Trust Advisor Training Week #2 - Transcript

Dr.Gina Gaudio-Grace1h 14min

Dr.Gina Gaudio-Grace

00:03

Welcome, everyone to the abundance group trusted advisor training. Today is Tuesday, June 28. And this is week two of our trusted advisor training. So for those of you that were either here last week, or that listened to the replay of last week, have you had any further thoughts about what you learned last week?

Dr.Gina Gaudio-Grace

00:35

was last week helpful?

Speaker 1

00:41

Yes, the breakdowns of the different examples, from one through four, were really helpful. But I know you said they will eventually walk through setting up something so. But how you broke it down in the charts, that was very, very helpful and clear.

Dr.Gina Gaudio-Grace

00:59

Awesome. So this week, is a little bit more of the same. What I have basically decided, is, given the way that clients businesses tend to be those essentially, eight different structures, for those businesses that have active income, that ended up becoming one of the things we will end up recommending for them. And you guys don't have to worry about the recommending part because that happens before they ever get to you. So last week, we went over the first four, this week, we're gonna go over far more. Now, this doesn't take into account things like our intellectual property slash personal trust, or IP slash business trust. But that's an unchangeable with personal trust or business trust. So these are pretty close to the ways that 99% of the clients, businesses ended up working. Now, these structures are typically used for one of two things, either clients that have active business income, or the clients for clients that have real estate investing businesses, with more than just a couple of problems. Otherwise, all I really need is a personal trust, or a personal trust and a foundation. So don't forget that that's a possibility, too. We will go over how to implement just the personal trust, or just trust foundation. When we get started next week, we can literally start going through the instructions for the person's trust was definite. Starting on the next time, that's when we get done with that. Instructions for the business trust. Well, we have trainings that are available for clients on those things, the difference between our trusted advisor training, and what we have for clients is really this call. It's about a lot behind it, not just the how to do it'll be easier to help clients go through the process. So with that said, let's get started with the next structure. Now, if you've listened to last week's training, the difference between last week and this week is very simple. It's the addition of the foundation. Why is that an important distinction? Well, once you get the foundation to the four structures we talked about last week, we can get clients down to a $0 tax liability. We can also have clients have a way to pay for things like food that they couldn't otherwise pay for travel that they couldn't otherwise paid for under the trust. So the combination is really really powerful. As we move forward, I really want us to be working with clients or also setting up foundations to me that it's really important. It's important for the world and important for the client. So structure number five picking up where we left off last week. That's going to be an LLC with a personal interest and foundation that can be used as their active business income and can't afford or don't want to do In this choice with this structure, the clients still going to receive a 10k, one for 3% of in that concert, they can take 30% of that, and put it into the foundation. So they can end up with a 2% tax liability. They're gonna need some monies outside of the trust and the foundation for stuff, no fun stuff, welding, things like that. So I don't care how much they're making, if we can get it down to 2%. That's a really good

Dr.Gina Gaudio-Grace

05:39

structure number six is going to be a business just with a personal just with a foundation, but no entity. Now, if they have payroll, and they are withholding taxes from other people, they should not be using option number six, it is not a good idea to have the business just acting as a withholding agent, as we talked about last week. Using that structure, I usually say my answers still gonna end up getting taxed on the site are between 12 and 18%. Of net profit for business. However, at the foundation and the public's like can actually come down to a $0 tax liability. So that's a really cool structure. So I call it the trifecta package. Structure number seven, same as number six, but with the addition of the entity. You're not like striking on our screen, that's pretty cool. striction number seven business just post personal trust plus entity plus Foundation assets in the personal Trump's, if the client has active business, they cannot hold the assets for the business in the business jobs. Otherwise, they're gonna pay taxes on 100% of the net income in the business, there's just no events or buts about it, there's no way to get around it. What mitigates taxes on active outcome is leasing the asset from the personal trust to the business trust, thereby converting a portion of active income passive income. Normally we have that structure might still ends up getting taxed on 12 18% of income. But when we add that foundation piece to it, it's a beautiful thing, because we can literally get the plant down below $0 tax. And then the last structure is the same as number seven business trust plus personal trust plus foundation with without an entity, but the assets are held in the business trust not in the personal trust that is also going on produced is $0 tax that can only be done if the income is coming from either passive income or capital gains income. If then back down can we can use the structure. So let's take these apart one at a time, like we did last week. On if I can figure out what that me just touched. I don't know what this is, is something up on screen and I don't know how to make it go away. We'll see if I can figure that out okay. So this is the structure, this instruction number four that we talked about a few minutes ago. We have gross revenues that are paid to the LLC. Then the LLC is going to have a backup because the assets the assets are held in the entity count length are gonna be sold by the entity to the business owner business on they're gonna get sold to the personal checks. And from that they'll have at least agreement between the personal just an entity that lease agreement allows the entity or the animals in this case, to pay up to 70% off bits, do the person on trust, that's the lease payment. That's helping to convert the active income on the LLC to passive income to the personal trust. So 300% tax on the remaining 30% is meant for personal interest and 9%. See, we then have 90% of that 30%, which equals 27%. That is going to end up being personal trust share the profit as a

Dr.Gina Gaudio-Grace

10:39

personal tries to get a k one on that 27%. That leaves a remainder of 3% of profit, that would go to the business owner on a k one. Then we're gonna take 30% or 1% and donate it to the foundation. That's $1 for dollar reduction of the adjusted gross income on the owners 1040 Return on government that way, it brings tax liability down to 2%. However, well, that's a really great structure for tax litigation. It's the only one thing that lets just like it did last week without the foundation. And that's the future income of the LLC, is that risk the event of a judgement. So if they can afford it, it is way better to add business trust and trying to achieve Trifecta package so that you don't leave that risk. Now, how do you implement that one? It is almost exactly the same as what we talked about in structure number one last week. First thing we do is we create a statement of membership interest in management, naming the personal trust as a 90% limited partner, and there's a link on this that will take you directly to that it's not conveyances folder, violence called template dash, LLC operating agreement. It's not a whole operating agreement. It's just

Processing audio...