Trust and Recoupment: IRS Processes

Introduction to Trust and Recoupment

• The Recoupment Study Hall focuses on shifting mindset from debtor-creditor (DC) to trust.

Advanced Concepts

• The discussion is tailored for those familiar with the red Ruby level of knowledge
• There's a shift towards understanding trust law and away from debtor-creditor law.
• This involves deeper understanding of special vs. general deposits and how these affect IRS processes.

IRS Packet Focus

• The group has generally progressed as far as sending treasury packets, and receiving green cards
• Expressing trust through a trust agreement is imperative, with the next step involving the IRS packet.
• The key to navigating the "matrix" lies within understanding the IRS and the IMF (International Monetary Fund).

Forms and Documents

• Form W-8-BEN is important for the IRS packet.
• Form 56 (substitute fiduciary) is mentioned, but set aside for later consideration.

Knowledge and Trust Language

• Success depends on 98% knowledge
• It's crucial to know who you are and also to speaking trust language.
• Even within public charitable trusts, a private side exists.
• Breaching trust as a beneficiary or grantor is not allowed.

Privacy and Confidentiality

• As grantor or beneficiary, sharing trust details breaches the trust; training is vital.
• Information must remain private and confidential, whether commercial or private.
• Knowledge of a Private Member Association (PMA) and trusts allows for private conversations.

Navigating the System

• Caution should be used when sharing information about how the financial system works.
• The focus should be on expressing trust through language in documents, particularly the IRS packet.
• Public words can be used to "portal" into existing codes to show what actions are being undertaken.

General vs. Special Deposit

• Understanding the difference between general and special deposits is key.
• General deposit: Money is commingled and creates debtor-creditor (DC) relationship; only an equivalent sum is returned
• Special deposit: Made for a specific purpose and kept separately; the specific item is returned

Trust Elements

• To establish a trust, these four components are needed: Intent, Purpose, Parties, and Res (subject matter of the trust).
• The grantor expresses the trust and the W8BEN and substitute, as well as the trust agreement all represent the trust.
• This agreement and all schedules provides supporting documentation to the W-8 form, since the IRS speaks form.

UCC Codes

• UCC 9-336 (commingled goods) and UCC 9-702 (savings clause) are referenced, focusing on rights, duties, and interests.
• The CSA (Commercial Security Agreement) is the foundation, defining rights of the grantor, duties of the trustee, legal title, and beneficial interest.

Expressing the Trust

• Trusts don't exist until they're expressed.
• Operating under a Social Security name makes one a debtor in general deposit, unless a trust is expressed as a special deposit, because special pertains to private and general to public.
• Special deposit is a private arrangement, whereas general deposit is public.

IRS Packet Directives

• Form a new directive cover sheet to the IRS Commissioner, incorporating trust language.
• Use a W8BEN substitute (lesson in White Diamond).
• Develop a trust agreement with supporting schedules, copies of entitlement order, and special trust deposit details.
• The W-8 form is the proof of claim.

The W-8BEN Form

• Guidelines exist for developing the W-8BEN form.
• It is integral to the IRS packet.
• Crystal is studying Christian Walters' teachings on the W8IMY (for intermediaries).

Yahoo! Posts and Insights

• The "straw man" (legal fiction) cannot redeem anything because it is chartered only as a debtor; 1099 filings are remedies, but occur on debtor side.
• There is no need to be fearful of using Social security name until you can take control of banks and start your process in trust before changing those and holding those accountable.
• The IRS cannot service a living man.
• Need to employ the IRS as the collection set off and refund agency.
• The key is to understand securities futures (15 USC 77CCC) and the trust created when a signature is given.
• When an agency or bank coupon is signed, it creates a new security.
• The security needs to be placed into the hands of a qualified party who holds the security interest, a holder and due course.
• By signing a form, the IRS falsely presumes itself to be the beneficiary.
• The birth certificate is a trust because of the name that is on there. It is endorsed, everything that's done in trust agreement

Proxy Use

• Proxy is crucial for expressing trust and acting as grantor/beneficiary.
• The proxy comes in as grantor
• The Secretary of the Treasury now holds a security interest in it for the beneficiary
• Need a proxy who the agency will recognize as having a security interest ie a CSA, and a second proxy who has all of approvals and qualifications to collect on it.

