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Feb. 8, 1996 - Bill Cooper
59:32
Complex Trust, Bob Swan
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Thank you.
Thank you. - Shh. - You're listening to the Hour of the Time, and I'm still William Cooper.
And I am too.
I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, intervisible with liberty and justice for all.
Oh, say can you see by the dawn's early light what a cloudy we hailed at a quiet last night.
Whose blood's blood and white blood through perilous fight, for the land of the free war, through gallantly streaming and running, through gallantly streaming and running, the game of the free and the game.
I'm ready to go through the night of the free war, through the war, through the war, through the war, through the war.
I'm ready to go through the night of the free war, through the war, through the war, through the war, through the war.
Good evening, ladies and gentlemen. ladies and gentlemen.
For the last couple of nights, we have talked about the scenario which could erupt out of the breakdown, you could call it, of the social morals and ethics of this once great nation.
The conflicts that are occurring between ideals, religions, races, etc.
are enormous.
We know And we have established, as a basis in fact, through presenting documentation and proof over this broadcast for the last several years, that we are being propelled into a socialist totalitarian world government.
Some call it the New World Order.
Our very basic foundation of beliefs, principles and ideals upon which this great nation was That's founded by probably a group of the greatest geniuses that have ever lived upon the face of this earth.
All of these things that so many people have fought and died to preserve and protect and pass down to us are, in this day, passing away.
And all of us are looking for methods, means, ways In which to preserve whatever we can of our personal sovereignty, our rights protected under the documentation or the document, the supreme law of the land, which we know is the Constitution for the United States of America.
And we are meeting increasing opposition We are meeting increasing attacks upon much or most of what we have always traditionally held to be dear in this country.
How, how can we take positive steps to protect ourselves, our assets, our children from this onslaught?
How can we reduce this terrible, crippling tax burden and remove the fear of losing everything because you made a mistake on some stupid form you didn't even ever know how to fill out and the people who give it to you don't really know how to fill out?
How can you do all this without coming in harm's way or making yourself subject to attack, to criminal prosecution?
To all of the various things that frighten the living daylights out of any sane, reasonable person.
Well, we don't have all the answers because there isn't just one answer.
But tonight we're going to talk about one method that may be extremely helpful to a great many of those listening to this broadcast.
It has been tremendously helpful to me and many others.
throughout this country, some of which, some of whom I should say, have used this method literally to subjugate, in many ways, the rest of us who don't know anything about it.
And you'll recognize the names instantly.
The Mellons, the Carnegies, the Fords, the Rockefellers, the Kennedys, All utilize this tool to protect their assets, to protect them from liability, to reduce or eliminate their tax burden altogether, legally and lawfully.
And because of this, they are able to create wealth, maintain that wealth, Pat that wealth down from generation to generation and literally, if it's done properly, double their gross worth about every four to six years.
Depending, of course, on how well you manage this tool.
Now this tool we're talking about is, in fact, known as a common law trust.
And there are many different types of common law trust.
There's a simple trust.
There's a pure trust.
There's a complex trust.
And tonight, we're going to talk about... We're going to talk about the complex trust.
And I forgot to turn up the mic here, but my guest tonight is probably my best friend and one of my oldest friends.
And he was a guest on this broadcast one night, not too long ago, Mr. Bob Schlott.
Thanks, Bill.
Tonight, what we're going to talk about is hope.
And with the tool, which we're going to present with you this evening, the tool is called a complex trust.
And I know trusts are out there, and the buzzword that's going around is, oh, you should have a living trust, and you should have this trust or that trust.
But there are 91 different trusts out there.
But there is only one trust that addresses all issues, and that is the Complex Trust.
It is recognized by the IRS in their 1041 tax form, the third box down.
There's a little box you check there.
It's called the Complex Trust.
And with this, you all understand now that we're talking about staying within the system and not getting yourself into trouble, not having to butt heads with the Internal Revenue Service or anyone else, doing it legally and lawfully,
And still, being able to protect yourself from liability, to be able to protect your assets, and to be able to reduce substantially, and by substantially you will be shocked to find out how much, really, or completely eliminate your present tax burden.
Is that correct, Bob?
That's right, Bill.
What's different about the complex trust A simple trust is a complex trust provides for charity.
