Transcript for:
Launch of Intelligent Banker Podcast

hi this is josh nelson and i'm the ceo of infinite wealth strategist and i am proud to announce that we are finally launching our intelligent banker podcast this all started a few years ago when my wife and i were very successful in network marketing we were making six figures a month and i'll tell you guys what happened we decided that we wanted to retire for a little bit because that's what you do when you make a lot of money right and unfortunately as we started spending our money our money started going down and we had a bunch of cool stuff but i was basically just broke at a high level now and i was very confused and i went on a mission because i did what my parents taught me to do i went to school i got good grades now i didn't finish school i wouldn't got my ged and then i started making you know 20 30 an hour i got involved in this thing called network marketing and at a very young age i exploded um i had teams in nine different countries all over the world we were making a lot of money had a place in hawaii was traveling i mean i've been to almost all the different countries that are out there and what happened was is we went broke we had all this nice stuff but we went broke and i'll tell you guys what i realized is that nobody taught me about finance nobody taught me what to do with money i was really good at making it but i and spending it obviously but i didn't know i didn't have any kind of a financial plan because they don't teach that stuff in school so lo and behold we started this company called infinite wealth strategist about three and a half years ago and we started with a concept called infinite banking now i'm not going to go into that here because i want you guys to like and subscribe to this video so you can join and be involved in our podcast but what i will tell you is that our financial system is rigged and it's rigged against you imagine going to a country and playing a sport and not knowing the rules and imagine you went on the field wouldn't you agree that you would have a disadvantage and that there's no way that you're going to win the game right because you don't know the rules to the game that is the way the financial system has been rigged against you when you were born you got a social security number and a birth certificate and that put you into a system that you didn't even opt into and now when you go get a bank account you use your social every time you get a loan you use your social you apply for credit you're using that social that social is putting you into what i call the rigged system now i have a book my first book called unveiling the secret to the rich which you can pick up on amazon that walks you through exactly how the system is rigged against you the reason that we started this podcast is because right now the economy is in turmoil inflation is out of control and the feds are starting to hike interest rates it's inevitable that families learn financial education and i'm telling you guys that by design this has been taken out of schools so that the system will be rigged against you folks the whole purpose of this podcast is to teach you our financial strategies now we have strategies that will legally put you in a position where you will be lawsuit proof you will be judgment proof and you will be able to not pay capital gains legally now i'm not going to show you any way to commit fraud or do anything illegal and i will tell you that our strategies hold up in the supreme court i want you to join the intelligent maker podcast because it is going to be a fun journey together we have a lot of information that we're going to be sharing and the best part is we don't charge anything folks there's people out there that are teaching financial strategies that are charging tens of thousands of dollars for you to even get in the room or to even be a fly on the wall and here at the intelligent maker podcast we are going to be giving you guys the financial strategies that only the elite use the strategies that the elite does not want you to know and the strategies that once you implement these into your family you're going to create your own family economy you're going to have your own family bank and you'll never pay interest to a third-party bank ever again folks i'm telling you now is the time that you learn and that you get financially educated so again i'm josh nelson i'm the author of the intelligent banker and i'm excited to welcome you guys to the intelligent banker podcast like and subscribe this video so that when we launch our first show next week you're the first to get it take care and we'll see you guys at the top [Music] [Applause] so [Music] all right so craig as our senior trust strategist i just want to kind of go over some of the things that people need to know before they actually fill out the application because you know the trust can be a little complex when you look at it you've got your settler you've got your trustee you've got your trust guardian you know all these different roles of the trust i want to make sure that people really understand how to fill out the application so when it comes to the app um the agent that they're working with is going to send it to them they're going to click on a link it's going to open up a form right right and the first thing that they're going to do is select a trust name how important is that and are there any do's and don'ts about choosing a name can they choose anything they want absolutely great question first of all we just tell you know when i'm talking clients i'm telling them at this point that i'm so excited for them they made this decision i mean this trust to set this in motion is going to change their life their legacy for their family it's going to become the foundation of their life and in many ways and so it's a really exciting time and i congratulate people that are at this point so on the trust name some things to think about is that you want to be thinking about a name that's unique that means something to you okay this is an important instrument in your life and you want it to be not tied to your family name not tied to your business name so like i wouldn't want to have it like nelson family trust no you don't want to do that and is that because it's a non-grantor trust right well it's a non-grantor trust and you want anonymity okay you do not want other people to know that your trust in that right the other thing is that this trust can have as many as soon business names as you want in it so if you want to have something forward-facing about a business or whatever do that with an assumed business name within the trust but have the trust name so the actual name of the trust would be more kind of something you would want to be anonymous but if you're going to go have like a retail business or something yes you can go create a dva that would be owned by the trust absolutely and then you can operate forward facing with your business name that is correct and so always be thinking of that and think about remember this trust is not just for a few years this trust is for generations and generations of people so think about a name that would be fitting for let's say three generations from you when they look at that name you know it would it wouldn't be offensive it wouldn't be something that wouldn't tie into what they're doing okay it's more general so i would i would i'd give that advice to people so an example could be because obviously i have a lot of trust clients right um a lot of people will pick like a like a scripture that means something to them like proverbs 3 11 right yeah spent thrift trust or something like that yes okay cool what about the trust address i know a lot of people ask about this because you know throughout people's life they move and things like that and people think like does this need to be a permanent address but how important is it to choose an address and should this be their home address yeah they just use their home address um and just like uh you that address can be changed okay but uh the address is gonna be given when you get an ein number you're typically going to use your home address when you get