SECRETS to Rockefeller's trust. How to create GENERATIONAL WEALTH!

yeah in 2019 my life changed buying real estate doing all these great things I understood the value of having uh real estate and wanting to hand it over to my legacy to create a legacy with that but once I actually went to create a living trust and I saw what it can do that's when I knew I had a bigger narrative I needed to share with the people so my thing was I looked at who traded a living trust to hand it down through their legacy and I said it's Rockefeller so I went on to read the Rockefeller trust from 1934 and also there's a a book called what were Rockefeller do so I stayed up reading all these things about how he would take this put it in an account and only give a portion to the Legacy and then have his children create a trust and now that money compound interest he wouldn't give it to him until they turned a certain age and I'm like I could do that we can do that the information was right there so I sat down with my trust attorney I said I want to do that like well you want to do it but I want to do that it can be done so we structured it worked it out where if uh not if but unfortunately we all pass away when I pass away a percentage of my properties would be sold not the ones that I hold long term like I have properties I do keep my short-term properties those would be sold that money would now go into a brokerage account that brokerage account would be in the name of the trust that money for that specific account would be for my grandchildren starting off not my immediate family my media family would get my life insurance policies which millions of dollars policies and the main properties that I hold so they're taken care of but we need to start thinking about the grandkids the great grandkids those Generations how do you start their growth you start their growth by putting that money in a brokerage account and they don't get that money until they turn 21 years old so let's use the example of a million dollars I put a million dollars in a brokerage account for my grandkids they don't get that till they turn 21 gaining six percent interest six percent interest they said as 21 so that money turns us to about 3.8 million dollars for my grandkids my grandkids they wouldn't get it all that we could have by 1.6 until I leave 1.6 in there for my great grandchildren for 21 years that now turns into about three four five six that turns into about 6.7 million dollars for my great grandchildren they don't get it all they get half so now it's about one point one no about 2.2.3 2.3 stays in for my great great grandchildren so they get about 8.1 million dollars you see how that happens that's compound interest over 21 years so we have to look at that number but what makes the trigger and the explosion even bigger is the fact that what Rockefeller did is that was just his Trust what he did was now each children opened up each child opened up a trust so now his children had a trust so he would pay his grandchildren and his children would pay them that's twice so now his Grand his children then his grandchildren have a trust so his great-grandchildren would get paid three times so now if we look at Rockefeller trust paid out now 11 generations and Counting continuously and what he also did was have a life insurance policy on every person in the trust creating his own bank and now what does that do this is my structure also any one of my children or grandchildren want to start a business what do they do talk to the trustees and now you borrow money we become our own bank so when someone dies that money goes into the trust you pay when you get the policy you pay it out right so now that money is available in the trust so now also what I did was I Retreat retweaked my trust last year and it was 21 that I wouldn't give them money I changed it I changed the way to get money at 18 and they can have a business started at 11. you know why because now with technology kids are now figuring out new ways to start a business so I want them to be able to present a business loan a business proposal to the trustees so they could borrow money these are the things where we don't look at them when people say I don't have the money to do this you know what I tell them yes you do the air you breathe is money a life insurance policy as soon as you die you worth money they're generations and their groups of people when people die their objectives to make sure they have a policy on their grandmother policy on their father to do exactly what we're talking about but we look at this taboo when it can't be taboo it shouldn't be taboo the main thing about it is you're thinking about the Legacy and when I tell people when I speak to you I'm not speaking I'm speaking to you like this Legacy you're just a vessel for me to get the message to you so you can hear the message and see it and it reverberates in your brain and as it's doing this you literally are talking to your legacy while I'm speaking going I got you don't worry storm told me how to do it now I'm gonna give me a life insurance policy when people have a life insurance policy let's say roughly four million dollars you have half a million dollars left on your home mortgage and you say to yourself I'm leaving my family a million dollar actually you're not because when you die that policy has to pay half a million to the mortgage so they can stay in the house you're only leaving them half a million dollars we don't think about that mortgage behind us so this is where I say get yourself a whole life excuse me get yourself a term that's for a half a million or a million dollars just to cover the house so your real policy doesn't get broken up and now you have that term pay off the mortgage any money left put it in a brokerage account and now you start the system so let's stay on this conversation about the trust for a minute um so irrevocable life insurance trust or a revocable you start off as a revocable because you want to be able to say something and you can change it yes 100 so you can all right so all right so who set this up for you your attorney yeah my statement you told them or they educ you educated them or