Bruce Willis "hides" his huge iTunes music collection from Apple with a loophole in the music license agreement.
Boston, MA (PRWEB) September 25, 2012
iPhone 5 and iTunes users could have a heyday if anyone with clout (both fiscally and politically) could successfully sue Apple and win the ability to transfer their digital songs to beneficiaries. Rocco Beatrice, Managing Partner of UltraTrust.com, makers of the UltraTrust irrevocable trust, asks the crucial question of who owns your digital songs once they are downloaded via iTunes, Google or Amazon?
Well, according to the terms and conditions of the iTunes agreement, customers are only given the privilege of so-called "borrowing" the song and, therefore, it’s not assignable to a beneficiary.
At the time the rumors circulated, Forbes and The Sun (UK) reported that Bruce Willis was so angry that he was planning to set up an irrevocable trust to take ownership of his digital content in order to outsmart the licensing rules and furthermore he may sue to keep his digital music license rights in order to eventually pass them down to his daughters.
But suing Apple over the rights to transfer songs to one's beneficiaries may not be the only solution or even necessary.
"An irrevocable trust, such as the premium UltraTrust irrevocable trust, can own and hold assets and possessions for the use of its beneficiaries. When one puts something in an UltraTrust irrevocable trust or when the trust purchases something it is owned by the UltraTrust irrevocable trust, which may then let the beneficiaries to utilize the benefit of the assets," explains Mr. Beatrice.
"Most often this is used to let someone’s children or beneficiaries use the assets (in this case, the songs the grantor purchased), without having complete control and without the assets being threatened by creditors or ex-spouses. This way they are safe for the children to use throughout their lives or as long as the UltraTrust irrevocable trust says that they can."
"In contrast to the UltraTrust irrevocable trust though, is the living revocable trust or simply living trust. The revocable trust does not allow one to transfer their iTunes music library to their heirs because the grantor, still owns the music library with this type of trust. You must set up an UltraTrust irrevocable trust or some form of an irrevocable trust to gain the benefits."
If the rumors were true, then Bruce is 100% correct in his foresight; one shouldn’t "own" any asset directly that they consider to be important or a large part of their total net worth. He had excellent advice in this regard and his advisors must have known the difference between a revocable trust versus an irrevocable trust.
"We always suggest to our clients to do what the Rockefellers do, own nothing and control everything from the background with an UltraTrust irrevocable trust, so why not music?" advises Rocco Beatrice, Sr. of Estate Street Partners.
But, how does this solve Bruce's problem?
When someone puts assets in the trust, they can be for the use and enjoyment of the beneficiaries throughout the life of the UltraTrust irrevocable trust. The life of the trust can be for as long as the beneficiaries live, depending on how the trust is written.
So, for 100 years or more, the UltraTrust irrevocable trust owns the music. When Bruce or the grantor passes away, the trust simply lets the children use the music library throughout their lifetime. The trust owns the music, so it never changes hands and no one has to go to court to sue and have the music transferred to a new person.
There does remain the unresolved problem for the IRS, at least, of how they will value a large collection of songs on somebody's iPhone as an asset as part of your estate if they die without a trust owning it. They could actually assess an estate tax on the music!
But this won’t be a problem if one has a solid UltraTrust irrevocable trust.
To learn how to protect assets, save sleepless nights worrying about lawyer fees and court proceedings and save on estate taxes and probate costs visit UltraTrust.com irrevocable trust. Visit MyUltraTrust.com to set up a DIY irrevocable trust plan.