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LESSON 09 : Declaration of Creation of Pure Trust
Course
Farah Javed
Learn the foundations, benefits, and steps involved in creating a Declaration of Creation of Pure Trust for asset protection, privacy, and control within the context of Secured Party Creditor principles.
This micro-learning course offers a step-by-step exploration of the Declaration of Creation of Pure Trust, a core concept in the study of Secured Party Creditor (SPC) principles. Through 10 focused modules, learners will understand what defines a Pure Trust, its core legal characteristics, and the unique benefits it offers—including asset protection, privacy, control, and tax efficiency. The course breaks down the essential elements of the Declaration, compares Pure Trusts to other entities such as corporations and LLCs, and provides practical guidance on drafting and managing a Pure Trust. Throughout, real-world case studies and curated resources deepen understanding, ensuring learners can confidently apply these concepts for personal or professional asset management. By the end of the course, learners will have a comprehensive grasp of how to utilize this legal instrument to achieve greater financial security and autonomy.
Here is the course outline:
1. Introduction to the Declaration of Creation of Pure TrustThis module sets the stage by defining what a Pure Trust is and clarifying the overall purpose of its Declaration. Case Study: A family uses a Pure Trust to shield a rental property from personal liabilities. Resources: Glossary of SPC Terms, Overview Chart of Trust Types, Quick-Start Checklist. 9 sections
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2. Key Elements and Unique Features of a Pure TrustLearn the essential components every Declaration must contain and what makes a Pure Trust distinct from other trust forms. Case Study: Dissecting a real-world Declaration to identify each key element. Resources: Element-by-Element Worksheet, Model Declaration Excerpt, Feature Comparison Table. 9 sections
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3. Legal Principles and Validity RequirementsExplore the legal foundations—trust and contract law—that support Pure Trusts and the requirements for a Declaration to be enforceable. Case Study: Court review of an improperly drafted Declaration. Resources: Legal Principles Summary, Compliance Checklist, Jurisdictional Considerations Guide. 9 sections
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4. Drafting the Declaration Step-by-StepA practical walk-through on creating a Declaration, from wording the purpose clause to final signature formalities. Case Study: Drafting a Declaration for intellectual-property holdings. Resources: Drafting Template, Clause Library, Signature Block Examples. 9 sections
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5. Providing Notice to Third PartiesUnderstand how the Declaration functions as public notice and why this deters future claims. Case Study: Using recorded notice to defeat a creditor’s lien. Resources: Notice Filing Checklist, Sample Affidavit of Fact, Communication Scripts for Stakeholders. 9 sections
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6. Asset Transfer and Protection MechanismsExamine methods for moving assets into the trust and maintaining robust protection against lawsuits or creditors. Case Study: Transferring a portfolio of rental homes into a Pure Trust. Resources: Asset Transfer Flowchart, Deed Conveyance Samples, Risk-Mitigation Tipsheet. 9 sections
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7. Privacy, Control, and Operational FlexibilityDiscover how a Pure Trust delivers privacy while allowing the creator to retain strategic control and adapt to changing goals. Case Study: An entrepreneur manages multiple ventures under one Pure Trust umbrella. Resources: Privacy Best Practices, Control Matrix, Decision-Making Scenarios. 9 sections
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8. Tax Efficiency and Financial PlanningAnalyze potential tax advantages of Pure Trusts and integrate them into a broader financial strategy. Case Study: Reducing estate taxes for a high-net-worth individual using a Pure Trust. Resources: Tax Treatment Overview, Planning Worksheet, Common Pitfall Guide. 9 sections
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9. Comparing Pure Trusts to Corporations and LLCsContrast Pure Trusts with corporations and LLCs regarding oversight, taxation, and administrative burden. Case Study: Choosing a Pure Trust over an LLC for a real-estate syndicate. Resources: Entity Comparison Matrix, Decision Flowchart, Cost-Benefit Calculator. 9 sections
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10. Course Wrap-Up and Action PlanSummarize key insights and outline next steps for drafting, filing, and leveraging a Declaration of Creation of Pure Trust. Case Study: Recap of the opening family scenario—results after one year. Resources: Master Checklist, Self-Assessment Quiz, Action Plan Template. 9 sections
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