How To Make Your Trust Own Everything - A Detailed Explanation

Hello everyone, welcome to the Wealthy Trusty webinar. I'm super excited that you guys are here tonight. So tonight, I am going to be educating you guys and teaching you guys how to build wealth using a trust. You guys, and so a lot of us, we've heard the term trust, but we're not familiar with what a trust is. So tonight, I'm going to be teaching you guys so that you guys can know and understand what a trust is, so you can make the best decision for you, your family, your business, to see if a trust is something that you need.

Okay, so first, allow me to introduce myself. My name is Christina Evett. I am a trust strategist. I have been a trustee since 2015, you guys. And so the way that I actually became a trustee was through real estate. So I was actually a registered nurse. So I was a nurse for 8 years, and at that point in time, I was in my field for about 2 years. And I was burnt out. I was burnt out because I was living paycheck to paycheck. I was literally on like, in that rat race situation because I just couldn't see the way out. And so I was living paycheck to paycheck. I was working 5 days a week, 12-hour shifts, and I was spending more time in the hospital with my co-workers than at home with my one-year-old baby. And so I was very frustrated at that point in time, and like I said, I was burnt out after only 2 years of nursing, but being overworked and underpaid. So I told myself, I said, I need a way to make passive income, and I need a way to get a second stream of income because me just depending on the hospital and my paycheck is, you know, is not going to be sustainable for me. So I made a promise to myself and I told myself, I said, I'm only going to be in this career for 10 years because I'm going to find a way out.

And so what I did was, I actually went to a seminar where they were teaching about real estate investing, and they were specifically teaching about how to flip houses. So I took this three-day workshop, and I learned in three days more than I ever learned in my entire life on how to actually flip houses. And so I ended up signing up for mentorship, and after 6 months of that seminar, I bought my first property. And so my mentor, he ended up being my hard money lender. So he put up the money for the property. So I ended up buying a little two-bedroom, one-bath house for $89,000, and I flipped it. I renovated it very nicely. I sold it for $235,000. But before I did all of that, he told me, "You need to put this property into a trust." And I didn't understand why. And at that time, I was young, I was 25, and I've never invested in real estate before. And so he said, "I needed to protect the property so because it was going through renovation." And so anyone, the subcontractors, the contractors, anyone could have gotten injured while they were renovating this house. And the minute that they get injured, they want to sue you. Why? Because the United States is a super friendly country. And so I didn't want to take that chance for someone to be able to take away my very first property. So I set up a trust, I put that property into a trust, and I have been operating as a trustee ever since, you guys, and been protecting all of my assets.

With that being said, right now, what I'm going to do is I'm going to teach you guys. I'm going to go through a short presentation to teach you guys how to actually set up a trust, right? What the steps are involved so that you know what you would be getting yourself into.

Okay, so with that being said, allow me to share my screen here. And like I said, I'm going to go through a short presentation, give you guys, you know, the information that you need, and then after that, we can do a Q&A.

Okay, so let me share my screen here. Oh, one second. I got to pull it up. There it is. Okay, there we go. All right, there we go. All right, so the first thing that we're going to discuss is what a trust is, okay, you guys? So I want you to know that a trust is an entity. So a trust is a living, breathing entity, just like how you are a living, breathing entity. And so the way that this entity comes into life is by way of a contract. So a trust is a contract. It's in black and white, it's on paper. And there are several different parts to this contract. So the parts that I want you to know that are very important for you to understand right now is first is the Declaration. So that's where you're declaring what the entity is, and you're declaring what it is not. So you're declaring that it is a trust, and you're declaring that it is not a corporation, that it is not an LLC or a partnership or nonprofit or any of those other types of entities. So that's the first part of the contract. The second part of the contract is the Indenture. So that is where you're putting all the rules and regulations or the bylaws, right? So how you actually want the trust to be operated, that is what you're going to be putting in the Indenture, okay, guys?

So now that you understand that it is a contract, right? There are several different parties involved in this contract. So let's go through that. All right, so the first party is the Grantor. Other names for Grantor is Settlor or Trustor. So that is the actual creator of the trust. So that individual or entity is the person who's actually creating the trust for the benefit of somebody else. That other person or entity is the Beneficiary. So that's the Grantor.

Now let's move on to the second party, which is the Trustee. So the Trustee is the controller of the trust. That is the person who's actually going to be controlling the assets that are placed inside of the trust and going to be operating the trust on a day-to-day basis. So if you are going to choose your position within those two, you want to choose the Trustee.

And then the last party is the Beneficiary. That's the inheritor of the trust. So that is a person who is actually going to be receiving the trust, receiving the assets that are inside of the trust once the trust is terminated. So the trust is going to exist for a certain period of time. So you have an establishment day, which is the day you created it, and then you have to choose a term. So you can operate the trust for anywhere between a minimum of one year all the way upwards of 100 years. So then once that 100-year mark is up, if you let the trust expire, because you don't have to let it expire, right? You want to create that generational wealth, so you kind of want to extend the trust for as long as possible. But if you let it expire, then those assets go to the Beneficiary. So the Beneficiaries are the individuals that are going to be benefiting from the trust.

Now let me tell you the different types of trusts. So there's hundreds of trusts out there, so you have to choose the best trust for you, for your family, for your business. So I'm going to give you some categories that the trust generally fall under. So the first one is Express versus Implied. So an Express trust is a written trust, you guys. So that is in black and white and it's on contract form. The Implied trust is an oral trust. So that means that there's no contract attached to it, and we're not even sure if it's going to hold up in court because it's an oral trust. But it is possible to make oral agreements between the Grantor and the Trustee.

The next type of trust or category that I want to tell you guys about is Simple versus Complex. So a Simple trust is shorter in nature. So it has not that many bylaws in it, and the Trustees are required to give distributions to the Beneficiaries. But on the other hand of that is a Complex trust. And so the Complex trust is longer in nature. It has more provisions inside of it, and with that type of trust, the Trustee is not required to give distributions to the Beneficiaries.

Now the next type of trust or categories that I want to tell you guys about is Discretionary versus Non-Discretionary. Right? So a Discretionary Trust is where the Trustee has full discretion to be able to make decisions for the trust that's going to be beneficial for the trust, but those provisions or those rules and regulations are not inside of the contract. And on the other side of that, you have Non-Discretionary, which means that that individual or the Trustee is not able to make decisions for the trust because it's not inside of the contract.

So the next categories that I want to tell you guys about is Statutory versus Non-Statutory. So a Statutory trust is a trust where there are state statutes embedded inside of the trust. So you know how your state has different laws? Those laws are called statutes. And so those statutes are actually inside of a Statutory trust, which means that that state gets to regulate that trust. Now, times out of 10, that Statutory trust is registered with the state, which means that it is a public entity, and anybody and everybody is able to see that your trust exists. With a Statutory trust, you're only able to use it in the state where it has been established.

So now on the other side of that, you have Non-Statutory. So Non-Statutory means that it's operating in the common law jurisdiction, not the statutory law jurisdiction. And so what that means is that there are no state statutes inside of the Non-Statutory trust. So because there's no state statutes in there and it's operating under common law, you can actually use it in any state that you want. So you can set it up in Florida but use it in New York if you would like to. So that means that the state doesn't have jurisdiction over your trust, and it doesn't have the power to regulate your trust either, which also means that your trust can maintain its privacy because it's not going to be registered with the state, which is good.

And then the next categories that I want to tell you guys about is Revocable versus Irrevocable. So with a Revocable trust, that means that the Grantor has the power to be able to revoke the trust or things that are inside of the trust. So that means that if they wanted to terminate the trust, they can do that. If they wanted to remove the Trustees and Beneficiaries, they could do that. If they wanted to take back assets that they placed into the trust, they can do that. And if they wanted to make changes to the trust, they can also make changes to the trust. And because they have all of this flexibility, all of this administrative power to be able to do those things, if there are any creditors that are associated with the Grantor, those creditors can actually come after the Revocable trust, which means that your assets are not fully protected with the Revocable trust. And if that trust was to end up in a lawsuit, the judge can decide to pierce through that trust because it's revocable. If the judge pierces through that trust, that means that now you are going to be forced to bring that trust to court, and now it's going to be a part of the public records, right? Which means that everybody's going to be able to see all of the contents in the trust, all of the assets, who the Beneficiaries are, and it's going to now, everyone is able to see the net worth and everything that's involved with the trust.