Within its being, there is a private charitable trust, or a foundation.
The structure of the complex trust is such that it has a series of unit trusts, a business trust, a family trust, and a private charitable foundation.
What I need to explain to you folks is what a trust is.
A trust is a three-party contract, and when you are working within trust, you are working under constitutional law, the supreme law of the land.
For the most part, everything in our country works under statutory laws and statutes which guide the attorneys and accountants and so on.
But once within this system, you will be working exclusively and in harmony, you'll be working exclusively in constitutional law and in harmony with statutory law.
To have a trust, you need a minimum of two trustees, husband and wife, and beneficiaries, your children.
Now wait a minute.
Yes?
If you don't have a husband or a wife, you can still do this?
Oh, of course, yes.
Once you go into trust, what it is called is a declaration of trust.
The declaration of trust is basically your declaration of independence from the other set of the rules, the 1040 rules.
Once you have your declaration, you'll be working in 1041 rules, complex trust.
You'll also escape from the Peculiarities, shall we say, of the federal statute law, in most instances.
That's right.
This is an irrevocable trust.
Once property has been conveyed and granted into this trust, you effectively no longer own any part of it.
But as a trustee, the definition of a trustee is you're a manager.
You manage these assets for the benefit of the beneficiaries.
Your children or another trust.
Because the complex trust is a multiple trust system.
Now, the uniqueness of this system is businesses and unit trusts, which hold assets and lease equipment back and forth, pass the tax burden on as it flows through the system.
And the strategy, it's a common strategy, it's called conduit taxation.
Because within the tax laws, Any disbursement to a beneficiary, whether it's your children, which will now be classified as beneficiaries, or another trust, as the money flows through these various entities, the tax burden is passed on to the beneficiary, which, within this system, is another trust.
The uniqueness of this trust is, as it flows from a business trust, and after the expenses have been deducted and taken out, The balance of the money is then dispersed to the beneficiary.
The beneficiary in this scenario is the family trust.
Once in trust, your home no longer is your prime residence, it becomes your trust headquarters.
Everything affecting that trust headquarters, or multiple trust headquarters all over the world for that matter, become an expense to the trust.
You no longer own them.
You no longer maintain them.
The trust needs to maintain these assets.
Once the expenses have been deducted from the family trust, there is a final disbursement which is made.
That disbursement is made to the private charitable trust, your family foundation.
This receives, and is lawful, receives a hundred, that final disbursement is a hundred percent tax deductible to the family trust.
Like the Rockefeller Foundation.
Or the Carnegie Foundation.
That's correct.
Now, the thing that's going on with this trust, or this trust scenario, is annually There's 260 billion dollars which go back into the economy.
Trusts, foundations, hold up the economy.
It takes the burden off.
If you go to any university on any campus, you will see the library was donated by the Ford Foundation, or the Cooper Foundation, or the Swan Foundation.
Science, the arts, medicine, That's the William Cooper Foundation.
That's correct.
So what is going on in this law and these rules is you are enabled to provide direct dollar for dollar funds back directly into your community where they're needed.
And they're desperately needed.
I would like to just kind of talk about our legislature for a minute.
Our senators and congressmen live by these rules and so can you.
The interesting thing that I find, the predicament that we're in here in the U.S.
is as producers we have the legislators legislating and passing laws and taxing us.
But you have to understand that is the only way that they can support themselves because they are not producers.
You are the producers.
So what's going on in our country right now is the ability of the producer has been taken away.
This national debt is out of control.
And so as as they keep taking to support themselves, your ability has been diminished in producing.
So within this law and these rules, what goes on in your business?
It's all income that comes in to this trust, maintains, and is kept within the entity.
And it flows through, and it ends up into the private foundation, which is trustee-controlled by the trustees.
Now, if you were able to hold on to your hard-earned money, what would you do with it?
Would you put it back into the community?
Would you expand your business?
I know I do.
Would you build a home?
You would do things.
And this is the truth.
You would do things that would help put other people to work and make the economy flourish.
That's really what it's all about.
But we're being sucked dry by socialists and the parasites who suck the lifeblood out of those who do the work and do the production.
