Chapter 01 Introduction
This book is unlike any other written on the subject of non-grantor, irrevocable, discretionary, complex, spendthrift trusts . It has been crafted to address the rampant misrepresentation surrounding this powerful financial tool, which has been around for nearly 500 years . The origins of the trust can be traced back to medieval times when governments began seizing land and property from individuals, often under the guise of taxation or other legal claims . In response to these oppressive practices, landowners created trusts as a mechanism to protect their assets from government confiscation .
This historical necessity laid the groundwork for the trust’s evolution into a vital tool for asset protection and wealth preservation .
Despite its rich history and significant benefits, many individuals and organizations distort the truth about trusts, often leading to confusion and misinformation We aim to establish this book as the definitive “Trust Bible,” providing clarity and comprehensive insights into the workings of these trusts . The intelligent banker has emerged as the official authority on non-grantor,
irrevocable, discretionary, complex, spendthrift trusts, offering a wellresearched perspective grounded in legal and financial principles .
By neglecting to invest time in this book, you would be doing yourself and your family a disservice . It is imperative that you review this material in its entirety before making any decisions regarding your financial future . The cold, hard truth is that failure to do so could jeopardize your family’s prosperous future . This is not merely a fear tactic; it is an essential reality in a landscape where financial literacy and strategic planning are crucial .
We exist within a system of financial slavery that limits our potential and opportunities . By empowering the global population with the knowledge and tools provided in this book, we can reclaim our power and usher in a new golden age for humanity . As you engage with the content, you are playing your part in dismantling this global tyrannical system of control
Education is the key to taking back our power, and this book is designed to restore what has been lost, particularly in the realm of financial education . We invite you to delve into the pages ahead and enjoy the journey toward financial empowerment
Chapter 02 Understanding Non-Grantor Irrevocable, Discretionary, Complex, Spendthrift Trusts
2.1 historical Context
The evolution of trusts has been shaped by the need for asset protection and management over centuries . The non-grantor, irrevocable, discretionary, complex, spendthrift trust is a culmination of this journey, providing a sophisticated structure that separates ownership from control, ensuring that assets remain protected from external threats . The key is the Trusts ability to separate the ego from the assets, relinquishing ownership, but maintaining control .
2.2 Key
Features of the trust
This type of trust features a discretionary distribution mechanism, allowing trustees to manage assets according to the beneficiaries’ needs . Its irrevocability ensures that once assets are placed in the trust, they cannot be withdrawn or altered by the grantor Only the trustee has the authority to sell the asset for the benefit of the Estate using their discretionary power to do so
Core Attributes of the Trust
3.1 Non-Grantor
A non-grantor trust is one where the grantor, or “creator” which we call a settlor, of the trust does not retain control over the trust assets . This means that the income generated by the trust is taxed to the beneficiaries rather than the grantor . This structure helps to ensure that the assets are protected from creditors and can provide significant tax advantages . What I like to call the scam about the American dream is that we have all been sold the fact that we have to “own” things . You must own a car and own a nice house and nice things so that you look successful but with ownership comes all of the liability and expenses . What I have learned on my Trust journey is that it is much much better to control an asset without the liability of owning it . It should be owned by an entity that is not subject to the same Tax rules and regulations that you as an individual or even a corporation are subject to .
3.2 Irrevocable
An irrevocable trust cannot be modified or terminated by the grantor once it is established . This characteristic provides a strong layer of protection for the assets held in the trust, as they cannot be withdrawn
or altered . It also helps to ensure that the trust’s provisions are honored over time, offering stability and security for beneficiaries .
3.3 Complex
A complex trust allows for more flexible management of distributions and can accumulate income, unlike simple trusts that must distribute all income to beneficiaries . This flexibility can be beneficial for tax planning and allows the trust to grow its assets without the immediate tax burden that would apply if all income were distributed . The complexity of this Trust allows it to own life insurance as well as real estate and other investments . This becomes a very powerful attribute of the trust as it will allow us to take advantage of the Trust owning a modified endowment contract . We’ll talk more about this shortly .
3.4 Discretionary
A discretionary trust gives the trustee the authority to decide when and how much income or principal to distribute to beneficiaries
This ensures that distributions can be tailored based on the beneficiaries’ needs, providing financial support while also protecting the trust’s assets from being mismanaged or squandered .
This also allows the trustee to keep more money in the corpus of the Trust for Trust expenses and Trust Business versus distributing it and causing taxable events that are unnecessary or in most cases un- needed .
3.5 Spendthrift
A spendthrift provision prevents beneficiaries from accessing the trust’s assets directly, protecting the assets from creditors and ensuring that the funds are used for their intended purpose This feature is particularly important in safeguarding the financial well- being of beneficiaries who may not be financially responsible Ever heard of the term, Trust Fund Baby? This prevents you from ever being in a position where you have a child that is maybe be on drugs or breaking the law from getting distributions that may just feed the problem . This allows the trustee to decide when and if a distribution is made .
