COMMON MISCONCEPTIONS

“If I put my house in a trust, no one can sue me.”
Not automatically.

If:

• You personally guarantee a loan
  
  


• You commit negligence
  
  


• You commit fraud
  
  


• You personally operate the business
  
  

A trust does not erase liability.


“Trusts avoid taxes.”
Trusts may help with estate tax planning.

They do NOT:

• Eliminate income taxes
  
  


• Eliminate capital gains automatically
  
  


• Allow illegal tax avoidance
  
  

Tax treatment depends on structure.

Always consult a CPA or tax attorney.


“Trusts make me anonymous.”
Sometimes they can reduce public visibility.

But:

• Banks still require identity verification.
  
  


• Some lenders require personal guarantees.
  

• You cannot hide ownership from regulators.
  
  

Privacy ≠ secrecy from government agencies.