THE ASSET PROTECTION TRUST
leaving a heritage to your children's children
27th September 2003 - Graham Daniels

In the eighth century before Christ in a small town twenty miles south west of Jerusalem lived a man called Micah. Amongst the writings of this prophet we find the words "woe to those who oppress a man and his heritage". The inference in the words of Micah is that there are those who would choose to oppress a man and his heritage.

Some twenty-eight centuries later here in the West, nothing seems to have changed. Today, with much "sportful" litigation, bizarre judgements by what many construe as unjust judges, unworthy pseudo creditors, writ happy lawyers and unscrupulous treasure hunters, it becomes all to obvious that you don't have to be wrong to lose in court. If we are going to attempt to accumulate some assets in our lifetime, with the aim of leaving a heritage to future generations, then we had better know how to protect it from those who would choose to oppress a man and his heritage.

As with any strategy, the best time to prepare for any calamity is before it looms. One such method of doing this is by holding your family assets in trust. A trust, as we know it today, has its modern roots in England in 1290.

In legal terms, a trust is defined as a SETTLER placing something of value into the care of TRUSTEES for the benefit of BENEFICIARIES. In simple terms, a trust has the effect of dividing the "legal ownership" of an asset from the "equitable ownership". In essence, a trust would be at work in this example;
a) if YOU (settler) were to give ME (trustee) a sports car for me to keep until YOUR SON (beneficiary) reaches the age of eighteen;
b) at which time I am instructed by you to allow your son to drive the vehicle;
c) I am further instructed that once your son obtains the age of twenty-one, I am to transfer the ownership of that vehicle to him absolutely.

In effect, in this example we have just set up an asset protection trust. Sure, the sports car might be legally in my name, but the evidence substantiating that I hold that vehicle for the benefit of your son (usually written in a deed) would be sufficient at law to show there is a split between the legal ownership and the equitable ownership of that sports car.

Now if I were to be charged with a debt of which I could not pay, and it was discovered that I was driving a sports car, then it may well be that an attempt would be made to sell that sports car to pay my debts. However, upon producing a deed to show that I am only the legal owner and not the equitable owner (the equitable owner being your son), then there is no way they can remove that vehicle from my possession.

The bottom line is that you cannot give what you do not have. As I do not have absolute ownership of the vehicle, that is both the legal and equitable ownership, I have no title to transfer that vehicle except under the terms in which I hold it (being displayed in the trust deed).

This simply is how an asset protection trust works and is a very good arrangement whereby a family's assets can be passed on from generation to generation avoiding exposure to unjust claims in our courts.

Most western nations that have their roots in British Common Law, and have access to establishing a lawful trust. As there are many such jurisdictions, the statutes may vary somewhat from nation to nation, offering peculiar benefits that one might appreciate when it comes to asset protection. Depending on the purpose for which you wish to create a trust, the jurisdictional issue become a vital one. For example, there are jurisdictions where a trust will attract no income tax on the profits earned.

Generally speaking, it must be said that private trusts have a life of twenty-one years from the death of a known party at the time of creating a trust. However, if you require a trust that will live forever, then there are jurisdictions where the legislation permits it.

There are three certainties of trust that must be present for a trust to be identified;
1. The intention to create a trust.
2. The subject matter of the trust (the asset).
3. The object of the trust (the beneficiary).

The subject is one that is not easily dealt with in detail in the short space of this article, but, as a Trust is one very good means of protecting ones assets, I suggest you might like to consider looking closer at the subject, and possibly attending a seminar/workshop where these issues can be presented to allow more comprehension.

Graham Daniels is one of the founding directors of The Anglo Far-East Bullion Company
EMAIL
MORE ABOUT ANGLO FAR-EAST TRUST SERVICES

NOTES FROM THE BULLION TRADING DESK
27th September 2003. Simon Heapes

We mentioned in our last Bullion Trading Desk, that almost all the news coming out now is dramatically bullish for gold and bad news for the US dollar. This week, China has been very much in the news.

Gold prices in China have risen more than 15% since the Shanghai Gold Exchange started operating last October, initiating free trade in gold for the first time in the history of the People's Republic of China.

As the world's third largest gold consumer and fourth largest gold producer, China (like the rest to the world) is suffering from a long-term shortage of gold. The introduction of individual traders in the gold market will, according to gold experts and officials;

• invigorate flagging consumption;
• slash the foreign trade surplus;
• trim conspicuous foreign exchange reserves (US$);
• ease international pressures on China to appreciate its currency.

As much as 300 billion yuan (US$36.15 billion) in private money is estimated to flow into the gold market, creating demand for about 3,000 tons of gold. Gold prices in China have risen more than 15 per cent since the Shanghai Gold Exchange started operating last October. About 20 per cent of respondents to a recent national survey said they were willing to spend 10 to 30 % of their savings in gold investment, indicating a HUGE potential demand for gold.

MARKET COMMENTARY
This is incredibly important news for the future gold price. The western-world moves into ever-deeper debt, continuing on their consumption and buying spree, all the while saving literally nothing. Meanwhile, the Chinese build up real wealth while saving at the rate of around 30%.