No other trust can effectively replicate the benefits provided by a nongrantor, irrevocable, complex, discretionary, spendthrift structure . Each attribute plays a critical role in ensuring the trust’s effectiveness in asset protection and wealth management .
Chapter 04
The Trust’s Journey to the United States
4.1 the evolution of trusts in america
As the concept of trusts made its way to the United States, it underwent adaptations to align with the American legal system . The introduction of the IRS in the early 20th century prompted revisions to the trust structure to comply with U .S . tax codes . The trust was rewritten to include specific provisions that align with the IRS regulations, allowing for tax efficiency while maintaining its original protective intentions .
4.2 IrS Code 643 and tax Benefits
One of the key provisions that emerged is IRS Code 643, which allows the trust to enjoy tax deferral benefits on certain types of income . It is important to note that while the trust has the ability to defer taxes, it does not exempt itself from all tax obligations . Misleading claims that the
trust will never pay taxes are inaccurate and completely misleading . The trust can defer taxes on passive income and extraordinary dividends but cannot handle active income directly .
We do have strategies for getting active income into the trust and deferring a portion of it, depending on the industry and cash flow methods utilized . In many cases, joint ventures or active income business projects can utilize an LLC, with the trust becoming the majority limited partner . There are innovative strategies for converting portions of active income into passive income, which can then be deferred . We won’t go to deep into those strategies in this book .
The trust was formed for asset protection, but in the United States, tax benefits have been added due to the U .S . tax system .
Tax Deferral and Trust Expenses
5.1 What tax Deferral Means
Tax deferral refers to the ability to postpone paying taxes on certain types of income until a later date . In the context of a non-grantor, irrevocable, discretionary, complex spendthrift trust, this means that specific passive income generated by the trust can be deferred, allowing the trust to grow without immediate tax implications . This is a powerful tool for wealth accumulation and strategic financial planning . The wealthiest people in the world take advantage of LEGAL Tax deferral .
5.2 Implications of Managing trust expenses
When trust income is legitimately used for a trust expense—such as administrative costs, investment in trust assets, or distributions for the benefit of beneficiaries—the funds leave the trust and are no longer subject to taxation . This is because the money has been utilized in a manner that aligns with the IRS guidelines, specifically for the benefit of the beneficiaries .
While some may misrepresent this to imply that the trust never pays taxes, the reality is that the trust can defer taxes on passive income and
extraordinary dividends, but it does not handle active income directly . Understanding how and when taxes apply is crucial for effective trust management .
By employing strategic planning, you can convert some active income into passive income, which can then be deferred . This often involves utilizing joint ventures or business projects where the trust acts as the majority limited partner, allowing for creative solutions to optimize your financial strategy . We have Strategists that specialize in creating these plans .
Chapter 06 Regulations vs. Law: Understanding the Distinction
6.1 the Supreme Court’s ruling
Understanding the difference between regulations and laws is vital for managing a non-grantor irrevocable discretionary complex spendthrift trust . Regulations are rules created by government agencies, while laws are established by the legislative body . The Supreme Court has ruled that this type of trust is not a creature of the legislature, meaning it is not bound by the same rules and regulations imposed on entities created by the government . An individual, which is you or me, are creatures of legislature therefore, the government can tell them how they have to pay taxes . An individual is a product of the USA corporation, an LLC, an S Corp . and even a nonprofit are also products of the USA corporation, and are subject to all of the rules and regulations created by the USA corporation . In layman‘s terms, the USA
corporation can write the rules for the products that it creates and if we choose to use said products, then we are subject to those rules . It’s no different than if you go and rent a house from somebody and they tell you that you can’t eat in the kitchen, as stupid as that is, that is a regulation, not law, that you must follow or they can enforce that rule and kick you out . In the case of taxes, the government can put you in jail or serve you with hefty fines . They have a right to do so because you chose to use one of their entities to run your business . There is no law that says you have to use a government product to operate a business .
6.2 Operating Outside the Legislative Framework
This distinction is one of the most important factors that make this trust powerful . It allows you to “own nothing and control everything,” enabling you to operate within the existing financial system without being trapped by its constraints .
While some individuals attempt to exit the system by declaring themselves sovereign citizens or state nationals, utilizing this trust offers a more practical solution It allows you to step out of the system without engaging in the monotonous activities required to correct your status .
Moreover, having this type of trust enables you to create an estate that remains private, ensuring that your financial activities and legacy are not subject to public scrutiny or government oversight
The Power of the Trust Structure: Simplifying Complex Entities
7.1 Moving Beyond Layered entities
In the past, wealth preservation often relied on complex structures such as holding companies, charitable organizations, LLCs, land trusts for every property, and highly complex partnerships .