And so, rather than being able to enjoy and make the economy flourish and live off the fruits of your labor, you are forced to give A great portion, and it is a great portion, of the fruits of your labor away, so that the parasites and the suckers, I call them the suckers, can live, because without this they would surely die.
And it's unfortunate, but it's true.
Now, before any of you start writing letters or calling in saying, well, you know, my wages are not income, let me clarify something.
We are talking about a trust under the law, legally and lawfully.
Maybe not your law, but certainly the law that prevails in the land today, under the rules of the Internal Revenue Service.
These trusts are for people who do not want to get out of the system, or can't get out of the system, or are afraid to get out of the system, or don't know how to go about learning the information they need to become an individual sovereign in their own right and get out of the system.
And it still protects you from liability.
It still substantially reduces or eliminates your tax burden.
It still eliminates the possibility that 50% of everything that you ever made in your life is going to disappear or go up in smoke in an expensive and lengthy state probate upon your death.
And it ensures that this is preserved for your children and their children and so on ad infinitum, we hope.
And I think one thing that we should do is, let's start from the beginning.
Somebody comes in, and folks don't get all hung up on this that you have to have a husband and wife and it's just for your children and all.
You can set up a trust under any circumstances to do anything that you want to do with anybody that you want to set it up with.
And that's a fact.
So, let's start at the beginning.
When somebody wants to set up a trust, They sit down and they make out a declaration.
That's correct.
Okay, this declaration, as you said, is their Declaration of Independence that sets them free from the fear and the intimidation and the rules and regulations and the unbelievable amount of taxes that they have to pay today.
And enables them to get started afresh with all of this burden removed and a good outlook in front of them, within the law, with no danger that the IRS is going to come and say, "Oh, you're in trouble now," you know, that kind of you're in trouble now," you know, that kind of thing.
Once they've done this declaration, then they have to sit down and figure out what kind of trust they want and how to go about setting this up in order to give them the maximum protection.
And the particular complex trust we're talking about begins with actually one primary trust and six trusts, which are unit trusts, which fall underneath this.
One of which is a charitable foundation, which is really the greatest benefit as this money is dispersed between these trusts.
It eventually ends up in the charitable taxation, which brings their overall tax burden, and this is the way everybody can understand it, to a maximum of 5%.
Well, the tax burden, the funds that flow through the system, from the business trust to the family trust, and the final disbursement goes into the charitable trust, there is a 5% payback to the community on the annual increase of the charitable foundation.
Or the Internal Revenue Service.
Or the Internal Revenue Service.
Right.
And this 5% is not on the gross income that all these trusts have earned, this is after The trusts have used this money for business expenses, for family expenses, for trustee expenses, for trust headquarters to maintain and operate vehicles and all of these things.
Then whatever is left over is dispersed from trust to trust to trust and then finally whatever there is that's left that could be considered taxable income is then donated to the charitable foundation Which then, under the law, disperses 5% of what has been donated to them in that particular year.
Not all the money that's in the foundation.
That's correct.
But just the money that was donated during that particular year, 5% of it, is either dispersed back into the community to help the community or to the Internal Revenue Service in form of taxes to help run, supposedly, quote unquote, run the country.
That's correct.
The beauty of it is it's dollar for dollar.
Every dollar that goes into, it goes 100% back into the community.
Within these rules, what it enables you to do as a parent or as an individual is any education of your successor trustee, your children, Private school education can be a deductible expense because the education of a successive trustee is an expense to the trust.
So, what we want to do is we want to provide the best for our children so hopefully they will have a better life than we have.
The uniqueness of this system is within the unit trusts on the bottom, these various trusts will hold high liability items.
The ownership It's separated from the wealth of the family and the business and so on.
So if there's ever a problem, a legal problem with any of these entities, it doesn't bring down the whole house of cards.
Now, as the grantor or creator, grantor-creator of the trust, as you grant into trust all of your assets, which now are no longer your assets, they become trust assets, and you don't have to worry about it anymore. and you don't have to worry about it anymore.
That's right.
All the worry about ownership of property and insurance and if somebody falls on your front step is gone from you.
Haven't you ever wondered, with all the machinations and evil doings of some of these very wealthy people, they never get sued?
They never get sued, folks, because a lawyer will never take a case against somebody who doesn't own anything because the lawyer knows right up front he's never going to be paid.
