Public Revocable Trust and Private Irrevocable Trust
PUBLIC LIVING ESTATE REVOCABLE TRUST
1. Jurisdiction
- Operates under statutory (public) law, typically within state probate and trust codes.
- Often created using bar association templates, recorded with clerks or attorneys.
2. Revocability
- Revocable: The Grantor can amend, revoke, or dissolve the trust at any time during their life.
- Grantor retains full control of the assets.
3. Privacy
- Not private. Because it can become a matter of public record (e.g., in court or during estate settlement), it offers limited privacy.
4. Asset Protection
- Weak asset protection. Since the Grantor retains control, creditors can access the trust assets.
- It is considered a “look-through” entity for liability purposes.
5. Taxation
- Uses the Grantor’s Social Security Number (SSN).
- All income is taxed directly to the Grantor as if the trust does not exist.
6. Purpose
- Designed mainly to avoid probate and provide basic estate planning.
- Popular with trhttps://trustsentities.com/wp-content/uploads/2024/10/selective-focus-of-notebooks-with-pen-diploma-and-3K7P2RQ.jpgional estate planning lawyers.
PRIVATE LIVING ESTATE IRREVOCABLE TRUST
1. Jurisdiction
- Operates in private (non-statutory/equity) law, often outside state trust statutes.
- Rooted in natural law, contract law, and/or ecclesiastical or exclusive equity principles.
2. Revocability
- Irrevocable: Once established and funded, the Grantor cannot revoke or amend it.
- Control is handed over to the Trustee, even if the Grantor and Trustee are the same living soul in different roles (with dual capacity language).
3. Privacy
- Highly private. Not recorded with the state. Operates under a private contract between Grantor, Trustee, and Beneficiary.
- May have a private constitution, bylaws, and seal of authority.
4. Asset Protection
- Strong protection. Assets are legally removed from the Grantor’s estate.
- Creditors cannot easily pierce the trust to access the assets, assuming it is properly structured and not fraudulent.
5. Taxation
- May use an EIN as a separate non-grantor entity or operate under common law ecclesiastical rules.
- Can claim non-taxable status if structured as a 508(c)(1)(A) FBO, PMA, or ecclesiastical trust.
- May elect lawful money under 12 USC § 411 to further distance itself from federal tax obligations.
6. Purpose
- Designed for asset protection, spiritual governance, family legacy, private administration, and long-term wealth preservation.
- Common in equity-based governance systems, such as the Trust Fortress model.
Summary Table
| Feature | Public Revocable Trust | Private Irrevocable Trust |
| Jurisdiction | Public / State Law | Private / Equity / Ecclesiastical |
| Revocability | Yes | No |
| Control | Grantor retains control | Trustee (separate legal control) |
| Privacy | Limited / Publicly accessible | High / Private contract |
| Asset Protection | Weak | Strong |
| Tax Treatment | Grantor taxed personally | Possible non-taxable or separate EIN |
| Purpose | Avoid probate / convenience | Asset protection / sovereignty |
1. How the Public Revocable Trust and Private Irrevocable Trust Conflict
These trusts come from two different jurisdictions and embody opposing principles:
Conflicts by Nature:
| Area | Public Revocable Trust | Private Irrevocable Trust | Conflict |
| Jurisdiction | Statutory / Probate Code | Equity / Contract / Ecclesiastical | Public law vs. private law |
| Control | Grantor = full control | Grantor = no control (Trustee holds it) | Control vs. divestment |
| Liability | Assets reachable by creditors | Assets shielded from creditors | Creditor exposure |
| Taxation | SSN of Grantor; taxable | May be tax-exempt / EIN / lawful money | IRS transparency vs. private exemption |
| Record | Often recorded | Never recorded | Public exposure vs. confidentiality |
If both trusts are treated the same in court (e.g., mixed funding, poor separation), piercing the veil can occur.
2. How They Can Support Each Other
Despite their jurisdictional differences, these trusts can strategically complement each other when structured properly.
Supportive Relationship Structure:
- Use the Public Trust as the “Face” for basic estate operations (banking, medical directives, property management).
- Use the Private Trust as the “Body” that holds real value, spiritual estate, or long-term wealth.