However, these layered entities are becoming outdated as more individuals discover the benefits of utilizing a non-grantor irrevocable discretionary complex spendthrift trust . The structures become very convoluted, complicated and in most cases very expensive to manage .
7.2
the trust as a Comprehensive Solution
By employing a non-grantor, irrevocable, discretionary, complex, spendthrift trust, which operates under on a 1041 return, you effectively consolidate all of these intricate structures into one powerful entity . The trust isn’t subject to the same regulatory strangleholds that affect
legislative law entities, allowing for greater flexibility and efficiency in managing your wealth .
7.3 Legal protections against regulation
When the government creates an entity, it has the authority to write the rules and regulations governing that entity The significant advantage of the non-grantor irrevocable, discretionary, complex, spendthrift trust is that it was not created by the government This distinction is crucial because it means that the Supreme Court has ruled that such trusts cannot be regulated in the same manner as government-created entities . This exemption allows for unprecedented freedom in managing and growing your wealth . I know I am being repetitive on some of this stuff, but sometimes I have to say things a couple different times and a couple different ways for the lightbulb to go off . It is very important that you understand these key elements of the trust .
Chapter 08
Asset Protection
8.1 Shielding Your Business assets
For entrepreneurs, business assets are the lifeblood of their ventures . Establishing a trust allows business owners to shield personal and business assets from potential liabilities, ensuring that in times of financial distress, the business remains intact . The last thing you want is to become successful making you a target and now somebody wants to sue you because your dog got out and bit somebody . Something like that that is completely out of your control and can wipe you out if you’re not protected properly .
8.2 protection from Creditors and Lawsuits
In today’s litigious environment, protecting assets from creditors is paramount . The spendthrift provision prevents beneficiaries from accessing the trust’s assets directly, further safeguarding them from claims by creditors or lawsuits .
Tax Benefits
9.1 tax efficiency for entrepreneurs
A well-structured trust can offer significant tax advantages . Income generated by the trust may be taxed at the beneficiaries’ tax rates, allowing for potential tax savings that can be reinvested into the business . I want you to pay attention to the fact that I stated income generated by the Trust . Once you become a trustee, it is now your role to generate passive income to the Trust . Why passive income? You should already know the answer to that by now .
9.2 Income Distribution Strategies
Distributing income strategically can minimize tax liabilities and optimize financial outcomes for both the trust and its beneficiaries, providing a framework for sustained wealth growth Part of this strategy is creating debt when the trust is created so that you have an option to not have to pull income out of the trust Remember once you don’t own all of the assets anymore, A lot of your expenses are going to go away and the need for a lot of personal income will be greatly diminished
Chapter 10
Deferring Passive Income with the Trust
Again, I just want to reiterate that passive income is the only type of income that the trust can legally defer . I’ll talk about what passive income or extra ordinary dividends are now .
10.1 Understanding passive Income and tax Implications
Passive income, which includes earnings from investments such as rental properties, dividends, and capital gains, can have significant tax implications . The nongrantor, irrevocable, discretionary, complex, spendthrift trust offers opportunities for legally deferring taxes on certain types of passive income, making it an attractive option for investors and property owners
10.2 Strategies for Deferring Capital Gains and rental Income
While it is important to clarify that the trust cannot defer all types of income, particularly active income such as salaries or commissions, it can effectively defer taxes on capital gains and rental income . For example, if a property is held in the trust and generates rental income, that income can be managed in a way that minimizes immediate tax liabilities . Additionally, when properties appreciate in value, the capital gains taxes can be deferred until the property is sold or transferred out of the trust .
By employing strategies that involve the timing of distributions and the reinvestment of income, the trust can help individuals manage their tax burdens more effectively, allowing for greater wealth accumulation over time .
10.3
Common Misconceptions about
tax Deferral
It is crucial to address the misconceptions surrounding the capabilities of the trust Some individuals may misrepresent the trust’s benefits by suggesting that it can defer all taxes indefinitely . This is not accurate . While the trust can provide strategies for deferring certain passive income taxes, it does not eliminate tax obligations entirely . I will keep repeating this and feel the need to based on all of the misrepresenting that has been going on out there about this topic .
Understanding the limitations and capabilities of the trust is essential for proper financial planning . By working within the legal framework and utilizing effective strategies, individuals can maximize the benefits of the trust without falling prey to misleading claims .
Chapter 11
Government Regulations and Wealth Creation
All government regulations due in my opinion is Stop families and Rob them from the ability of generating and keeping wealth . Most of the government regulations favor the USA corporation over your family and those regulations cause families to be stripped of wealth at the time of death . It seems that we have a government that hates Peoples ability to pass on anything that they have earned during their life without making it difficult on the next generation to receive it . This stranglehold makes it difficult for families to pass wealth on to the next generation without the burden of heavy taxation .
