0:15 Everybody, it's John, Jay, Thanks for joining today we're going to do what I call part two. 0:19 This is a continuation from last week, I believe that was August fourth. 0:26 So today's august 11th, and let's call it part two of the how to use the PMA or how to understand it's from an esta...

Everybody, it's John, Jay, Thanks for joining today we're going to do what I call part two.
This is a continuation from last week, I believe that was August fourth.
So today's august 11th, and let's call it part two of the how to use the PMA or how to understand it's from an estate planning perspective.
So I just wanted to give you a couple concepts to share and then we can do a Q and A and certainly we can talk about pretty much anything, but I just wanted to open up this way.
I want to have some more content regarding the pyramid, because I have certain types of questions that people ask me, and I felt like I cover it now in a comprehensive way, and then y'all can use it if you need a reference. And that's the whole point of having these videos.
All right, so let me just get started with that. And I'm gonna do a screen share real fast.
Here we go.
So the point I want to make here is that last time we spoke about private membership associations, and excuse me, for looking up, because I've got another monitor. So it's easier for me to see this other minor. So it looks like I'm staring into space. But in any case, I've got three examples I want to, I want to share with you here.
So, estate planning may involve probate.
probate is where you go to the court, your local court, where the person who's now deceased was considered a resident and you would go to that local court, pay for a service called probate. This is, I guess, you would call it a tax, Maybe say, pay a filing fee. You go into court and you settle the estate.
You administer the estate, and this is what you're really doing your your family, let's say, would go into the court. And that wouldn't necessarily bring in judges and attorneys in state law and things like that, which is in itself not always a problem. Sometimes it's very civilized and useful.
But I have found over the years that at least for myself and many of my clients they prefer to stay away from the cords because there's a chance for being exploited, sometimes that works out that way.
So people are now starting to wake up and ask questions such as, well, how can I not have an estate?
I mean, how can I avoid probate, right? How can I avoid the death tax, as they say?
And you'll see on this website here, I just pull these Iran and say, OK, I just went around. I wanted to show you a couple of things. So here's some attorneys.
They're promoting, you know, they're in New York.
I just picked New York at random and they're just talking about generally what probate is all about, OK? And so this, these are things that a probate court is going to do.
They're gonna confirm that a person has died, OK?
Then they're going to appoint someone or someone's going to step in to take responsibility of that person's assets. Now, that's just many different ways.
Then you're going to notify anyone else who may have an interest, It might be creditors or anyone else who may have an interest in the property.
So the next thing that is done during a probate proceeding is the person who is deceased is or her property is inventory. It's described.
I bet you each of us can think about all the things that would that we would have the right to sell and sometimes That right is not very clear OK, today Like I don't know if I would have the exclusive right to sell.
My car made my way for it.
I don't know, maybe my children, what, I don't know. But once we go through probate, that all gets cleared up, OK, that's the whole point. So there's, there's no inventory of things if you have a lot of things and then some of that can be sold to pay off creditors, things like that, OK?
Then of course they always want to know about filing tax returns. And this is this is why people want to avoid probate because you put your, you put your property in the purview of the state and fed to administer the tax laws. And it's not that it's not that you're trying to avoid something that's legally owed. It's just that, if I can, if I can die without an estate, I'm not going to be. I'm not going to be in a situation where my state or my errors are not going to be the situation of pay tax on things like high walls alive, and likewise.
I can remove property from my state. Like it may say here, there's probably a mention of it using a revocable trust. That's a very simple way of taking property out of your state, and that is execute at the time you die, OK?
The revocable trust is formed, sometimes upon death, or just before. And then the beneficiary step in after the trustee or the grant, or the person who form the trust, OK?
And of course, selling the estate and closing probate forever is going to be selling all claims.
OK, And I should tell you that you can look this up. Should still be true.
Famous, people like Michael Jackson, that died in 2009. And Marilyn Monroe, I don't know when she died. But Marilyn Monroe's, a state is still operating.
And as you will see here, I'm going to show you what's going on.
You have to ask yourself, how's that?
Like, well, why? Right?
Who's benefiting from Marilyn Monroe's estate that's still operating, OK? An estate is a business.
Michael Jackson's estate is probably still operating as a business.
And I'm going to show you why it's business and how it functions.
So let's go to the next thing here.
So, this happens to be, I picked Georgia then, purely at random. This happens to be the probate court rules.
So you tell me, thanks for yourself.
What kind of rules do you have regarding stuff at your house? If you want to have a garage sale. Right, your wife, your husband says, hey, let's have a garage sale. And you started thinking, hey, that's a good idea We get lots of stuff in the garage. Let's get rid of it. So you go into the garage, and you start figuring out what stuff you're going to sell. Of course, the children run and say, no, dad, I want that one, Or with a wife says, no, we have to keep that right, so you gotta go through all your things.
And so there has to be someone ultimately to resolve these disputes.
So what we're typically doing in probate court is going into and ask for a judge to apply his skills or her skills or an attorney to come in there and apply their skills to this problem. Of making sure that someone can dispose of property. That he has the right to dispose over, that everyone agrees on it or doesn't or something like that.
So look at this, There's 50 pages are probably 40 pages, really, once you get past all this stuff, here's all the rules. So let's just look and see what happens. So, you go to the court, and you ask the court to take the authority over your deceased family members and state, OK, or a friend or whatever.
You file a will in a probate proceeding.
All right, and you can see here, once we get past the nonsense, there are things you do like.
Let's see here, here we go.
Starting in a State in probate is filing a pleadings, what they call it, OK?
And they're mostly talking about regulating the appearance of attorneys and evidence, and as you will find out that most court and probably all court proceedings. Now, there are some exceptions. Court proceedings are adversarial.
So, what does what does it mean to be adversarial about your your state or your, you know, friends or family members of State. Well, it's going to be claims against the property, outstanding debts against the person while he or she was alive, things like that. Right?
So there's an adversarial aspect to this, and so the Court is going to referee the process.
And here are the rules by which that happens, OK, so my point is, you already have a set of rules like the court has, these people are professionals, they're strangers to each other. They're professionals.
You have a set of rules that your family is going to follow. Or, they're going to make them up on an ad hoc way when you decide to have a garage sale, OK? So, we're already doing things like this now.
The similarity it is that the Probate court administers or settles or manages or disposes of claims on property when someone dies, and They do that for the benefit of that person's heirs.
And if there is not a will, the State will impose its will on the state if there's nothing no value in the estate, Well, there's nothing to settle, and then there's no case there's nothing to do, right?
If there is a Will, then the terms of the will dictate what's going to happen to the property.
So, there's going to be, there's going to be a will whether or not you have written one, put it that way. So, if you haven't written one, it's going to be what the State wants. And that comes from the state statutes. And I don't have that here, and you can go look that up in your state if you want. But who cares because, you, at this point, you're hearing me, and you're deciding, well, this sounds good. Should I do this? You should not, should I, maybe, I should leave the pickup truck And the will of the state, right? Maybe, I don't need a, Well, because I only have a pickup truck and my name is there, things, you can decide.
So, you have a set of rules and your family, whether or not you already know what they are, you would follow them because of your interests in deciding who gets to sell, what the garage sale in the court. This is more of a professional business, OK.
This is describing the manner in which, and a state is going to be probated.
Now, let me just go into real quick, what we're talking about. Let's look at probate.
This is the etymology. This is what I do, and I want to find out what we're talking about, right?
What's the history of the use of this word probate? Where does this come from? The etymology of the word, I do this a lot.
When I'm writing documents, I look things up because I wanna know if I'm saying the right thing and found if I'm speaking out of school or not right, everything comes from Latin when it comes to law, that basically Probate means the official proving of a will.
It has versions of it.
Probative, probative means something that's evidentiary that can be proven or disproven, right, Something appropriate value. You've probably heard this in.
And movies.
But basically, you see here to prove something, or examine something to probate something. So this is what we're gonna do when a family member, when Grandma dies. You know, and, and she has some valuable things. Maybe, or maybe she has some pictures that y'all want, and she never, she never talked about it. But we know it's there somewhere in the closet. And so this becomes important. And then you get to go through all those things and decide who gets what right?
Um, so that's what probate is all about. So going back to the rules here.
So there are a set of rules for probate in each of your courts. It's in each of your states by county.
It's a state matter. Now, I'm sure there are probably some Federal rules. But, but probate is a state matter. It's based on your residency.
Residency is established by State law, and I'm not going to get into too far into that.
But I can tell you that, my point is that there's not much difference between the probate court and your family.
The Probate Court is and ecclesiastes ago Private Membership Association.
It already is, it's a club.
I wouldn't even call it a government agency or a Government function.
