Asset Protection for the Accredited Investor w/ Brian Bradley

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What’s up investors on this week, we are going to be talking to a lawyer

Diving into some other legal strategies to protect your wealth that you probably don’t hear that often. We’re going to be going over the LLC, and why that may not be the best means to protect your wealth, especially if you’re a higher net worth little update on what I’ve been up to.

It’s been a really crazy week. Two closings. We had close on a class ADL in Dallas and another class B deal in Houston. Glad to get those knocked out, always a little stressful to close , go to loan committee, get it all wrapped up.

It’s not a race, it’s a marathon. And then we get hard work. If you guys haven’t checked out all the good news that’s been in the economy, make sure you guys at least check up the monthly reports, which are@simpleclassiccastle.com slash investor letter. All the videos that we do on a monthly basis are up there.

If you want to dive into the headlines and get a little commentary from myself. You can access that there again, simple plastic capsule.com/investor letter. And this is your guys’ last call for the incubator group, where we help younger and newer investors under a quarter million dollars net worth to get their first turnkey remote rental.

If you guys go to simple passive cashflow.com/turnkey, there’s a free guide there. There is also the remote investor e-course which if you buy that and you eventually joined the incubator, we do credit you back to what you paid there, but thank you, Bader is really all about the peer group, right?

Your network is your net worth. You have folks around you and where we can help you move through the process. Especially in, through the inspection process and connecting with all the brokers, lenders, property managers, just connecting with the folks in our role at that. But here is the show.

We’re not giving any legal advice out there, but through my travels and connecting with high net worth investors and things, I do myself, open this up@simplepassivecashflow.com slash Vigo, enjoy the show.

 Okay, simple passive cashflow listeners. Today. We are going to talk to Brian Bradley here about some of the misnomers I’ve been hearing about, legal protection.  Again, starting out with the Cabot. I am not a lawyer. So I brought a lawyer here to talk about this stuff, but nice to have finally have you on again, Brian.

 

Yeah, thanks lane for having me back on and it’s going to be a fun topic and I gotta let everybody know I’m not your legal guru, like I’m really good at what I do, we’re just going to talk about this, in generality and I’m definitely going to blow up a lot of the status quo and misconceptions, especially around LLCs.

 

Like our last episode, we had a cool slide presentation, but this is going to be a different. Topic today. Yeah, Brian’s has been doing some stuff for my high-end clients and the family office, Ohana mastermind. So if you guys are interested in doing that, check out the sales page, it’s simple, passive casual.com/journey.

 

If not continue to devour the free podcast land and hear the same stuff over and over again on all podcasts. But I think we’re going to blow it out of the water, the sobriety of like I think the first question just to kick things off is. Everybody thinks that they’re super protected with an LLC, right?

 

Wyoming, Nevada   tell us like the dark side of these LLC.  Are they truly Bulletproof? No, there’s there. There’s nothing that’s truly Bulletproof, especially if it’s purely domestic like whatever you create. Eventually, if you get to a high net worth, like you have over a million of unprotected, net worth of assets, you should start adding some sort of offshore component to it.

 

 Because we have what’s called the U S constitution full faith and credit clause. So it’s always been to limit. Anything purely domestic, LLCs. I’m not gonna, like coopoo all over them. They’re I use them, they’re a foundational level. But there’s a lot of things that aren’t just being spoken about them.

 

And a lot of people being misled, I think, either intentionally or not. Or just from lack of knowledge on what happens in court, like in these things called jurisdiction and legal nexuses availing yourself of state rights and that’s where this needs to get sorted out.

 

And and I’m going to pick on California a lot here because it’s the most, a lot of people live in California. There’s a lot of money in California. And you have a lot of California investors investing all over the state. So I think it’s a great example of a state to use. And so I want to start.

 

With, like I think the big misconception is with charging orders and what a charging order is just trying to limit the member of an LLC legal responsibility to paying a judgment. They’re trying to keep it within just the LLC a court order just within the LLC. And so you hear these States and there’s a lot of fusion over word.