the ein number for you as the trustee so you're going to want to just use your home address if you have a business trust you could use the business address the problem is is that that can change a lot they all can but you can always change the address but to start out with i recommend people just what about a po box no you want to use an address so a physical address physical address yeah okay what about county i know that the application is going to ask for county yeah there's a place on the there it's asking for and some people not quite clear what it's asking for but what it's really looking for is the county you live in so what's the name of the county that you you live in okay now when we get into trust roles i know the first um position of the trust is settler right who is that going to be and how do they choose that this is really important we've got people have had you know haven't thought this out well now so here's the important things about the settlers that the settlers just gonna pay a temporary role in the trust they're gonna their role is to set the trust up initiate it okay by signing a couple documents they're gonna appoint these the trustee and the trust guardian and then they're going to resign from the trust and never have anything to do with the trust or can they ever have anything to do with the trust ever again they never can be a beneficiary or trustee so should the settler be their spouse no sellers no their kids no no so it should be someone that is maybe a friend but it should also be somebody that they're not doing a lot of business with or neither right or never would have a reason ever want to put him as a beneficiary or a trustee or have any role in the trust i typically it's just an it could be a neighbor it could be a friend so i know a question that i get a lot is could a settler be let's say a business partner that i do real estate deals with but they're never going to actually have a role in my trust meaning i'm never going to make them a beneficiary or a trustee i wouldn't use them either because let's say you want to get a business trust down the road okay and you want to do some have them part of it um there could be a you know i just i don't want to limit myself right so i mean i'm going to pick somebody that absolutely positively there's nothing so preferably a friend or a neighbor someone that you would probably not ever do a business with and that would never be involved in the trust in any way another important thing is you want that person to live by you or be close by because when you get that trust and you're going to go activate the trust you need to have them with you in the trust book to get those pages notarized okay okay and so you don't want somebody long ways away or out of state or whatever because then you can't you know then it's a real hassle getting everything notarized and you have to send you know fedex pages back and forth and that so pick somebody that's close by somebody you know um there's there's no risk or anything for them all they're doing is science from documents and they're not then releasing themselves resigning from the trust and have nothing to do with it ever again what about the i know some people refer to it as a compliance officer we refer to it as trust guardian how do you choose that role and what is that absolutely so the trust guardian is the most senior position in the trust they are they have control the ultimate control of the trust and typically the trust guardian is going to be the trustee or one of the trustees so you know the the main trustee you know is uh who typically is going to be your trust guardian okay what about initial trustee the initial trustee would be that trustee so let's say it would be you know one of the spouses or whatever they would be the initial trustee they typically would be the trust guardian so the trust guardian could also be the trustee absolutely and you don't we typically recommend that too when you first start the trust because whoever is going to kind of initialize this whole process is going to have all the control in the beginning right and then down the road if they want to do it you know appoint a different trust guardian they could do that right so it's not like these are permanent choices right now yeah the trust guardian is going to typically be there for for a while the trust guardian can appoint another trust guardian and you there are documents in the trust later where you can set up a successor trust guardian and a successor trustee okay so you can have a succession in the trust it's advisable to do that there's forms in the trust to sign and notarize for that effect so now the trust guardian has more power than the trustee correct yes so they can overthrow the trustee if the trustee is not doing uh if they're not managing the trust properly the trust guardian could fire them appoint a new trustee so it's important for people to know when they're filling out the application that the trust guardian is the highest position of authority right that is correct and they can they can add and remove beneficiaries a trustee can add removed beneficiaries as well but the trust guardian has ultimate control and so yep now a secondary trustee is also optional that is optional i mean this is a very important thing to talk about so in this trust again because this trust is based on contract law you can do a lot of things here you wouldn't be able to do in a legislative trust in this trust we can have both spouses man wife okay b trustees and the trust and a lot of times that's advisable to do that because if you've got a business or you know say you're doing real estate investing in that right and you're traveling and there's documents have to be signed or you've got checks that have to be signed in your way the only person who can sign checks and sign documents for the trust is it is a trustee and so it's very advisable at that point especially if the spouse is working with you in the business to any degree you know to have them as a trustee as well so that way if you're out of town or whatever they can execute those documents and take care of business now a question i get asked a lot is if there are two trustees do both of them have to sign every check or can each one do things on their own on their own and then again the trust guardian could be the one managing all of that to make sure nobody's abusing power spending money they shouldn't be spending on on things that are not a benefit to the trust or the beneficiaries yep and you can still even if you have two trustees then you can still designate a successor trustee in the document so that maybe that's one of your oldest children right that are that are maybe older you know 21 years of age or 18 years of age you know so if something happened to both of you you want to have the succession of the trust now what about beneficiaries i know this is an important topic because the whole purpose of the trust is for the beneficiaries so who would those be and how do they choose those roles and do they have to choose them all now or can they add later they can add later they can choose some of them now they can always add later there's never no limit you can always be adding trust uh beneficiaries the beneficiaries typically are going to be your children but you know there's some people who don't have any children and but they've got you know brothers and sisters they've got you know they have siblings they have nieces and nephews so with this trust you can really a point you're not limited to who you can appoint as about this year oh i've got i've got clients that have got their you know they've added their parents as beneficiaries a lot of them so if i have no kids no spouse i create a lot of wealth there in my life and i want to give it to a friend i can i can appoint them as a beneficiary and their children if i want to pass my legacy on that way that is correct that's powerful another powerful thing is that i'll give you an example i've had clients that have had relatives that are disabled um or have um you know a mental or health issue or whatever so they can appoint them as beneficiary and now the trust can bless them because