On page 39 of the transcript we read:
Q. So in my experience most trusts name at least one beneficial owner, but I believe you testified earlier today that the trust that owns AF Holdings has no beneficial owners; is that correct?
A. The trust that owns AF Holdings is an undefined beneficiary trust. I would suggest that your experience is not complete when it comes to trusts.
Q. Perhaps you can enlighten me. What is a undefined beneficiary trust? Allow me to be more specific. Can you explain to me what is the undefined beneficiary trust that owns AF Holdings?
Hansmeier evaded answering this question. And this is not an easy question, and Morgan Pietz did not deserve an arrogant remark that his “experience is not complete when it comes to trusts.” Information about trusts without beneficiaries is sparse on the Internet, yet we managed to find one document written by a Nevis’ law firm Liburd and Dash. This essay explains what this beast — a trust without beneficiaries — is about.
Such trusts are also called “Purpose trusts” because despite the lack of defined beneficiaries, the trust’s purpose must be clearly defined. This is common around the world if the purpose is charitable, but non-charitable trusts with no defined beneficiaries are widely considered non-kosher even in notorious tax havens, but are perfectly legal in Nevis.
A Purpose Trust established under the laws of Nevis can be a valuable tool in the fields of Estate Administration, Tax Planning and Commercial Transactions. It is a vehicle which ensures that its assets have no beneficial ownership and can achieve a level of anonymity, by removing beneficial ownership and insulating the Source of Funds. However it should have a specific defined purpose and should periodically distribute funds to fulfill that goal. Periodic distributions would prevent any allegation that the Settlor or Source of Funds had no donative intent, and that the Trust is one which was not established for genuine reasons, but is a “sham”. This would allow a Purpose Trust established under the laws of Nevis to enjoy international recognition.
The document is not an easy read for us laymen and laywomen. Yet it may draw the attention of IRS. If anyone from this organization has stumbled upon this post and finds this document interesting (especially in light of Hansmeier’s statements quoted below), do not hesitate to contact me: I’ll connect you with people who possess more information on the subject.
Q. How about tax records. Has AF Holdings ever filed a tax return?
A. I don’t not believe they have filed a tax return in Nevis. I believe there’s an exception that if you’re not recognizing revenue, to filing a tax return, so I don’t not believe they have filed a tax return in Nevis.
Q. Has AF Holdings ever filed a tax return in the United States?
A. I’d have to think about that. I’m not aware of any tax returns that AF Holdings has filed in the United States.
Recent mega-leak of offshore business records: