8/10/2019 Article Like Minds

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8/10/2019 Article Like Minds

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Li)e $i*+s By Gwenn H. Wycoff, Consultant

0eople on our mailing list are in various stages of learning about how to reformat afamily for long term financial gain. 'any, though, discover relatives cannot 6get it.6 tseems to be a prevalent problem, because the awesome pile of cash needed to catch theirattention is not there at the beginning.

C -esi *There are a couple of ways to handle this situation, but the two ingredients needed thathave little to nothing to do with hard core cash are cohesion and desire. 2ven if these twoelements are present, there need to be those five magical people who pull off creating the

olden oose. 4fter all, that is what we really are talking about, that machine that plopsdown golden eggs7 that cash flow that commands everyone8s attention.

Those people with the mo9o are: rantor, ; Trustees, 2xecutive !ecretary and 0rotector. The 0rotector and the 2xecutive !ecretary could be combined if not related tothe Trustees.

f you are in the situation where your immediate family is not listening or is toodistracted, hook up with others of like mind and brainstorm about 9ointly creating a

product to produce a cash flow.

Let8s say five of you Trust 9unkies who preferably live no more than <= minutes awayfrom each other get together to >hest? into the situation. That is, you figure out a viablefinancial base or bases for the Trust, and sort out who will be Trust &fficers, with carefulattention paid as to who will do what.

B.il+ $/*/ e e*t Te/%efore you get cash flowing from whatever economic process generates it, you need asecure place to receive it. That would be your rrevocable *ommon Law Trust.

This initial foray into the Trust world is the creation of a 'anagement Trust, where all ofthe start group are &fficers of the Trust, and where in the long run, %usiness Trusts can be

positioned underneath this managing umbrella. %ut to get started, this 'anagement Trustneeds a cash flow.

There are two kinds of products:

0hysical, which are bought and sold, usually with some sales tax along with dailyinteraction with the public.

!oft products, such as annuities, stocks and bonds, etc. where most of the transactionsare over the phone or through the nternet and where they roll over, or are boughtand sold without physically handling them on a daily basis.

The latter are normally part of the 'anagement Trust, but when we start from ground@ero, 9ust get the product and the cash flow going. !ort out the rest later, if it is necessary.That is, separate the physical cash generating types into their appropriate Trust.

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The most important part of this Trust creation is the building of the management team.

E2c-/* es r TCUsThe rantor or !ettlor who creates the Trust provides the initial funding, the Trust corpus,in exchange for Trust *apital $nits AT*$sB, and others, whether family or not, can

likewise exchange intellectual property, money and other financial instruments, receivingT*$s as a result.

The ideal situation, is each of the members of your start team eventually creates either a%usiness Trust or 4sset -olding Trust where they add their own family members as%eneficiaries.

egarding the exchanges for assets to start the Trust, whether financial, substance, orintellectual to create your initial product, the T*$s will vary according to negotiationswith each other. "hoever puts in the most in the beginning, gets the most T*$s. Thetotal T*$s among the %oard members comes to = C of the total available units, as statedin the Trust indenture. The first Trustee must have more T*$s than the other T*$s. The

rantor cannot have more T*$s than the 1irst Trustee, and is not part of the = C of theT*$s.

P/ .t t Be*e ici/ries&nce the cash flow happens, the bills are paid first, then if there are enough funds, theattention is turned to the family members. &f course, you listed them on the Trust as%eneficiaries when you put it together, and when there is enough money to share, you letthose doubters know they are about to get a payout. #ou will be surprised how theysuddenly line up. %elievers they become. t is uite a phenomenon, and one to make thecreators of a potential fortune feel pride all the way down to their wiggling toes.

There are enough batches of people out there that could hook up with each other. 4re youa leader( 4re you willing to be the one who organi@es the group that might come to yourcall( 'any people are getting the picture, and want to build the power, try out thecohesion, but 9ust do not have that central focusEthat 2ngine of the Trust that can givedirection and support.

C-/lle* e4re you up to the challenge to put together a Trust( think we can do it. 'aybe each ofthe group who comes together to create the 'anagement Trust, will pick up someexpenses along the way, a few hundred dollars here and there, along with putting yourinvoices for the expenses and your time into the newly forming Trust. !o what if in theend the bills to pay are FGH,HHH.HH or more( f you have the vision, the fledgling Trustwill eat that debt fairly uickly when it sells its product. f the entrepreneurship andleadership exist to collectively pull it off, it will not take too long to strut your stuff. 4ndwhat a 9ourney it will be+

!o, what are you waiting for( "e have a future to con uer, a new moral foundation to set.t is that next generation which needs to have the proper mentoring and apprentice

training amid a confused and dangerous world.

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f you would like to start a Trust formation gathering in your area, give us the city and ane mail. t will go out in our next newsletter.

C *s.lti*s some of this newsletter confusing, especially about the Trust *apital $nits. Then after

reading Iolume , you may want some help sorting out all the details. Iolume is neatly presented, but only covers one Trust creation. t is a good format, but some hand holdingis probably appropriate. 4fter all, if you were opening a bank account for the first timefor a Trust, wouldnJt it be nice to have a professional consultant, one who had openedseveral bank accounts, 9ust a phone call away(

f you want a free brochure about Trust *onsulting, e mail essentiaKH< gmail.com

*harles 4rthur is the pen name for the group which authored The Art of Passing the Buck, Volumes I an II .