This is Part 1 of an interview with our speaker at Traction REIA this month who is both a Tax Attorney & Certified Public Accountant.
I asked him to talk about what we as real estate investors need to do to protect ourselves from the CRaZy things that can (and do) happen in life.
Hey Bill. Thanks for coming to Traction this month.
You’ve told me that a Trust is a key to both asset protection and wealth. But I know many people are confused about what exactly a Trust is, and how it differs from an entity like an LLC.
A trust is a legal arrangement or entity to hold, manage, control, privatize, protect or take care of property in certain special ways.
Trusts are NOT publicly created by a state corporate bureau (like a Corporation or LLC), but rather by private written contracts between two parties – the grantor and the trustee, who create the contract for the benefit of a third party – the beneficiary.
Typically the beneficiaries include the grantor, their spouse and heirs, such as children, grandchildren, etc.
There are many types of trusts, however our focus in this discussion is an Estate planning trust – such as a Revocable Living Trust (RLT) which is an arrangement for the primary purpose of transferring your assets to your heirs upon your demise, without the cost and agony of probate.
With an RLT you have superior family legacy planning because anything a will does, a properly structured RLT does and does so much better.
(1) Identification & control of transfer of property to rightful heirs, with very little chance of being contested (A will can always be contested and often is).
(2) Avoid probate expenses, disputes and hassles by transferring legal title of property out of the grantor’s name into the trust. (A will does not do this).
(3) Give instructions for management of the trust assets during a period of grantor incapacity or being institutionalized while the grantor is still living. (A will does not do this).
Got it. Can you give an example of how this would come into play?
Without such a trust the following real-world financial disaster happens:
My cousin (Martin) happily married for many years with four great children.
Unfortunately, he and his wife got divorced.
Subsequently he meets some “lush” (who can drink anyone under the table).
They marry; and a year later he suddenly and tragically dies.
Guess who gets his entire estate?
Guess who got NOTHING?
It was not a huge estate, but $275,000 (including a house) is not chicken feed.
Suppose you were the children – how would you feel?
Obviously not very good. This sad family occurrence would not have happened with a properly structured trust.
Want to learn more and be able to protect yourself properly?
Bill is doing 2 events for Traction REIA:
#1. IN-PERSON: Washington DC Main Monthly Meeting
TOPIC: “The Power Of The Right Structure: The Foundation For Keeping What You Make and Protecting Your Assets Without Expensive Lawyers”
SPEAKER: Bill Noll, CPA & Tax Attorney
Thursday September 16th IN-PERSON
Marriott Dulles Airport
6pm to 9pm
#2. IN-PERSON: Full Day Training Event with Bill Noll, CPA & Tax Attorney
“Total Wealth Protection for You and Your Family”
Saturday September 18th IN-PERSON
Marriott Dulles Airport
9am to 4pm
See you there!
12+ Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!