The Chinese are very shrewd, and they are very aware of the power of gold and are now entering the World Markets. Over the last year the Chinese authorities have moved to allow Chinese citizens to accumulate gold. Only 2% of China's bank reserves are now in gold, so therefore China is moving to increase its Central Bank gold reserves. 1 in every 4 people on the face of the earth is a Chinese and now for the 1st time their Government is allowing them to invest into gold bullion!
This further substantiates that there is most definitely a paradigm shift globally towards the gold and silver Markets.

Simon Heapes is one of the AFBC research team.
AUSTRALIAN OFFICE
EMAIL

INTERNATIONAL INVESTOR
28TH September 2003. Philip Judge

BAHAMAS - DR. ROSEMARIE B ANTONIE
Dr. Rosemarie B. Antoine, is a senior lecturer at the University of the West Indies, and author of a landmark doctoral thesis on "Legal issues In Offshore Finance."

Speaking in the Bahamas recently, Dr. Antoine observed that, "money laundering" is now broadened to include tax avoidance, terrorism and other wrongs, yet bank secrecy is still "well worth fighting for." Dr. Antonie added that the notion that confidentiality is inherently "evil and corrupt," is false and should be discarded.

According to the good doctor, smaller offshore havens were blacklisted by the OECD and FATF because they were considered more vulnerable or an easy target, "despite the clear evidence that the biggest money launderers are not here, but are in fact in New York, London and Russia."

UNITED STATES - MATRIX
A multi-state pilot project seeks to integrate law enforcement, military intelligence and vast databases in an effort to increase and enhance the exchange of terrorism and "other criminal activity" information between local, state, and federal agencies.

Ironically called MATRIX (Multistate Anti-Terrorism Information Exchange), the system will use "data analysis and data integration technology to improve the usefulness of information contained in multiple types of document storage systems. Reportedly, the Department of Justice has funded the project to the tune of US$4million.

The states of Alabama, Connecticut, Florida, Georgia, Kentucky, Louisiana, Michigan, New York, Oregon, Pennsylvania, South Carolina, Ohio, and Utah have signed on to the scheme. Source : http://www.iir.com/matrix/

TERRORISM versus TYRANNY
Many would argue that there is a very fine line between fighting terrorism and imposing unnecessarily harsh controls, leading to a loss of personal liberties and freedoms, ultimately ending in total tyranny.

We would agree with Dr. Antoine quoted above. Over the years the line on "money-laundering" has moved dramatically. It once applied to those funds earned through the proceeds of crime, namely the illicit drug trade. In today's world however, it applies to any monies, even when legally and legitimately earned, but when held or moved in a private fashion.

We maintain that the individual's right to privacy, both financial and personal, is his God given right, and is worth fighting to maintain. If a man has honestly and legitimately earned money, and is able to privately place those funds in a more competitive jurisdiction, that should remain his prerogative and doesn't make him a money-launderer, criminal or terrorist.

Throughout history, governments and rulers have continually shown the tendency to use crisis and fear to increase control and reduce individual's freedoms. Today's "War on Terror" is clearly no exception. The MATRIX project in the US, just like the Patriot Act, are examples of the lengths that our government "protectors" will go to to spy on and control us, all under the guise of protecting and saving us from danger, in this case terrorism. So, the questions remains; what is the greater danger, Terrorism or Tyranny ?

Philip Judge

NEXT SCHEDULED TELECONFERENCE

"THE GLOBAL IMPACT OF THE GOLD DINAR"

AFBC hosts regular telephone conferences to keep its clients informed world-wide. Conference participants have the opportunity to have their questions addressed by qualified educators.

The Gold Dinar is an international monetary system that is being steadily implemented in many nations as an alternative to the global debt based US dollar system that it is claimed has impoverished and enslaved so many nations.

NORTH AMERICA
Tuesday evening 21st October 2003 9.30PM Eastern Time

AUSTRALIA/NEW ZEALAND
Wednesday evening 22nd October 2003 8.30PM Eastern Time (Australia)

AGENDA (total run time 60 mins)
Introduction (5 mins)
The Global Impact of the Gold Dinar (35 mins)
Q & A (15 mins)
Close (5 mins)

More information and registration LINK

GOOD QUESTION

Q : What is the main difference between privately issued and government issued bullion coinage?

A : Under the currency or coinage Acts of almost all nations, the government (and/or central bank) at all times directly owns the coins and notes issued in that country. This means that if you purchase a bullion (gold or silver) coin issued by a country, you are only the BEARER of the coin, and never the owner. The issuing government owns the coin. Should the government decide to recall that coin, which they can do at any time they wish, they will pay you for the face value of the coin, and not its true metal value. Governments have a long history of recalling bullion coinage when their economies head into rough times, a recent example in the western world being 1933 in the US.

When you purchase non-legal-tender, privately issued coinage, you are the outright owner, not just the bearer. You now have outright ownership of bullion coins of a fixed and defined weight and purity, which are freely exchangeable for other goods or services in the free-market, and cannot be recalled by an issuing government.