He will never get a penny if he sues somebody who owns nothing, has no money.
And that's the whole secret of the liability thing.
Now, you're not going to eliminate the ability of someone who gets hurt from collecting what they honestly deserve if somebody was negligent.
But it is not your liability.
The liability rests with one of these trusts.
And they have such an extreme level of privacy under the law that it's almost impossible to get any information from within a trust about what is held by the trust, or who is the beneficiaries of the trust, or literally anything about the trust.
In fact, the trust assets and records are even protected from subpoena in most instances.
But the trust to be a responsible entity under the law, We'll provide insurance for the vehicles which are housed under the vehicular trust in order to separate that liability from you.
So instead of having your teenage son phone you from the hospital one day and say, Dad, I was in a car wreck in your car, and three people in the other car that I hit are now dead, and you dropping dead from a heart attack from hearing that, now what happens and you dropping dead from a heart attack from hearing that, now what happens is your teenage beneficiary, who is housed within a trust, calls you and says, Dad, I was driving the vehicular trust automobile today, and I got I was driving the
Well, of course you're going to have some concern for those three people that are dead and their families, and you're going to have some concern for your son, but you're going to know without any doubt that you're not going to suffer or lose one single thing because this unfortunate incident happened, but you're going to know without any doubt that you're not going to suffer or lose one single thing because this unfortunate incident happened, and the insurance company that
happened and the insurance company that the trust contracted with to provide the insurance for the vehicle and that particular trust are the only portions of any of the assets that are within this framework of protection will be at risk.
And I've got to tell you folks, that is a tremendous load off your mind.
And it's well worth whatever you have to go through to make sure that it comes about.
But now let's go back to the beginning.
We filled out this declaration.
We've started the trust.
We've determined what kind of trust we want it to be.
What is the first one that's set up?
Well, actually Bill, all trusts, the family trust, business trust, and charitable trust are all set up simultaneously.
Well, we know that, but what is the way that this runs?
In other words, you have all of these seven trusts set up, okay, but there is a primary trust there always has to be.
Which one is that?
The business trust is the trust which does business.
That's where the money flows.
That's the heart of the trust in the business.
Okay now so that everybody can understand it and this is sort of my job to make sure that they do because it's my broadcast.
Let's sort of go through this and I'm going to ask a question then we're going to talk about it for about a minute and then we're going to take a break and give people time to sort of let this sink into their head and then we'll come back and get into some other issues.
Here we have this business trust.
And it doesn't matter what kind of business we are operating or not operating and it doesn't matter if you're making wages or income because it doesn't matter to the IRS and you're not getting out of the system so let's talk with their rules.
You have let's say a donut shop and under this business trust you could actually have several different donut shops and a record store.
Is that correct?
That's correct.
Okay.
So you may have multiple businesses or one business.
But you're generating money through the services that you provide, or the products that you sell, or manufacture, or whatever it is that you do.
And this money comes in, and you have business expenses, and you have profit, and you have all these kinds of things.
How does this money get from the business to the other trusts and which trust does it basically go to once it has been dispersed from the business and how does that disbursement work?
And let's just talk, don't get into anything any more complicated than how do we account for this money in the business trust and where does it go from there?
Just one step at a time.
The beneficiary of the business trust is the family trust.
So, in any trust scenario, the taxes, our tax burden is passed on to the beneficiary.
So, as the income is gained through the business trust, and after all the expenses have been deducted from a Schedule C form, all those deductions have been deducted, the final amount is then dispersed to the beneficiary, thus passing The tax burden on to that beneficiary which would be the family trust.
So the main thing that we have to understand here is whatever is left that would be called taxable income is now dispersed and the business has no taxable income.
That's correct.
Okay and this money goes somewhere else.
Now think about that folks and think about what it really means and I'll be right back after this short pause to tell you about a way Another way that you can protect not only your assets if you decide not to do this, but if you do it, how you can protect the assets in the trust from rapid inflation or disruption of the economy.
My country, tis of thee, tis of thee, sweet rent of nepotism, of thee I sing.
you you Land where my father died, Land of the pilgrim's pride, From every mountainside let freedom be.
My native country be.
Land of the noble trees.
By name my love.
Well, you might wonder if we're talking about trust and all of these kinds of things.