the trust can expense all these other additional costs from medical and wellness and that to take care of those those people and the trust can expense all food and and fashion okay so really for life so it's really good to have many beneficiaries in your family because that creates more expenses for the trust well it does and um but but you know a key thing is is that if you had someone you know let's say a niece or nephew or a brother or whatever that was disabled um you know the trust could provide for them the trust can provide for them and it's a trust expense and it can provide the food and clothing and everything for them for life it's not just until they're 21 it can be as long as they have that disability okay so it's a um now what about the shipping address for the trust i know people would say why are they even talking about this but i know um they cannot ship to a po box right so just really quick can you address while people are filling it out where does the trust need to be shipped you want to ship it to your house typically where is that because it's going to be shipped second day fedex right and you want to be you know you have to come to an address you want to have it someplace where you're going to be and you can receive the trust there and get started working on it okay and then um i know email address is obviously um for communication exactly right um how important is it to double triple check your email address because i know the way we built our system the way we prefer to communicate when someone activates a trust is we have a series of emails that go out right yeah another absolutely and another reason for that is that when we apply for the ein number for the client and get that the irs requires an email address on some of the forms and they also require a telephone number and you require it because once we create the ein number you have to send it to the client right and they need that to activate the trust to get the bank account and all that stuff and you actually create the ein for the client right so they don't have to worry about that they don't have to do that we create that for them they'll have that ein number typically before or at the same time they receive the trust book okay and then i know they need to put a phone number we say preferably a cell phone number why is that well it's just because it's easier to reach somebody on that okay and we can send texts as well who has a landline these days right i mean i haven't had one i don't even i've i haven't used a landline and i don't even remember how makes me feel old you're right okay so now we come to the point where they're gonna sign and date um that we've got payment options let's just talk about cashier's check wire transfer i know occasionally we can accept a credit card it costs client a little bit more money right what would you what do you recommend well most of our clients use wire transfer wire transfer same day same day and then we typically will ship the trust out the same day exactly right so if we get that if we receive payment let's say on a wired transfer by you know typically three o'clock in the afternoon central time we can typically get that trust book sent out that same day uh the trust company and it will come to you you know second day fedex so within two business days you'll have the trust in your hands sure now on the application there is a section on there um and some people may not be getting one but it talks about the business trust is that something they have to complete or do they only can they skip that if they're not actually they can totally skip that if they're not getting a business trust it's only there to help for people they're going to also one at that same time purchase the business trust and so it asks in there for like business social security number and that's another important part is that on the trust itself application it asks for social security number you have to the trustee has to provide the social security number we need that to get the ein number now if when they do set up the business trust if they are getting one right the trustee and the trust guardian on the beneficial trust could also be on the business trust too right in some cases that is correct yes it could be it could be that it could be the same could be a little bit different and also on the settler could be the same on the business trust as on the beneficiary trust you could use the same person as a settler so the questions on the business application are going to basically be what we just covered right but now it's going to be from the perspective of who's going to be running and controlling the business trust and then another thing on the business trust is that um the beneficiary on the business trust will be your beneficial trust so on the business trust you're going to make the beneficial trust the beneficiary so you want the beneficiary of the business trust to be the beneficial trust that's correct if they're getting both that's correct awesome and then the last thing is selecting a business trust name now in this case could the business name be the business trust name it could but i would recommend probably not doing that as well because again you're looking at an instrument that's going to last for you know hundreds and hundreds of years and you may run a lot of different businesses through there right you know if you take a look at um a visual deal you know the rockefellers use this trust the last time you know we've heard on a book that was printed they had over 350 family members of that trust and probably thousands of businesses right you know i mean investment deals in that process and no one would even know what the original trust is exactly right because they used a bunch of assumed business names i probably got hundreds of assumed business names in that to that same trust and at the end of the year for all that it's just one 1041 exchange that's awesome so well i appreciate you taking the time i'm sure this video is going to really help people as they're filling out the application absolutely and you know they're going to be excited i mean this is going to be a life-changing event for them and their family and the legacy they'll be able to leave so so wrapping this up let's just say i was a client and i just got my trust what would be the first thing you would say to me man i'd say congratulations and you know you've what you've got your hands on here is something very unique that very that not very many people know about and it's going to last so far beyond um we've we know families that have had these trusts set up since 1800s and that same trust is serving all the legacy of their family since the early 1800s for 200 years and that's crazy and all the assets have been protected no probate no inheritance tax none of that right and then when the tax laws came in in a play they added the verbiage to the trust to be compliant with irc 643 so they've never had to pay any passive income capital gains k1 income you know for all the powerful powerful yeah i mean so this form really is life-changing for people it is absolutely life-changing absolutely yeah so well thanks craig you bet all right craig so now that we've gone through kind of how to fill out the application and all the roles of the trust let's talk about like what what the next steps are the clients go and we talked about how important it is for them to provide an email yep right a valid email that they're gonna actually receive the emails and now we're going to talk about why so they're they're first going to get an email talking about the fact that we've received their application right right then the next email they're going to get is going to talk about the payment options yep so why don't you talk about that when that email comes what what do they do at this point right so it's going to reiterate the payment options that were on the application again about doing the wiring instructions and how to take and send a wire to pay for the trust or they can use the cashier's check um they're if they want to do credit card they need to let the agent know that is correct and then we would provide them with an invoice for the credit