I listened to Sean Briscombe’s hour-and-a-half-long presentation on his 1041 system. It is an asset protection system involving a common law trust which files in a certain way form 1041 periodically with the IRS, along with statutory entities such as an LLC, a 501(3)(c) foundation, and so on. How does this compare to the asset protection advantages of the NLT?
Why so much complexity? And why the 1041? Why the 501(3)(c)? Why all the statutory entanglement? What’s the point? What’s the benefit?
Many of us have been operating just fine, thank you, since the early 90s, with none of that. And our trust writer and his mentors since the 70s and 80s.
Advocates of such a complex system will aver that it strengthens one’s asset protection. But the reality is just the opposite. In truth, the more entanglements one has with the statutory system, the more chances there are for something to go wrong. It’s like machines. The more moving parts they have, the more things can wear out and break down. That is why music went from vinyl record players to cassette tapes to CDs to iPods. With an iPod, there are no moving parts at all. Nothing to break down or wear out.
Like that, the NLT has no elements to wear out or break down. Its asset protection is actually greater, more invincible, because of that.
Consider: Most trust operators would love to leave a legacy. It is fortunate if one is blessed with long-range vision. However, statutes change every few years. Anyone basing their structure on LLCs, 501(c)(3)s, 1041s, and other statutory elements, is at the mercy of politicians, legislatures, congresses, and parliaments. One has no control over the future durability and stability of that entity or procedure.
By contrast, the universal laws and principles on which the NLT is based will last forever. Generation after generation after generation. These same principles would endure even on other planets and other galaxies. They are truly universal. There is nothing in the NLT to ever become outdated or expire. No government can change it. No outside party can invalidate it or make it obsolete. Even when the world is enjoying the full sunshine of the Age of Enlightenment and asset protection is no longer needed because crime and theft have disappeared from the Earth, even then, the NLT is still useful because of its state-of-the-art estate planning and wealth administration functions.
On top of all that, you have the hassle, inconvenience, and expense of high maintenance with complicated statute-entangled systems like Sean’s. High maintenance means LOTS more paperwork – – “red tape” – – and the expenses and time consumption that goes with that. With the NLT, none of that is necessary. K.I.S.S. (Keep It Simple, Stupid)!