From Debtor/Trustee → To Grantor/Beneficiary From U.S. Taxable Person → To Private, Non-Adverse Principal 🔎 THE CODE TRAPS TO OVERCOME 🔗 26 USC § 61 – “Gross Income” (The Hook) - Definition: All income from whatever source derived is presumed taxable. - Includes: Wages, rents, pensions, business income, debt discharge, and trust income. - Presumption: You are a U.S. Person who voluntarily participates in this federal revenue system. 🔗 26 USC § 676 – “Power to Revoke” (The Escape Hatch) - If you, as Grantor, retain the power to revest title, you're treated as the owner of the trust. - IRS uses this to tax you directly on any trust income. - However, § 676 also affirms: the one who holds revocation power is the true owner and controlling party. 👉 Key Insight: IRS admits in § 676 that the one with revocation power controls the trust. Use that power not to stay liable, but to collapse the constructive trust. 🧱 STEP-BY-STEP REMEDY FRAMEWORK ✅ 1. Acknowledge the Constructive Trust Structure - By default, your estate (birth certificate, SSN) was placed into a Cesti Que Vie trust (see: 18 USC § 153; 26 USC § 673–677). - You're being treated as a trustee of a public trust operated for federal benefit. ✅ 2. Assert Your Role as Grantor + Beneficiary - Under 26 USC § 676, you as the Grantor can revoke the trust or demand title be revested. - Under trust law, you cannot simultaneously be Grantor, Beneficiary, and Trustee unless you revoke the administrative presumption. 🔑 Action: Draft and record a Revocation of Constructive Trust and a Notice of Private Status & Beneficial Interest. ✅ 3. Neutralize the Application of § 61 - § 61 applies to gross income of a U.S. person. - “U.S. person” is defined in 26 USC § 7701(a)(30) – includes individuals liable under contract or statutory agreement. - You're presumed liable unless rebutted. 🔑 Action: Include in your filing: - “I am not a ‘U.S. person’ as defined at 26 USC § 7701(a)(30). I am the living man/woman and the Grantor-Beneficiary of the named trust.” - Use UCC 1-308 (reservation of rights) and UCC 3-501 (demand for presentment of lawful claim).

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