Probate court is has the same legal standing legal significance as your family.
This is the point I want to drive home here in this discussion.
All right?
I'm showing you the inner workings, look right here. If you want to look in the.
It's called the Official code of Georgia. Something like that, probably is what it means. Oh, CGA, these are the Georgia statutes, OK, any state of Washington, Utah, they all have their codes of how to start a probate proceeding.
How to conduct discovery, how to take evidence as to establishing, who has what rights and liabilities, right? All that's done. And then there's a disposition at the end, and some judge, decides everything, and of course, I'm sure it's subject to appeals.
I'm sure that happens, too.
The thing about probate is you lose a bit of control over your family Affairs. Now maybe that's OK, for some of you.
Sometimes it might be OK, but if you don't want that, you don't like that, If you don't like that prospect, if you're looking around today and seeing what your government's doing, maybe it's time to take away the keys, right?
Don't let them out of the car anymore.
They've not proven that they can be responsible, and they're quite destructive. So here we are.
This is very nice. I mean, you've got here's how we dispose of things. Here's how we set up hearings.
Basically, what they're saying is, here's how we talk to each other, Here's how we talk to each other about resolving.
Who gets what, when somebody die, and make it fair ish.
Right, if that's possible, and on, and on, and on. So my point is, you can find this yourself. If you want to look.
You can create If you want to be formal about it, I don't do this.
I like to think that the relationship I've developed with my family is going to be consistent with after I die.
There's going to be stuff my family wants, And it's pretty cool. There's going to be stuff my family wants, and they'll work it out. I really don't care at that point, because I'm not here, but Hopefully.
hopefully, while I'm alive, I can share some of the things and the wisdom and knowledge that goes along with stuff, and then, I kinda don't care after that. But, here you go.
So, you can do Assets and Sure, that you want to consider, and you want to write about it, Well, then, by all means, go ahead.
So when it comes time for you, work for your estate to be probated, and you've already decided how that's going to play out, and you're not using the court.
And maybe you have a formal document, like I showed you in the last video, I've got this paper book that has all the credentials. Right?
Well, you might have want to have a computer file that looks like your operating agreement, But it's for an estate.
And it looks a lot like, this set of rules I'm showing you, is what I'm showing you. To let you know. There's, there's a set of rules that are being used right now in all the states around the world and all the countries. And say, this is how it goes. This is a probate is.
So it's something that you may want to consider adopting a private membership association, OK? This would be one little aspect of administering your PMA if you're using it for estate planning.
Anyways, it doesn't have to be so formal like these guys. But remember, these are strangers. So that's why there are there's a lot of formality here.
Then. So we got the definition, OK. So basically, that said, I mean, you guys can do your own research. I'm not going to go on about this. But, that's what I just wanted to share with you.
So, sure. If we can talk about this, You guys have some unrelated questions, that's fine. I know you like to ask me a lot of the basics.
I'm happy to do that. So let me just click on it here.
And, yeah, go right ahead. Um, I'm gonna look at the participants here.
See you guys. Any questions?
All right, Jacob.
When she got?
Hey, John.
So, um, so this is, this is really interesting stuff, you know, and I'm wondering if each state is different when it comes to probate.
And like right now, my, my girlfriend, her father just went and had, I don't think it was.
A well or, or what?
But he basically, you know, had something written up to take care of his affairs when he passes.
And, and his and his friend did that.
And so I mean what I've been hearing about propane is that you, you basically, there's no point.
Like, like crypto J talks about the, you know, there's no point in doing probate. If you just create a trust, then you keep it in the private and you'll have to bring anything into the public. And that's what I hear you say is, Yes, private membership association, keeps everything in the private You don't have to muck around in the public and create needed, and, you know, like potentially resolvable liability for someone attach it to your stuff because they want it.
Yeah, there's a big, The big thing I've seen over the years is attorneys just poaching the estate.
They either do it or they just take step, because people are fighting over things, and, if you had it already resolved, Yeah, use a revocable trust or take it out of your state now, and it's administered by your family, hopefully.
Right, Right. Right. So, I guess it's pretty standard, or is it like specific a Washington? Is that specific for California? Well, the structure is the same everywhere. A probate is a trust. It's the administration of a trust.
That's what probated, OK, that's what I was telling you. It's a business. OK, so there's a trustee There's an executor There's a representative there Beneficiaries. The probate is an operation of a trust.