11.1 the Modified endowment Contract rule or MeC
In recent years, the government has imposed regulations that have limited the ability of wealthy individuals to utilize whole life insurance policies as effective wealth-building tools . The Modified Endowment Contract (MEC) rule was established to impose taxes on life insurance policies that are overfunded, which deters individuals from using these policies to create wealth despite their guaranteed growth features . in the next few sections, I will show you how having this trust overcomes .
The MEC rule, allowing you to overfund a whole life policy the same way the elites do .
11.2 Impact the MeC rule has on Whole Life policies
The MEC rule has made it more challenging for individuals to maximize the benefits of whole life policies . By placing restrictions on how much can be contributed to these policies without incurring a tax penalty, the government effectively shifts individuals toward less advantageous retirement programs that often favor government interests . Of course we’ve all been sold the fact that you need a 401(k) right? I don’t know one person in my 43 years of life that has retired well off of a 401(k) . We all know government programs don’t work . They never have and they probably never will . If you don’t believe me, go read the book the 501(k) plan which was written by the guy who the government hired to write the 401(k) . I’ll just leave that one right there .
11.3 Utilizing trusts to Circumvent restrictions
However, by structuring the ownership of life insurance policies through a trust, individuals can bypass some of the restrictions imposed by the MEC rule . When the trust owns the life insurance policy and is both the owner, payor, and beneficiary, it can operate outside the constraints of the MEC, protecting the policy from capital gains tax and allowing for
greater flexibility in wealth accumulation . This allows us to do some really incredible things to these policies converting them from a traditional whole life policy to a massive wealth building machine with a potential to pass on much more wealth than you started with .
This strategy empowers families to ensure every dollar earned is maximized for their estate’s future, creating a powerful financial tool that allows for sustainable wealth growth .
Chapter 12
Trust Ownership of Life Insurance Policies
12.1 the Unique Structure of this trust
Most life insurance policies cannot be owned by a typical trust due to regulatory restrictions and tax implications . However, this particular trust has been carefully structured to include provisions that explicitly allow it to own life insurance policies . This unique feature sets it apart from standard trusts and provides significant advantages for wealth creation .
12.2 Collaboration with Insurance providers
The intelligent banker spent over a year collaborating with major insurance providers, discussing legal frameworks with their attorneys and legal experts to ensure that this trust could be approved as the owner, beneficiary, and payor of a Modified Endowment Contract (MEC)
policy . This rigorous process underscores the commitment to creating a compliant and effective financial vehicle for families . Believe me when you go against the Grain in this capacity you get a lot of kickback from these large companies and at times it became very frustrating and we wanted to give up . This just goes to show you how many people are approaching these carriers about this type of a policy being owned by this type of a trust . NONE! The good news is we got it done!
12.3 Benefits of trust Ownership for Wealth Creation
The ability of this trust to own a MEC policy is groundbreaking . Typically, individuals must use after-tax dollars to fund life insurance policies, which limits their potential for growth and wealth accumulation . However, by utilizing the trust structure, business income can be legally deferred and used to fund the life insurance policy .
This capability allows families to create substantial wealth while navigating the challenges posed by the MEC rule Instead of losing income to taxes or traditional retirement programs, families can redirect their earnings into a trust that maximizes their financial growth and security
By not using this system, families risk being robbed of their hard- earned income each time they deposit it in a bank and subsequently pay their bills . Once that money is spent, it leaves the family economy and may never return Families need to start learning to ensure their income in the same manner they insure their health, their cars, and their pets .
Chapter 13
Creation of Wealth Through Whole Life Policies
13.1 the role of Whole Life policies
Whole life insurance policies, particularly those offered by mutual companies that pay dividends, can be an integral part of an entrepreneur’s financial strategy . These policies not only provide death benefits but also accumulate cash value over time .
13.2 Funding premiums through Deferred Income. thIS IS hUGe.
By positioning business income into the trust, entrepreneurs can legally defer income, using those funds to pay premiums on whole life insurance policies . This approach allows for efficient cash flow management while maximizing the benefits of the insurance policy
13.3 Death Benefit as an estate enrichment tool
The death benefit from a whole life policy funded through the trust significantly enriches the estate at the time of death, ensuring that the family is provided for and the wealth created by the entrepreneur is preserved We’ll go a little bit more in depth here in just a minute
Chapter 14
Using Whole Life Policies as a Banking System
When you borrow money from a carrier versus a bank, you can borrow at simple interest versus compounding interest . Utilizing the insurance carrier as the bank is a much better option in today’s day and age, considering interest rates are high and borrowing money as an entrepreneur can be even higher .