 

You go, do you go to Delaware, Wyoming, Texas. And at the end of the day, it really just comes down to, what are you holding? So let’s just stick with the example of the state I’m talking about. Let’s say it’s California real estate, and you own some California real estate. You’re a California resident.

 

And you went and set up a Wyoming LLC because you read it on the internet or your CPA told you to go ahead and do that. What you did is just convert your Wyoming, LLC to a California LLC, because you’re doing business in the state of California. And not only are you going to pay the franchise tax, but if you ever have a liability issue in California the judge in California is going to apply what law, like California law, not Wyoming law, because you’re a resident there, the properties there the lawsuits coming through there.

 

A California judge, doesn’t give a hoot that you have a Wyoming LLC.  There’s no legal nexus there. That Wyoming, LLC just did a fancy thing called legally availed itself with the protection of laws of California. And like I said, that’s the state, the assets in that’s the state that injury or damage occurred in.

 

And this can go for  any state, if you had an asset in Ohio and you put it in an, a Wyoming, LLC is the same principles that apply. And so I want to harp on this just a minute longer because I do get a ton of calls on this and clients just confused as heck on what they shouldn’t stuff into, a Wyoming LLC.

 

And it’s  because just by simply owning an out of state, LLC, you have to register that LLC is doing business in the other state, like you have to register it in California and pay the franchise tax. And this is just basic case law. And once you do that and you, again, avail yourself of the privileges and laws of that state and given that state jurisdiction there’s a great case.

 

 Indian palms country club association versus anchor bank in 2015. And it lays out all the multiple standards, like the legal standards that you’d have to meet to successfully beat a piercing, the corporate veil argument. And so for sticking with California now that LLC is registered and paying the franchise tax in California, you just gave California jurisdiction over the LLC, plain and simple.

 

And you’re a resident of that state. There’s another caveat against you. And then you have a California asset in an out-of-state Wyoming, LLC, or Delaware, LLC in Nevada, LLC, with no connection to Wyoming whatsoever. You just did this fancy word. I told you about a village yourself. Of the laws of California.

 

And so you just transferred that Wyoming LLC  to a California LLC by was called a direct, substantial and systemic contact with California. Yeah, something I see common, cause I always say the tail end of this, especially when my clients work with me and they’re, what happens most of the time is like the lawyers just going down their check sheet and their sales form and ask the client like, Hey, do you want to be anonymous?

 

And then the clients obviously Oh yeah, I would like to be on office. Alright, sign you up for this thousand dollar Wyoming, LLC, which is also a pain in the butt to upkeep in the future. That’s a classic case. And I tell my guys like, all right like how you’re saying, it’s not truly anonymous.

 

But like anybody who’s going to get sued, they’re going to Pierce right through that.  We’re just going to make things a little bit harder, right? This day and age nothing’s ominous.  Correct. And that was going to be my next blow up of this whole thing of an amenity.

 

And so it’s a big concept, a big misconception. And I think that people just think that you can create this, anonymous Wyoming, LLC. It sounds so cool. Like I can just disappear and ghost to lawsuit, and I’m like the legal system doesn’t work that way. Like one, if you’re creating these LLCs.

 

You have to also pay for a registered service person, like service of agent and that costs money. Their sole job is to say, Hey, congratulations, your LLC just got sued. You’re served, go find a lawyer, defend yourself. And then the simple reality is that once a lawsuit’s filed and starts and you’ve been served because you’re not going to avoid the legal service.

 

The legal process starts, and this is thing called legal discovery. And then you’re going to end up going into court. And the judge is going to say, Hey, like you’re getting sued for, $1 million or whatever the law and the number is like, here’s an asset declaration list all of your assets to make sure that , there’s something that can be collected on.

 

And at that point you can do one of two things. You list your assets or you lie and commit perjury and say you don’t own them. Or the LLC doesn’t own any. And then that’s called perjury. You go to jail. You get sanctioned, your lawyers get sanctioned and a lot of bad things happen to you. So there’s no such thing as an amenity.