Why am I playing this kind of music?
Why am I playing this kind of music?
Simple, folks, because this is one of the methods by which we can recreate the flourishing economy that used to exist in this country in the face of all the opposition.
We can take the ability away from the suckers to be able to suck.
And you all know that socialism sucks and so do socialists.
You've heard that from me for many, many years now.
And I'll be saying it up until the day I die.
And you'll be able to take that money and use it for the benefit of you and your family and your children and their children.
And, of course, if you're using that money for their benefit, where is it going?
It's going back into the community to create jobs, to create construction, to create wealth, to help schools, to help charitable organizations, churches, wherever you want to put it, to tell you the truth.
And it doesn't go to this great, sucking, socialist bureaucracy where it disappears into thin air.
And one of the ways in which you can help protect your trust, should you enter into it, or just to protect your assets, should you not enter into it, is to put at least a portion of it into real money.
Gold or silver coins, in the various forms, or bullion if you wish.
And it doesn't have to be gold and silver.
It could be platinum, which actually is about 16 times rarer than gold and more difficult to refine and produce.
So, if you're interested in that, ladies and gentlemen, call our sponsor, Swiss America Trading.
Who, by the way, are the reason that you're hearing this broadcast.
So, even if you're not interested in getting your hands on some real money, at least call them and thank them for sponsoring the Hour of the Times.
Tell them that you're a steady listener to William Cooper, and the hour of the time you'll receive red carpet treatment.
I guarantee it.
And ask for a copy of the newsletter.
Talk to Frank, or for that matter, anybody there.
Frank might be busy.
They're all good, stand-up people who want to help you.
I don't play this game of, you know, I call to find out about purchasing money in gold and silver and all this kind of stuff and try to sound like some big wheel.
Call in.
Tell them what you want.
Tell them how much money you've got to spend and tell them you want them to work with you to make sure that you can stay within that budget.
If you're a big spender or if you've been very prolific and productive all your life, And you've got $50,000 to spend?
Fine.
Tell them.
I've got $50,000 to spend.
I want to put it in an investment in real money.
I want to put it in precious metals.
I want it to be protected.
And I want you to tell me what's the best way to do it so it's non-reportable, non-confiscatable, and I get the best deal for my money.
If you're not one of those kinds of people and you're just a hard-working guy, like me, and you don't have a whole lot of money, like me, tell them, hey, I might have fifty to a hundred bucks a month, maybe, or I might have twenty-five bucks a month, but somehow I want to get my hands on some real money.
Gold or silver coin.
They'll work with you, folks.
If you just be honest with them, they will work with you, bend over backwards, do anything they can to help you.
And remember, when I recommend precious metals, I'm not recommending it for any purpose of making any kind of a killing on the metals market, or for even, even increasing your assets as an investment.
I'm recommending it only, and I'm telling you this right up front, to protect your assets against the creeping destruction of the value of the dollar and the collapse of an economy.
And whoever has these particular assets, when everything goes down the tubes on that big giant roller coaster, will be the king in the aftermath.
1-800-289-2646 Call now.
You know how we all tend to procrastinate.
I know I do.
And if you're a normal person, you probably do too.
1-800-289-2646.
1-800-289-2646.
Do it now before you find something else to do.
Oh, God bless America.
Land that I love.
Stand beside her and guide her through the night with the light from above.
From the mountains, To the praise, to the oceans, why we fall?
God bless America, my home, springing home.
God bless America, my home, my home, springing home.
Okay, folks, we're back.
And remember, we're talking about the exact, we're not talking about all these common law trusts and offshore trusts and everything that are floating around the country.
There are definite advantages to having an offshore trust, and we can help you with that, too.
And there are other people who have all kinds of other trusts, living trusts, and so-called common law trusts that may or may not be.
But what we're talking about tonight is a trust that those of you who are afraid of all these other things can have within the law, according to the IRS code, with no danger of getting in trouble in any manner.
Unless you are totally irresponsible and totally mismanage this thing, and that's kind of hard to do the way that it can be set up and with the help that's available to you.
And we know this is the exact same, exact same trust that the Rockefeller family, the Carnegie family, the Mellon family, the Ford family, all of these people have set up these complex trusts And have the same type of flow and the same type of protection and the same type of tax relief and the same foundations that we're talking about tonight with this trust.