Example Use Case:
- The Private Living Estate Trust owns the beneficial interest in the Public Revocable Trust.
- The Public Trust holds assets (like real estate or vehicles), but the true equitable beneficiary is the Private Trust.
- Upon incapacity or death, the Public Trust acts as a conduit, but real control transfers to the Private one — no probate, no exposure.
3. Should the Private Trust Be the Beneficiary of the Public Trust?
YES — Strategically, This Is Often the Best Setup:
- The Private Trust becomes the “beneficial owner” of everything in the Public Trust.
- This makes the Public Trust a shell or legal interface for interacting with institutions, while the Private Trust enjoys the economic benefit.
Key Advantages:
- The Public Trust fulfills obligations where statutory compliance is required.
- The Private Trust controls the economic engine and remains unseen and untouchable by third parties.
- This creates a layered asset protection model:
- Public = administrative interface
- Private = true wealth & jurisdiction
- Public = administrative interface
Key Warnings for Integration:
- Maintain proper trust formalities: Do not commingle assets, identities, or fiduciary roles.
- Paper it properly: Use clear trust agreements and assignment instruments showing the private trust’s beneficiary position.
- Honor jurisdiction: Keep private documents in equity and public documents in statutory format.
BONUS: Trust Fortress Flow Suggestion
Here’s an ideal trust layering model:
Living Individual
▼
Private Living Estate Irrevocable Trust (holds beneficial title)
▼
Public Revocable Trust (holds legal title for public interfacing)
▼
Statutory Assets (house, vehicle, insurance)
“Keep Private Documents in Equity”
These documents operate outside the statutory realm and are based on:
- Natural law
- Equity maxims
- Private contract
- Ecclesiastical jurisdiction
- Trust law by declaration and function, not statute
Examples of Private (Equity-Based) Documents:
| Document | Purpose |
| Private Irrevocable Trust Declaration | Establishes the trust under private law |
| Constitution or Covenant of the Trust Estate | Affirms its foundation on divine or equitable law |
| Affidavit of Private Status / Ecclesiastical Jurisdiction | Asserts standing of the living soul |
| Lawful Money Endorsements (12 USC §411) | Used for private trust banking |
| Private Assignment of Beneficial Interest | Transfers rights from public to private trust |
| Maxims of Equity Reference / Private Seal Logs | Show that the trust governs by conscience, not statute |
| Fiduciary Oaths & Ecclesiastical Authority Notices | Legitimize governance within private law |
| Administrative Notice to Public Actors | Notifies them of your status without entering their jurisdiction |
→ These documents are never recorded publicly unless done so voluntarily as notice, not submission.
“Keep Public Documents in Statutory Format”
These are necessary to interface with public entities, and must match the language, format, and structure of statutory law.
Examples of Public (Statutory-Compliant) Documents:
| Document | Purpose |
| Public Revocable Living Trust | Recognized by banks, courts, institutions |
| Durable Power of Attorney | Used for public healthcare or finance authorities |
| Medical Directive / Living Will | For compliance with hospital policies |
| Real Estate Title (in public trust name) | Registered at county level |
| Driver’s License / Public ID (as Trustee) | May identify fiduciary role for practical interfacing |
| Grant Deed / Property Assignment (To Public Trust) | Fulfills recordkeeping per public law |
| Revocable Trust Tax ID (SSN-based) | Matches IRS statutory rules |
→ These documents are for external visibility, operations, and compliance.
Integration Strategy:
| Layer | Description | Format |
| Core Authority | Private Irrevocable Trust w/ Equity Law | Private – Equity Documents |
| Interface Layer | Public Revocable Trust / Entity | Public – Statutory Documents |
| Execution Layer | Asset Holdings / Signatory Authority | Mixed – Carefully Structured |
The public trust obeys statute — the private trust obeys conscience, equity, and covenant. But both work together if clearly divided and lawfully aligned.
Final Thought:
Never mix jurisdictional language. If a document is meant to operate in equity, don’t reference statutes unless you are noticing or rebutting them.
If a document is intended for public offices, use formal statutory language — but don’t inject ecclesiastical declarations.