What is the Private Retirement TrustSM (PRTSM)?

The PRTSM is a proprietary trust created to enhance and support state exemptions for private retirement “plan” as sanctioned under California state law CCP 704.115, to enforce asset protection and maximize retirement benefits to its plan participants.

What is so unique about the PRTSM?

The PRTSM offers true asset protection because all assets contributed into the trust are exempt from creditor judgments and a bankruptcy trustee.

What type of trust is a PRTSM?

This form of trust is an irrevocable grantor trust.

Am I giving away my assets to others like an irrevocable estate trust?

No. The PRTSM is a non-gifting trust. You are simply contributing assets to your own trust where you are the primary beneficiary to receive retirement benefits during your lifetime.

What if something happens to me?

You designate the contingent or remote beneficiary in your plan document. If the PRTSM is properly administrated, your beneficiaries can continue to receive asset protection on survivor benefits during their lifetimes.

Can I establish my own PRTSM?

No, a PRTSM cannot be self-settled in California. A business must be the settlor or “sponsor” of the PRTSM.

What assets can I put in my PRTSM?

Any appreciating assets that can be considered legitimate for retirement are reasonable to contribute.

What assets can I UnotU put in my PRTSM?

Your personal residence, any depreciating or personal use assets, or assets UnotU proper for retirement.

Are there any contribution limits to funding my PRTSM?

No. There are no limits to funding as long as you can prove the need for additional retirement savings.

Can I just simply transfer assets to my PRTSM?

No. PRTSM assets must first be re-characterized from nonexempt to exempt in order to receive “true” asset protection.

*This is a critical process and should only be handled by an accredited PRTSM Administration firm.

Do I need to do some additional reporting?

Yes. The PRTSM requires a 1041 Trust Tax Return to identify assets owned by the trust. But the income and gains are reported on the grantor’s personal tax returns, again just as if owned directly.

Do I get any other tax benefits?

Yes. With proper administration, you can receive some additional tax savings such as accumulated interest deductions, as well as substantial tax-free benefits. *please consult with a pre-approved PRTSM administration firm.

Can I manage and self-direct my own assets?

Yes. While a Trustee manages and protects your Trust assets, you can still make decisions on your own PRTSM investment strategy.

Are there any limits or rules to my funding strategy?

No, there are no “prudent-man” rules like with self-directed Individual Retirement Accounts (IRAs). You can fund and therefore asset-protect any commercial or private investments, including your private business stock/partnership or membership interests.

Are there any participation requirements for my PRTSM?

No. You can select whomever you want to participate in a plan, and each participant has his or her own PRTSM.

Can I participate in both a qualified plan and my PRTSM?

Yes. As a matter of fact, a Qualified Retirement Plan (QRP) and a PRTSM are great compliments and can leverage and arbitrage each other for heightened values.

Does my PRTSM provide any benefits other than retirement?

Yes. A PRTSM can provide solutions and benefits for a multitude of planning needs, including business planning, estate planning, and executive compensation planning. *please consult with a pre-approved and licensed PRTSM law firm.

When can I take distributions?

You can start plan distributions as soon as one year and two days after funding your PRTSM, if as planned and scheduled.

What if my PRTSM asset values grow more than planned?

The Trustee allows for discretionary distributions on excess growth or gains above mandatory distributions.

Do I lose my asset protection of my PRTSM funds and benefits if distributed from my plan?

No. If distributions are made to a pre-designated PRTSM Distribution Account, then funds can continue to receive ongoing asset-protection from creditor attachment/judgment. However, this must be properly administrated so as not to forfeit benefits.

Are there any penalties for early or late distributions?

No, there are no pre-59 1/2 (10% penalty) or post-70 1/2 (50% penalty) excise tax penalties.

Can I take a loan from my PRT?

Yes. PRTSM loans are one of the most powerful business cash flow management techniques available, and they add an additional level of asset protection to exposed estate assets.

What are the parameters for PRTSM Loans?

There is no maximum loan from a PRTSM. Loans above $50,000 must be secured

with friendly liens on outside collateral. These secured loans offer extremely flexible terms and interest-only or accrued fair market value rates.

How much is the PRTSM cost to setup?

The PRTSM setup costs are based on type of assets funded and typically range from $4,500 – $25,000. *Setup fees are paid and deducted by the sponsoring business.

What are the annual management costs for a PRTSM?

The PRTSM annual administration depends on the complexity of the PRTSM Plan, and assets to manage. Annual administration fees range from $2,500 – $15,000. All administration costs/fees are paid for and expensed by the PRTSM Trust.

Are there any additional costs or fees associated with my PRTSM Plan assets?

No. Pricing is flat-fee based and not Asset Under Management (AUM) based as with other invasive commercial trust companies. This ensures a high benefit-cost ratio that improves substantially in value over time.

What if the state law changes?

There are no guarantees; however, the legislation statute that regulates the state exemption code has been in existence since 1970 and pre-dates qualified retirement plans (401k), so it is the foundation for all other retirement planning. It would be problematic for it to be changed after 45 years, and highly unlikely.

What are my next steps to find out if the PRTSM is right for me?

Call us today to receive your free PRTSM Diagnostic & Risk Review Report. We can evaluate what can qualify for PRTSM funding and receive immediate asset protection, giving you immediate answers within 5-10 minutes.