Financial Literacy 101: Understanding Trusts & Building Wealth - Nakiim Bey

Every wealthy family has one thing in common: they don't actually "own" most of their assets. Surprised? You're about to discover why controlling—not owning—is the ultimate wealth protection strategy.Nakeem Bey, a financial expert with decades of experience in trust formation and asset protection, unveils the secrets of generational wealth building that most financial advisors never discuss. Drawing from his unique background spanning from the Five Percent Nation to Masonic studies to certified legal training, Bey breaks down complex wealth preservation concepts into actionable strategies anyone can implement.At the heart of this eye-opening conversation is the power of trust structures—legal frameworks that create separation between you and your assets while maintaining your control. Unlike wills that face public probate proceedings, properly constructed trusts transfer wealth seamlessly to your beneficiaries while protecting against creditors, lawsuits, divorce proceedings, and other wealth-draining threats. Bey masterfully explains the roles of grantors, trustees, and beneficiaries while outlining how different trust types serve different purposes.The discussion extends beyond trusts to include strategic business formations that create additional layers of protection. Learn why sole proprietorships expose your personal assets to unnecessary risk, how LLCs function as hybrid entities offering flexibility and protection, and why distributing assets across multiple entities creates powerful barriers against potential claims. Bey doesn't just explain what to do—he explains why, referencing actual court cases and legal precedents that demonstrate these principles in action.Whether you're just starting to build wealth or looking to protect what you've already accumulated, this conversation offers invaluable insights into creating true financial

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Transcript

Speaker 1: 0:11

what's going on. Everybody out there is ron brown, lmt, the people's fitness professional. You already know who it is. Another podcast. You know we've been putting in a lot of work. Thank y'all for joining us this evening, really appreciate you. You, we got the God, nakeem Bey, in the building this evening. Financial Literacy 101. Understanding trust and building wealth. Now here's the thing, right. So I'm going to give y'all, we're going to give y'all, a brief history and then, after the brief history, we're going to go straight into trust. Here we got the brother Nakeem Bey. How you doing brother? Hey, my brother, I'm doing great. How you doing? Life is good. Life is good. Working and grinding as usual. That's what I do. Okay, okay, all right. Morning, morning, morning tonight, man, that's what I do grind. So real quick brief history. I know Nakeem Bay some years. I've known Nikeem Bay since probably 2000. I don't know. 2010? When did you do the Clock of Destiny on 125th Street?

Speaker 2: 1:10

Oh 1994.

Speaker 1: 1:14

No, no, no. When you re-brought the Clock of Destiny back in the 2000s, you remember at the Lodge.

Speaker 2: 1:24

Oh, you mean the Lodge perspective of it. Yeah, that was like early 2000. But the clock of Destiny was reinstated by me in 1994. And there's many elder gods who also dealt with the Mori signs. That was present. So yeah, 94 is when it became official, but early 2000 is when the Masonic part manifested on the esoteric side.

Speaker 1: 1:48

Okay, so I was around Nakeem Bay when that happened. In fact, I don't know if you remember God, but I was the one who got the spot over there in Lodge on 126. No, it was 124th street 124th street am am I forgot am fm?

Speaker 2: 2:14

yeah, full of high ground lodge yeah, that one that that's not there, no more.

Speaker 1: 2:16

But yeah, yeah, I know, yeah, I remember yeah, yeah yeah so so yeah, I was around n Bay at that point and he's still putting the work in. Just give them a brief history, because you're also known as the God. You know 5%. So from what I know, that's your beginning, absolutely, and then you went into masonry. So that's what I know about you.

Speaker 2: 2:40

So if you can kind of give people a brief history of that, and then we go straight into the trust, Absolutely so, if you can kind of give people a brief history of that and then we go straight into the trust. Absolutely so. At the age of 15 I got involved with the study of the five nations of gods and earths and I got 120 lessons in six months. My man Kashim, he got it in seven months. We built together, we talked about the god named Allah, qutb, right, and fortunately we was around freedom, firstborn freedom, also known as Yuhura, and being around those great gods, i-god and Jus-Allah, and young God called God Supreme. It helped us get 120 degrees within the time frame that it did. It helped us get 120 degrees within the time frame that it did. But I know one God, I heard one God named science that got 120 degrees within three days, something like that. All right, but that was way back in history and it was that science that led me into the Mori science. You know you're talking about around 1983, you know.

Speaker 2: 3:47

And then I was curious after I had 120 degrees I went to the science of masonry. I remember asking the god, I got 120 degrees at that time about masonry, you know, about studying masonry. I got said you want to be like a cucumber in vinegar and come out a cucumber, don't go into vinegar. Come out a pickle, that makes you a fellow victim.