So now, on the contrary to that, you have an Irrevocable trust. With an Irrevocable trust, the Grantor is not able to terminate the trust. They are not able to take back property that they put inside of the trust; it would have to be sold back to them. They also cannot make any amendments to the trust, and they cannot remove Trustees, Beneficiaries, things of that nature. Which means that if there were any creditors that were to come after that trust, because it's irrevocable, they cannot come after that trust. So that means that your assets are fully protected with an Irrevocable trust, and if that trust was to end up in a lawsuit, then the judge would most likely decide not to pierce through an Irrevocable trust because of contract law.

All right, so let's move on to the different steps that it takes in order for you to actually create a trust.

Step one is that you need to determine what type of trust you want to create. So I just told you a list of different categories that every single trust falls under. So the type of trust that I recommend is a trust that is complex in nature, that is expressed, so it's written, that is discretionary, that is non-statutory, and that is irrevocable. So a trust can be all within all of those categories. So that's the type of trust that you want, and that is what we call the bulletproof trust. That's the trust that's actually going to hold up in court and actually protect your assets so that creditors won't be able to come after your assets.

So now let's move on to number two, where you are going to then determine the name for the trust. So now that you've determined the type of trust that you want, right? Now it's time to name the trust. So two things I want you to be aware of. The first thing is, do not name the trust after yourself. A lot of people, they will name it, you know, if your name is John Doe, they'll name it the John Doe Trust. That is definitely not what you want to do. Why? Because you want to maintain privacy, you want to maintain obscurity, right? And so you don't want people to know that you are associated with that trust, which means that you actually do not want to have your name associated with the name of the trust. Because you don't want people to know you're associated with that. The second thing is that the actual trust doesn't have to actually end in the word "trust." So the name doesn't have to end with the word trust in it. So you actually don't want even people to know that that entity is a trust. That's how private you want to operate when you have this type of entity. And then, so now that you have determined a name for the trust, usually people will use terms like Legacy, a Dynasty, things like that, or Holdings, something like that, or they'll use their initials. So just think about, you know, other ways that you can incorporate a good name for your trust.

So now you want to appoint a Grantor. So the Grantor, if you are creating an irrevocable trust, you cannot be the Grantor and the Trustee. So you have to appoint someone else to be your Grantor so that you can be the Trustee. Why? Because the Trustee has all the power and control, which is what you want. The Grantor has no power and control for an irrevocable trust. So you're going to choose someone who is like a neighbor, a best friend, a coworker, you know, someone generally who's not related. But if you can't find someone who's not related, then you can choose a relative.

So now you're going to appoint yourself to be the Trustee. So you're going to be the person who's controlling the trust. And then you're going to choose Beneficiaries. So typically, those Beneficiaries are going to be your children. And then you're going to choose a Successor Trustee. That person is someone who's 18 years or older and who's actually able to take over after you in the event that something happens to you, right? So if something happens to you, then you need a Successor Trustee who's going to pick up where you left off.

Number three, we're going to create the actual trust agreement, right? So that is us actually creating this contract that we're about to legalize and operate. So how do we legalize it?

Number four, we notarize the trust. So the trust needs to be notarized by the Grantor and the Trustee. So those two individuals are the two parties involved in that trust agreement, and their signatures need to be notarized in the trust for the trust to be legalized. Once the trust is legalized, then that means that you're able to start operating the trust.

And so the first thing that you want to do is you actually want to open up a bank account for the trust. So that is what we call a trust fund. And so this bank account can be a checking account, a savings account, a money market account, a cash management account, right? And so it can be with any type of bank, credit union, or financial institution that offers trust accounts. Not every single bank offers trust accounts. And so what you're going to bring to the bank is a Certificate of Trust, which is proof of identity that the trust actually exists, and the EIN number, which is a nine-digit number that you get from the IRS for banking purposes.

So number six is that you are going to actually transfer assets into the trust. So once you have established that trust bank account, now you can start moving assets into the trust. So what does that look like, right? So the assets that you're going to move is, you can move, you can put any assets that you own inside the trust, meaning real estate, a vehicle that's paid off that you actually have the title to, you can put furniture, you can put jewelry, you can put books in there, you can put any type of royalties, you can put cryptocurrency, you can put cash or any other type of fiat currency. So those are just to name a few of the things that you can put. You could also put like retirement accounts too, like 401ks, Roth IRAs, insurance policies, things like that.

So let's just say that you are choosing to put your house into the trust, your primary residence. Then what you're going to do is you're going to quitclaim deed your property and you're going to gift it to the trust. So now what you're going to do is you're going to sign over that you are changing the trust, right? So you're gifting the property to the trust. Now you're going to create this quitclaim deed, and what's going to happen is you're going to sign your personal name and saying that you are deeding over the property into the name of the trust now. And now you're going to record it with the county, and the county is now going to be able to change the ownership to reflect that the new owner of that property is the trust, and that you're no longer the owner, which is good because the owners, their names are a part of the public records, and so anybody and everybody is able to see that you're the owner of that property. So now that you actually deed it over into the name of the trust, now everybody's going to see that their property is owned by a trust and not by you, which is ultimately going to protect the trust because now they're not going to know that you're associated with that property.

So let's move on. So the number one reason why you actually want to create a trust is for asset protection. Okay, asset protection, as well as privacy, are the reasons why you want to create the trust. So it can actually protect you from bankruptcies, from divorce, from foreclosures, from heavy taxation, from lawsuits, and even probate.

So let's just break down some of these, right? So the first one I want to talk to you guys about is divorce. Right? So divorce is, unfortunately, a transfer of wealth, you guys. And so a lot of us, we don't know that a divorce is a lawsuit between two individuals, two spouses. And so sometimes one spouse will end up with everything while the other spouse ends up with nothing. And so you want to protect yourself in the event of a divorce, right? And so the way that you can do that is by setting up a trust and by putting your assets in the trust. Why? Because the trust is a separate entity from you. So the divorce will only include your assets that are in your personal name, meaning if you had a house or a car or 401k, all of those things that are in your personal name, that will be included in the divorce. But whatever is in, whatever is owned by the trust is excluded, because the trust, since it's a separate entity from you, it can't be pulled into the divorce. So if you have, you know, 10 houses and five retirement accounts inside of the trust, none of those assets can be put into jeopardy and pulled into the divorce. So you want to definitely protect yourself in that type of situation.

On the next one is heavy taxation. Right? Why? Because a lot of us, we are giving away half of our income. We're giving away half of our income, especially if we're living in these high taxation states like New York and California. And so instead of us giving away 50% of our income, we want to reduce our taxes, and we can use a trust in order to reduce our taxes. So one of the trusts that we use within our structure is a nonprofit trust. And per the IRS, you can actually donate up to 60% of your annual gross income to a nonprofit, which means that you can donate up to 60% of your W2 income, your salary, to your trust. So let's just say that you generate $100,000 per year, you can donate up to $60,000 to your trust, which means that now instead of you being taxed on the $100,000, you're only going to be taxed on $40,000 because $60,000 of it was donated to the trust. So that would actually put you in a position to where you're going to be saving thousands and thousands of dollars on tax. And so that money that you would have already gave to the IRS, you can actually keep it and allocate it somewhere else, like to investments, to investments in real estate and things like that, so that you can grow your wealth efficiently and effectively.

Okay, so let's move on to lawsuits, right? Because we live in America, you guys, and America is a sue-friendly country. And so you want to put yourself in a position to where you're not waiting until you're getting sued to protect yourself from a lawsuit.