And why would you I mean, look at it this way. Yeah. So it's the same around the world But you do have your different rules like different states have different tax rates.
They have different rules about who has what priorities, husbands wives, Things like that. Children. There's those aspects of it.
But, um, yeah, it's, uh, it's something that we can do ourselves. We don't need the state to write, but think about like this, your whole life. Let's say you died age 65, or, and that's kinda young, I think. But, let's say 265, and you spent your adult life acquiring assets and learning and gaining wisdom and hopefully sharing with your family. And it's all been a private matter.
You chose your spouse, oh, by your cell, you didn't go to the court, judge who to marry. Right, OK. So, you know, this all comes down to the end.
You go to a judge and say, yeah, I don't know what to do with my property, I mean, it's ridiculous.
So, I mean, so, be responsible, so, Right, absolutely. And so if you have a Will, is that it does, that ...
come under the purvey of, of Probate if you have a Well, OK, a will.
There was always a well, whether you've written well, this except that as a written will be probated, it will guarantees probate If it sounds right, that's what I understood is, yeah? If it's file, I can hold onto a will and don't do anything with it.
My parents died, did I write, we handle everything before him.
Right. You handle everything beforehand, but if you go to a lawyer and they write up a will, You can bet your bottom dollar. It's probably going to be public, And then that means that, boom, it involves the state, it will be probated, and the attorney will get you to do that, and the attorneys bread and butter is.
Probate trust. Will estate planning.
I mean, it's, it's a very, you can spin up there, you can do a whole career on that. So, you gotta ask yourself, OK, I'm an attorney. Is making money off of this, Isn't his interest to that I have an estate that I have things to deal with that. I have complexities.
Oh, yeah, so that's another reason why I don't like it. I spent my whole life doing these things without the attorney's involvement, and now all of a sudden, he's going to be the master of my state.
When I was, Yeah, And my family should be, and maybe, Maybe, maybe you're dying without, You know, that there's no one else cares about your, you care about, that. You have a relationship where they'd want to become an air, right?
And maybe you're in that situation where, you know, there's no children or whatever, and so, maybe you might have $30 million worth of assets or something.
Then you really have this strong propensity for some sort of charitable thing you want to do with that money. You've already been doing it with that money, and so the last little thing you want to have on this planet is, you want someone to take care of that. And, yeah, there's going to be a cost to it.
But you know that if, if, if it's already set up ahead of time, that your net worth can be used for that thing that you wanted to do, that you've been doing the last years of your life, you then would probably use probate court or an attorney or a trust or something like that. That's fine.
I don't have a problem with that.
I have a problem with a regular family that they just give up and they just act like, they're incompetent all of a sudden, and they just fill out forms because some attorney told them to do that, they don't know what they're doing. Yeah.
Ray. Yeah, totally. Thank you.
Somebody's asking me anything. OK. Yeah, Well what does that mean?
I didn't want to bring that up here, but uh, you're you're in about the best situation as far as the IRS doesn't. Just. Yeah, so we can talk about that.
It's yesterday yellow thing on the text I'm sorry, that was only for me to see the highlight. And I thought, Oh, maybe I can highlight. You. Said someone. I was like, Oh, man, OK. So everything went well at the bank and we got it open in everything, and I ended up as huge down on the banking extractive, beautiful, even thanked me for teaching them The PMA so thank you for that very nice. OK, alright, but I did have a quick question. So crypto services would be part of the thing funding, the LLC for the PMA, but also I mean you know my dad's maintenance company?
And can can we find B L B with personalized checks?
You just need to be and you can take money from any source and find your LLC and then go buy assets.
That's no problem. That's liabilities, yeah, OK cool.
So what about like I know technically if it's personal or debt then you have to pay that. And you have to pay taxes on it.
But if it's just for food, for the family or common things for the family, which is the PMA, is that taxable?
When you take money out of the LLC, well to the PMA though, right? Because that's the forget, PMA. because that's not doing anything except owning the LLC.
You're dealing with an LLC, LLC can be funded from any source, just make a legitimate funds, you know? You don't want to call it the slots of brothers. It gets in gambling money on that right similarly or something. But yeah, put the money in from any any way, and then manage whatever asset, and you can manage all kinds of cash flow from different operations. Real estate, stock portfolio.
Just it's up to your organizational skills, but then when it comes time for the LLC to be used for something like, maybe it's a brand recognition for a particular company, your own business, or maybe it's a piece of real estate with a unique set of risks, you want to separate that out and taking money out, that's, if it's not used for the LLC itself, that's going to be part of your taxable income.