Speaker 2: 4:13

I had 120 degrees there and I understood what the gods basically shared with me, you know, and that understanding basically allowed me to understand my foundation as being God, the original man, and I think this had knowledge further than many have done. Right, 120 degrees has allowed me to navigate, but I still be the God, because the Blackman definitely is God. God's a whom or what, and so Maitreya and Moorish science was an added science, but the mathematics that the law gave us is what taught us to master all sciences that we go into, you know, with God, and every degree that I studied in life, whether it's our lessons or it's college degrees or certifications, like Messiah said, that they are all called plus degrees, you know. So, studying law and and finance. I had that experience, and so now, being 50, I'm 15 and now I'm almost 60. It's a big jump, but I'm still the true living.

Speaker 1: 5:17

God, indeed, indeed God. So now you go from five percent nation to masonry. So what gets you? We're gonna go more into your history later on, like in the next episode or whatever, but now I want to talk about peace, peace, ben. Peace to Ben Asiatic soldier, peace to you, salve. Charity always in a check-in.

Speaker 3: 5:41

We'll go further on Peace Nakeem. Hey, my brother.

Speaker 2: 5:43

I was logging in, it's all good came um.

Speaker 3: 5:44

So we'll go further on. Peace nakeem, my brother partner, partner, the um the lateness I was logging in it's so good.

Speaker 1: 5:49

So now, um, we'll get into your history more later because you know, to me you're legendary out here to me, like that's how I, that's how I view you, I have high respect for you. You know I'm saying thank you. You know I saying, but how did you get into trust and financial literacy and things like that?

Speaker 2: 6:10

I got into trust. I'm a certified power legal and in power legal studies. You learn about trust through estate planning right and trust is really the concept of sovereignty, and sovereignty meaning absolute independence from attachments, right, freedom, right and trust. In this case it meant economic security Right Now. Estate planning Right there's a court question mark there. State planning right there's a court question mark there. I learned that as well.

Speaker 2: 6:50

So, from the political perspective, you know, I learned the specific substance of trust law and fortunately fortunately undergrad, I have a BA right. I had some of the law classes, you know I have a BA right. I had some of the law classes, you know. And also I went to Cambridge Law School in England, did the hardships. I never finished, but nonetheless, that mind frame that set consciousness allowed me to see things from an independent perspective of family legacy security, you know right. So I attach sovereignty with trust and that's what really led me to it to understand that trust is very valuable and is more superior than a will right and it grants more control and management within the family dynamics or company, you know. And and so apply it to myself, my own family, looking at our people where they may really need this here. I think it's time to so much you know express that component okay so now.

Speaker 1: 8:01

So, as far as filing a trust and like what to do with that trust, exactly how much, how much does it cost to file a trust? And you know from that point, once you fight, because you know, like coming up in like the Moorish movement, you know, if you're not, I don't want to call it the renegade Moors, right, right, but I'm going to use that term, I'm going to use that for today.

Speaker 3: 8:25

I'll say it, renegade Moors, absolutely, absolutely.

Speaker 1: 8:29

Icon sellers I'm going to say renegade Moors, for lack of a better term right Icon sellers. So like before you go into the temple, before I went into the temple, I was into the patriarch mixture and things like that. So you go and you file a ucc and you do this and you do all of this stuff and, uh, there was really no, no goal in that. You know what I'm saying. So you know, I'm of course, a trust is completely different and I think that, from my perspective, we go and we file things and we just leave it as is and we don't really do much with it, and it's just like oh, I just got a trust now, so how much does it cost? And what is it? What is the, the, the, the process of filing a trust?

Speaker 2: 9:18

Sure, All right.

Speaker 2: 9:20

First question A trust can run. First question a trust can run. Well, I do trust right from $2,500 to $10,000 based on the assets and the mechanics. That qualifies that. You might have a house, you might have homes right. You might have tangible gold and other things right you. You have to appraise um and and and you might have cause. And you know you have policies of insurance and you have um retirement assets right. So there's a whole component that involves putting that in the trust. It's a whole process. I just got finished doing a trust for an attorney, actually this month Yep, this month and just understanding that the whole key was not the file or file. You give them the option or file, right. You give them the option right, and the choice was not to file because the choice is not mandatory to be recorded within the courts, only a will upon dispute. So the fee can be $2,500 upward, especially if you have assets. Now, if you have no assets, then I'm walking for $2,000 Because it's the mechanic that goes into it, the mechanics Right.

Speaker 2: 10:53

The grantor, that's the boss, alright. Trustee, the manager, the keeper, those who are responsible for the assets going in and going out Right. Then you have the Beneficiaries the keeper, those who are responsible for the assets going in and going out Right. Then you have the beneficiaries Right, those that will actually inherit the assets, the benefits now or the future Right, so that's a chess game. Right, it's a contract among parties.