So with that being said, let me give you an example. So let's just say that you are a business owner, entrepreneur, and you have an LLC. Right? What does LLC stand for? It stands for Limited Liability Company. So that means that that company has limited liability. So who do you think has the other half of that liability? The other half of that limited liability, it's you, the owner. So which means that you'll be liable for anything that happens with the business. So let's just say that you have a customer that decides that they want to sue your business. So what can happen is, because your business, your LLC, is a part of the public records, all they have to do is go to the Secretary of State, do a quick search, put in the name of your business, and boom, your name shows up as either the authorized member or the manager of that company. Right? And so now they decide that they want to sue the business. Right? So now the business goes into a lawsuit. And what happens is, let's just say that the business loses the lawsuit. Right? And so now you have a judgment against that business. What could happen is, if you're not able to, or if the business, the LLC, is not able to fulfill that judgment, that judge can pierce through that corporate veil. So that limited liability protection that you had, the judge can pierce through it. And if the judge decides to pierce through it, then they'll come after you, the owner of that LLC. If they decide to come after you as the owner, that means that anything and everything that's in your personal name is up for grabs. So that means that they can garnish your bank account, they can garnish your wages, they can also seize your assets. You don't want that to happen.

Okay, so what you want to do is you want to protect yourself. And the way that a trust comes into play with this situation is you want a trust to be the owner of that business. So instead of you being the owner, you want to remove yourself as the owner. You want to put the trust as the owner of that business. Why? Because the trust is going to take full liability for that lawsuit. Right? So if someone decides to sue that business and they pierce through the corporate veil, then they're going to go after the trust and they're not going to go after you, which is what you want. You want that first layer of protection between you and the business that you're operating.

So let's move on to number six, which is probate. So a lot of us don't know that we're all going to end up in probate. Right? So unfortunately, if we don't have our affairs in order, then probate is something that, you know, that we're going to be faced with. And so, a lot of us don't know that, you know, if we have these assets, for example, you have this primary residence, this house, and it's in your personal name, right? You, a lot of us don't know that there's no way for that house that's in your personal name to be transferred to your children's name without there being a court involved. Right? And so that's what the probate process is. And I'll briefly go into it. Right? And so the only way for you to avoid probate, because it is avoidable, is for you to set up your own estate, for you to set up your own trust. Right?

So this is the way that it works, right? So let's just say that you have a will. A lot of people think that a will is good enough, but unfortunately, it's not. A will can't own anything. A will is just a wish list where you put that you want your daughter to get your house and your son to get your car. Right? And so a lot of us, we have a will and we think that, oh, all of my affairs are in order, but in fact, they're not. Right? So you only have a will, and you have all of these assets. You have a house, you have a car, you have a million dollars in the bank, you know, you have all these assets. And so you decided not to wake up tomorrow. Well, the first thing that's going to happen is the state where you live, where you're a resident at, they are going to create an estate for you. So if your name is John Doe, they're going to create that John Doe estate. Right? And so they're going to do that because you actually didn't do it yourself. Right? So you didn't create your own estate, and so you left it up to, you know, the state of Georgia to do it for you. And you really don't want to do that. Right? You don't want to leave it up to the state to create the estate for you. Why? Because what do they do? They create this estate for you, and the first thing that they do is your estate goes into probate. And they put all of your assets in that estate that they created for you. So your house, your car, the million dollars in your bank account, all of those assets go into the estate. And so the estate needs to be represented by a probate attorney, and it's going to go into Probate Court. And so the first thing that the Probate Judge does is pays off your debt. So let's just say you had student loan debt, you had credit card debt, you also had medical bills, hospital debt, hospital bills, nursing home bills, all of this stuff. Right? So you are thinking that your children are going to receive their inheritance, but in fact, the judge decides to start paying off all your debt. So now their inheritance is dwindling and dwindling. Right? And so what happens is, now that the judge has paid off your debt, now the probate attorney has their fees that are then going to be deducted from your estate, and then the probate court has their fees that are then going to be deducted from your estate. Whatever is left over is what your children get. They get the leftovers of your inheritance after you unfortunately drag them through the probate process. And that is highly unfortunate, and a lot of our children are losing their inheritance to probate. And so what you want to do is you want to have your affairs in order. Why? Because this whole entire probate process is avoidable by you actually creating your own estate, which is you creating your trust.

So now let's look at this scenario differently if you decided to get your affairs in order. So if you set up your own trust, and now your house, your car, and that bank account with the million dollars is owned by the trust. Right? And you still have this debt, right? You have the credit card debt, the student loans, the hospital bills, the nursing home bills. Right? And you didn't wake up tomorrow. Guess what happens? Nothing. Why? Because your, because everything is going to remain intact. So your house is going to remain in the name of the trust, and your children are the beneficiary. Your car, your bank account with the million dollars in it, is all going to remain intact in the name of the trust, and your children are the beneficiary. So now your children actually get to grieve in peace because they don't have to fight for your assets in court or even fight each other in court. They get to grieve in peace because they just lost the most important person in their life, which is you. And that debt that you had, that debt actually dies with you. So that credit card debt, that student loan debt, the hospital bills, that debt is in your personal name and it dies with you. Those creditors cannot come after your trust estate, especially if it's irrevocable. So that's why it's so important for you to have an irrevocable trust because you want to have your assets fully protected from those creditors that are going to make an attempt and a claim against your estate.

So let's keep moving on, you guys. So this is the wealth-building formula. This is how you're going to actually build wealth efficiently and effectively.

So let's go through this briefly. So I have three pillars here: I have Structure, I have Credit, and I have Invest. Let's start with Structure. So it's so important for you guys to be properly structured, right? And so if you're not properly structured, then you want to get restructured. And what does that look like? That looks like you actually having multiple trusts within your structure. Why? Because you don't want to put all of your, all your eggs in one basket, which means that you don't want to put all of your assets in one trust. You have multiple different types of trusts that they're designed for different reasons, and so you want to use them for different purposes.

So let me talk about the first one, which is a Business Trust. So if you are a business owner or entrepreneur, you definitely want a Business Trust. You can use this Business Trust in two different ways. The first way is you can use it as a holding company. So it can actually own your ownership interest in other entities like LLCs and corporations. So instead of you actually being the owner on paper for those types of entities, then you'll have the trust be the owner on paper, which, like I said earlier, is going to be your first layer of protection between you and that business, just in case somebody tries to sue that business.

So the second way that you can use it is by way of just operating a business. Right? So instead of you creating an LLC, because when you create an LLC, you have to go down to the Secretary of State's website and you create this entity, but you're actually giving the state the power to regulate your LLC. Right? And then you have to go back down to the state in order to renew that LLC every single year. When you can actually operate your business as a Business Trust, and you don't have to operate your business as an LLC or an S corp or C corp. So that's another way that you can use your business. You can just start it outright that way.

So let's just say that you have an LLC. Right? And so remember earlier I said you want to remove yourself as the authorized member. You want to put the Business Trust now as the authorized member of that LLC. Why? Because now the Business Trust is going to take full liability over anything and everything that happens to that LLC. So that's going to protect you because nobody is ever going to be able to come after you personally because the Business Trust is going to take full liability. And you're going to be able to still operate that LLC because now you're the Trustee of the Business Trust that owns it.

So let's just say that that LLC generated $100,000. Well, what you can do is you can do a K1 distribution and you can distribute all of that money to the Business Trust, which is the owner, because it's a pass-through entity. And so now that money is on the Business Trust level. And one thing I love about trusts is that you actually spend the money first and you're taxed on the leftovers. So this is definitely the way that you want to be taxed. You want to spend the money first. And so what we're going to do is $100,000 came in. So we're going to spend the money, right? And so we have administrative expenses, right? Or operating cost or expenses, right? So what does it cost in order to operate that Business Trust? Right? So out of that $100,000, let's just say it cost you $30,000. So now you have $70,000 that's left that you now have to pay taxes on. Because a Business Trust is a for-profit entity that's taxed. So the trusts are actually required to file taxes, and they file a form called a 1041. So you, as a person, you will file a 1040, but the trust is a separate entity from you. The trust files a 1041. And so generally, a trust is taxed anywhere between 10% upwards of 39%. So what you want to do is out of that $100,000, $30,000 is deductible for operating expenses. So now you have $70,000. So you're going to have to pay taxes on the $70,000. Or what you can do is you can actually distribute that $70,000 to the Beneficiaries. And now that actually puts the trust in a position to where it has a zero tax, 0% tax liability. And that $70,000 is now going to be taxed to the Beneficiaries.