14.1 accessing Cash Value for trust expenses
One of the most powerful features of whole life insurance is the ability to borrow against the cash value of the policy This feature allows the trust to access funds without the need to liquidate the policy or incur tax liabilities, making it an effective tool for managing trust expenses . By leveraging the cash value, the trust can cover various costs and trust expenses, such as legal fees, education expenses for beneficiaries, or even reinvesting in additional assets and creating more cash flowing passive income streams such as investments and new businesses .
This model allows the trust to function similarly to a bank, where the policyholder can draw on available cash value as needed . The ability to take loans against the cash value of the policy offers the trust liquidity,
providing a financial cushion during times of need without disrupting the long-term growth of the policy itself . There are also strategies that are a little more advanced where you can leverage your policy as collateral to get a line of credit from a bank similar to a HELOC . This will allow you to move money in and out of the policy at Wil versus having to deal with policy loans . This is an option depending on how you run your business and how fast you’re moving around . This is a great benefit to investors that move money really quickly!
14.2 the Cost of Borrowing: Simple Interest vs. Compound Interest
When borrowing against a whole life policy, insurance companies typically charge simple interest on the loan amount . This is a crucial distinction compared to traditional banks, which often charge compound interest on loans .
Simple Interest
Interest is calculated only on the principal amount that remains unpaid . For example, if you borrow $10,000 at a simple interest rate of 5%, you will only pay interest on the $10,000, regardless of how long the loan is outstanding . One of the benefits of using the insurance carrier as your bank is the loan interest is based on the number of days that you have the loan out So, if you only borrow the money for one month, you’re not paying a full 5% because you
didn’t have the money out for a full year . This is the cheapest money that you will have access to anywhere .
Compound Interest
In contrast, banks calculate interest on both the principal and the accumulated interest from previous periods . This means that the amount owed can grow significantly over time, leading to higher costs for borrowers .
By utilizing whole life policies for loans, the trust can access funds at a much lower cost, preserving more wealth for its beneficiaries . This feature effectively turns the insurance policy into a low-cost financing option, allowing the trust to manage expenses more efficiently while keeping the overall financial strategy intact .
14.3 the Wealth-Building Legacy of the elite
For generations, the wealthiest individuals and families have harnessed the benefits of whole life insurance policies as a cornerstone of their financial strategies . Prominent figures and elite families have long understood the power of these policies to create and preserve wealth .
Using whole life insurance as a wealth-building tool is not a new concept; it has been a strategy employed by the elite for hundreds of years . These policies have allowed affluent families to create a reservoir of capital that can be accessed for various purposes—be it funding business ventures, investing in real estate, or simply providing a safety net for future generations . Just one example that we all know of is that Walt Disney used his whole life policy to fund Disneyland as well as Ronald McDonald used a traditional life policy to fund the Ronald McDonald campaign . so
unfortunately, I did not invent this strategy . It has been used by the elite for ages . My opinion is it’s just been hidden from the general public until now .
By adopting this strategy, families can effectively build a legacy of wealth that not only benefits them but also enriches their heirs . The combination of a non-grantor, irrevocable, discretionary, complex, spendthrift trust and whole life policies allows families to create a resilient financial structure that withstands the test of time .
Chapter 15
The Wealth Accumulation Mechanism of Death Benefits
In this next section, I’m gonna show you how I have discovered families have used these policies to amass huge fortunes and political power . By the time you are done with this section, you will have a plan on how you can change your family tree forever based on implementing these tools .
15.1 Building Wealth through Death Benefits
When a whole life policy is owned by the trust and covers each member of the trust, the financial strategy becomes even more compelling . Each time a beneficiary passes away, the trust receives a death benefit that significantly enhances its overall wealth . This benefit is not merely a payout; it represents a strategic return on the investments made by the trust in funding the policies .
The death benefit received by the trust serves multiple purposes . Firstly, it returns all the investment that the trust made to provide for the lifestyle and needs of the deceased beneficiary throughout their life . This means that the expenses incurred by the trust in maintaining the beneficiary’s quality of life are effectively recouped through the insurance payout . Secondly if it was structured properly in some cases,
the death benefit could be 2 to 5 times the investment into the initial policy over the beneficiaries lifetime . These trusts are literally using lives and ensuring them to create massive fortunes .
15.2 Cycle of Wealth Creation
This cycle creates a sustainable wealth accumulation mechanism As each policy matures and pays out upon the death of a beneficiary, the trust continues to grow its assets The ability to receive these death benefits ensures that the trust not only maintains its financial stability but also enhances its overall value with each passing generation . This dynamic is particularly beneficial for families with multiple generations, as the trust can provide for current members while simultaneously enriching the estate for future heirs .
