This is a question that SHOULD come up every time a lawful subject is brought up. Does that fall into statutory or non-statutory laws. For those of us that have Contract Business Trusts, we need to fully understand the distinction between a statutory trust and a non-statutory trust. A non-statutory trust is generally referred to as a ‘common law trust’,meaning it was born in and of ‘common law’. A statutory trusts are those entities that act and operate much like corporations which are established by permission and are licensed by the state and operated through a law created by the legislature of your state.
These statutory trusts do however have certain “financial advantages” (e.g. exempting certain property from State taxation of one form or another). However, statutory trusts are 100% within the regulatory control of the State.
Since you are operating a statutory trust at the whim of your state government you are subject to their laws EVEN when the legislature decides to change its mind and then you may find that tomorrow you have lost all of the trust’s financial advantage. Don’t complain if that happens because YOU asked for permission from the King (your state government) and the King always reserves the right to change his mind. You must understand that you have as much said; “I fully understand that this property is within the State’s jurisdiction”.
When this happens (and it does too often) the state is entirely in the right and you are left without recourse.
So, by placing your property within a statutory trust you have made that property available to any “administrative levy and/or seizure act” should any of the vast amount of state agencies, to include the ‘taxing agency’, decide that the person who established the trust or the trust directly has done something they do not agree with. These “state” actions could be a levy, lien or even take the property by civil forfeiture.
Trust that operate in Common Law
A Trust that is born of Common Law are NOT created by or for the benefit of any government agency. You are creating a “contract” in the realm of Equity, pursuant to a Citizen’s unalienable right to contract, (LAW*) and using a trust for the “form” of the entity. You are not asking permission to exist therefor they have no authority to interfere in your right to Contract;
[A contractual organization is] “created under the common law of contracts and does not depend upon any statute for its existence.”
156 American Law Review 28
“A pure Trust is non-statutory. The Court holds that the Trust is created under the realm of equity under common law and is not… created by legislative authority.”
Croker v. MacCloy, 649 US Supp 39
One of the most important aspects of a common law trust is that it is an organization, which has not been created under State authority, therefore it generally cannot be regulated. Most state laws are written to control commerce for corporations and do not have any legal force upon a common law trust. This imparts the advantage of a common law trust that it possesses the same rights, privileges and immunities (speaking in Constitutional terms) as the trustee.
“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: The trust consists of individuals… who are Citizens, and who, therefore, are entitled to certain rights and immunities such as those guaranteed by the privileges and immunities clauses of the Federal Constitution, which do not apply to Corporations.”
Morrissey v. Commissioner of Internal Revenue, 296 US 344 (1935)
That is not to say that if you use a common law trust to impede commerce, damage other people’s property or commit a crime that you will not be subject to the state regulatory agencies.
A Pure Trust is not subject to legislative control. The Court holds that the Trust is… not subject to legislative restriction as are corporation and other statutory entities created by legislative authority.”
Croker v. MacCloy, 649 US Supp 39
“A Pure Trust derives no power, benefit, or privilege from any statute.”
Crocker v. Malley 264 US 144
“These trusts – whether pure trusts or partnership – are unincorporated. They are not organized under any statute; and they derive no power, benefit, or privilege from any statute.”
Hecht v. Malley, 68 L ed 949
* “The Law” is any system (or part of that system) that creates or recognizes rights, duties, or obligations, and provides a forum through which to seek a remedy in the event that any of those rights, duties, or obligations are breached.