card and on credit card we charge for the processing fee right we have that too there i recommend wire and i think you do it's a yeah it's a cleaner deal it's just it's easy all right so after they pay for the trust they're going to receive another email that says become the bank now i know we're all about vortex banking so you know i'm sure the agent at this point has already probably talked to them about vortex being the whole life policy with the trust they may or may not be getting the whole life policy but this email is going to just really cover kind of how the policy interacts with the trust absolutely that's correct can you show that how that how that works and the benefits of that and really i think that's the most important component once you have the trust that's the one of the first things they should be doing is setting up that banking component absolutely putting money in the trust you want the trust to be able to have a vehicle to build wealth to build wealth and insure your income so the next email they're going to get is once we actually receive the wire the client is going to get notified right that they've that we've received the payment yep um i know i would too because it's not a little bit amount of money right so they i would want to be notified so uh the client will be notified and then they're gonna get a follow-up email right after that inviting them into our live iws trust training program that is correct which is five videos right that's right currently today we've got five videos out there those five videos are going to take them through how to initialize set up the trust it's going to start covering the different types of assets and how you transfer by sale by bill of sale into the trust how that bill is going to give them access to the different forms so the different types of bill of sale bills sale for land in buildings bill sale for general you know assets and also for business assets we have you know other forms as well bill of sale for homes and vehicles so now you're going to use those bill of sales okay to transfer to sell those assets into the into the trust and it goes through how does how to fill those out how to set it up and use those how important is it for people i can't even believe i'm saying this because when people pay what they pay for the trust right it's amazing how many people don't have time and you know we're all busy right to watch the videos right how how important is it to watch the videos and for the clients that we know because a lot of our clients are are very busy you know these are guys that are you know flying around on their jets and things right yeah they could have their accountant or a bookkeeper or someone that's going to help manage the trust watch the videos if they can't right it's important that someone watches the videos that's going to be helping to manage and set up the trust right that is correct and a lot of times it's themselves still i mean but you know they're going to have to sign the documents and get them notarized okay for doing this it's going to be the trustee typically selling those assets into the trust there are times when a beneficiary will have assets that they'll sell into the trust themselves and create a promissory note so but the key thing to understand here i'll reiterate is that the foundation of this trust is that if an asset is not in the trust and owned by the trust the trust cannot provide any asset protection whatsoever for it and it cannot provide any tax benefit whatsoever for it so to receive any tax benefit or asset protection you have to have that you have to sell that asset and the trust has to own that asset so what you're saying is is that if they want the benefits of the trust right they should watch these five videos absolutely and take action watch the videos and take action and sell your assets into the trust and get them into the trust and those videos are so valuable because i mean and they're not long at all i think they're 10 to 15 minutes each maybe but to be able to learn to put the assets into the trust and gain that benefit is worth a hundred fold what they paid for the trust right away right so so you would definitely want to watch those videos immediately yeah okay let's talk a little bit about um so i want to make sure the client knows how to get back into the training because i know this has been a challenge before they need to save that email right they're going to receive an email with a link into that portal that is great and that portal is going to be really i mean today we have these we have these five videos and we have a number of documents okay that you're going to use for the trust you can always go in there and access those documents and that we'll be continuing to add additional documents into that portal and other videos in that portal so we'll be enhancing that and providing more information so this is a portal for them from an education perfectionist perspective and from a resource support perspective for them to use so now they've done the application and they've been receiving these series of emails right we went over the becoming the bank email they're going to receive the email about the funds received and at this point they've now gone through the five training videos well by now they should have received the trust in the mail fedex right we second day air that absolutely and now it is time to activate the trust that's right right so they're gonna need to meet with the settler to sign forms where do you recommend doing that i know some people go to ups store or different but i know you've activated a lot of trust for a lot of clients what works best and what is most convenient and what do you recommend what i recommend and i found to be the most convenient is you use a bank okay so the bank that you want to open a bank account at that you want to do banking with um show up with the settler and uh with the trust book okay and the documents um have photo id in that with you um then call ahead set up a time frame with for the bank they can have someone there because they'll provide you all of these services of you know doing the notarization free of charge so that way because there's a lot of notaries i mean there's several pages that have to be notarized so the you know it'll take about a half hour prior for the bank to work with you to sign all the different documents now they need to have the ein as well right that's right which is something that during this process of them receiving all these emails is something you're doing in the background right that's right i'm gonna i'm gonna get to fill out the application for them from the irs to get the ein number for the trust and i'll be emailing them that letter okay so again another reason why they got to have a good email address yes absolutely and to update that with us if it changes right because we're going to be sending them very important information about how to use their trust that is correct and so then while they're at the bank here's a couple other steps to do is that not only then get get it initialized and get all the documents signed but then you can set up the bank account well while you're setting up that bank account one of the things that almost every bank's going to want is they're going to want to make a copy of the corpus of the trust for their records okay because in that it gives them from their fiduciary responsibility and they're going to know that the type of trust it is and that what rights it has like to own property and stuff like that so they'll want to copy the corps of the trust well when they're doing that almost all these banks have copiers that when they copy that they can save it to a pdf so now you've got all the documents signed and you're with the bank just ask them when you make a copy of it will you save it to a pdf and and email it to me or give me a copy of the pdf so now you've got a copy on uh you know pdf copy of the trust with all the signatures on which you can use down the road in a lot of ways awesome so now concluding the activation emails the last email that they're going to get is going to talk about the accounting service that right now comes with the