 

Once a lawsuit starts and amenity works in the sense of, I own an LLC, I want some privacy to where someone can’t just look up my house residents and go egg my house and harass me because they don’t like me. And if they’re resourceful enough, they can find all that stuff. I have access to that stuff.

 

I just use, a scraping program and a skip tracing program and I can find. Where you used to live with your cousin’s name is where they live, what their number is. What’s your dad’s name? It’s like it’s. No, exactly. So I think that a lot of these burns are just preying on the naivete of a lot of people and the idea of Oh, wow.

 

So you’re telling me, I can just become a ghost by creating this, anonymous LLC. And no one will ever be able to find me. And if I did get sued, I never have to respond and show up. Sorry, like you’re going to have a default judgment entered against you and you wouldn’t even be there to know.

 

And then you’re going to end up having to pay the maximum out because you didn’t even try to defend it. Yeah. Along the lines of this anonymity thing.  Is more from a tax perspective. Again, Brian’s the lawyer on hand here, but just speaking for taxes, this is corporate transparency act that got enacted in January, 2021.

 

So now, I guess what they were trying to block was people were just making all these random LLCs and none of it kind of points to them personally. And they were possibly hiding a bunch of nefarious action, or maybe just hiding, disproportionate amounts of income and expenses likely it was happening as most good business operators try to do to some extent.

 

But now on a lot of K ones, we have to put social security numbers on there. Even if you have LLC. So a lot of investors have gotten upset with us and it’s Hey man, it’s not our fault. We’re just following the corporate transparency act. So even now the IRS is like blowing this way.

 

There’s nothing that’s transparent. There’s really nothing. And that’s where real act like asset protection for it to work. You want it, you do not want to be not paying your taxes. You’re going to have to pay your taxes. Otherwise that’s tax fraud. And the system blows up or you don’t want to be committing fraud, were fraudulent transactions and things like, so whenever you  you’re creating an asset protection plan.

 

It has to be taxed neutral. And this whole idea of anonymity and hiding, if you excite assets, that’s bad, like IRS is going to come down on you. Like the, the judge is going to come down on you. So fraudulent transfers after a lawsuit. That’s why you have to be proactive when you create these in Korean, before issues, before problems, these are all the things that you need to think about.

 

Get your system set up as a business structure early, and then let it grow with you. But like you said, like  even the IRS is cracking down on asset disclosures. So I’ll just have a system that’s just strong where you don’t have to hide. And  of course, maybe it goes without saying, people listening, if you guys are doing any nefarious action you guys should go to jail.

 

And we’re talking to people running good businesses and doing things the right way. But yeah, so if the LLC is not the way to do it, LLC, so owner, so now we’re going to get into some strategies here where you don’t own it. You perhaps control it. Like the big sane is the Rockerfeller’s right?

 

 Own nothing. Control, everything. Correct. Rich people don’t own assets. They just get the use and benefit and enjoyment of them, their LLCs on them, their management companies do their trusts do. And then it’s just how you properly construct them, layer them and use them. That gives you the benefits of it.

 

And for example, if you’re owning real estate, like I would say, like everyone should go jump back on that last episode we did for the really good long presentation, but your real estate, you put into LLCs. And that’s going to operate as a holding company. Your LLCs should then be owned, not by you as the member, but by a management company.

 

As the member of that LLC. And then that management company should be a limited partnership so that you can then split ownership and you would be the managing member of the limited partnership. And then that management company would then be owned by a very strong asset protection trust when the timing is right and asset protection trusts come in a lot of different flavors like everything else.

 

So it’s just a matter of picking the right tool that fits the right client profile at the time. And what’s, Brian’s kind of alluded to, I think we did a previous presentation, but I think we did that just with our private foam group, Brian. But if folks listening here are interested in an, of course it needs to be an accredited investor and a part of our investor group, but just shoot me an email laying at school, past cashflow like that.

 

You guys take a sneak peek of that, but, But, yeah so there’s different, layers to this, right? Based on  how much net worth you have, how much liability may be going into some of the layers. Yeah, correct. And so like the entry level, like we’re talking about, like when we were, dogging, LLCs, that’s the foundational level.

