⚖️

Distinguishing Natural Persons and Legal Entities

Aug 22, 2024

Understanding Legal Entities vs. Natural Persons

Key Concepts

  • Natural Persons: Refers to ordinary living men and women, not legal entities.
  • Legal Entities: Corporations and government constructs that interact primarily with other legal entities.
  • All Caps Name: The name on legal documents (e.g., passport, driver's license) that is often in all capital letters, representing a legal fiction rather than the actual individual.

U.S. Supreme Court Ruling

  • Case: Penn Hallow v. Dowan's Administrators (1795)
    • Ruling: No corporate jurisdiction over the natural man.
    • Significance: Establishes that governments are artificial entities that only interface with other legal entities.
    • Quote: "The imaginary, having neither actuality or substance, is foreclosed from creating an attaining party with the tangible."
    • Implication: Natural persons (living beings) are distinct from legal entities and should not be governed by the rules that apply to corporations.

Birth Certificate Fraud

  • Birth certificates create a legal entity that is often owned by the government, using the capitalized name.
  • Parents are not informed that they are creating this legal fiction or a bond with the government.
  • This legal name only pertains to specific individuals but leads to confusion about identity and responsibility.

Acting as the Beneficiary and Executor

  • Beneficiary: A natural person who benefits from the legal entity but is not legally obligated to uphold its debts unless they agree to do so.
  • Executor: When interacting with bills or legal responsibilities, act as the executor of the legal entity rather than as the entity itself.
  • Trust Relationship: The legal entity is seen as a trust, with the natural person as the beneficiary.
    • Roles:
      • Grantor: Government or corporations setting up the trust.
      • Trustee: The natural person who manages the trust on behalf of the beneficiary.

Practical Implications

  • Avoiding Jurisdiction: By recognizing oneself as separate from the legal entity, individuals can avoid being drawn into the legal system.
  • Handling Bills: When receiving bills for the all-caps name, one can sign as the executor, which allows them to manage the payments without personal liability.
  • Awareness: Many people unknowingly act as if they are the legal entity and comply with legal demands, thus entering the jurisdiction of the government/corporation.

Conclusion

  • The distinction between natural persons and legal entities is crucial to understanding individual rights and responsibilities in relation to government and commercial law.
  • Acknowledging the difference can empower individuals to navigate their legal obligations more effectively.