Chapter 16
Exceeding Investment in Death Benefits
Again, I just want to reiterate that when these policies are designed properly you will leave more money behind than what was deposited over the life of these policies . It’s very important to have an agent that understands how to design, build, and fund these policies . Our strategies have worked for years, mastering this . It’s sad to say that most agents that I have ever met that talk to me about these type of policies are selling them and don’t even have one themselves . Sadly, a lot of agents read a book about the subject and see it as a way to just sell more life insurance . To me that is sad because it’s been underutilized and it’s robbing families of an opportunity to create a better financial foundation .
16.1 the Growth of Death Benefits Over time
One of the most attractive features of whole life insurance is its ability to provide a larger death benefit than the total premiums paid over the life of the policy . This characteristic is particularly advantageous when policies are owned by a trust and funded with tax-deferred income . As the policy accrues cash value and the death benefit increases, the trust stands to gain significantly more than the initial investment made in premiums . Let me emphasize that it’s almost impossible with any other
strategy to leverage business income to fund your families personal life insurance policies . With this strategy in place, you can run all of your business revenue through these policies that the trust owns, on all of the members . Essentially this will allow you to ensure every dollar that your family generates by being able to utilize these powerful policies Because of the tax benefits that the trust carries . Imagine if you had the structure in place already and how much money you would have ran through this policy and the amount of interest you would be generating today . All of that was lost because this concept has been hidden from the masses .
When structured correctly, the trust can ensure that the total death benefits received far exceed the amount that was originally contributed to fund the policies This not only enriches the trust but also provides a robust financial legacy for future generations . The growth in death benefits is a natural consequence of the insurance product’s design, which is intended to provide a safety net for policyholders and their beneficiaries
16.2 a Legacy of Wealth
As each policy on trust members pays out, the cumulative effect can lead to a substantial increase in the trust’s overall wealth . This legacy of wealth is not just about the numbers; it is about creating a financial foundation that supports family values, aspirations, and goals across
generations . The trust can allocate these funds according to the wishes of its members, ensuring that the financial resources are used in ways that align with the family’s vision for the future .
Converting Your Portfolio into an Estate Inside the Trust
The number one thing that you will do once the trust is created is convert your entire portfolio into an estate, inside of the trust . Simply put you want to own nothing and control everything . How freeing you will feel once you get this step accomplished .
17.1 the power of trust Ownership
Transforming your entire portfolio into an estate held within a nongrantor, irrevocable, discretionary, complex, spendthrift trust can be a powerful strategy for asset protection and wealth management By placing your investments, real estate, and other assets into the trust, you fundamentally shift the ownership structure . This transition removes personal liability associated with ownership, allowing the trust to manage these assets on behalf of the beneficiaries . Imagine the amount of money you will save just by not having the need for much personal income! You’ll never have to pay taxes on money to feed your kids or provide education to them ever again! It’s now the trusts responsibility . Your responsibility is to manage the trust and provide your children with benefits . In other words . Your job is to be a parent to your kids and teach them how to operate inside of this vehicle .
17.2 the Liability of personal Ownership
Personal ownership of assets creates significant liability . When you own an asset—such as a rental property or a life insurance policy— you are responsible for all maintenance, taxes, and associated expenses . This ownership can expose you to risks, including lawsuits or financial difficulties that may arise from the asset’s management .
A poignant example is when a birth certificate is created for a child, attaching ownership to the parents . This ownership implies responsibility for generating income, paying taxes, and providing for the child’s needs . When children are seen as beneficiaries of a trust instead, the ownership and liability shift away from the parents and onto the trust .
17.3 transferring responsibility to the trust
By designating your children as beneficiaries of the trust, you transfer the responsibility for covering expenses and managing assets to the trust itself . The trust can then take on the financial burdens associated with those assets, including maintenance and taxes, thereby relieving parents of these responsibilities .
Furthermore, the trust can defer taxes on specific income types, allowing for effective management of financial obligations . This arrangement enhances the family’s financial position while minimizing individual liability, creating a more sustainable approach to wealth management .
The power of relinquishing ownership in favor of trust management is profound . By eliminating the liabilities associated with personal ownership, you can focus on building wealth without the burden of maintenance and expenses that typically accompany asset ownership .
Reducing the Need for Personal Income through Debt Management
By now you should fully understand that the need for personal income has now been greatly reduced because remember, all of Life’s expenses come from the lie that we’ve been told called ownership . now that you have created an estate and sold it to the Trust the Trust owes you a lot of money . This debt goes on what’s called a demand note and this will allow you to draw down on that debt when you need personal funds for something the government says is not a legitimate trust expense . That demand note is essentially your personal bank account inside the trust which allows you to use your discretionary power to decide to pull personal income from debt versus having to create a taxable event by making a distribution . let’s elaborate a little bit on the note .