Speaker 2: 11:25

Right, granteur trust game Right, it's a contract among parties. Right, granteur, trustee, right. So therefore, inside there's consideration. The assets Right, so it's a contract. Now you have those that's going to inherit it. They're initiated as applied to the contract, you see. So what goes into it is a lot of mechanics and you can see that it's very strategic. Right, and I'll give you an example I mentioned attorney Right, I didn't want to pass three or four months Right, one this month and one about two months ago. So this is a house. The grantor wants to assure that Ron sees the house. That means that a new deed had to be created in your name and the grantor got transferred over to you.

Speaker 2: 12:24

A new deed had to be created in your name and the grantor got transferred over to you. Now the grantor capacity depends on if he or she would like to still have attachment to it or if they want to not have attachment to it and is owned by the trust and the trustees therein.

Speaker 3: 13:26

I got it. I got it. I have a question. You said the mechanics of it. Behind it, what's involved is the appraisal of each item, such and such as iron client. It's like a business is separated from the actual person. This becomes its own entity, basically, right.

Speaker 2: 13:39

Absolutely.

Speaker 3: 13:40

Got you.

Speaker 2: 13:41

Absolutely and I, like you said, because you mentioned a separate entity, See within the law, see many more share this, but in law you learn this here you have the natural person, you have the artificial person.

Speaker 3: 13:55

The straw man.

Speaker 2: 13:57

Right. Straw man is the artificial, the natural is flesh and blood right man is the artificial, the natural is flesh and blood right. So if you want an irrevocable trust with no attachment but yet control, do you want to establish a straw man right?

Speaker 3: 14:09

Yeah.

Speaker 2: 14:10

Right, and then if you want one that is still managed by the owner, the grantor, you'll want a revocable trust. Which one is more accommodating, which one is most secureating, which one is most secure? It depends on, actually, again, what you want to accomplish. So, as you said, brother Ron, and you hear, see, many Moors have received abstracts and extracts of solvent materials but there's no legal backing. You got to do legal research, right, you know, you can't even give legal advice, right, and every case is different, right, and every case is different. You know, I got right now a case still in the process of establishing. This person has property in the South. They got property here in New York. How do you work that out? Right, you put all in a trust. You put all in a trust. You put all your eggs in one basket. No, exactly.

Speaker 3: 15:28

Alright.

Speaker 2: 15:29

What do you use? Go ahead, brother.

Speaker 3: 15:31

It sounds like. Correct me if I'm wrong. It sounds like a trust has an S-corp structure. It's all based on structuring of basically protecting your actual assets and just leaving it on to the straw man, basically.

Speaker 2: 15:45

Yes, the straw man, as long as it is irrevocable. And you are correct, it's about controlling, not owning. Owning is a threat to your assets, to your family legacy. I'm the president of a company, I'm the president of this corporation. So actually, even in terms of employment, you own a business. They're going to attach you to the business, you see.

Speaker 1: 16:21

Okay, so I wanted to start from the ground. Rise up. So trust, right. When you talk about trust, when we think about trust, the definition is like you trust someone in a general sense, but in legalese, what's the definition?

Speaker 2: 16:43

A trust, primarily, is a compact between parties. Again, it's a contract. You understand Trust, definitely you could say so. We cannot always come from the generic. We got to come from more divine perspective. I'm going to give you my authority to manage my trust. Can I trust you? You understand, I have to depend on you To manage my assets Because if I don't, my children are going to suffer If I don't manage it right. And the big question with that I will say is this here Can a will be Probated? Yes. Can a trust be Probated? Yes. Can a trust be probated? No slash, yes.

Speaker 1: 17:37

Okay, no slash, yes, what do you mean?

Speaker 2: 17:42

You are managing Brother Fever, trust Y'all brothers right Now. He's going to inherit it the benefits but you are not being transparent about transparency, about how you manage the funds. He's going to accuse you of failing to be transparent, right and mismanagement of funds, because that day alone he will bring you in court.

Speaker 1: 18:20

Right.

Speaker 2: 18:21

And what's going to happen? You might be found guilty. All the judge is going to do is replace you with another trustee with the dynamics of the family. That case is Howard versus Howard. Howard like diversity. Howard versus Howard. 2019, that's a year in Florida. An actual case, right. So what you can see, also what I'm sharing with you, is legalese, right and a reference point of law. Right, trust is a binding contract and it can be breached. This is why I'd rather share indirectly. You got to be architecture. You got to be not just a strategist but an architecture. I've seen many two pieces right, right, but I got to understand the family dynamics and what you want to accomplish. So a trust is definitely again a contract and contract. Take legalese, yeah, I guess work.

