset protection.

LLC (Limited Liability Company)

A U.S. business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited personal liability of a corporation. LLCs are often held within trusts as a way to operate businesses while protecting other trust assets.

Personal Guarantor

An individual who assumes personal responsibility for repaying a debt or fulfilling an obligation if the primary debtor (often a business) fails to do so. This puts the guarantor's personal assets at risk.

Private Inurement

A prohibited activity where an insider of a tax-exempt organization (like a trustee, director, or key employee) receives an unreasonable benefit from the organization's earnings or assets. This can jeopardize the organization's tax-exempt status.

Private Benefit Doctrine

A rule that tax-exempt organizations must not be operated for the substantial private benefit of any individual or non-charitable entity. This is broader than private inurement and applies even if the beneficiary is not an insider.

Revocable Trust (Living Trust)

A trust that the grantor can change, amend, or terminate during their lifetime. Assets in a revocable trust are still considered part of the grantor's estate for tax purposes and generally offer less asset protection than irrevocable trusts.

Spendthrift Clause

A provision within a trust document that restricts a beneficiary's ability to transfer their interest in the trust and protects that interest from the beneficiary's creditors.

Successor Trustee

An individual or entity designated in the trust document to take over the trustee's responsibilities if the current trustee resigns, dies, becomes incapacitated, or is removed.

Title Review

The process of examining public records to confirm the legal ownership of a property (real estate) and to identify any liens, encumbrances, or defects in the title.

Trust Document (Trust Agreement/Deed of Trust)

The legally binding written instrument that creates the trust and outlines its terms, including the identity of the grantor, trustee(s), and beneficiaries (or purpose); the powers and duties of the trustee; how assets are to be managed and distributed; and the duration of the trust.

Trustee

The individual, group of individuals, or entity (like a trust company) appointed to hold legal title to and manage the trust assets for the benefit of the beneficiaries, according to the terms of the trust document and applicable law. They have significant fiduciary duties.

UCC Lien Search

A search of public records filed under the Uniform Commercial Code (UCC) to discover if any creditors have registered a security interest (a lien) against specific items of personal property (not real estate) owned by an individual or business.

UBIT (Unrelated Business Income Tax)

A federal tax imposed on the net income generated by a tax-exempt organization from any trade or business activity that is regularly carried on and not substantially related to its exempt purposes.