 

That’s where your start. That’s not where you think you’re, silver bullet vampire, wearable Slayer is going to be like, that’s the base layer. I own an asset. The very first thing you should also do is budget to put that asset into something because there’s risk with it. So that goes into an LLC in the state where the assets at, because that’s where the lawsuit is going to be coming from.

 

You’ll hear some people talk about series LLCs, and I know we were talking about it off air. Like you can give your own thoughts on that, but mine is, I use them, but I only use them for clients  where they won live in a state that has series LLC statutes. And the asset is also in the state that has series LLC statutes.

 

Otherwise, if you’re in California and they don’t recognize a series of LLC, you’ll get no protection from it, but you’ll be paying extra franchise tax on each sub series. But to get back to the point is if you’re just starting out your green horn and investing, you start out with an LLC and insurance, let’s say you start growing, you have four or five more units.

 

Your net worth is probably around 500,000.  No five, 500,000. And, depending on your professional risk, that’s where you add a management company to own those LLCs and all your  of those. LLCs will full directly through to the management company. So it’s just one tax filing. You’ll be doing your business.

 

Out of that management company, you’d be managing that layer. And then the, and that management company is just an LLC. It would be a limited partnership, actually limited partnership. Why would it not be an LLC? The big difference between an LLC and the limited partnership is that a limited partnership has dual classifications of ownership.

 

Think of it as like a split personality. So you have a general partner and limited partner, the general part portion of it. Is it going to be the what’s going to be owning all of your assets? Like all of your LLCs, your passive syndication shares  whatever it is that you own, whatever’s risky, whatever we need to protect around that would be, like owning those.

 

You wouldn’t be managing that general partnership share. The limited  portion side of the limited partnership is what actually owns that management company that would be a trust like an asset protection trust, or a bridge trust, or a quantum living trust. And you can’t get that layer and split personality of ownership with an LLC.

 

It only comes through the limited partnership. So that’s

 

very clever. Yeah. And so that’s what legally separates you from management from ownership, because you actually can split it with the limited partnership.  So if you think of it in terms like a syndication deal, there’s general partnership side, there’s some it partnerships, which is why a lot of past investors like to invest in the LP side because they’re not managing members are very low non liability.

 

But in this case, you’re running your own syndication or deal in a way where you’re both. But you have the LP portion, which is the actual valuable part of it as the LP side. Of understanding. Yeah. So the ownership side. So if you think of it as like a syndication, all of your deals would be owned by the GP site and then the LP.

 

Is what is the ownership, the controlling portion of the whole management company. And that would be your trust, like a, a bridge trust or an asset protection trust. And then you would just be the beneficiary and the creator of that trust. And so you’re just a managing member of that management company, which then that management company owns all your sub assets.

 

Yeah. And I think this is very common folks, half a million million dollars net worth and above, they have this type of. Holding company. I think most people have it as a set up as an LLC though, the wrong structure, because it doesn’t give you the flexibility for the third stage properly. And because you don’t have that split ownership status.

 

And so the second layer should be a limited partnership if done. And specifically, I like Arizona for the limited partnership because Arizona is the only state that allows you to disconnect that management company from a trust by statute. No other state allows you to do that yet. Not even like Wyoming or Delaware.

 

And what that does is. During a lawsuit, we can disconnect legally the management company from the asset protection trust. And like with our bridge trust, you’re now fully foreign offshore. When everything, like your doomsday scenarios coming at you, just take us logically so should you get sued?

 

Wouldn’t they just say okay, you’re controlling, but you also own that and control that. How would you, how would that happened? That’s a great question. So the bridge trust is both an offshore trust and a domestic trust. So it’s actually a foreign asset protection trust.

 

We just build the bridge back domestically to the U S for the IRS to classify it as a domestic trust, to keep your costs down  and not have to have you do the IRS. Acid declarations. Now let’s say a big lawsuit comes and we agree it’s really bad. And we drop IRS compliance. That’s how it then becomes a foreign asset protection trust because it already is.