trust that's correct and it's gonna outline kind of um number one how to contact them yep it's gonna what information that they need and it's also gonna talk about um what services that they're going to be provided for that first calendar year right that is correct so the um first thing is these services are on a calendar year so you know if you today you know it's a safe in july okay and you got the trust then that service is from july to the end of the year to the end of the year um includes the filing of all the taxes it's basically a tax year yeah it's a tax year kind of thing i mean so all of the all the tax you know the forms will be filled out for that year that whole year for you and that you'll get consulting so the accountant provides consulting on the trust on how to use a trust putting assets buying selling assets structuring a deal and then how to use the trust to optimize it for any particular business deal or investment deal you're doing right questions on that accounting questions on how to handle accounting issues around the trust he will answer all those all that consulting is included in there so to truly get the value out of the trust they really need to utilize that service absolutely by getting in contact with the accountant giving them a call if they have questions if they need to to figure out how to fill out a form properly or they have a question about a form yep that's what that service is for right exactly right or if they're going to structure a deal within the trust and they just want to run because we provide a lot of that in our video training yes but if they just want to run something by that's what the accountant is there for right is just to make sure that they're that that they're doing things the right way because once they learn how to do it they know how to do it forever now yeah that's exactly right i would say the first year really is when they want to use that the most yes right yeah and it's not like we don't provide anymore i mean we still provide services now for our clients and that on there too but it's good for the accountant to know what kinds of transactions you're doing and making sure they're done right from an accounting perspective i'm not an accountant but well i know our goal as a company is that we provide enough training to the client that they don't ever need to call right right where they're just using the accountant to file the return at the end of the day but that being said the accountant is there and has you know 20 30 30 years experience 31 years experience with this trust filed over 10 000 tax returns never had an audit and never had a request for zero audits that's right it's absolutely amazing and um so yeah so it's it's a valuable service and that it's you're going to learn a lot from them on you know interacting with them so it's good to know they're there if you need them because and we've got a lot of very we have some very sophisticated clients that are doing some very sophisticated things from investments in that and um you know so there's having that resource there and how to do some of these more sophisticated structures in that is important sure well thanks for going over this with you bet absolutely we're really excited for our clients and uh they're in good hands awesome all right thank you you bet all right craig so the client has received their trust now let's talk a little bit about how the trust works now the first thing is the trust is based on contract law or constitutional law what does that mean absolutely so the huge differentiator of this trust is that it's based on contract constitutional law and not legislative law our constitution tied to the constitution is common contract law and it holds it sacred that you and i or individuals can enter into a contract and nobody can interfere with that not the not the legislature other laws whatever it holds that sacred and that's how it's structured is with that legislative law it's a creature the legislature and the bar association they create all these other other laws and the supreme court has upheld that since 1911 that all contract law is not subject to the rules and regulations of the legislature now to clarify though that doesn't mean you can break the law no that's exactly right it doesn't it doesn't allow you to supersede legislative law as far as like committing fraud or something like that i want to make sure people are clear that our trust does not allow you to break the law or do anything against the law but it can do a lot of things um from how it treats assets how it treats expenses and that and you know like like for instance if i'm doing real estate i don't have to do a 1031 exchange i don't have to do that it's a lot of these rules and regulations don't apply to the contract law now it is true also that the irs cannot even legally tax entities that it did not create that is true there's been a ruling on there that they that the supreme court said that um you know on a contract law basis the legislature cannot regulate or tax an entity it did not create it was not party to the creation of the contract though we file 1041s we follow the the irc code 643 compliant with that extraordinary dividends and everything else so we're all straight but an example of a creature of legislature would be like a llc or a c corp or something exactly right all those were created by the legislature they have dominion over those um they can regulate them they can change the regulations they do all the time it's a moving target it's not the case with ours and and there's all this upkeep that has to happen with all of those things created by the legislature i mean you have to conform with yearly reports and meeting notes and fees and that there's none of that with this trust this trust there's is is good in all 50 states it does not have to have any filing with any state uh there's all the thing to keep this trust enacted is that every 21 years there is a form in the trust book that you will pull out of the trust book you'll sign and get notarized and that reinstates the trust for another 21 years you put that form back in the trust you don't file it anywhere but if a court or an entity asked you to prove that the trust was enacted you could just pull that form and show them and then put it back in the trust so the trust could last forever forever yes let's talk a little bit about selling all your assets to the trust people ask me a lot what do i sell it for if i'm selling my for example my personal residence into my trust how do i decide what i'm going to sell it for yes so in all situations when you're selling your assets to the trust you're always going to sell them at your cost minus any depreciation that was taken plus any improvements that you made to that asset the reason for that is is that we're not we do not want to create a capital gains event in the sale of that asset to the trust if you were to sell it to the trust for more than what your cost minus depreciation plus improvements would be you would have gained that creates a profit creates a profit you'd have capital gains on that on that we don't want to create the capital gains so that goes into the trust anytime you sell an asset into the trust each person in the trust the trustees beneficiaries that are going to have a chart of account number and that we call a promissory note and so the value of that of that transfer is going to be registered in that promissory note so now the trust owes them for that money one other thing i will add to you is that so if i have a house for instance and i have i take my cost my depreciation plus improvements i make up i do a warranty deed or quick claim deed and i do a bill of sale on i'm also going to do a note transfer if i have a mortgage against that we have a form for a note transfer note assignment form to where we assign that note to the trust and now the trust is going to make the payments on that house okay and such so it's assuming that note so the actual what goes on the promissory note will be the cost that you sold it for minus what the note is for and then that would be the value that you would you would have as far as an asset on the promissory note value that