18.1 Creating Debt through asset Conversion
When you convert your estate into a non-grantor, irrevocable, discretionary, complex, spendthrift trust, you effectively sell your assets to the trust This transaction creates a debt note, where the trust owes you for the value of the assets transferred This debt can significantly reduce the immediate need for personal income, as the trust becomes responsible for managing the assets without the traditional burdens of ownership
18.2 Utilizing Discretionary power for Income Needs
One of the most powerful aspects of the trust is the discretionary power granted to the trustee . This discretion allows the trustee to determine when and how much to distribute from the trust to beneficiaries . Importantly, the trustee can choose not to make a distribution, which means that any personal income needs can be addressed by drawing down on the debt note rather than distributing taxable income .
This approach is legally sound and allows for strategic financial planning . By not creating a distribution event, the trustee can help beneficiaries avoid triggering taxable events, which can preserve more wealth within the trust to be used in creating more wealth and covering Trust expenses .
18.3 Legality and Common practices among the elite
This method of managing income and debt within a trust is 100% legal and is a strategy employed by many wealthy individuals and families and is
a strategy that has been used for nearly 500 years . The elite understand the nuances of trust management and leverage these strategies daily to optimize their financial positions . By converting their estates into trusts and utilizing the discretionary powers available, they effectively manage their tax liabilities while ensuring their wealth is protected and preserved for future generations .
Legitimate Trust Expenses
The key here is legitimate trust expenses . Part of creating this type of trust is understanding what is allowed and what is not allowed let’s dive into what is a trust expense and what is a personal expense?
19.1 Understanding trust expenses
When managing a trust, certain expenses are considered legitimate and necessary for its operation . These can include administrative fees, legal costs, accounting services, and any costs associated with the maintenance and management of trust assets . Understanding what constitutes a legitimate expense is crucial for maintaining compliance with trust laws . Part of the service that we offer at the intelligent banker is we teach our clients how to manage their trust, including an income and expense report and well as tracking all expenses and monies leaving the trust . Once you understand what a legitimate
trust expense is and is not you will find that managing this entity as much easier than any entity in the matrix .
19.2 the trustee’s responsibilities
The trustee has a fiduciary duty to manage the trust’s assets responsibly and in the best interest of the beneficiaries This includes ensuring that any expenses incurred are legitimate and necessary for the preservation and growth of the trust It’s important for trustees to keep detailed records of all expenses to provide transparency and accountability .
19.3 Compliance with trust Law
Even though trusts are not subject to the same myriad of rules and restrictions set forth by legislative bodies, they must still comply with trust law For instance, in the landmark case elliot v. Freeman, the court emphasized the importance of adhering to fiduciary duties and properly managing trust assets Trustees must ensure that their actions are in line with the established guidelines to avoid any legal complications .
Trusts can provide greater flexibility than traditional asset ownership, but it is essential to navigate the legal landscape carefully to maximize the benefits while remaining compliant
Control Over Distributions
20.1 tailoring to Beneficiary Needs
The discretionary nature of the trust enables trustees to adjust distributions based on the unique needs and circumstances of beneficiaries . This flexibility ensures that funds are allocated in a manner that supports individual goals and financial well-being .
20.2 preventing Mismanagement of Funds
By controlling access to the trust’s assets, the trust prevents beneficiaries from mismanaging funds, ensuring that financial resources are used wisely and for intended purposes .
Long-Term Financial Stability
21.1 ensuring Family Wealth preservation
A non-grantor trust serves as a long-term strategy for wealth preservation, protecting assets from market fluctuations and economic downturns, thus ensuring financial stability for future generations .
21.2 Strategies for Sustaining Business Growth
The stability provided by the trust structure allows entrepreneurs to focus on business growth without the fear of losing personal assets, fostering an environment conducive to innovation and expansion
Chapter 22
Securing an Accountant or CPA
This is THE MOST IMPORTANT PART . The Rockefellers created what is called the family office and this is the system that they used to manage their trust . You typically would need to create a similar team to manage your trust . The good news is the intelligent banker has been developing this team and these relationships for almost the past seven years and all of our clients get access to all of our resources . This includes online training and support as well as in person and over the phone support regarding anything that has to do with managing this trust . Our accountants and CPAs also do the tax returns . We are truly one stop when it comes to this trust .
22.1 the Importance of professional Support
As you navigate the complexities of managing a non-grantor irrevocable discretionary complex spendthrift trust, securing the services of a knowledgeable accountant or CPA is crucial . These professionals
play a vital role in ensuring that your trust operates efficiently and in compliance with applicable tax laws . Their expertise can help you avoid costly mistakes and maximize the financial benefits of the trust .
22.2 the risks of Inadequate Guidance
Unfortunately, many individuals who market trusts do not provide ongoing support after the purchase . This lack of assistance can leave you vulnerable to legal problems down the road Engaging with an intelligent banker or a reputable firm that offers full-service support, including training and document creation, is essential to successfully operating your trust .