 

It’s a cook islands, foreign asset protection trust from day one. When we create it registered offshore with an offshore trustee from the moment it’s created, we’re not doing this after the fact. So as legitimized. What we do is just name through the control test is a state and you, as the trustee, all we have to do is blow up one of those elements to fall out of compliance with the IRS and  the way we do that is just by removing the name trustee.

 

So you’re no longer the trustee. The offshore trustee is automatically foreign asset protection trust with no more domestic connection and no more domestic compliance. And how do you get around like the fraudulent transfer? And for those that aren’t aware, it’s a ubiquitous term, right?

 

My understanding is if not for this lawsuit, you wouldn’t have done this. Yeah. So all of this is created before the lawsuit and because it’s just one trust and it was a fully registered foreign asset protection trust from day one. And then the trust was fully funded from the moment we created it. There was no fraudulent transfer of this going on whatsoever.

 

And the trust itself is a foreign trust. So there’s no transferring of assets. Yeah. So the think of it figuratively, the bridge was built. You just disconnected one then, which is not a chance, maybe just thinking of it as a bridge. And then like some bridges have gateways that open up. The gate to the center, part of the bridge, we just opened up and we’d already had the assets over on to the foreign asset side of it.

 

Yeah. So again, those, I’d say like when to go off shore, Stephanie, more for the higher net worth guys or higher, job liability folks, and to categorize that, those are those you guys doing deals out. There were doctors in the spotlight of litigation. It was just a lowly computer program.

 

I don’t think you have too much to work out. As far as occupation, we get a lot that meets the, like that client profile are the self-funded real estate investors, like the cops, firefighters, nurses, who over the last 15, you know, school teachers who over the last 15, 20 years invested in real estate to fund their retirement.

 

And they have that, that net worth, but one lawsuit they’re completely wiped out forever and they have nothing to go back on. And so that’s the other profile that we get a lot of calls from are the self-funded we, real estate investment retired. So let’s dig into some of these, in the middle strategies, right?

 

A little bit better than an LLC, not as heavy duty as a bridge foreign, going to the cook islands came in wherever, the cool place to Sydney. Yeah. It’s the cook islands is the strongest, the other places There’s just too many ways for the us to reach control and jurisdiction and get access to your strategies, like in the Caymans or The Bahamas Caribbean we always end up having to build back exit strategies out of those, to the cook islands anyways.

 

So that’s why we just go straight to the cooks, but a lower level of protection. Let’s say you’re under 1 million there’s this trust called a quantum living trust, which is actually one of my favorite asset protection trust because. I’ll be honest. Like I see the most risk is that, 250,000 to below a million net worth because you’re new, but a lawsuit is going to wipe you out and you may not be able to get it back.

 

Yeah, you’re exposed that first hundred, $250,000, the hardest money to make came up. Yeah. And then breaking like the above 1.5 million is the next hard one to push through. And, but you’re at that level to where you can’t really like, you use a boxing term, you’re going to take a floating ribs shot, and that’s going to knock you out where a more experienced fighter can take that they know what it feels like.

 

And it’ll phase them. But they can get back up, dance around, get, recollect themselves and get back in the fight. So for that under 1 million, we ended up  creating a quantum living trust, which is just a bridge trust lights. Is this like some reference to like ant man and Fanta umbrella or.

 

No. I don’t know why we ended up coming up with, like the quantum, I don’t get into the naming.

 

Okay.  I’ll have to ask Doug Hey, like who ended up? Was it your wife that ended up coming up with the name of this? Or like why? But I never got into the question of why it was named that,  but the great thing about this trust is, it’s half the cost of the bridge trust.

 

And then it works as an offshore trust and a domestic trust, but it also works as a revocable living trust. So you get almost a three for out of it. And it comes in at an affordable entry level spot to give a new investor or a person with a lot of assets, but low risk, some offshore component protection when they need it.

 

And then when they can  keeps scaling. So you and I were discussing offline little bit my asset protection strategy. And then you kept using this term grant or trust. Can you define it? Yeah, a grant or trust is a trust essentially like the easy way to do it is it gives the trustee the power and authority to manage their assets, is the easiest way to do it.