they educated you obviously they're already educated because they're an attorney but it sounds like you kind of already had some idea of what you wanted to do because you did some reading before that yeah so what was the process you kind of said this is what I want to do and then they kind of added to it or they said this is what you should do um I came to them with my plan and my structure first and and I really wasn't taking no for an answer because I knew it could be done and there are some people that uh like there are mechanics who cars are broke like they just don't know fully how to do certain things so you really have to find the right person that does these things and I would always say speak to someone who has a trust speak to someone who you know they can refer you to someone but that takes time but they would give me little tidbits of well we can do this or they have a network of people and a law firm and they reach out to them like my First Trust cost me about twelve thousand dollars my newest One cost me roughly almost twenty thousand because I have a lot of things to fund it with but of starting out trust probably run you anywhere from three to six thousand dollars but you have to look at the big picture but I started out having a plan and I really really was adamant about getting this structure done that was it for me do you have a will too yo with the trust there's a thing called a poor over will that's attached to the trust for all the items that you don't put into the trust it automatically pulls over and fall into the will uh like jewelry like things that are heirlooms it'll automatically go in that well yeah I'm sitting here thinking obviously you will educate how often are you meeting with the trust attorney because I was having a conversation with a young lady the other day and she's finding it hard to have her parents you know even buy into the idea of a trust so how often did you meet with family if you did at all and how often did you meet with the trust attorney is that like a once a year thing or is it every six months because I'm sure you're acquiring properties and other assets throughout the year like how often is that happening uh in the beginning when I started we had to have a conversation literally it was about almost every other week sometimes every week to uh plan us out with insurance and all that stuff very complicated but once it was set the updating of the trusses every three years right but if there's something of urgency that I need to update because here's the thing and I'm going to throw this apart also I'm gonna drop it y'all pick this up when you're buying things in your holding company you're holding LLC should be in the name of your trust so if something happens to you the properties automatically fall into the trust automatically fall in there so you don't have to fund the trust because the trusts own the LLC so if let me give a quick example you know how you put your name on every single LLC you open up LLC you put your name on you open up y'all I'll see you put your name on it but if you was to have the property 123 Smith Street in its own LLC the name on that LLC would not be you it would be your trust so if something ever happens it automatically goes to the trust because you signed the trust over as the owner does that make sense automatically so with Trinkle effect so with that being said excuse me so with that being said you wouldn't have to fund one at a time you could just have that trust on it all these llc's bile straight in from your holding but uh also let me not glaze over something you said it's so important to have the conversation with your family and sit them down and explain because my thing was after everything's said and done my lawyer we would have the conversation with each one of them here's who's getting this who's the truck there's the trustee this is what's going to happen this is what it's supposed to be I want you to do this and it's a thing I'll call a letter of trust handwritten I want this copy of this letter in my hand written form and my signature should be copied for every generation every trustee so they can look and go he thought about me I want them to see what I meant and why I did this because that's powerful and they will get it and go man my great great grandfather thought about me so that letter you don't have to but the thing is always impact so you need to have that discussion with your kids your grandkids there's only so far trust can go it only could go to the last person alive in your generation up to a certain age so like if I have my my grandchildren my last one or my he would have to now take the trust format and restart it again and follow the same thing trust can't live on in infamy so you've created the generational wealth and the other part which is the sustainable wealth yep like that's the key right because it could get mixed up from Generation generation yeah but what you're doing is pretty much putting up the barriers like no we're going to sustain this forever forever the biggest biggest mistake that a lot of people make unfortunately when we have real estate is thinking that our children want to be landlords we can't we can't assume that they want to be landlords I had a a friend of mine who I knew through someone else he died didn't have a trust left the properties to his to his kids in a will they sold them because they didn't want nothing to do with real estate that's that destroyed me because I knew what his objective was so we need to put things in place to go okay if you don't want to be a landlord this is what we're going to do I'm gonna have a company do this or we gonna sell it put the properties in the brokerage account where it's gaining compound interest to do something so that's the key we need to stop you know really projecting our our wants and needs on children and grandkids when they're like yeah I got my own plan that's good that's good foreign [Music]

Channel: Earn Your Leisure

Views: 136,606

Keywords: earn your leisure, business, finance, sports, entertainment, Generational Wealth, Secrets, How To

Id: VgW1PXsFhcE

Length: 11min 41sec (701 seconds)

Published: Tue Oct 25 2022