Speaker 1: 19:41

And I want to ask you this question. So what do you say about people who say that you can take your whole life insurance policy and put it into the trust I don't know like the exact terminology, but hold on a second. Okay, okay, that's peace. That's peace, wuzel and Wuzel. So. So what do you think about that? Is that possible? Have you heard of that before, where you could take the whole life insurance policy, put it into the trust? Absolutely, absolutely. I'll give you an example Right.

Speaker 2: 20:21

Can you have a trust if you're not wealthy? Yes, we're going to prorate it. We're going to whole life policy. It we're going to do a whole life policy and upon the decease of Jane Doe or John Doe, the value of that trust is going to be put in. That trust, do you understand?

Speaker 3: 20:46

Right.

Speaker 2: 20:47

It can be done At the same time. If you're living, you can do it, but I'm telling you you have to architecturally design the trust to qualify for acceptance. I'm going to say it because my clients it's very clear, and you asked the question earlier about filing it for the records. Avoid that if it's going to be irrevocable. But you want to put your accounts in the trust Through experience. The bank is going to say thank you. I'm going to send it up to the law department. It goes up. Who will put together that trust? Got to know what they're doing.

Speaker 3: 21:46

I got it, I got it, I got it. Now I get it. He's basically the life insurance. I could be wrong, but this is what I'm seeing from what you're drawing. They could put that whatever. If you're not wealthy, say you got life insurance policies for, like, say, 40, 50,000. You put it in the trust, being that the trust will be its own entity, its own business, with its own number, with everything else, because it has to have a number that's filed along with it Absolutely.

Speaker 3: 22:09

Absolutely. It opens up a line of credit. You can do that too to allow it to double up right To a certain degree.

Speaker 2: 22:16

No, the trustee is going to have to. First of all, the insurance policy cannot even be touched. It is accrued cash value over time. You don't touch that, especially the person still living.

Speaker 3: 22:32

Yeah.

Speaker 2: 22:33

Right, whatever simulation is in, that trust that can be the power to do regarding that trust.

Speaker 3: 22:40

Yeah.

Speaker 2: 22:40

That determines what you can and cannot do.

Speaker 3: 22:42

Gotcha.

Speaker 2: 22:43

That trust is still in that person's name.

Speaker 3: 22:45

Mm-hmm, I got you All right.

Speaker 2: 22:48

So your question was yes, it can be done.

Speaker 1: 23:05

Mm-hmm, right Either way, but that is a couple of cars, houses, some rental properties. For one K I have a whole life insurance policy and maybe some other things, some other assets, you know, maybe a boat, maybe some. You know, maybe a boat, maybe some bikes, I don't know. I mean, what can be put in a trust and what can't be put in a trust.

Speaker 2: 23:38

Like you mentioned, it can be put in a trust, but 401k you don't have to. But see, my question is again who are the ones that's going to inherit it, the benefits? Who are going to be the trustees? Right, you know, and you're talking about multi-homes, you said. You said multi-real estate properties. Right, you're talking about LOCs.

Speaker 3: 24:01

Right Yep.

Speaker 2: 24:02

You're talking about who are going to manage the LOCs. Right, I can do it. It's going to cost you, right, you know. And my cost you right, my thing is to secure your wealth, to have generation wealth, not to drain you. You can pay me to maintain it, to manage it, but at the same time, if you got to keep people in place, they're messing with LLCs. If you got five homes, you got now five LLCs.

Speaker 3: 24:25

That's a fact.

Speaker 2: 24:26

You got about 50 acres of land, two or three LLCs. Now the question is, how come so many should not be made easy to access. It's about complicating the matter from creditors and frivolous litigators.

Speaker 3: 24:47

I like this conversation because that's what I was looking at. I'm happy that you came on the show to talk about this and again, as Ron said, you're a legend. I purchased a book from you back in 2012. You probably don't remember it was the CM Bay Clock of Destiny. We spoke on the phone, but I purchased that. But I love where this conversation is going because I really started getting more into this, although I did it in school.

Speaker 3: 25:07

But they never teach you like the backstories. So after you start going behind the story to read about these things with the structure and you know, to that common person it will be viewed as illegal. If you don't know what you're doing Right, you get caught up in the loopholes and that's why we have different tax laws and stuff like that in place. But it's true, what you said is about separating yourself from your personal assets and finances from the straw man, yourself from your personal assets and finances from the straw man, because you know not to go on a long tangent. But it's like situation as we see today with the whole sean comb stuff, like people think that bad boy itself is being sued, but it's him personally, but it's not his business. So I'm like okay, I see what he did. He caught some trademark with his name and stuff like that. So I'm like, oh, he's protected.