 

It doesn’t take anything out of your exercising control. Yeah. And I think that’s, this is where it confuses a lot of investors, right? Coming outside of asset protection, there’s a lot of  marketable  products out there, like 10 30, one exchange. You can call it the 10 31 super Sonic exchange.

 

Right now it’s just a marketing term for the adapter and 31 exchange or a QRP are essentially solo 401ks with a little bit of twist, where quantum. Auto row asset trust. Is it an, the grantor trust is like that distinguishable legal term of, is it or is it not? Yeah, 

 

and so in the world of asset protection,  I have an irrevocable asset protection trust, and then some banks haven’t, it’s hard to get lending through, but that’s because they’re not using a grant towards trust. And so there’s different types of trust. And so it depends on the type of trust that you create and what is being created for.

 

So we specifically use grant toward trust because again, we can still have them irrevocable, which for an asset protection trust you want, but banks and lenders understand them and they’re easier to use and manage. You are given because it’s a self-settle spendthrift grant towards trust authority to manage your affairs.

 

So it’s easier. When it comes to closing deals if you went to Nevada and created a Nevada irrevocable asset protection trust, a lot of these trusts aren’t grant towards trust. And so banks get a hesitation or pause. Like you were talking about how you have a hard time with, a setup from the past getting funding and that’s because it wasn’t a grantor’s trust.

 

Yeah. Every time  I S K P I, one of these deals. I have to answer the question. Sometimes they, they ask sometimes they don’t. I just don’t say anything until they ask, but. Yeah, I have to explain. It’s not a grantor stress or well, with anything you set up, even if it’s just an LLC,  they’re still gonna ask.

 

So you just got to understand, like, all they’re doing is doing their due diligence, just like when you’re buying a property or an investment. And they just want to make sure Hey, if you’re having a mortgage, are you going to be able to pay? Or are you trying to set this up to, the bank on payments?

 

That’s all they’re essentially, they’re trying to figure out. And then you’re usually working with a junior level employee. Doesn’t just check in boxes and doesn’t know what the heck you’re doing. Cause that’s why they still have a day job. Exactly. And then it goes to the underwriters who then they call them, they say, what is this like, Oh, I’m just putting it into my asset protection trust for, a rainy day.

 

Okay, great. No problem is essentially how for our side of it, because we use grant or trust.  It’s a really easy, quick conversation, but I would just tell your listeners expect. To explain some stuff like when you’re creating asset protection, because if you look at it as a flip side of the business or the lender, they just want to know.

 

Yeah. And I’ve had to do it where I take it off the UCC filing to and on. And this was just my personal thing. Like more asset protection you do, it can  complicate your life. And if you’re a very unorganized person, Who doesn’t have a good understanding.

 

It can be very confusing a lot. And this is where you need a network people around you to best practices and in Tara and the right professionals too. And that’s where I’d also say if the system someone’s creating starts getting too convoluted and the optics look bad is because it’s too convoluted and the optics look bad, like we create a flowing system through stuff that.

 

Banks and lenders understand LLCs limited partnerships, grant or trust they’ve been using them for decades. There’s a lot of case law on it when you start using stuff, because I want to hide because of an amenity and you start getting all these creative, like some people send me their spreadsheets.

 

Like you did the same thing of your setup. And I’m like, Oh my God, just looking at this makes me look like I’m looking for curious, George right now. And a bank is going to look at that and say this is just too confusing. Like I didn’t want to spend the time. So we create things that are very flexible, but are very strong and just using legal systems and processes with easy flow through that banks and lenders understand.

 

Yeah. When you get to be too cute with your strategy and lenders and those guys, they just tell you no, after a while. Yeah. And you’re also just spending a lot of money,  and it’s not going to do the intended purpose. This probably doesn’t apply to most people, but it’s a cool conversation starter.