This trust is not one you have to worry about.
It's not one that you have to wonder anything about.
It is perfectly legal within the law.
It does not take you out of the tax system.
It just merely relieves or eliminates legally your tax burden and transfers it into another kind of a help for the nation, which can either be at the end when we talk about the foundation of the charitable trust.
We're going to get into that and talk about it completely.
So let's go back now.
We're in the family trust.
Right.
Well, we made a disbursement from the business trust to the family trust.
What's in the family trust is the rules that everybody's underneath is everybody knows that they can own two prime residences.
Thank you.
But in trust, trusts can own unlimited trust headquarters.
Your prime residence becomes a trust headquarters.
The condominium in Vail is a trust headquarters.
The flat in France is a trust headquarters.
Everything involved with those trust headquarters... Wait a minute.
Who has a flat in France?
Who has a condominium in Vail?
Well, there's different people out there that do.
I know you, Bob Swan.
Don't you be messing with me.
Anyway, I'm just trying to get to the expandability of the wonderfulness of this mechanism.
Actually, if they set this up, instead of paying all that money to the suckers, they could actually have a flat in France and a condominium in Vail.
That's correct.
Now, what goes on with the trust headquarters is That headquarters needs to be maintained.
There's pool service, yard service, painting, remodeling, and so on.
It's trustee directed on what should be done with this property.
Now let's just say one of the beneficiaries of the trust is coming of age and needs to be housed.
The trust, the trustees can get together and Build another trust headquarters which will be occupied by that beneficiary.
That will help that beneficiary out in starting up his business and be prosperous and so on.
So, what goes on in the support of the family within the family trust is total.
Once the expenses have been deducted out of the money that is in the family trust, then another disbursement is made at 100% tax deductibility.
But you know, before we get to that, Bill, do you have any questions about the family trust side of things?
No, basically, it's just basically a holding protection for the assets and the disbursements and things to the family.
We're not going to talk about disbursements yet because that's at the end of the letter.
Under the family trust, there's four other trusts, or actually under these other three trusts, there's four unit trusts which hold liabilities.
Now, these are not income producing.
Well, they could be.
In one of the unit trusts, we would set up an auto trust.
The auto trust would hold vehicles.
Once again, because the ownership is separated from the business trust and the family trust, the liability stays.
With the auto trust.
Now the flow is such that a lease between the auto trust and the business trust is contracted.
And that's where the income producing capacity of the auto trust could come into play.
But for most people it's not going to produce an income.
Because most people work for somebody else.
but it could produce an income simply by leasing those automobiles in that unit trust to the business or to the family, which then provides a disbursement to the auto trust, which then at tax time comes around, the expenses are deducted, and then whatever is which then at tax time comes around, the expenses are deducted, and then whatever is left over is Back to the business trust.
So the disbursement goes back to the business trust, which at the end of the year then deducts expenses and disburses whatever is left over as taxable income to the family trust.
That's correct.
Okay.
Now we've made sort of the circle.
And these four unit trusts could house anything.
That's correct.
but usually they're used for things that could produce or would produce a liability, such as automobiles, boats, airplanes, ski mobiles.
Or in business, one of these unit trusts could be a manpower trust, and that could be your labor base.
Your employees would be in one of these trusts as a manpower trust.
Or it could hold, for instance, the hour of the time.
That's correct.
Which we know how liable that is.
And it has no assets whatsoever.
Make sure you tell your attorney that.
But anyway, so that pretty much takes care of being a trust, and they do have an income-producing possibility if you want to put that to use.
Let's say just on that topic real quick, if a person had a rental unit where traffic was coming out or commercial property or so on.
It would be best to be put into a unit trust because that would separate the liability from the family trust.
The family trust for the trust headquarters is you want that to be your secure base.
You want to keep that your ace in the hole so to speak.
Separating out your liabilities into these other units.
So you're talking about if you owned rental property, or if you owned an office building, or if you just owned a vacant lot.
That's right.
Or some kids could go play on Sunday.
Some kid could trip over a bat that some other kid left laying on the ground and crack his head open on a rock.
Right.
That's right.
Okay.
Now, let's go back to the family trust.