Speaker 2: 25:52

Right, right, you mentioned that. And the legend African Van Bottom. You know who he is? Right, van Bottom?

Speaker 3: 26:01

Yeah yeah, yeah.

Speaker 2: 26:02

Some years ago, I remember, when he wanted me to deal with his assets, I mentioned his name. Because I'll tell you why I mentioned his name. I'll mention my client's names, period that fell through on my side. I'll tell you why. Bottom line, we were both together in Sony, downtown, around Fifth Summit Street, madison Avenue. The big attorney sitting down downtown around Fifth Summit Street, right Imagine Avenue, and the big attorney you know sitting down and I realized that all of his businesses was sole proprietor. That means his whole security was being used for that purpose. You know, I'm like wow. And so I dealt with Nevada regarding some things. I was in the process but because I was not a member of the Zulu Nation organization, some people were not favorable of me managing that situation and I had to pull back. Right, you know. But you know it's very important to deal with those who have both sides.

Speaker 3: 27:20

You know, Okay, okay.

Speaker 1: 27:23

So now you said that you know he had a sole proprietor and everything. So everything basically leads back to that person, right, right? So that would be the basically leads back to that person. So that would be the wrong business structure for that person?

Speaker 2: 27:37

Absolutely. Why would you put all your properties, all your assets on the Yusuf security number Right?

Speaker 1: 27:47

And so they sue you.

Speaker 2: 27:50

You got to liquidate all the assets to satisfy the debt.

Speaker 1: 27:57

Right. So why LLC and not an S-Corp? You know?

Speaker 2: 28:01

an S-Corp is primarily managing taxes, right, right, that's minimized taxes. Right, that's minimized taxes. You know, an OC it's a hybrid, it's a partnership. I'm going to be honest now. It's a partnership and it's an ink. Right, that's one thing I got to tell you. I do a lot of OCs. You know, I do a lot of OCs. I just did a few business evaluations of my client to see their health condition in terms of the business this month. If you're a member among members, you're an owner. Right, I know how it goes. If one is no longer there, the whole company, the whole LLC, can dissolve.

Speaker 2: 29:00

I believe in not being on the radar period. I am that guy. My thing is get in the resolutions, establish it in bylaws, have your next meeting and play chess. Right, if I'm concerned, anything Alphabet City give you and give you thumbs, for there's always a question mark, there's something always to it. Right Now, mind me, I'm never going to advocate evade law. We don't evade law, we avoid law In finance. I learned this here At the beginning of the year claim nine dependents. You'll say to the IRS you pay me first. In six months I'm going to mark zero, I pay you.

Speaker 3: 30:02

That's a fact. Give him a gunshot for that run. That's a fact.

Speaker 2: 30:09

I don't even have to plan it. That's legal. You're not evading, you're avoiding. I'm not going to pay you anything. You're saying I need my six months capital right now. Come, go and invest this money in something and I'll pay you on the back burner In six months. I'm going to mark zero. Now you get it back. Simple, all right. You learn that in financial planning I got a firm in financial planning licensed in New York. Other products, but nonetheless, you know, you got to know how to avoid and not evade. So I don't believe in volunteering my freedom, right? I don't believe in disclosing assets where assets don't need to be disclosed. You see some coming from you know a legal perspective, a family responsibility perspective. Or make it hard for your children to inherit these benefits because you ain't set it up correctly or someone is not giving you the proper information or reference. Like I said, howard versus Howard, right, you need facts, reference points. Go ahead.

Speaker 1: 31:25

So now, llc, right, so it's a hybrid, it's an Inc and it's a. I forgot the other thing. You said Partnership and a partnership. So what are the benefits of having an LLC versus having an S-Corp?

Speaker 2: 31:44

LLC is mostly it is controlled in partnership and not so much S. Like I said, I didn't do so many S-Corps, I did a few, but I always knew they always wanted to minimize the tax returns. You understand, right, short-term family. That's going to be the LLC or the Inc. All right, the Inc is probably a bit more. The S corps only comes in when you want to save taxes, not to manage and regulate your assets.

Speaker 1: 32:24

Would it be easier to get loans from banks if you're in funding with an S-Corp?

Speaker 2: 32:33

You can still get it. It doesn't matter S-Corp, llc, inc. Even S LLC, inc, even S. You know what's more accommodating to the bank. Always I would say Inc or LLC. What I'm going to say was more acceptable would be your credit and the business credit. Right, because you can look at that, because usually they want your EIN number and they want your individual for the credit number.