 

And I think a lot of people maybe they’ve listened to this for cool things, the sound cool around the cocktail party when they can have a cocktail party again. But yeah, I have your cake and eat it too. Just, yeah it’s a good one. Like I work with Jeffer Dawn. So this is where like your high rollers, like I don’t even bring  this.

 

Trust up unless you have a hundred million or more, because essentially it’s called the high set trust and it’s have your cake and needed to. And that’s because essentially you have to be able to take out about, max out your gifts exemption in amount, so like 22 million, I think it is right now and put it into.

 

A trust that you would gift to, your grandkids for the issue in the past was when you gifted assets to someone, you can’t get them back. Like it’s more of a tax strategy this trust to decrease your taxable estate and let it grow, capital gains tax free. But once you gift that money to someone, it is no longer yours it’s gone.

 

And what happened was in 2009, we realized we may need that money back. Like we just gifted $22 million to, Johnny. But now we lost 60% of our wealth and we need that money back, but we couldn’t get it. And, or Johnny is a crack head and, or you change your mind because good boy, Johnny turned into cocaine, Johnny, and you’re like, there’s no way I’m giving 22 million to cocaine, Johnny, because what is he going to go do?

 

Spend it all on below and cocaine, like cocaine, no. You wanted to be able to change your mind and get the money back at a certain point. And so Verdon genius, attorney to the stars. And I don’t even think not even like Uber high net worth is right term for who he represents, but.

 

Came up with a high set trust and it allows you to gift, that money, as long as you’re willing to be able to give up the 22 million or what, like 15 million, if you want to not need it to live gifted to whoever in your family, you want to gift it to decrease your taxable estate. At the same time, the money is going to increase.

 

Let’s say it’s over 20 years, 15 years at 6% as you’re investing. So you just turned like 20 million into, 60 million growing tax, deferred capital gain tax free, and then you want the money back. You can get it back and not have to pay the taxes on it. And that you stay in limbo land or you run the Wildcat offense based on maybe some years, The administration might bring that $22 million threshold up or down. Right now I’m expecting to get to go down, and so we’ll see what happens, like right now the bed is going to be like that gift amount is going to go back to where it was before or lower. Yeah. So you just wait maybe  10 to 20 years for it to go swing the other way.

 

And then you get it out. Yeah. And that’s where all of these, tax mitigation strategies and different trusts, cause not all trusts you use are for asset protection. Some are just for tax mitigation, strategies and taxes change per administration. Yeah. And that’s per state, right? To have per state and per state.

 

Exactly. Certain things that you do in one state, you won’t be able to do one another. But like I said, tax advantages and benefits and credits especially federal change as a new administration comes in. So that’s why you always have to be talking to your CPAs and your lawyers and your representatives.

 

And like you mentioned before a creative team, don’t be your own expert because you’re not going to be able to know all of the specialty, gadgets and gizmos and what to do. That’s what our jobs are for. Your job, go find deals, close deals. Let us take care of you. Protect you, let your tax guys, let you pay zero taxes, if you can.

 

Exactly. And like another one that is that kind of like the AP trusts. I’ve heard of that. I had a few clients that did something like that. That essentially the same thing. There’s a there’s trust with a, B portions in there, but I never heard of like an Abe unless it’s like a marketing term of a B.

 

It’s probably a marketing term, but it sounds like the same thing. You have the option to at a certain period of time. Yeah. Yeah. Yeah. And then there’s different trusts. Like people spin off quantum trust or tiger trust platinum trust. Like you hear all these different spinoffs, but what you need to just pay a caution to is, go and look up on the IRS website.

 

If you’re looking at a system and you want to make sure that the IRS won’t red flag you there’s a page that we have. I can send you the link and you can link it on there. For tax avoidance and hindrance. And some of these marketers and, legal service providers, if they’re advertising for tax advantages and tax cuts through asset protection planning, that’s a red flag because asset protection is tax neutral.

 

And the second you start doing, specifically tax focus for asset protection you’re going to fall into a lot of potential fraudulent. So just to check my understanding. Today there’s a lot of market terms out there, but to me, the big ones, is it a grantor trust? Is it given mobile bookable or vocable?