So what we do is, as entrepreneurs and business owners, is we put our Family Trust as the Beneficiary of the Business Trust. Why? Because we generate the income in the business to be able to sustain our family. So that money needs to flow into the Family Trust so that we can take care of our children, which are the Beneficiaries. So that $70,000 is now going to be, that $70,000 is going to be distributed to the Beneficiary, which is your Family Trust. So now the Family Trust is receiving $70,000 in income. The Family Trust has to pay taxes. The Family Trust has to file a 1041. So with that $70,000, the beautiful thing about it is that we get to start over where we spend the money first and we're taxed on the leftovers. So now what are the operating expenses associated with the Family Trust? Right? So it can be, if you have your primary residence inside of the Family Trust, then what does it cost in order to maintain that asset? Right? So that means that you have utilities, you have taxes, you have maintenance, you have all of these things. And what does it cost for you to sustain the Beneficiaries as well? Right? So out of the $70,000 in income that came in, let's just say that you spent $60,000 in operating expenses and administrative expenses associated with the Family Trust. So now out of that $70,000, you're deducting $60,000, you have $10,000 that's left. So normally you would have to pay 10% taxes on that $10,000. Or what you can do is to reduce your taxes even more, you can donate it to your tax-exempt trust. So that would then put you in a position to where your tax liability for the Family Trust is 0%. And now $10,000 went to the tax-exempt trust. Because it's exempt from taxes, you don't have to file a 1041 as long as you're receiving those funds as a donation.

So this type of trust, we designate it as a 508(c)(1)(A) entity. And so there's other names that this entity is associated with or can be called. So it can be called a Ministry, it can be called a nonprofit, it can be called a church, it can be called any of those other types of names, faith-based organization. So there's a couple of names that are interchangeable, but it all means the same, which is a tax-exempt trust that is exempt from federal taxes. It can also qualify to be exempt from state taxes, city taxes, county taxes, property taxes, sales taxes, and other forms of taxes, but you do have to apply. But with the IRS on the federal level, you do not have to apply because normally you would have to apply for a 501(c)(3). But because there is a separation between church and state, this type of entity actually doesn't have to go through the 501(c)(3) process. It's automatically exempt. It's what we call the mandatory exemption for not having to file for a 501(c)(3). So that's what the 508(c)(1)(A) IRC code is. So if you're operating this type of entity, then just know that on the federal level, as long as donations are coming in, as long as the money that's coming in or received is labeled as a donation, then you don't have to file, you don't have to do a tax return. But if it's not labeled as a donation, anything over $5,000, you would have to file a 1041. So you just operate the way you want. This entity doesn't only have to be religious-based. It can be religious if you wanted to, but it can also be educational-based as well. And so this is the type of entity that you would actually donate your annual gross income. So the IRS will allow you to donate up to 60% of your annual gross income if you're a W2 employee. If you have a business, then the IRS will allow you to donate up to 25% of your annual gross income. So that means that that money is 100% tax deductible.

So let's move on to the next pillar, which is Credit, you guys. So with credit, you want to put yourself in a position to where you are using OPM, other people's money. And so the first thing is that because we have a nonprofit within our structure, we qualify for nonprofit grants and other forms of grants. So you want to definitely go down the grant route when you are leveraging this type of trust.

Now, the next thing is that you also want to build credit. So normally what we do is we just rely on our personal credit, which is nice. But you can actually qualify for higher lines of credit with a business. And because the trust actually receives an EIN number, it's going to build credit off of that EIN. So just like how an LLC builds credit off of an EIN, just like how a corporation builds credit off of an EIN, well then the trust does the same thing. It's going to build credit off of an EIN. And so now that's going to put you in a position to where you're leveraging a second credit profile, which is beautiful, and you're going to qualify for higher lines of credit because you're building business credit with the Business Trust. So these high lines of credit are like $25,000, $30,000, $50,000, $100,000. So that's the position that you want to put yourself in because now that will allow you to get funding, OPM, other people's money, use the bank's money in order to get the funding that you need in order to invest or in order to acquire assets, income-producing assets.

So now that's what we're going to talk about. So now we're going to move on to Invest. So these are the two assets that I love and recommend. The first one is the Index Universal Life insurance policy, and the second one is real estate. So you have your liquid asset, and then you also have your tangible assets.

So let's start with the IUL policy. So the Index Universal Life is short for IUL. And a lot of people think that insurance is supposed to be utilized when you are dead. But in fact, insurance is supposed to be utilized when you are living. It has so many living benefits that you want to actually be taking advantage of now. So what are some of those living benefits? So the first one is that you get to build cash value, which I'll talk about. The second one is that your money is actually going to be growing tax-free. So you're going to be building cash value. So that means that every time that you pay your premium, a certain percentage of it, which is the majority of that money, is going to go into your cash value, which is like a separate bucket. One is going to go to the cost of insurance, the other is going to go into the cash value. And so now this cash value is actually going to be growing, compounding interest, and it's going to be growing tax-free, which is what you want. And then the third thing is that there's a death benefit attached to it. So your life is insured, and if anything happens to you, then there's usually a large death benefit that's associated with it, and that death benefit will go to your Beneficiaries.

So let's talk about this cash value. So when we're talking about the IUL, the Index Universal Life, the word "index" is referring to the market. It's referring to the stock market, specifically an index, and there's many of them, right? So you have the NASDAQ, you have the Dow Jones, you have the S&P 500. And the S&P 500 tracks the top 500 companies in this country, the United States. And so what happens is your cash value is actually going to be mirroring the market. So that means that the carrier, the insurance company, they are going to allow your policy to mirror the market and are going to match the market. So for example, if the S&P 500 is doing 8%, they're going to match that 8% and give you 8% return, 8% return or compound interest on your cash value. So now your money is going to be making money, which is putting you in a position to where you get to actually grow wealth. You are not going to grow wealth by you just working hard for the money and the money not growing. So you need to be able to put it into a vehicle where it can actually multiply.

And so the IL is is definitely a good place to put it. So what you want to do is you want to put yourself in a position to where you're going to pay yourself first. A lot of us, we do not do this. We pay ourselves last, which keeps us in that rat race situation.

So let me share with you the concept of you actually paying yourself first so that you can start to build the generational wealth that you talk about, right? And so what does that look like, right? So let's just say that you are a W2 employee. So you, um, you know, today's Friday, you just got paid, right? And so, so what is the first thing that happens when you get paid, right? So the first thing that happens is the IRS takes their withholdings, then the Medicare takes their, you know, their withholdings, and Social Security Administration takes their withholdings, and then you do a 401k contribution. So that's four different organizations that took money from your paycheck before you even got to see your paycheck. So after those four organizations took their money, you receive your paycheck, which is the leftovers. So now you receive the leftovers, right? And so where are you receiving these leftovers? That money is going direct deposit into your bank account. So let's just say you're banking with Wells Fargo, Chase, you know, Bank of America, the big banks, right? So now that money, let's just say it's $5,000. That $5,000 is being direct deposited into Chase bank, right? And so what is Chase doing with it? Well, your money went straight into Chase, and Chase is now lending it out for credit cards, for mortgages, for student loans, for car loans, right? And so what is Chase making? Chase is making 32% on that credit card. They're making 10% on that vehicle loan. And how much are they giving you for lending out your money, right, right? So they're literally giving you 0.005%, right? So they're literally giving you nothing for one, the bank getting richer off of them leveraging the cash that you have deposited into your checking account. So that's the, that's the first thing that you need to keep be aware of.

The second thing is that the banks, right, their number one investment is insurance. So it's called BOLI, bank-owned life insurance, right? And so if the bank's number one investment is life insurance, then your number one investment should also be life insurance, right? So if the banks are doing it and that's how they're getting rich, you should also be doing it too, okay?

