3. How do Trusts Protect our Interest in our Property?
We have been programmed to value everything in terms of FIAT currency. For example, we look at a house and see a house worth £300k or whatever its value in FIAT currency is. FIAT currency has no place in equity; equity abhors commerce and FIAT currency is not real property. Equity looks at the important aspect of property ownership – its use. So, when we view property, we should look at the value it has in real terms, such as the roof over a family’s head with a secure door and running water.
When we look at the triangle on the previous page, we can split it between the two realms, the realm of fact and the realm of fiction.
Ownership of property is dangerous as this means that the property forms part of the estate of the legal fiction. This means that the tax obligations and debtor/creditor relationships belonging to that legal fiction can be applied to the property within the estate of that legal fiction.
Trusts work by splitting the two titles, so that the property no longer forms part of the legal fiction’s estate. The legal fiction may still hold the legal title of the property, but it does not ‘own’ it. When the two titles are split and the property is held in trust, then the legal realm cannot impose liens/charges against that legal title, as the legal fiction of the trustee is holding the legal title as trustee only.