Speaker 1: 33:08

Now with the trust, if you could give people a rundown of how a trust is structured, you have the trustees and the beneficiaries right. So how many trustees can you have, how many trustees can you have, how many beneficiaries can you have? And where are they in the food chain, so to speak, or in the pyramid, so to speak? I like that.

Speaker 2: 33:31

There's no limit to the trustees, nor the ones that can inherit it. I mean, I did a trust for five kids different ages. You know trustees, you know it doesn't matter. Okay, okay, my bad, my bad. The trustees are all about managing what you give them to manage, to regulate, because their grantor, you either gave them partial Authority or full, based on the type of trust you established. The beneficiaries.

Speaker 2: 34:14

They're just sitting around waiting. As I said to you earlier, you know You're a trustee and One brother sued the other brother, howard versus Howard sued the other brother All because of an impression that the trust is wrong. Something is wrong because what I'm getting is not Fair. It seemed like I'm thinking of the court. You see what I'm saying. So, all based on the structure you provide. So the business owner is sitting back. Listen, I'm looking forward to my assets. You know, that's it Okay, and the trustee's job is to make sure that it happens. You can have three or four trustees, but let's be honest, you can have three or four trustees, but let's be honest, you don't want too many trustees.

Speaker 2: 35:04

Because you know family you know, as we say, family is always questionable, right?

Speaker 1: 35:12

That's crazy. Hold on, damn.

Speaker 3: 35:19

That's wild man.

Speaker 2: 35:20

Family. I mean, you can employ an attorney to look over you know what I'm saying, but you have attorneys that are crooked. You don't have court of conduct and ethics, you know. So you got to really vet.

Speaker 3: 35:34

Watching lawyers Right right.

Speaker 2: 35:37

I mean, it's about credentials, right? How solid are your credentials? How solid is your background Right? I can show you certificates that I got specializing in asset protection.

Speaker 1: 35:49

Now let's say you pass on, right, and then you have your trustees and they basically okay, for lack of a better term, who's going to get what? Okay, for lack of a better term, who's going to get what? So how would those assets would be recovered by the beneficiary.

Speaker 2: 36:10

Because, primarily, it's already in the trust how it's to be dispersed. Ah, okay, for example, the house, for example, I mentioned earlier All the cars, all the accounts that I'm aware of, right, right, even in New Jersey, my client in New Jersey right, it's already recorded what's done and what's already been filed. The House cannot be. I mean, the bill of self of the House cannot be drafted after the fact it got to be drafted before.

Speaker 3: 36:43

Yeah.

Speaker 2: 36:46

Right, because, as a trustee, you're not doing any of that. You're just hands on with delivering, paying out any debt. Because if there's a house, you know, if there's a house and there's still a mortgage on the house and taxes, the trustee's job is to pay those mortgages and taxes. If you got a car note, right. If you got a car note, the same thing. You got to pay that car note. A trustee's job to do the same thing with the spruciums, the assets.

Speaker 3: 37:19

Got you Very, very informative, brother. So if you have an LLC, basically don't put yourself as a sole proprietor. Basically you're saying put yourself as a member of the board, or something like that.

Speaker 2: 37:30

If you're an LLC, you're a member.

Speaker 3: 37:34

If you're a sole proprietor, it's just you. Okay, got you.

Speaker 2: 37:37

It's just you as an individual, that's it.

Speaker 3: 37:39

Nice, nice. That's dope. Okay, got you. It's you as an individual.

Speaker 1: 37:42

That's it, nice, nice, that's dope, alright, okay now how would I put the LLCs under the trust?

Speaker 2: 37:49

You gotta sign it over, like the house, the same thing. You gotta sign it over. I mean, I've actually did an LLC and put it on the trust. It's here between you and the trust Because the state was only the creator of LLC. That's it. Llc is a creature of the state. That's all All taxes and annual filings, reportings and all compliances With the state, whether New York State nine dollars, you know or whether it's reporting Um uh, uh, uh Change in officers, every year A change, or whether it's Delaware, right, it is a trustee's job to stay on top of all that, unless attorneys and so forth got involved, you know, and they're part of that makeup.

Speaker 1: 38:54

Okay, we got a question from the chat. Do you need a trust for a 508C1A or? Those have nothing to do with the other.

Speaker 2: 39:06

Is that? I'm not familiar with that one. Is that the nonprofit?

Speaker 3: 39:12

Probably sounds like that.

Speaker 1: 39:14

That's what it sounds Well, 501. No, no, no.

Speaker 2: 39:17

I know about 7 and 3 and 8. That's not that CLA.

Speaker 3: 39:25

I think that's C1A.