 

Those are, to me,  my takeaway is those are the two big things that said yes or no, or one way or correct. And that would also fall in the line of, do you want it for asset protection or do you want it more as a like irrevocable versus revokable. Do you want it to be able to be changed or not?

 

Revokable means it can be changed. And a court judge can force you to change it. Irrevocable means is not going to be easily changed and most likely it’ll be hard for a judge to order you to change it. That falls in line of asset protection or non asset protection grant towards trust, or just a different type of trust that allow you to maintain, investment control and power of the trust.

 

While you’re investing, it does grants more of those rights to the trustee. You, the creator of it. And then the rest of it is just making sure, like the big takeaway don’t get too cute with your system. Don’t fall into the anonymity trap. If you’re not in that state, why would you create an LLC in that state to put something into it?

 

Like illegally? There’s no justification for that. Cause I want to sound cool and be Anon, right? Exactly. I’m going to go to my lawsuit because I have an anonymous LLC. Yeah. Yeah.  It makes sense after  we talk about it. But when you’re in the heat of things and you’re getting sold a bunch of products, it can be.

 

Yeah, sure. That ends the car too. That’s like when you talk, make sure you talk to specialists, like that’s my other big takeaway is if it’s a real estate attorney who. They’re a real estate attorney. They’re good at closing and negotiating closing deals. And they’re not asset protection attorneys.

 

Like your business attorney is not an asset protection attorney.  It’s I go to the right doctor for the right medical issue, go to the right lawyer for the right issue. Asset protection attorneys should be specifically an asset protection attorney. Otherwise they probably just went and took a continuing legal educational course and Oh look, I just learned about this cool thing called an LLC or a series LLC.

 

And then they just trying to add extra revenue into their firm and stuff, everybody into it. And that’s the wrong tool. And this is going to sound self-serving but guys, if you guys are just listening to this stuff, you guys are just drinking from the edge of the river. Jump on, in, on the pool party and join a family office or how to mastermind, there, you’re gonna meet up with 50 to 60 accredit investors, all doing the same thing, build your thing and bring in guests like Brian to answer more private questions  

 

if not yet, just keep going through the sales calls guys. They know how to go. It’s just go call up all those lawyers up there and have them sell you stuff on a sales call. Is that what you’re going to get. You’re not going to get that other perspective that you’re going to get from him up to your best or.

 

I agree with you a hundred percent on that. I don’t think it’s self-serving. I think that the more someone educates themselves and gets into a mastermind group and affiliation of other smart people, you’re going to see your rate of growth accelerate and the people amount of minds that you can piggyback ideas off of is I think of it as like a pie chart.

 

There’s three categories. I know this, I don’t know this. And then the things I don’t know that I don’t know. And so if you’re in a mastermind with smart people, I know something. I don’t like, I already know it. I know. I don’t know this. Hey lane. I don’t know this. Can you help me? Sure. Great. Go to this person.

 

All right. Awesome. I don’t know. I don’t know something. And that’s where most of your assets are. That’s what you’re operating in the most out of that percentage of your pie chart, you’re going to get the most loss you’ve ever seen in your life. So the goal is to shrink that as fast as possible.  Get educated. So you can have the informed conversation. Is this the grant or trust, right? Is this an irrevocable or vocable trust? Why does each one of those options matter per my specific situation, but, or you can just invest in the stock market guys and work for 50 more years, but probably aren’t you.

 

I get folks share contact information and I appreciate you coming up. Yeah, no, definitely. You can reach me at my email. Brian B R I a n@btblegal.com. My website has lots of informative information. I use it more as a legal reference for people. So lots of case law. Like everything that I do, I live through case law because I’m a trial lawyer by trade.

 

And I just like to cap people have the most information as possible. So www dot BTB, legal.com. A lot of frequently asked questions on there. More than you can probably think of yourself as well as lots of videos for educational references. So if you guys haven’t yet joined our investor clubs, simple pass the castle.com/club.

 

And if you just waiting around, just in podcast land join our masterminds opacity council.com/journey. We’ll see you guys next time. 

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