Good job! You did it!
I mean that quite literally. Think about the sheer numbers. The magnitude of it all. A gazillion humans on earth. Millions in America. Hundreds of thousands within driving distance of you. Tens of thousands listen to the BoomX Show. Hundreds consider asset protection. And, YOU, took the first step. Good job!
I think I coined this phrase. Ready? The hardest part about running is putting on your shoes. (Think about it!)
SO, HERE'S ONE:
This webpage is hidden from the world. Only webinar attendees can see it. (Our secret). For those who make an effort, I plan to give a BONUS give away at the end. BUT, for now, here is the single most commonly asked question I have been asked. Bar none. I bet I have been asked this question 3 times more than any other question and I bet I have been asked this question over 300 times in my carrer.
What is a revocable living trust and how is it different that an irrevocable trust?
First, a trust is like a business entity in the sense that they are both legal constructs. Lawyers made both the legal entity of a trust and business entity of, say, a corporation so that business assets could be legally separated from personal assets. Trusts are also used to hold personal assets but to achieve a particular result.
That last part is important. A trust holds assets to reach, usually, one objective.
My frustration with lawyers is that we used the wrong words to describe trusts. Lawyers use the wrong words because we do not think like normal people. Law professors always call this "legal reasoning." I call it a great way to think and speak if you are a lawyer talking to a lawyer but just plain weird when you are then talking to real people."
Here is how it breaks down:
1) Trusts can become legally effective either when you are living or when you are dead. Thus, the "living" part of the term "revocable living trust" means the trust is created AND FUNDED now, during your life.
Another option is to write the trust up now but write it up in your Will so that it does not spring into existence until you die. The trust terms have to be written now but it is funded later. Calling that a "no longer living trust" just didn't sound right so lawyers, call it a "testamentary trust." See what I mean? How in the world is a reasonable person able to understand that a "testamentary trust" means that the trust is created after life? Ridiculous but there you have it.
By the way, the single most important asset protection trust, I mean TRUE asset protection trust is the Spousal Protection Trust and this trust is a testamentary trust.
2) Trusts are either true asset protection trusts or they are not. The law says that if you transfer an asset into a trust, you still own if you have too much control over the asset for tax, Medicaid, property law. One (and only one) of the many characteristics of a trust that render the trust NOT an asset protection trust is whether the trust can be amended or revoked. Lawyers always look to see if a trust has any one of many provisions that render the trust invalid for asset protection purposes. They didn't want to list ALL of the characteristics of a non-asset protected trust so they just seized on the first one on whatever list they were looking at that moment -"revocable." Ridiculous!
I say that the word "revocable" should be stricken from the English language! It tells us NOTHING. My clients are confused by it and want to know what it means really. Really what it means is that the revocable living trust, created while you are alive, avoids probate. That is it! You are the trustor, trustee and beneficiary during life and so you have too much control except for probate law. Probate law says that only assets that are owned by you outright must be probated. I will explain that more in the webinar.
HOWEVER! For now, I want you to think about concepts not these labels. What does the trust do? THAT is what matters! A revocable living trust should be called a "probate avoidance trust" because it's only function is to pass your assets when you are dead to a living, qualifeid heir without a court procedure.
I know what you are thinking! Well, what then is an asset proteciton trust? That is what the webinar is for.