Speaker 1: 39:27

C1A right so refers to provision in the Internal Revenue Code that exempts certain churches religious provision in the Internal Revenue Code that exempts certain churches.

Speaker 3: 39:44

Okay, not religious, yeah, yeah.

Speaker 2: 39:44

Yeah, yeah, yeah, right, because I remember that section. But it falls under the whole status, right? Well, see, I'm going to expand on that a little bit. When it comes to churches and religious associations, if you have one, you'll see it says down below religious bodies involved, right by the name. Answer your question A not-for-profit doesn't own anything. A not-for-profit doesn't own anything. When a not-for-profit is dissolved, all assets return to the community, right? So there's no choice involved there. Now, if you have staff and they have personal investments, that's different. But in terms of putting a 501c3 in a trust, I don't find that within the boundaries of that law. I'll look into it. But nonprofit-profit is a whole other entity.

Speaker 1: 41:03

Right, indeed, indeed. So now, as far as the trust is concerned, you already broke down the basics, right, so you have trustees, beneficiaries, and you already gave us basically the basics of it. Now, basically, what you were saying is like to complicate things, to make it hard for people to access your assets. Now, can you give me an example of that?

Speaker 2: 41:36

Well, it's simple. I'm looking for Ron Brown's assets Somehow or another. I only found one. I only found the other three, right? Okay, if everything was all in one, you'd have access to all your assets, right?

Speaker 1: 42:01

You understand.

Speaker 2: 42:02

Okay, it might be a holder company where there's no mark, there's no use of any commercial business. So it might go from a trust to a LLC, to a holding company.

Speaker 1: 42:14

A holding company, so explain that right there. All of a sudden hold no business, so how is?

Speaker 2: 42:18

that is a hold no business.

Speaker 1: 42:21

So how is that possible? Okay, so the holding company, that's like another LLC. Let's see, for instance, right yes, different name, different name.

Speaker 2: 42:31

I said different names, different name, right? Okay, so remember and it's very important, I make this very clear it's not about not paying taxes, right, you with me. It's about someone who fell in front of your house and now claiming a lawsuit. A car stopped in front of your wife or your kids, you know, I mean in front of somebody for your kids. You know, I mean, if I find somebody and they're claiming that, who was in the car, your family, they now have a lawsuit, right, you know, it's about logging things in for your family. It's about protection. It's about legacy, right, you understand? Right? So, instead of all these entities, you have creditors. Right, the first thing they do, they want to hire an attorney to do asset protection, asset search. Right, and it's in a thousand names, right, can't find anything. You're not doing anything fraudulent, you just make it matter. It's complicated for the search and it's legal.

Speaker 3: 43:53

Yeah, the president does that. There's a lot of things he has done. I'm reading his books. He knows the ins and outs of business. People could say chapter 40 bankruptcy whatsoever. I just want to clear it up for people. Bankruptcy doesn't mean that you're flat broke. It means that you're protecting your assets. It kind of works like that with a trust right Right Asset trust.

Speaker 2: 44:19

let's be clear Trust is to prevent the credit lawsuits. You know divorces right. You know mad creditors right. You got to save your wealth. You got to save your wealth. I trust my brothers and sisters that may be on this call is all about protecting your assets so that the next generational wealth family members can inherit it without any incumbents. It's about generational wealth. If this matters appropriately Right by trustees is about generational wealth. It is managed appropriately by trustees.

Speaker 1: 45:07

Go ahead, you got it.

Speaker 2: 45:12

I emphasize because I know you mentioned the word more earlier A lot of these so-called morals. They're about evading, find some kind of illegal something to do. Right, and I emphasize that trust is not for that. There's no common law of trust, blah, blah. You know what I mean. Right, and certain states have their own laws regarding trust as well. This is what I got to share with you. Every state has their own laws. When I did a trust a couple in New Jersey, there was a law. There's a child, a certain age, there's a law regarding that, you know. And then there's an age factor, not with the child, but with the grantor, you know, even the trustees. There's an age factor called competency, right, you know. So you can see a lot of things that go into play than just trust this trust that no, don't trust anything. You know, qualify.

Speaker 3: 46:10

Qualify, that's smart.

Speaker 1: 46:12

Now Sue Lee asked if you can is it legal to pay your children via your LLC?

Speaker 2: 46:20

Absolutely If they are on the books. Absolutely If they're on the books certain age qualified I don't care if they're sweeping, I don't care if they're just monitoring, whatever it may be as security, helping out the amount of money received that year. Definitely, you got to report it. But they're on the books LLC like an ink, you know yes.

Speaker 1: 46:50

What's the benefits? For you know, letting that for setting a business up that way where you can pay your children.

Speaker 2: 46:58

Well, a few reasons. Number one learn the business.