So now that that $5,000 hit your checking account, what is the first thing that you do? Well, normally what we do is we go and pay our mortgage or our rent, right? We go and put gas in our car, pay our car note, put groceries in the refrigerator, you know, and then by the time we've, you know, done paying our utilities and the rest of our bills, then we literally, out of that $5,000, we literally only have $800 left. And then you just let that $800 sit inside of your checking account, right? And so that is the definition of the rat race, right? And so the only way to get out of the rat race is going to take a mindset shift. We have to get out of that mentality of paying ourselves last because who did you pay first? You paid the mortgage company, you paid the gas station, you paid the utility bills, right? The, the, the electric company, the gas company, you paid all of these companies first before you paid yourself first. So you literally paid yourself last and you got the leftovers, which was $800. So it's going to take a mindset shift in order for you to get out of that vicious cycle that you're in, out of that rat race.

And the, the way that you actually get out of the rat race is by paying yourself first. How do you do that? The way that you do it is when you get paid on Friday, right? That $5,000 that hit your direct deposit into your checking account, instead of you paying the mortgage company, instead of you paying the utilities and putting groceries and gas and all this stuff, what you're going to do is you're going to put that money into your life insurance policy, into your index universal life insurance policy. Why? Because that $5,000 is going to go straight into your cash value, right? Majority of it. So let's just say $4,800, right? Is going to go into your, um, cash value. And that money that's inside of your cash value is going to be compounding, okay? So that money is going to be making money for you. So, so now instead of you, um, you know, instead of you doing it the other way, that $4,800 is now going to be making the 8, 9, 10% that the market is doing, okay? And so that money is going to be growing, right? And, um, that is what you want. That is the position that you want to put yourself in because now you are putting yourself in a position to where your money is growing, right? And you've paid yourself first.

But you need that money in order to be able to pay your bills, right? And so what you're going to do is you're going to take out a loan from the carrier, right? So you're going to request a loan in order for you to be able to pay your bills, right? So now what's going to happen is the carrier is going to look at your cash value. They're going to see that you have $4,800 in there of, you know, of cash value. And so now they're going to issue you a loan, right? But they're going to issue you a loan from their reserves, from their money, okay? From their bank. They're not going to touch your $4,800 that is in inside of your cash value building and actually earning compound interest. So now they're going to issue you a loan, let's just say that is for, you know, $4,600, right? So you have $4,800 in their building cash value and they now just gave you a check or direct deposit into your bank account $4,600, right? And so now you are able to then pay your mortgage. You're able to then put gas in your car so you can make it to work tomorrow. You're able to then put, you know, groceries and pay your utilities and stuff like that, right? And by the time you're done, you probably have the $600 left. So you want to do it this way to where you're investing the whole $5,000 for before you pay your bills because if you do it the other way around where you invest the leftovers, you're only investing the $800 that you had left, right? So it's going to take you longer to compound off of the $800 versus off of the $5,000, because $5,000 because your $5,000 is sitting inside of your cash value working for you, earning compound interest.

So that's the concept of paying yourself first. This is not an overnight thing, you guys. This is something that is going to build up over time, okay? So you are going to be paying your premiums until you have that cushion to where you can use this concept of paying yourself first, okay? So it's extremely, extremely powerful, you guys. And that loan that you took from the life insurance company, it doesn't need to be paid back because that money is going to be directly deducted from your death benefit, okay? So just keep that in mind.

So now let's move on to real estate, right? So with the trust, the trust can actually take out a mortgage. The trust can own real estate directly. And so what you want to do is you want to actually have the trust sustain itself. You don't want to put yourself in a position to where you're constantly pouring in your W2 money to sustain the trust, right? So how is the trust going to sustain itself? By acquiring these cash-flowing, you know, in, um, um, real estate, right? Or these cash-flowing properties, right? And so one of the beautiful things that we use is a, um, Debt Service, um, DSCR loan, right? Debt Service Coverage Ratio loan, okay? And so that is a real estate loan for investment properties where the mortgage company will give you up to 80% of the purchase price. So now you only have to come up with 20% of the purchase price. So where can that money come from, right? So you can actually get that money from your business credit card. So remember earlier we said that your, you're going to put yourself in a position to use OPM, right? Other people's money. So you're going to use the bank's money in order to get rich versus you using your own money in order to get rich. So that means that you're going to build credit and you're going to leverage that credit. So let's just say that you got a credit card for $50,000. You're going to strip that credit card, right? You're going to take out the $50,000 from that credit card. And so the first thing that you want to do, and the first thing I would do, is I would funnel that money into my IUL policy. So now that money just went into my IUL policy and my cash value just went up by $50,000. I borrow it back out and then I'm going to use it as the down payment for real estate. So now I'm going to use it as that 20% down that I need. So now with the DSCR loan plus the business credit, plus the business credit card, you literally just actually got this property, right? With 100% financing, right? And you didn't use any of your own money in order to acquire that real estate. And that real estate is a cash cow. It is actually cash-flowing and bringing in income for the trust, okay?

But that income that's coming in, that rental income, what is the first thing that you're going to do with it? You're going to put it inside of your IUL, you're going to grow that cash value that is sitting inside of your policy compounding, earning 8, 9, 10% by mirroring the S&P 500. You're going to borrow it back out and pay your mortgage and that credit card, uh, bill, okay? So that is how you're going to build wealth efficiently and effectively utilizing these two assets as well as the trust.

So let's move on, you guys. How to actually transfer wealth, right? So a lot of us, we are walking around here talking about how we're building generational wealth, right? But we don't have the tools in order to build the generational wealth. So you need to put yourself in a position to where you own nothing but control everything. And I'm going to say that again because it's so profound and I need you to get this. You want to put yourself in a position to where you own nothing but control everything. That is you being a good steward of your wealth. That is what stewardship is, where you are directing your wealth down a certain path to where you, um, have the trust on everything and you control everything. That is what you want versus ownership. Right now, you are operating an ownership where you are the owner of everything, right? And so that's not what you want because it puts you at risk and it, it automatically puts you in a position to where your children are going to lose their inheritance or give half of it away to the probate process, right?

So be, instead of you operating an ownership, right? You have to understand that, um, let's just say you have a primary residence, right? That house, that house is going to outlive you, right? So if you didn't wake up tomorrow, that house is still going to be there. So what you naturally want is to control the house while you're still alive, right? And so you can actually achieve that by way of a trust. The trust is going to own the house, and you are going to be the controller of the house. So you get to still live in the house, absolutely for free, being the trustee of the trust, right? So that is a position that you need to put yourself in in order to protect your assets and your children's inheritance, okay?

So now let's talk about, um, TCU, right? How do we actually transfer the wealth? Because that's one thing we don't think about. We are so focused on making money. We're so focused on clocking in and clocking out. We're so focused on doing our 40 hours a week for 40 years until we're 65 years old. That's what we're so focused on. But we're acquiring the houses, the, you know, the, um, the, the investment accounts and everything like that, but we never stop and think to ourselves, how am I going to transfer this property? How am I going to transfer the money that's in this bank account if something happens to me tomorrow? All of that stuff is in your personal name. You don't want that. So put everything in the name of the trust. And the trust, once you establish it, it's going to actually create trust certificate units, T C Us, right? Trust certificate units are equivalent to stock certificates. So you know how stock certificates actually represent ownership in a corporation? Well, the same thing goes for T C Us. It represents beneficial interests in a trust, okay? So a trust is a living entity. We don't actually say that we own the trust. So we say we have beneficial interests in the trust, okay? And so your trust is going to generate 100 trust certificate units. And then what you're going to do is you're going to disperse those units to your beneficiaries. Let's just say that you have four beneficiaries and you want to distribute it equally. So you give each beneficiary 25 T C Us. That means that each beneficiary now has 25% of beneficial interest in that trust. Let's just say that that trust has a net worth of a million dollars. So I'm one of your beneficiaries, right? I got 25 T C Us. That means I have 25, um, um, $250,000 of beneficial interest of that trust that has a $1 million net worth, okay? So that's the way that that works, um, and that is how you're going to clearly identify, you know, how you're going to transfer this wealth, okay? And, um, that's how you are going to make your wills obsolete because you can then, um, say, you can then put on your trust who gets what.