Christian Walters' Perspective

• Christian Walters' teachings are influential, but he evolved on collapsing the straw man.
• There is something to be said for cleaning up the straw man, and then being able to use it.
• He changed his stance from collapsing the straw man to cleaning it up for portal purposes -- portal into trust.

Endorsing the Birth Certificate

• Annotating the birth certificate personally is ineffective; a proxy should perfect the lien in advance.

Special Deposit Nuances

• Special deposit is a broad legal concept living in trust and equity, not contract law, and where real remedies lie; it is essential to change everything from general to special deposit.
• Special deposit requires the grantor to express trust.
• Special deposits retain title and segregate funds, unlike general deposits.
• The concept of status means the prestige to control the admiralty which requires standing developed using the public's own rules and regulations
• Through special deposit can set things off for acceptances, refunds recoupments directives, exchanges, dispositions, special deposits, claims, acquisitions, foreclosures, revestiture

Key Problem: Lack of Process

• A major problem is a lack of understanding of the IRS's arena or remedy.
• Court sees operation on scant threads of information.
• The trust wasn't created by just notice.
• With special deposits and not general deposit you can get over to the private side.
• Must give notice, but also express the trust positions, and exchange securities.
• People with social security name/number have no power, thus the usefulness of a proxy.

Owner vs. Beneficiary

• Everything public is a security future based on the presumption that their state will pay for it, pay in the future.
• An owner is liable for taxes and grunt work; this is the trustee.
• A beneficiary has a security interest for distribution of the trust property.

Foreclosure Strategy

• Express the trust and merge the titles for a potential foreclosure.
• Whether going after one mortgage, one court case, one credit card application in recoupment, you have to express the trust and merge the titles so that it forecloses.

Commanding Agency Execution

• Establish recognizable status and submit correct paperwork.
• Paperwork depends on the task and financial instrument
• Could have a W-A-B-E-N which is one page, or a substitute W-A-B-E-N which could just be a little half page

Section 401 of Uniform Trust Code

• A trust is created when it is declared, a trustee appointed, or property delivered.

Christian Walters Audio (May 10, 2010)

• The principal beneficiary gets a preferred claim for the return of the agency or the trust.
• The Intermingling of trust funds with the bank's general funds will not destroy the trust; It has been held that the mingling of trust funds with the general funds of the bank does not extinguish the trust or defeat the right of thebeneficiary of follow the recovery of trust funds or its equivalent..
• There cannot be intent for funds to be mingled for it to be an express trust.
• Special deposits, in addition to meeting the requirements of other trust funds, are entitled to priority as long as a depositor hasn't let it turn into a general deposit i.e. waived rights of priority.

Question & Answer Highlights

• Whatever you say as far as your deposit, if it's special, then it's special and the courts/banks can't argue against that.
• It's the intention that matters.
• Anything you put your signature on is generral unless deemed as special.
• People have the right to correct non pro tunc, like as if from the beginning.
• In the trust, you're dealing with a thing (trust REZ), not necessarily a value.
• Money orders / checks should indicate trust and use private agent to do conversions.
• The accounts are limitless as far as value.

Further Considerations

• The grantor is reclaiming securities in a minor account, referencing 31 CFR 363 (definition of minor).
• Withdraw all debt assets and titles from general deposit, and redeposit in trust, which effectively merges the titles.
• If we're living in the republic and want to go to the republic, we need to express it
• The Declaration is one of the treaties to express it.

CSA Amendment

• Discussed amending the CSA to express it more as a trust.
• There is such a point where something can be too much debt or creditor language, where it is recommended to revisit documents for trust language

Expressing is Key

• These trusts were not in place yet, so don't assume them, and express them.
• Correct it by doing a withdrawal of the funds from debtor creditor (general deposit) and re-deposit it, creating a special deposit (trust). Withdraw everything from IMF (general deposits, debtor creditor land) and deposit it, so that can claim equity.
• A deposit may be a cloak for some other transaction such as a payment for the giving of security and in such case Equity, looking through form to substance, will treat the transaction according to its real nature.
• If you have knowledge, it becomes simpler because it is that easy: journal deposit special deposit. And the grantor can come in in its authority on paper to reclaim the securities.