Speaker 3: 47:04

Family's business. It's the first rule Family's business.

Speaker 2: 47:09

Number two a business is not set up just for self-gratification. You're talking about wealth succession planning, right, right, right. And hey, great question. You know what I'm saying. Why not employ your children? You know, right, you have a bookkeeper or accountant to make sure all the taxes are properly allocated to levels of government. Your books are current. Because I say this? Because of compliance. You know, I have set up business formations and if you already know, it's about state and federal compliance. You know and I think Trump one thing I'm not a Trump fan in that sense, right.

Speaker 2: 48:01

Well, in this sense right. But when he came out under the previous administration, there was a transparency law that was in place. Remember that that every company had to follow the federal government, right, yeah, you know. And I managed to estate for a well-known family and I notified the family, I filed with the state Within about a month later. What happened? It went to court. It went to court. When Trump came, he got rid of it, right. But you know, if you're not in compliant with state or federal regarding taxes or timely filing, you'll get penalized, you'll get fined and, if not properly directed, you'll lose your business. So I say, regarding what I mentioned about the LLC absolutely yes, you can employ anyone, you know, but family first right. So I say, regarding the one I mentioned about the LLC absolutely yes, you can employ anyone you know, but family first.

Speaker 1: 49:06

Right, right, right, okay. She says that's like 12K yearly. I guess it depends on what you feel like. You know you can pay them.

Speaker 2: 49:26

Yeah, right, right, I mean, I forgot the amount that you have to report. I think it was $600. Yeah, but that's fine, nothing wrong with that. Now, what's their age? Are they in school? You know right, part-time, full-time all it has a play in this here.

Speaker 1: 49:45

You know what all the studying we did about. You know all that UCC and all that. This is what we should have been studying right, exactly.

Speaker 2: 49:56

Now I'm going to tell you, I'm going to tell you see, when it had UC1-207 and 3 and so forth out, you know, there was an advantage, you know, if you had knowledge of the law. Right, you know, and I'm going to give you an example. You know, and I'm gonna give you an example you know, with yeah, this is not, this is not an asset protection issue. Right, this is primarily a business issue that I dealt with. I see someone's house for being confiscated due to UCC codes. Hmm, you're one to five right C Coates and you're 125, right Watkins Huffle store.

Speaker 3: 50:44

Yeah, yeah, yeah.

Speaker 2: 50:48

Watkins His house. He knows me. That was some years back but I didn't see the advantage. My brothers and those on this call you have to have knowledge of the law. I don't mean the sovereignty stuff A lot of these cats they put in their hairs don't know what they're doing. You know Messiah Bay right. You know Messiah Bay right.

Speaker 1: 51:16

Yes sir, yes sir.

Speaker 2: 51:17

Yeah, messiah Bay is a paralegal. He finished the school downtown in Y State Paralegal School. If I call him, I say, hey, g, I need a case checked out, he would do it. You need somebody that can do the research on UCC and other cases. That's the advantage of knowing the law, no guesswork. They're doing findings for you, research. They're not giving you legal advice.

Speaker 3: 51:51

That's a fact. You got to reference it. Many of them don't have case points to prove, they just say well, according to this. Would you cite a case where that was used? They can't.

Speaker 2: 52:00

They just say well, according to this would you like, cite a case where that was used. They can't they just be like. I love her question because I'm very keen on family. You know, trust is all about generational wealth, inc. Llc is all about generation wealth. It's about showing that your family, your children, will have something 15 and 20 and 30 years out. But as she had that question, why are they in the business? They learn the business, they learn how to run the business, moving forward.

Speaker 1: 52:45

Right, indeed, Before we cut out. Is there anything else that you want to add on to this?

Speaker 2: 52:51

before we cut out what I will say as we say right. What I will say as we say right. Don't take anything on face value. Number one Right. Number two consider the trust LLC and when you advance, consider a family bank Right. Learn about investments, because here go the trusts. We will also feed the trusts. Right, so learn the basics of investing. I'll have you two or three investors Right, so learn the basics of investing. I'll have you two or three investors Right, because a trust is not just a holder, it is a dynasty and, look it up, a dynasty trust. But usually it's more like the real wealthy right, it is a dynasty. You're building an empire you're building. So think as trust, as a contract to secure and protect your family name, your family brand, and the whole key is generation of wealth. Indeed. On that note, thank you, blah blah Indeed On that note.

Speaker 1: 54:23

thank you for coming out. God the legend really appreciate you and we are out of here. Peace to everybody on the chat. See you on the next episode coming on in seven minutes eight o'clock. See y'all soon. Peace.

Speaker 3: 54:43

Peace.