Transcription
These are the three parts of all trusts. It holds on three legs. The settler, you, is like, "Okay, I want to go and set up a trust."
This comes from the Middle Age, where you had the kings and the castles and the knights. And the knights had to go to war. When they go to war, they're going to be out for 6 months, 8 months, maybe they never come back. So, they want to make sure that all the assets that they collected being knights during their lifetime, if they die in the next war, they want to know that their family, their wife, that everybody is going to be taken care of.
They had to put in a piece of paper what's going to be the arrangement, what's going to happen with all of their assets. Six houses that I have, this piece of land, this little castle, this blah blah blah blah blah blah that I have. This one is going to go to my wife, this one is going to go here, or in the next 50 years, you're going to start selling this one to generate the money to pay my wife. In the next 10 years, you will sell this one to generate the money to pay my kids. In the next 10 years. So, it was a plan for 50, 60, 80 years.
They had to put this in the hands of the trustees. The white hands that were the ones that would execute the orders of the settler, the knight, while he was away. And make sure that whatever he wanted is what happened. So, it's like the barrier between them and the beneficiaries.
Because if the beneficiaries, let's say the kids in today's age, go and say to the trustees, to the law firm, "Oh, my dad, I know he has here like a million dollars that they want to give us like a thousand every month, but I want to make a bigger purchase. Give me 5,000 this month." The trustee, a good trustee, will say, "No, let me check the document. No, it says no, it's just 1,000." "Oh, I want this the the wife." "No, but my husband, he did this, this, and now he's married to another woman." "Let me see. No, it says that this is what has to be executed."
So, these people, the trustees, usually the law firm, are the ones who are going to make whatever you said needs to happen needs to happen. The more we spoke all the conditions, the more assets you have, the more paragraphs there going to be. In case of my house happens this, do this. In case of my house happens this. So, for the house, maybe there are 10 pages just defining different options of what can happen to the house. If you have three kids, you need even more articles. Kid one, kid two, kid three. Like, you can add pages and pages of options. Just if this hypothesis happens, do this. If this happens, do this. So, they need to have a full SOP to act in your behalf legally and represent you in case something happens to you.
In case you go to court, listen up. There are jurisdictions where to sue somebody, to present the case, you need to put a deposit of at least a hundred thousand dollars with a local lawyer. So, crazy man that tries to go after you and wants to present a lawsuit needs to hire a lawyer in the Cook Islands and put a hundred thousand dollars deposit. That's, and this is the third thing that's going to blow your mind. If you lose because you're full of you lose all the money and you pay for the expenses of the lawyer of the person who won. So, imagine who wants to sue Cook Islands Trust and Nevis Trust. How many people are suing others through these structures?
Setting these structures, yes, is expensive, but again, depending on your net worth, it's justifiable at some point. What kind of net worth levels are we talking about here and here and here? You start with this one. Just creating these LLCs, as we said, 1K and 1K, you can create 12 LLCs that already give you the ability to do this.
So, you add money into this thing like if it was a big mansion that you built over years. You start with the basement, then you add one room, but it's already in the master plan of the architect that you know that in X amount of years, when you can deploy X amount of money, it's going to look like this. Here, when you need you have something valuable to hold. If you don't have anything to hold, the holding company is worthless.
Well, let's say that you want to protect these assets over here, right? So, if you have a home, I would say that that would be a a threshold to get this this setup. One important asset inside of each one.
>> Is it just easy to put your house into an LLC?
>> Yes, you buy it in your personal name, which is what I recommend everybody. It's a pain in the ass. I mean, you can do it, it's a pain in the ass to buy with a company directly in many countries. Many people want to sell to to individuals, but then when you buy it as an individual, as soon as you receive it, you transfer it to your LLC, which is usually much faster.
It's legal to have houses, have cars, and assets inside owned by companies. Example, we had a client, we had to create a structure similar to this for a house in Brazil. In Brazil, he was not able to own the house with a US LLC. So, we had to make a CNPJ, it's like a Brazilian LLC. It's the same kind of So, the Brazilian LLC was owned by a US LLC that was owned by a holding company, you know? So, depending on the country, you will have to make one extra layer here, which is the local company.
How much is it to set up a trust? A trust is like a suit, and that's the best answer I can give you. Why? Because a suit you can buy it on the shop, and it's going to be cheap, and it's going to be generic. If you want a suit that has You buy it from the shop, but then they tailor a little bit, that's going to be an extra price. If you want something made from the beginning, that's an extra price. But, if you want it in the UK with the best tailor, blah blah blah, that's going to be extra, you know? So, you can set up a trust from, let's say, 5,000, 6,000, 10,000. I've seen 25, I've seen 50, I've seen more than 100,000.
>> Yeah, makes sense.
>> So, if you want this tailored to you, you want to book a time, a call with us, a discovery call, you can do so in the description down below.