So, um, the next thing we're going to talk about is preservation, you guys. So that's another thing that we do not think about, right? We never think about one, like we're only focused on making money, right? We don't think about how am I going to protect this money? How am I going to transfer this money or or this wealth or this, these assets? How am I going to preserve these assets or this wealth? Right? We never ask ourselves those questions. And so we're out here walking around talking about building generational wealth, but you don't have the tools. So what does it take in order to actually, um, build generational wealth the right way? It takes for you to establish a trust estate and it also takes for you to then protect it with life insurance, right?

So what does that look like when we're talking about preservation? Because you have to understand, your trust, right, is a living, breathing entity, but your trust can't run itself. It needs you in order to run the trust. So you are actually what we call a human asset or human capital to the trust. You're the VIP, the most important person, right? The MVP, the most important person in this trust, right? And so if anything happens to you, the trust is going to be suffering a loss, right? And so the trust needs to be compensated for that loss, right? So what we do is we make the trust the owner of the life insurance policy, right? Because the trust has all these assets. The trust has a house, the house has house insurance, right? Homeowners insurance. The trust has a vehicle, it has vehicle insurance, car insurance, right? The trust, but the trust has a trustee and beneficiaries. Those are human assets inside of the trust. So they also need to be insured, right? So if anything happens to you to where you didn't wake up tomorrow, then guess what, right? The trust is the owner of the life insurance policy, the payer of the premiums of the life insurance policy, as well as the beneficiary of the life insurance policy. So if you didn't wake up tomorrow, then that death benefit goes to the trust and now the trust is replenished with this $2.5 million death benefit that I just received because you didn't wake up tomorrow, right? So that's what that looks like.

So the trust, what's going to happen is the trust is going to take out a policy on every single person associated with the trust, meaning you as the trustee, your co-trustees, the beneficiaries, right? Now, which are your children, and all of the future beneficiaries, right? So those future beneficiaries, that's what we call trust fund babies. So let's just say that a baby was born into the trust today, right? The minute that that baby is 30 days old, we put an IUL policy on that baby, right? And so now the trust is going to be paying into that IUL policy, building up the cash value that's going to be compounding for years and years and years, okay? So that is what we call a trust fund baby. We need to normalize trust fund babies. It is an absolute beautiful thing, right? For your children and your grandchildren and your great-grandchildren to come into this, you know, this legacy that you're leaving.

So now that trust fund baby that you put an IUL policy on, right, when they were 30 days old, fast forward, they're now 18 years old. What do they need? They need to go to college. They also need, you know, a vehicle. So normally, what that process looks like is that 18-year-old is going to go down to the dealership, they're going to take out a vehicle loan, you know, um, and purchase this, this car through the dealership, right? And so they're going to do a loan for $30,000. They're going to be paying, you know, 15% interest on this loan, right? Something crazy like that, um, and start making $900 payments to the dealership. Or instead of them going through that whole process, because they are a beneficiary to a trust, they can actually take out a loan from the trust. So trustees and beneficiaries can give loans to the trust and also take loans from the trust, okay? So now that beneficiary is actually going to request a loan from the trust estate, okay, for the $30,000 that they need in order to buy this car. So the trustee is actually going to give them a promissory note, as well as a check for $30,000. So now what happens is that beneficiary is then able to purchase that car cash, and they are now going to be doing, um, giving small, um, payments of like $300 to the trust. So now the trust is making a little bit of interest, and they're getting, you know, monthly payments from the beneficiary, which is good. It's a win-win situation. But let's just say that a year down the line, the beneficiary no longer wants to make those payments. They default. It was actually a risk-free loan because the money did not come from the trust fund. That $30,000 actually came from the trust fund baby's life insurance policy. So that money originated from the carrier, the life insurance company's money, okay? Because that, um, beneficiary had that money in their cash value, okay? And because they took out a loan on the insurance policy, that loan doesn't need to be paid back because it's going to be deducted from the death benefit, which means that when that, um, beneficiary fires, that death benefit of, you know, $5 million is going to go straight to the trust fund, okay? So that made it a risk-free loan. That is what you're going to do in order to make sure that your wealth is preserved for generations and generations and generations because how many times have we seen it to where we have celebrities and athletes and famous families that their wealth doesn't even last the next generation? They either blow all the money or their kids blow all the money, right? And so what you, that's what you don't want. And the reason why that's happening in these families is because they don't have the right tools, which is a trust estate, you know, secured, as well as preservation tools like the insurance policies associated with the trustees and the beneficiaries. So that is what you need to do if you are intentional about building generational wealth and you actually want the money to last generations, right? Sometimes this money doesn't even last the second or third generation, but once you have these tools in place, it's guaranteed that it will because that death benefit is constantly replenishing the trust fund, okay?

So these are the books that I recommend: What Would the Rockefellers Do? That's a really good book teaching you guys to use trusts with your structure. The Art of Passing the Buck, Volume One and Two. You guys, be with us, you to it, don't even matter, okay? So The Art of Passing the Buck, Volume One and Two teaches you guys about trusteeship and how to actually operate a trust. Family Wealth teaches you how to establish a family office, you guys, so that you can build, um, so that you can build your business the right way and run your family like a business, okay? And then the last one is The Complete Book of Trusts, which teaches you guys about the different types of trusts. Remember I said there's hundreds of types of trusts, so you want to choose the right trust for you, your family, and your business organization, you guys, okay?

So now what I want to do is, um, I actually want to show you guys a quick little video on, oh, what happened here? Hold on. Okay, I'm going to show you guys a quick little video on a, um, on someone who took action on the information that I taught you guys today. Well, kudos to you all again. Christina, it has been a wonderful experience. I've been looking at your videos on, uh, YouTube for a while, and, you know, there are a number of people offering trusts these days, and, you know, I guess that's the big thing, you know, uh, don't own anything, control everything. That kind of, I didn't say it correctly, but that is the sentiment. And so the, it seems like the, the playing field is being leveled now from the rich and people who weren't privy to this information. So thank you for being such a great asset to a community that didn't, uh, have this information, and you made it so simple. Um, thank you for the recordings, uh, thank you for the step-by-step instructions, things that we can go back, go back and look at. So we do appreciate you, and thank you, Mondo. That's all right.

So take action on the information that I provided you guys. Switch tonight because it can actually be your new way of actually operating your business, right? You actually getting restructured the right way to actually to where you are protecting your assets and you're reducing your taxes, right? So you want to start operating the right way, and you want to treat this like a big business, right? You want to treat this like a Facebook, an Amazon, a Google, not like a little small Mom and Pop shop, okay? So this is, um, so I'm going to show you. So let's definitely work together, you guys. I do have a course where you can get all this information, right? So you have two options. The first one is do it yourself, right? So where you actually get 43 video modules, you get the login, um, for the course, and so it comes with the video trainings and with the templates that you need in order to set up your own trust. So it's the three trusts that I told you guys about that I recommend, right? Um, which is the business trust, the family trust, and the tax-exempt trust, right? So you get the video modules, and I'll show you what the course looks like in just a couple minutes. So you get the video trainings, and then you get to download the templates and learn step by step how to actually set it up. You get lifetime access to the course. So two, three years down the line, if you want to set up another trust, you're able to do that. You also get resources and ebooks. So the ebooks are the list of books that I just recommended. You get them in the ebook version. Some of those books are valued at over $800 just for one book, okay? So you also get resources that you need, meaning if it's time to file taxes, if you want to have a board meeting, if you want to transfer your assets, you get all of those resources. Plus, we have a community, you guys. We have a private Facebook community as well as a Telegram chat where you get your questions answered right away, as well as you get to build a community and have access to like-minded individuals. So our community is over 500 trustees. You get access to individuals that are doing exactly what you are, you know, about to do, and who has been, you know, operating within trusts for years. So the course is only $997.