you can draw against right now sometimes i see people wait to move assets into the trust i mean i've actually seen some clients believe it or not wait a year before they move assets into the trust isn't one of the biggest benefits of doing this the fact that once i sell an asset to the trust that is no longer a personal expense to me anymore meaning if i sell my personal residence to the trust right i may pay some rent as the trustee but i don't own the house anymore which means if the water heater breaks or the you know i got to pay a gardener aren't those now trust expenses trust expenses now exactly right and the value of trust expenses is that the nature of the trust all the money that's coming into the trust is going to be tax deferred money okay unless you put money in there you've already paid taxes on but it's going to be tax deferred money so now the trust is paying for all those expenses with tax deferred money you're never going to have paid so people set up llcs to get tax benefits right meaning i'm an entrepreneur i'm making a lot of money now my accountant's going to tell me to go set up a corporation so that i can get tax deductions right business write-offs that's right our trust is so much more powerful because if i don't own any of the assets anymore like my cars right need a oil change things like that tires on the car if i don't own it i'm not obligated to pay for it personally that's right the trust can now pay for all those things right with tax deferred money exactly right and so the tru everything all your personal expenses you know now become trust expenses the only thing the trust cannot expense is what we call the three f's food fun and fashion and for beneficiaries who are 21 years or younger all their food and all their fashion is an expense to the trust if you had someone in the family who are a child that had autism or who had any any type of disability whatever then the trust can can pay for all their expenses including food and fashion that for the for as long as they have that disability or whatever the trust and it's all an expense to the trust so it's important to understand that and so that yes you want to get your assets into the trust because i just we just recently had a client that um had on the trust for a while and had moved all his assets in there and moved some and one of his assets that hadn't been in the trust became attacked and if he would have had it in the trust there's nothing they could have done and all it would have meant was him just filling out a bill of sale and getting into the trust and that issue wouldn't be there now so so now let's say i want to take my wife on a vacation right obviously that's a personal expense that's right how would i get that money out of the trust do i have to pay taxes on it i know you mentioned the promissory note i know the answer but right yeah i want you to answer it for the people that are watching the video absolutely so when you have that promissory note of all the assets you sell in there now if you want um so let's say you've got a million dollar promissory note in the trust and you want uh ten thousand dollars for food fun and fashion you can pull ten thousand dollars out of the trust that's tax-free and it's just gonna reduce that promissory note from a million to nine hundred ninety thousand okay so basically i'm deducting off of money that is owed to me by the trust versus making a distribution exactly right which is the only thing that really creates a taxable event with this trust if money is distributed right because then it's going to another entity right now if it's going to another trust it would still have a tax benefit but if it was going to an individual or it's distributed to to partners or llcs or whatever then that money would be taxed according to wherever it was distributed to right whoever whoever received the money so the promissory note is really the key to the whole deal it is it absolutely is and you know and usually most people never run it never run out on that problem sure i mean our accountant has been working with this for 31 years has never had a client who's ever exhausted their promissory note yet in a trust so for food funded fashion and the other thing is is that a lot of our clients for instance are real estate investors and so they're going to go on trips where they're going to be the primary thing they're doing on that trip is looking at real estate to invest in you just document that it becomes a business expense to the trust because that is a business that the beneficial trust can do is investing in real estate in that and so now the food the fund you've had on that is a you know it's expense to the trust now one of the things we say a lot is that when it comes to asset protection the trust is a titanium vault that's correct what do we mean when we say that what i mean is that nothing and i mean nothing absolutely nothing can penetrate this trust as an example no court turnover order never been no court turnovers ever been issued against this trust and as far as we can tell in 489 years no government agency we've had we've had clients our accountants had clients where you know they own farm and ranch land the epa shows up on their doorstep say hey you know you got some land down here in the south 40 we've been looking at it we've analyzed it and it falls within the wetlands provision of issues with there so we're going to claim that land and he goes well not on this land you're not this land sits in a spin thrift contract law trust and here's the documentation i think you got to go talk to your attorneys and we can talk that and they come back and they say sir you're right we talked to our attorneys we're sorry we uh you know wasted your time and have a nice day i bet you that man felt really powerful in that moment you bet he does going up against the federal government and having a trust that can protect you like that there's no other vehicle none that will give that level of protection eminent domain same thing you got a hou you got some house and some land and they want to kind of now the county wants to put a road across the land and they want to they're showing up and saying you know hey we'll buy this land for you here's what we'll give you for it and he says well i'm not going to take that kind of money for it i mean it's worth a lot more and besides i don't want splitting my my land in half you know i says well i i understand but we'll just use emma domain and you'll be forced to have to take what we want offered for you and you're saying not in this situation you're not this land's owned by a trust you can't do it here's the information and go check with your attorneys and we've had we've had numerous clients have been protected within a domain and you know some of them decide you know i don't want that at any price i don't want to split my land up and they have that right others have said okay well i'll let go through there but this land's worth a lot more than what you're doing we have one client that got 16 and a half times more per square foot for his land because of his trust than his neighbors did that is a perfect example of a titanium vault that is a great yes and you know and here's the thing that people people get learned a lot about the tax benefit of the trust and it's a great it's a great benefit but i you know our accountant when i was talking with him he's been working for 31 years i asked him early on i said if i was going to interview all your clients that have this trust and what you know and ask them what's the greatest value of the trust what would they say and i thought well you know you being an accountant you know you're not sure you know it's going to be it's going to be the tax benefit sure and he said craig he says overwhelmingly it would be asset protection all these people have had assets in that they've all been challenged at one time or another the peace of mind knowing that no matter what happens any type of accident or people fall on something their car accident or anything nobody can sue can penetrate this trust in any way shape or form a lawsuit could wipe out everything that you've done just like that exactly like that and