We've covered all of these, and we know where the flow goes from the business to the family From the units to the business to the family.
Now we're at the family trust at the end of the year and they're sitting down and the family trust is computing their income taxes.
Or it's best to have someone who really understands trust to do it for you.
And there are people who do that.
Until you think that you've become expert enough to be able to do it yourself.
But basically what they do is they sit down and deduct all the expenses for the family trust and when that's done, all the expenses and deductions, when that's done there is what's called a taxable income left over.
What is done with that?
The final distribution from the family trust is distributed to the private charitable trust and that is 100% tax deductible under the law.
Well wait a minute, that's not really true because We're going to talk about the actual amounts and how it's done and who's liable and all these other things for taxes later, but there are some disbursements to the trustees.
There are some disbursements to the beneficiaries.
Okay, now, very good.
The trustees operate as managers, and so in operating these various trusts, the trustees establish a management contract as managers.
Now, the minimum by law is $25 per year per trust and as a trustee your management fee or your management contract should be reasonable because remember you're working for the benefit of the beneficiaries and your job is to expand and enhance the value of the trust.
So your tax base what you report on your personal income tax side is based on your employment contract.
Now you can pay yourself Like I said, the minimum is $25 a year per trust or you can pay yourself $100,000 a year.
Now you're going to be liable for taxes based on that contract.
And these are personal income taxes that you can't get away from.
That's correct.
But there are other things that are expenses to the trust that are not Tax liability for you that you can receive as necessary to a trustee for the performance of your duty.
That's correct.
Now, if the trustees who are working in a fiduciary capacity, which is the benefit of the beneficiaries, their contract should be reasonable based on their management contract.
The trust will provide them with a trust headquarters, a place to live, and food, if that is what the trustees desire, within their management contract.
It's just like negotiating a contract with any employer.
If you're living out of town, the employer says, well, I'll supply you with a place to live.
The trust will do the same thing.
We'll supply you with an automobile, etc.
If your fees are reasonable, trustee fees are reasonable, then by right, then the trust should provide you with the necessities of life.
If you're receiving a very large trustee fee, then that wouldn't be right.
No, it wouldn't.
And the Internal Revenue Service would be knocking on your door saying, what are you trying to pull here?
So you have to understand that This isn't something that's going to enable you to pull the wool over anybody's eyes.
Like I said at the beginning of this broadcast, you have to stay within the law.
It's for people who don't want to get out of the system.
And if you don't want to get out of the system and you still want to be able to protect yourself and your assets in the manner that we've discussed during this broadcast, you have to be doing it responsibly with due diligence and paying attention to the requirements of the law.
And if you're talking about income tax, the Internal Revenue Code.
So, when in doubt, call the Internal Revenue Service, or somebody who is an expert in this field, and talk to them.
Ask them.
Fortunately, with the stress that we're talking about, this is a part of the whole thing.
So, we've talked about that, and there's the same type of Disbursements only, not as a responsible manager or an employee of the trust, but as disbursements to the beneficiaries in order to be able to live and have personal expenses and pocket money throughout the coming year.
And that also is personal income to the beneficiary which must be declared on the income tax return, whichever return is applicable to that person, and filed and paid.
That's correct.
When all that is done, where does the money that's left over, that is no longer going to be dispersed and is considered to be taxable income, what happens to that?
Those funds are then donated to the private charitable trust.
And within these distributions, they're called K-1 distributions.
And the expenses are Schedule C expenses like any other expense.
So, that final donation is distributed by a K-1 disbursement to the private charitable trust.
That final distribution is 100% deductible to the family trust.
The money which will accumulate in the private charitable foundation We'll basically become the family bank.
But understand that the increase of money in the charitable trust needs to be distributed to the beneficiary.
And the beneficiary of the charitable trust is the community, the public.
And as trustees, you have the ability to disperse those funds in any direction that the trustees deem necessary, which will benefit The public.
That dog you hear barking, folks, is Sugar Bear on guard duty outside.
Now, in this charitable foundation, the money goes in there.
There's already money in there from two or three years.
Is that taxable?
No.
The only aspect of the foundation is Five percent of the increase... That particular year?
That's correct.
Of the increase of the value of the trust is paid to the beneficiary, which is the community.