The intelligent banker has invested over seven years in building a comprehensive accounting department that specializes in trust management . Their expertise ensures that you meet the necessary requirements for filing the IRS Form 1041, which is required for the trust’s annual tax return .
22.3 the Intelligent Banker advantage
By working with a firm that provides complete support, you can rest assured that your trust will be managed effectively . The intelligent banker not only helps you navigate the complexities of tax filings but also demonstrates how the trust can pay for itself through the associated tax benefits .
Imagine a scenario where the entire global population operated under this type of trust . The potential to end government tyranny and restore power back to the people could become a reality . By understanding and utilizing these trusts effectively, you can empower yourself and others, creating a more equitable financial landscape .
Chapter 23
Misinterpretation by Legal Professionals
23.1 Understanding the Misconceptions
Many lawyers misinterpret the nuances of non-grantor irrevocable discretionary complex spendthrift trusts due to a lack of understanding of common law and contract law . Their education typically focuses on the legal frameworks created by the government, which can lead to a narrow interpretation of how trusts function . This misunderstanding can result in the underutilization or misapplication of these powerful financial tools, ultimately harming their clients .
23.2 the Limitations of Legal education
Lawyers are not inherently more intelligent than any other individual; they have simply undergone formal education that emphasizes memorization of legal statutes and case law This training does not necessarily equip them with a deep understanding of the practical applications of trusts in real-world scenarios A willing individual can learn the same information and apply it effectively without a formal legal background .
This dynamic can create a disconnect between legal professionals and their clients, leading to a misrepresentation of what is possible with a non-grantor irrevocable discretionary complex spendthrift trust . Clients may be discouraged from pursuing these trusts or may receive inaccurate advice due to the lawyer’s limited understanding .
23.3 empowering Yourself in trust Management
One of the significant benefits of a non-grantor, irrevocable, discretionary, complex, spendthrift trust is that you do not necessarily need a lawyer to operate it This autonomy empowers individuals to take control of their financial strategy without being beholden to potentially incomplete or misguided legal advice . With adequate research and understanding of the trust’s structure and operation, anyone can effectively manage their assets, ensuring that their financial future remains secure .
Warning to Readers: Protect Yourself
As you explore the benefits of establishing a non-grantor irrevocable discretionary complex spendthrift trust, it is essential to be vigilant about the misinformation and misleading practices in the marketplace . There are individuals and organizations trying to sell similar trusts without providing any real support . Often, they may insist that you hire their law firm to manage their version of the trust, which can result in overwhelming billable hours and unnecessary legal fees .
It is crucial to understand that such practices are not necessary with our contract law trust . This particular trust comes equipped with all the forms and documents you need to conduct business effectively . We are aware of the IRS memoranda circulating regarding these trusts, and it is vital to note that the memoranda do not challenge the trust itself . Instead, they challenge dishonest salespeople misrepresenting the trust’s capabilities .
When you work with the intelligent banker, you are partnering with a full-service, family-oriented company that genuinely cares about each and every client . We see ourselves as the gatekeepers for this trust, and our mission is to legitimize it so that individuals around the world
can reclaim this powerful tool that was effectively taken away when the global financial system was created .
Our goal is to educate the world about this powerful estate-creating wealth structure . We offer a settlor service through a reputable law firm that backs up our trust—a critical component because if the trust is ever challenged, it will be essential to validate that you have a legitimate settlor . Having a law firm behind you is worth its weight in gold .
Rest assured, with the intelligent banker, your family’s estate will be safe for many generations to come .
Conclusion: A Strategic Financial Framework
In conclusion, the intelligent banker has paved the way for a transformative strategy using the non-grantor, irrevocable, discretionary, complex, spendthrift trust paired with a properly constructed whole life policy from a mutual company that pays dividends, which we have named Vortex Banking . This innovative approach allows families to create significant wealth while protecting their assets and ensuring financial stability for generations to come .
With Vortex Banking, the need for complex structures such as holding companies, charitable organizations, LLCs, and land trusts for every property becomes a thing of the past . By utilizing this powerful trust structure and leveraging IRS Code 643(b), individuals can consolidate their wealth management strategies into one streamlined entity, free from the regulatory strangleholds that affect legislative law entities .
We are a family-oriented company that prioritizes education over sales Our mission is to provide all of the training and support required to help you operate this powerful, life-changing entity
Conclusion and Action Steps
Thank you for taking the time to explore the powerful concepts outlined in this book . If you’re ready to take the next step toward securing your financial legacy, we invite you to visit our website at www.liveiws.com
Join our community of like-minded individuals who are committed to creating a financial revolution .
Additionally, stay connected and informed by following the Intelligent Banker on Instagram and TikTok at @realintelligentbanker. Together, we can empower ourselves and each other to take control of our financial futures and unlock the full potential of non-grantor, irrevocable, discretionary, complex, spendthrift trusts . Join us on this transformative journey today!