it's happened to so many people i mean you know there's over 101 million lawsuits filed the united states last year that's almost one for every you know man woman and child that's like you know one kind of sounds like a business it is a business yeah it's a rise it is a deal and so you can't penetrate the trust it's protected and that is that level of protection that liberal peace of mind right you can't put a price tag on especially when you work so hard i mean as parents we work so hard to provide for our kids and and create a legacy to be able to have that legacy sitting inside of this trust i mean it just at least for me it provides a tremendous amount of peace of mind and just and again thinking about like you know fam you know generation after generation after generation and all these assets you know land and buildings and business and intellectual property or whatever has been able to be transferred with no inheritance tax no probate no nothing okay it doesn't miss a beat there's no fighting over anything okay a successor trustee just steps into play in the role okay and it carries on and carries on and and as all of the different growth of the family occurs they all become part of the trust and get blessed by it so yeah i mean it's a great thing so lastly let's just talk about the differences between both trusts the beneficial trust has asset protection you can defer passive income k1 income and capital gains active income what about that and the beneficial trust right so the primary deal that the all of the tax benefit lies within the beneficial trust even if you were to go like a business trust i mean it all flows down to the beneficial trust because it is compliant with irc 643 it's a discretionary trust and because it's stress discretionary it has to be discretionary trust to be compliant with irc 643 so anybody doing real estate investing or crypto or stocks bonds or any type of thing that's an investment activity that's producing passive income k1 distributions or capital gains from the sell those assets all that is covered in the beneficial trust and the beneficial trust is also discretionary yes and there's no probate or inheritance taxes right not none whatsoever on it at all and so but then there's people that have active income they may have you know they have a business that you know that they've got active income coming from right and so the trust can there's a couple ways the trust can deal with that one is that um let's say they may be a realtor um or a broker real estate broker let's say and so they have an llc and they have that license type the llc because that professional professional license have to be held in an llc or an entity such as that corporation or individually so by putting an llc and have it again there now the structure we can do is that the trust because of the nature of the structure of the llc the trust can be a 90 percent limited partner with that llc and then so there's two things we do in this is that we take the assets of that llc whether it be tangible or intangible assets and we sell them to the trust and when you say and a lot of times in a lot of businesses the vast of what the value is is the intangible it's client databases it's strategic relationships that you spent your lifetime emails email list systems processes software um you know instruction manuals yeah all that type of stuff right i mean those those are all intellectual capital and they're they're intangibles but they're really where the value is so now as they're in the trust they're protected nobody can tackle those but second of all the beneficial trust now can lease those assets to the llc that it needs to conduct that business that lease can be established for up to 70 of the net income for the prior period of that business that llc business so now what we're doing is we're the llc is establishing an expense to pay that lease so that's an expense for the llc that lease payment to the trust is passive income to the trust so now we've taken and converted active income into passive income that's all what the beneficial trust is the beneficial trust and he gets deferred for in perpetuity within that beneficial trust using the extraordinary dividend in the trust structure so that is you know huge now we've got 30 percent left now here's where it gets really exciting is that that 30 percent that's left in there the trust is a 90 limited partner in that llc so 90 of that 30 percent is going to get distributed back to the trust via k1 distribution and that k-1 distribution to the beneficial trust is passive income and that trust is going to defer that for in perpetuity within the trust so that leaves me three percent of the whole or 10 percent of that 30 percent that the trust that the llc now is going to have to pay taxes on and a lot of times that's below the threshold to have to pay any tax wow so that is huge from a tax benefit now all of that can happen in that business that business can be producing any type of active income and we can use that structure in an llc to do that but what about a business trust though because i know i know you can do that with the beneficial trust yes and maybe if they're not making a lot of money maybe that's the better option right but if somebody has a large business a lot of a lot to lose right because that's really what it comes down to is that with the llc there you still have that liability yes right they can't what is what is the benefit of somebody purchasing a business trust and say and taking that structure instead and foregoing the llc absolutely is a great question we get this a lot josh and the so the llc while it works a lot for the smaller businesses and certain things we have a license tied to it it has one big vulnerability and that is since all the assets are in the beneficial trust nobody can attack the assets they can't get them right but let's say he got sued the llc could get a judgment against it for future earnings and they could attach future earnings in the llc and that would not be good in the business trust it has these benefits one is that it cannot be attacked in any way shape or form no one can attack future earnings in that business on any level it's got the highest level of penetration and it's based on contract common law as well okay constitutional law so you both your trust and all your entities now are sitting on that side of the fence if the llc you've got like one fence and one foot in the you know contract constitutional line and one in the legislative law so and the other thing about the business trust is that the business trust can handle um a lot larger business the leaseback amount of money could be in the millions okay or hundreds of millions if need be okay and it's not going to get scrutiny by the irs or whatever it's going to be be tighter the asset protection is better nothing can penetrate it so if to a business owner you would say the business trust is going to give you the maximum it's going to give you asset protection for your business yes and another aspect is that let's say you got let's save a business you have partners okay doing partners and distribution of funds in the llc working with the trust to maximize the benefit for you from a tax perspective of the trust it's hairy in an llc because of how the trust has to be making the payments on the asset it has to own the asset to be able to get a benefit and has to be making payments on it it gets a little hairy in the structure of that and it can get messy with the business trust it's real simple and the business trust you can have as many properties many businesses you want many different types of structures of investors in that and what happens is that the true business trust is always going to own that asset as far as property there's other assets that of your personal ones you could put in the business in the beneficial trust and still do a lease back deal right but you're going to have you know properties in the trusted owns and then the people who invest in that they're going to become beneficiaries of that business trust and you're going to have an operating agreement within the business trust that specifies how the district distribution