Okay, now Joe Blow is sitting out there saying, well, wait a minute, I work for all this stuff, and here I am putting my money into a charitable foundation.
Five percent of it is going to go to the community.
And folks, that's much better than giving thirty-eight percent to the Internal Revenue Service.
But, and it can either go to the community or you have your choice of paying it to the Internal Revenue Service.
But now, the balance of the money that's in that charitable trust, how does that benefit the family or the beneficiaries down the line?
Down the line.
Sure.
Well, what the trust becomes is it becomes the family bank.
Now, the business trust And the trustees can have their meetings and decide that they would like to loan money or they need money into the business trust or to construct another trust headquarters.
The business trust can set up a loan or the unit trust can set up a loan with the charitable trust.
Now the family trust cannot borrow from the charitable trust because that's double dealing.
Sure.
That is very illegal.
But the business trust or the unit trust can borrow from the foundation, and of course they have to do it legally and lawfully, and there's an interest that has to be paid, and principal payments and all kinds of things.
But there are distinct benefits to this.
What are they?
Well, the benefits are is that you're dealing internally, And so you don't need permission for any of this.
The benefit is that the trustees can set the interest rate at any interest rate as long as it's reasonable.
And if for some particular reason there's some difficulty with, let's say, a business loan, the trustees know about it, the beneficiaries or the people running the business know about it, and those interest payments can be deferred.
Now, in a bank situation, if you mess up on your payment, they're going to come and foreclose, but not so when you're internally financing.
It's not likely that you're going to foreclose upon an instrument of yourself, is it?
No, not likely.
And the good thing about this is that money can be used to generate new avenues or new processes of creating new wealth or new income for the trust and ultimately for the beneficiaries and the people who derive a benefit from this trust.
So, the There you have it, folks.
It's a tremendous package, and that's how the Rockefellers, the Melons, the Carnegie's, and the Ford's, and all of these other huge foundations do it.
They are the end conduit for the money.
That flows from the businesses of the Rockefeller family into the family trust, and from the unit trust, and from the other trusts, ultimately winds up in the great foundations.
And let me tell you what they've used these foundations to do.
To create teachers' colleges, to subvert the educational system of the nation, and to stop Teaching our children morals and ethical values and principles and ideals and constitutions.
And you can use your foundations to reverse this process!
That's right.
That's right.
As in anything powerful it can be used for good or evil.
That's right.
And so what we want to do is to extend to the American family and business people that there's hope for you.
And the way We need to go.
We need to get a hold of our bootstraps and get a grip.
Take control.
Take the control that we have available to us so that we can expand our business.
The one part that we didn't hit on here, Bill, that I'd like to talk about is in the case of death in the family.
Nothing occurs.
Well, there's sadness and so on.
But there's no estate taxes.
There's no probate.
There's no 50% inheritance tax.
There's no, in some cases it could be as high as 80% on inheritance tax and other things.
All of that disappears.
It goes away.
And you don't have to worry about what happens when you die.
You don't even have to have a will.
That's right.
Now the trustees, the successor trustees, are trained from birth or from whenever you start your declaration of trust and grants.
All of your assets into it, you start training your beneficiaries to become successor trustees to manage this incredible tool.
And if you don't have children to train or other people that you trust to train to be able to take over, you can limit and restrict and guide and dictate to whoever is going to run the trust through a contract.
So that's it, folks, and that's all we can give you tonight.
If you're interested on how you can get started, In helping to take this country back, by first taking yourself back, contact the Swan Foundation.
Bob, his wife and his family, they live by these rules.
I and my family, we live by these rules.
Call 619-296-5842.
That's 619-296-5842.
619-296-5842.
That's 619-296-5842.
Or, if the phones are busy, drop a card to the Swan Foundation, post office boxed, That's PO Box 371312, San Diego, California, 92137.
That's 92137.
Good night, folks.
Good night, Bob.
921371312 San Diego, California 92137 That's 92137 Good night, folks.
Good night, Bob.
And God bless each and every single one of you.
Good night, folks.
That's my lucky star, and I should be living here today.
But the flag still stands for freedom, And they can't take that away.
That I'm proud to be an American.
Wearing a child of my dreams.
And I'm going to forget someone who dies Who says that's my name
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