And the second option is done with you. Done with you is where we do it together as a group, like what we're doing right now. So we show up on Zoom, and it's five days a week. It's a week-long workshop, okay? So it's, it's Monday through Friday from 11:00 a.m. Eastern Standard Time all the way to 2:00 p.m. Eastern Standard Time, okay? So on Monday, we actually set up the business trust together. So I actually break down every single paragraph of the trust. The trust is 51 pages, so we go through that so that you can learn the contents of the trust, right? And then we dive into Q&A. It's so powerful when you do it as a group because you get access to people that are asking questions that you didn't even know you wanted to know the answer to, okay? So on Tuesday, we set up the private family trust together. Wednesday, we set up the tax-exempt trust together. Thursday, I show you how to apply for the EIN with the IRS, as well as how to build business credit. And we have a guest speaker who's going to come in and teach you how to build business, um, how to get business funding so that you can actually fund the trust and acquire these assets, you guys, okay? And lastly, I show you how to have, um, have a board meeting so that you can open up your bank accounts, okay? And then on Friday, we focus on transferring assets. So we do quick claim deeds for real estate, we do bills of sale for vehicles, we do business purchase agreements and amendments with the Secretary of State, um, for businesses, LLCs, and stuff. And then we focus on infinite banking where I have a guest speaker who comes in, who's an infinite banking specialist, and they come in and teach you guys about the cash value life insurance policy and how to utilize it with the trust and how to actually earn this compound interest and grow your wealth efficiently, okay? So with that being said, you get hands-on assistance. You still get access to do it yourself, so you still get access to the course, the Facebook community, the Telegram chat, but you get that sense of security of knowing that your trust is set up the right way. And after the workshop, um, you get to book a one-on-one with me where I get to review all of your documents. So the workshop is only $2500, you guys. And so for those of you guys who are on the call, um, I'm doing a special to where you guys can enjoy 20% off, okay? In the next 24 hours. So if you go to the website wealthytrustee.com and you use the discount code TRUST20, then you can actually get 20% off of the prices that you see here.

So this is my contact information, right? So you can call, um, our community line, um, that the number that you see on the screen. You can also visit our website, wealthytrustee.com, and you can send us an email, info@swayswealth.com. And you can also visit us on social media. So I'm going to show you what the course looks like. I'm going to show you what a trust looks like, and then I'll dive into Q&A.

So this is what the actual course, uh, looks like, okay? So like I said, it's a 43, uh, video modules. So the first one is the introduction. Then you go into trust entity. So this is what's, these modules are going to teach you everything about a trust, what a trust is, the different parties involved, the grantor, trustee, beneficiaries, successors, protectors, the benefit of the trust, different types of trust. Then it dives into the tax-exempt trust. So we go through the declaration, the articles, the bylaws, and then we show you how to actually set it up and get your EIN. Then it goes into the family trust. So we go through the declaration, bylaws, how to set it up, how to get your EIN. Then the same thing for the business trust. Then we go into tax strategies, how to operate tax-exempt with the different types of trust, you know, and how to, um, get through your distributable net income, things like that, and how to avoid tax evasion. That is not what we're doing. And then we go into asset protection. So first, you want to take an inventory of your assets. Then you want to actually create your bank accounts, brokerage accounts, and then transfer your property, right? Your home deed, your cars, insurance policies, LLCs, and how to actually have a board meeting so that you can actually operate your trust the right way, okay? And then we go into wealth creation. This is where you're going to be using OPM. So you're going to actually learn how to build credit with the business trust. And then once you get that money, you're going to leverage it and you're going to invest it. So we teach you how to invest in the stock market utilizing index funds, okay? And then how to actually do infinite banking with the insurance policies. Then we go into wealth preservation, where we teach you what a legacy trust is, and that goes in conjunction with your family trust and the legacy that you're leaving. And then we get into the resources. In the resource tab, you are going to have a list of all the resources that you're going to need in order for you to operate your trust the right way, efficiently, effectively, for you to be able to do board meetings, proper, um, documentation, proper record keeping. And lastly, it's the trust ebooks that I promised you.

So let me show you what a trust looks like. So this is an example of a template, okay? So this trust is, um, 60-something pages. And so everything that you see in red is what you're going to be customizing, okay? So you're going to name the trust, you're going to put the state where you're establishing it, you're going to put the different parties involved, the date, the terms, things of that nature. You're going to customize this to your, you know, for your business and your family, okay? Um, so that is it, you guys. That's all I have for you. So let's dive into Q&A. If you guys have any questions on any of the information that I went over, please let me know. Raise your hand, come off mute, put it in the chat, whatever works for you guys, okay?

So, um, if you guys are interested in the replay, the replay is going to be on our YouTube channel. So please go to swayswealth.com, the number sways to.com on YouTube. Uh, definitely subscribe to our channel, and you'll be able to watch more of our content related to trusts, as well as, um, the replay for tonight, okay?