of profits happen within that property or that investment or that business and how expenses in that are handled so the operating agreement spells that out each one of the investors now or you know are will say partners those investors become beneficiaries and that's how those funds distributed now if all those investors were real smart they'd all have beneficial trust and make those beneficial trust beneficiaries because then when the money is distributed from the business trust that's all it's going to be right now and now they're not going to pay any taxes versus if it went to them as an individual or an llc then they're taxed at the regular levels at the regular level and they have a and they'll have additional asset protection and everything else so sure those are the those are the real benefits of the business trust so lastly when it comes to selling assets actually into the trust let's say i am currently a real estate investor and i currently have properties in my name i currently have some properties maybe in an llc name what is the process especially if i because a lot of my clients they own a lot of you know llc's yes and they've got different properties or jv partnerships in each different one what's the process of selling those assets now to the trust do i have to can i sell them right into the trust or is there something else i got to do first yeah you can't sell them directly into the trust and the process you have to do is you always have to take that asset from the llc or the corporation whatever entity it is and you need to sell it from that entity to you first you let's say being the trustee okay of the trust and that's going to be sold again for cost minus any depreciation plus any improvement the same as we talked about before we talked about if you had a business okay best way to do that would be to take your financials look at your depreciation schedule it's going to list all your assets and show what the depreciation is what the cost base is it's going to show what owner equity is okay and the thing and then you're going to sell that in a bill of sale and it's going to offset the owner's equity in the thing and so now the assets be you know come to you now once it's to you you're going to do a bill of sales selling it from you into the trust for the same amount of money same same list of bill of sale and the assets and whatever whether it be property or whatever if it's got a warranty need and you would create a warranty deed going from you to them that you had doing moving so really the process is just happening twice it's happening twice it's the same process right same price going from the llc to me the individual being the trustee and then for me to the trust yeah and there's absolutely there's a couple of reasons for that but one of the biggest reasons is that when you do that bill of sale and you sell it in the trust that's creating a promissory note in your name if the llc sold the asset to the trust then that promissory note would be to the llc okay and now you wouldn't have access to the llc would have access to it and then the llc could be subject tax on so that you you need to have it come to you and then you to the trust and then to get the benefit of the promissory note value in that thing that you can pull against through the rest of your life on the trust this is why it's important that iws includes the accountant absolutely because if people i mean even if they're watching these videos the first calendar year it would probably be in everybody's best interest at least i did when i was a new client right i would be calling them all the time for the first time that i do anything just to make sure even if i'm calling them for 10 seconds to say hey is this form proper right or or even reaching out to you as the senior trust strategy it's just knowing they have a team of people that they can talk to just to make sure they're doing it right the first time because i see a lot of people the mistake they make is they come in they don't watch the videos they don't learn how to fill the forms out and they just kind of wing it right a lot of times in life we do things without following direct especially guys right we don't need the instructions and they might just go fill out a bill of sale stick that in the trust and then maybe they get sued down the road and that was property right and they needed to do a warranty deed like they really need to make sure that that first year they utilize our service and the support that we offer and by doing that they're going to learn this trust and how to do these documents and they'll be able to do it forever forever and then they teach that to their kin and right and another goes on for generations yeah and another value of this is that since it's not you know subject to all the rules and regulations of the legislature it's not a moving target field all the time right you know once you learn how to do something it's going to be done the same way you know years and years and years down the road it's not changing and so um and it's a lot simpler than i mean because of that it's a lot simpler to operate than a corporation or llc or whatever you just got to learn you just got to learn just a new new trick it's kind of like how the government programmed really one generation to rig the whole system right they just got to program one generation on how they want things to work right yes with their money system and then that's your parents and your grandparents who taught you and you teach your kids and it goes on and on but now with this trust people literally have to relearn or like reboot the computer system because they're learning a whole new way of operating outside of the rigged system absolutely very well said that is that's so true and again you know our goal is to continue to add videos like this and build out our learning management system and and to make accessible you know we're an education organization to train people more and more give more depth cover in depth all the different forms and everything else so sure that's a good reference point to come to so last thing i want to cover real quick is and again people have just gotten their trust now and we're learning how it works how important is it for people to get i'd say their most important assets in their first right like example would be their personal home vehicles stock portfolios investments really anything that could come up in a lawsuit right would be really be the first things you would want to get in there right away right because then they're getting that asset protection you want to get out there's two things one you want to get asset protection that's key on those assets but the other thing is the tax benefit i mean if i have a start stock portfolio and i'm pretty producing passive income off from it in capital gains i want to have that transferred as soon as possible so you're saying just because i have the trust doesn't mean the tax benefit starts then no because i think a lot of people think hey i received my trust and now i have all this tax benefit right again the foundation of the trust is the trust has to physically own that asset and it's time sensitive so sooner it owns that data that trust it's on there it's documented by a bill of sale that's notarized or whatever okay now it providing the financial tax benefit from that date on and asset protection from that date on it so you're saying i can't back date this yeah there's no back dating so i can't like buy a business trust today and go all the way back to last year no there's there are some things we can do because it depends on the structure of the business um and how income flows and that on there you can get a little bit of leeway on there a little bit of benefit right and we can consult with with our accountant on that you know depending upon the nature of the business and that sometimes a little bit of leeway on there but it's not you just need to know you you want to take action now and get in there now the sooner it's in there the sooner you get the benefit exactly right awesome well i think this is valuable information for everybody so thanks for taking the time thank you you bet josh thanks you