Secure Party Creditor Trust vs a Common Law Trust: What’s the Difference?

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Secure Party Creditor Trust vs a Common Law Trust: What’s the Difference?

A common question we get asked a lot is, “what is the difference between the secure party creditor trust and the common law trust?”

Both are very different trusts and in this post, we hope to bring clarity on this subject that is very important to know. 

Some people are under the impression that the SPC trust and the Common Law Trust is the same. In this post, you’ll learn the difference between the SPC trust and a Common Law Trust. 


The Secure Party Creditor Trust Explained

The secure party creditor trust is an irrevocable, 14th amendment citizen, domestic trust, created specifically for your STRAWMAN. 


The SPC trust is there to establish a difference between YOU (the DEBTOR) and You (the living woman or man). 


Unlike a common law trust, the secure party creditor trust gets put into ‘public’ record in some way because you’re filing your secured party creditor package into the public. 


The SPC Trust is created so that the secure creditor (You, the flesh and blood being) places your DEBTOR into the trust, taking control of the strawman and claiming all the debtor’s collateral (or as much of it possible). 


The SPC trust is a step to establishing one on the private side, moving their ENS LEGIS out of the public. 



The Common Law Trust Explained 

A Common Law Trust is a private trust that gets created under common law and is not entered into any public venue. Certain documents of the common law trust does get notarized and it’s still a private trust. 


The common law trust is not created for the DEBTOR but rather, established for the living parties of the trust which includes the 2 Trustees, a Grantor and Beneficiary or Beneficiaries of the trust. Common law trusts are either a family trust or a business trust and does not create a debtor-living being relationship by no means. 


Trusts are generally created to be either revocable or irrevocable and is setup for the family or business. The trust by no means has to be sent to any public venues at all, but does require some documents of the trust to get notarized.


The laws that govern a common law trust is regulated under common law, without public officials. 


Putting into perspective…

Has it ever happened to you or someone you know who has a relative or a friend (or maybe its your relative or friend) who passed away and their estate was thrown into probate—a very long, time consuming process that can be avoided through other means of asset protection (like via a common law trust). 

The probate process can be very daunting, often leaving one behind with high amounts of inheritance taxes, estate taxes, and legal fees, significantly reducing the estate/will.


In some cases, the family’s business has to get destroyed in order to pay those hefty costs, leaving the said named heirs to have little to inherit after the costs were paid for. 


Having a common law trust can help give your family financial security knowing that, there is a trust in place which avoids probate court. 


If you have accumulated assets throughout your life that you wish to pass onto your family / children, placing those assets into a trust can offer full benefits and allows your loved ones (beneficiaries) to control the placed assets into the trust without a cent of probate or tax costs. 


If you are a business oriented family, a Common Law Business Trust can be of great benefit to you. Here’s why…


Benefits of a Common Law Trust

  • Asset, property and financial protection
  • Protects your children and heirs whom you appoint to be beneficiaries or trustees of your trust 
  • Keep your assets and property private
  • Transfer assets for the benefits of your heirs/beneficiaries (leaving behind meaningful legacies)
  • Exists (and assist) after death
  • The wealthy can save on taxes
  • Law relief in court cases
  • Avoids probate and other legal problems involved in the distribution of an estate after his/her death.
  • Protects the trustees and beneficiaries from lawsuits 
  • Open trust bank accounts WITHOUT your social security number



Surprisingly enough, not many attorneys know that a Pure Trust Organization exists, even though there are United States Supreme Court cases, district court cases and others where the “pure trust” form of business organization is specifically mentioned in there! 

“A Trust, for probate avoidance, is a lawful, irrevocable, separate legal entity.” Harwood vs. Tracy, 118 MA 631.


“It is established by legal precedent that pure trusts are Lawful, valid business
organizations.” Baker vs. Stern, 58 A.I.R. 462

“Trust or trust estates is a legal entity for most all purposes, as are common law trusts.” Burnett vs. Smith, S.W. 1007 (1920)


Which Trust Should I Get Established First? 

Both the secure party creditor trust and the common law trust offers great benefits and are highly recommendable that one has. 

For starters, if you are looking to establish yourself on the private side as a sovereign and gain STANDING, becoming a secure party creditor is a great first step towards that goal. 

For those who either already have standing and are looking to protect their assets and family, a common law trust is an excellent route to help one achieve that. 




We hope this post was of help to you. If you have any questions or would like to speak to one of our consultants over the phone, we encourage you to book a consultation to speak to one of our well-knowledgeable specialist via the consultation link here


To learn more about our common law trust package, learn more about it here


Please do not hesitate to contact us to learn more of how we can help.

Feel free to post your comments below! 

By |2023-12-19T12:50:58-05:00September 21st, 2019|Blog, Secured Party Creditor, Trust|2 Comments

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  1. Shaun November 11, 2023 at 2:51 pm - Reply

    Thanks for breaking that down in simple terms

    • A.W.A.R.E November 11, 2023 at 10:07 pm - Reply

      Our pleasure, Shaun! 🙂 Feel free to contact us should you require any help with anything.

      Peace and blissings! ~

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