Okay, so with that being said, I do see a question. It says, what is TCU again? So TCU stands for Trust Certificate Unit. And a beneficiary, another name for a beneficiary is Trust Certificate Unit holder, TCU holder, okay? That's what that is. Uh, that's a good question. Thank you for asking that question, Alan. Um, how much more is it to set up a trust after purchase is made? Um, after the per, like if you want, if you want to upgrade, you can upgrade for the difference. Um, if you also, um, if you want to do one-on-one, if those other two options, um, don't work for you, then you can do, um, one-on-one, and the one-on-one is $10,000. So it's up to you which option it works best for you and for your schedule. Um, um, do you offer the companies to allow you to pull from the policy so quickly? Yeah, so, um, the companies that we use, you can pull like as early as like 15, 20, 30 days. So it just depends. So one, the check needs to clear. Once your check clears, so like if you put like, if you load it up with like $5,000 and you have like $4,000 that's available to borrow, then they're going to let you borrow it. So it can be quick, like 10, 15 days. It just, um, depends on the company. But yeah, they allow you to borrow quickly. Um, let's see here. So even with a will, will end up in probate? 100%, Victoria. So a will is like, it's just a sheet of paper giving instructions, which is your last will and testament. So it's a wish list, seriously. Like all you're saying on your last will and testament is where you desire for your assets to end up, but there's no legal way for that house or that car or that bank account with the money in it, for any of those assets that are in your personal name, to be transferred to anybody without a court being involved. There has to be a court system involved. There has to be a judge involved. That judge doesn't know who you are. That judge doesn't know who your children are, and you're leaving it up to them to make the decision if your children get their inheritance. Um, next is, so you need a minimum to do this? Most are living check to check. So, what do you mean by you need a minimum to do this? What does that mean? So do you, are you talking about the insurance or are you talking about the cost to set up a trust? What are you talking about? A minimum to start the trust and fund it? Yeah, so, um, so it does cost to start a trust, right? So like I said, our program is $997, and we teach you how to set up three different types of trust. In our program, we have a fourth trust coming soon, which is an international trust because a lot of the people that we work with do invest internationally overseas, and, um, they have real estate overseas, including myself. So, um, there's more, you know, coming to the program, FYI. But yes, it costs to set up a trust. So with any company that you're looking for, it costs thousands of dollars, right? So, um, you have to keep that in mind, just like it's going to cost you to set up an LLC, right? If you go through a third-party company to set it up, or if you set it up yourself, it's not free to set up these entities, okay? Um, and then fund it. So, um, if you open up a trust fund with a bank, the minimum is like $100. So if you want to, you know, open up a trust fund and fund it with $100, you can do that. So Tasha says, the benefits of a 508 nonprofit versus a 501c3. So with the 501c3, one, you have to apply. A 508, you don't have to apply because of the separation between church and state, okay? So there's no application. You're automatically exempt as long as you are operating a faith-based organization, okay? Um, the next thing is that with the 501c3, you have to apply, but then you have to wait to get approval. And then also, your, um, documents are up for scrutiny because you do have to submit your records to the IRS in order to maintain your 501c3 status. Usually, some people lose their status, some people do maintain their status. So it's up to you, um, if you want to go down that route. And then there's also, um, you know, there's also like a, a percentage of, you know, how much can go to charity and things of that nature. So that's the, um, main difference. Uh, let's see. What I mean is, should I have a minimum of $500 or $5,000 to even get this started for my family? So, um, like I said, if you want to go through my program and learn this stuff and do it yourself, the program is only $997, and then you need $100 to fund the trust fund with the bank, um, depending on the bank that you use. Um, I set up my trust funds with Truist Bank, and the minimum was $100, and I gave them $100, um, to even get this started for my family. I understood the course price, but I mean, outside of that, the minimum amount should have. So the other thing is, if you want to deal with the infinite banking, that's, um, super important, but that one, it also has a minimum too. So it's what you want, right? You're going to set up your own private bank with the insurance policies, right? You're going to be your own bank, basically. And so with that whole concept of infinite banking, um, you can set up a policy for as little as $100 a month, right? That's the minimum. So you're asking for the minimum, but you can do whatever you want. So my policy, you know, I, I put in there $3,000 a month. So it just depends on what you want, you know, what you want to fund it with. All right, any other questions? So let's see here. All right, so if you guys are, um, interested in getting started with the, uh, infinite banking, go ahead and contact our insurance partner. So her, um, her calendar is right there inside of the chat. She'll be able to answer any questions that you have regarding the infinite banking. She's super phenomenal, and she is also a trustee, so she has all her trusts set up, been operating them for years, and she knows this concept like the back of her hand. So she'll be able to teach it, um, teach it to you guys. And, um, if you guys are interested in the 20% off again, you can go to our website, wealthytrustee.com. You can use the discount code TRUST20. Our next workshop is August 26th to the 30th. So we're going to be lock, loaded, and ready to go, um, for our workshop week. So like I told you, Monday, we're setting up the business trust. Tuesday, the family trust. Wednesday, we're setting up the nonprofit. Thursday, we're focused on EIN, board meetings, and, um, business credit and funding. And then Friday, we're transferring all our assets and we're working on infinite banking. So that's August 26th to the 30th from 11:00 a.m. Eastern Standard Time to 2:00 p.m. Eastern Standard Time. Our workshops are recorded, and then so you can, you can watch the recording, you can, uh, freshen up on the information, and then you'll book your one-on-ones with me so that I can review your documents and make sure everything is correct before you go and get it notarized and open up your bank account. All right, so if you guys want to still secure the 20% off but you don't have all the money right now, you can put a deposit down. The deposit is only $200, and that's actually going to secure your spot, um, today or within the next 24 hours for you to then be able to enjoy that 20% off whenever you're ready to, um, pay off the balance. Okay, so with that being said, any other last questions before we get off here, guys? Any other last questions? Yeah, I see, um, K K KY, hi, that's beautiful. How are you? I'm good, and you? Thank you so much for all that you do. With all this, uh, wealth of information, I'm so grateful. Um, question. You're welcome. You're welcome. Thank you. Um, grantor and settler, do they have, is that the same person? Okay. And do they have any control over your trust? What is their function? Not if it's irrevocable. So it's, if it's irrevocable, they have no control. They have what we call irrevocability. So they have no control, no power, no influence. So they cannot tell the trustees what to do. The trustee has full control. So basically, with an irrevocable trust, once the grantor, you know, um, notarizes the trust, they walk away from the trust. They cannot make any more further decisions. They have no power. They cannot do anything at all with the trust. It's against the terms of the trust for the grantor to even have administrative power. Awesome. Okay, thank you. So they shouldn't, so whoever we select shouldn't be anyone that we're going to have as a beneficiary or any of those? Correct. Correct. Okay. Yes. Okay. Yeah. Thank you. You're so welcome. God bless you. Thank you for being here tonight and asking that phenomenal question. All right, anybody else? Any other last, uh, questions before we get out of here? [Music] Tonight. Hey Ken, how are you? Hey Ken, you have a question? No, I do have a question. Christina, hi, and hi everyone. I just wanted to thank you again for everything that you do. Um, I got a couple people on there, but, uh, again, you, you know, the information that you put out there is priceless, and at least getting that knowledge, you know, everyone should take advantage of it and, you know, start thinking of, uh, you know, the future where they want to be. I mean, this is, this is the real deal right there. So I just wanted to thank you for all you do. Thank you so much, Ken. Um, you are a valuable person in this community, and I am so grateful for you, and I appreciate you. So I appreciate you coming on the call and inviting people. So thank you so much, and thank you for empowering others and just taking action on the information that, you know, that I share and that I make available because right now, what we need is people like you that are generational curse breakers, right? And you are empowering other people to be generational curse breakers. It is literally up to us to be able to get our families out of this situation, to get them to financial freedom, and for us to raise our children the right way to where they're being raised as trustees, so that they can continue the legacy. So you are that person that's building that legacy right now in your family. You're empowering others to do so. So, and it's up to us to then educate the next generation to continue what we're building today. So thank you, thank you, thank you, Ken, because we are on the same wavelength when it comes to this initiative. Absolutely. And, and may I add one more thing, um, you know, um, what I, what I would, uh, uh, not not suggest to anyone to everyone tonight, don't stop on the price to set the trust up because again, it's, if you go somewhere else, the price would be much, much bigger, and it might not be done the right way because again, I, I run into people that talk about trusts and all that stuff, but they don't have it all together. Um, so what you have right there is really, is real asset protection. And think of the value that you get, you know, with, uh, the workshop and what Christina has to offer. And I mean, it's just amazing. You know, that, that money that you're going to pay right now to do it, uh, in, you know, a year from now, when you look back, you'll be like, that's the best investment you ever made. So, um, I'm really excited about the program, and you already know I'm gonna, you know, talk about it and make it happen. Yes, thank you so much, Ken. And, and Ken is someone that you guys have access to in the community, and there's so many powerful people like Ken that that are like-minded, that are moving the needle forward, that are building wealth the right way, that are empowering others, that are putting others in position. And so you want to be in a community. That's why, you know, our community is called the wealthy trustee community, why? Because we are building wealthy trustees. You guys are trustees, you're raising your children to be trustees, you're leaving a legacy, you're protecting your assets the right way, you're preserving your wealth, and your legacy is going to last 10, 15, 20 generations, why? Because you're doing the work right now, setting the foundation, and you're doing it the right way, like Ken said. So join the community, you guys, because like I said, you have, you have access to like-minded individuals. We are chatting every single day, all day, from morning to night in the Telegram chat. We have a Facebook community where we meet every other week, um, to do Q&A, and then we have workshops monthly. It's the list goes on. Um, so thank you, Ken. I appreciate it. Uh, and then we have, uh, Kaji. Kaji, is it Kaji? Kaji? Did I say it right? You got it. Okay. Okay. Okay. I was nervous. I was nervous. No, you good. You good. Um, so question, um, if you want to do the infinite banking concept and creating, of course, a generational wealth legacy, is my trust that I set up sufficient for my children and the generations to come, or does each generation have to have their own trust as well? Oh, that's a really good question. So your trust is sufficient, but nor, but what you really want to do is you want to set up a trust for each of your children. You want them to eventually set up their own trust. So your trust is going to be, you know, the, the big trust, and then each of your children, if you have four children, then it's going to be four, um, four trusts that are your beneficiaries that belong to your children, and then the list is going to go on. Um, but your trust is going to be sufficient, and so it's going to, you know, last, you know, many generations. But ultimately, you want to empower them to set up their own. Awesome. Thank you. You're so welcome. Thank you so much. Uh, all right, guys, any other last questions before I let you go? I just want to say that I appreciate you guys for being here, for you guys staying for almost two hours with me. And the last thing I got to say is just take action on the information, you guys, because you can really change the trajectory of your life and your kids' lives and your kids' kids' lives. So it's up to you right now. You guys are the generational curse breakers, and it's time to break those generational curses, guys. So you guys have an amazing night. You can email me, you can call me, you can visit me on social media, whatever it is, I'm here to answer any questions that you might have later on down the line when you guys catch the replay, okay? Have a good night, and God bless you. Bye-bye.