Yeah, because we mainly just would spend money on like food, and.
That's taxable income. Yeah, that's just your regular normal income.
What we're trying to do is, is make it to where we can separate, are large, nice income that we just figured out how to create or a windfall that we got.
And let's say it's another $100,000 or $2 million or $20 million. That doesn't need to go to my name just because I figured out how to make that.
I don't need to pay tax on it just because I have no other structure.
So the LLC is designed to separate that out. What you're not going to get away from is the regular living expenses, being your income. So, even if Bob Bob is paying your light bill, Iris will still see that as your income.
So, you're not going to get away from normal expenses.
But you can't get away from things like having three votes on your property that you're paying insurance on. I've seen people do this. Have three boats and to jet skis in their backyard to Don trailers.
And so, the iris looks at that. Let's say, during an audit, I always look at worst case scenario. So, the iris sees that you've got all this stuff in your backyard. And you're paying for it or you paid for it.
And it's gonna increase your, your expectation of taxable income because you have all these liabilities.
So because you have these liabilities that you don't need who needs three boats, but you have to, the IRS is going to calculate that into their estimation of what your income should be.
So what I try to do is move everything out of the client's name, like even if I just have to move it up his name or if I sell it. Or I help manage to get rid of all the liabilities because it's a big problem itself.
So, so, really, you have a light bill. You have rent or mortgage.
Yeah. You know, dental care, you know, clothing.
There's all these numbers that people always have in today's society. I don't think we need Most of us don't need more than $100,000 a year, now, if you're in California, it might be a quarter million dollars. here. Other than that, your demographic is going to be fine. If you're making $2 million, it doesn't mean you have to make it pay the tax on it. That's all we're trying to do.
OK, OK, Cool.
Yeah. I just have one more question.
I was opening up Caleb and Brown, and I don't know if you've met with them or contacted him recently, but they are having you fill out the information online through a little questionnaire. And it immediately goes for first name, last name and address, and I don't know if that's acceptable personal information just for a profile account.
But I know you're talking about how you can give them the banking abstract and it's like the same, that's for the bank. Right?
The Seiners address, but it doesn't really say just opens up like First name. It opens up, like it's like a personal account. Makes you have the, make sure you have the application for an LLC or a trust.
They might have two different applications.
OK, I didn't know if you had a specific e-mail to reach out to, because I was trying to explain that and he just said, Just fill it out, who you're working with.
Lucca in California.
It's not Jake calama around Jake or No. Luke Luke was his name I believe. Yeah and he's a Caleb around.
Yeah, in California, I don't know him. Well, make sure that you ask them to say, I'm, this is asking me for personal information.
So, as the seiner, is this the account holders information?
Make sure that the account holder is your LLC or trust, whatever. Yeah.
Yeah, so, just ask them. I wouldn't know. I mean, it has changed so many times, I've been working on for about four years now, I wouldn't know.
Right, OK, cool. I just wanted to clarify. Thank you, Gift.
Yeah, And Mark, you had a question?
Thanks for your patience. Yeah. John, Thank you so much for the e-mail you sent.
I was just basically just here to see, when we can talk about, OK, all this contract stuff. I'm assuming it's going to take too long to do it here.
Yeah, let's not do it here, but I can't, I can't let you know.
So, tomorrow, spray probably, Monday would be the best. That's OK, Monday, whatever works for you, Matt, and like, I'm on your schedule here. They appreciate that. OK, So, let me just shoot an e-mail or something, and Alicia figure Monday, it's going to be like, you know, maybe around noon or something like that.
All right, great, I, Will, I Will. And your, Your Eastern time, right. Yeah, Florida, yeah. Yeah, OK. Great. All right. that's it, that's all I wanted to thank you so much and there, I just wanna give you a little bit because I know that's like an avalanche of information. And I don't wanna say, hey, good luck with that, I'll definitely write it up, I see what my thoughts were on it. Yeah, that's, that's really great, thank you so much. Alright, OK, I'll look forward to hearing from you soon.
All right.
Jacob had something else?
Take them anything, OK.
All right. Oh, here's a question, When properties are in trust for an estate planning, yeah, go ahead.
OK, so, so I have an LLC from you and I've got it with Caleb Brown and that's been going great.
And then what I did was, uh, I created a trust, and I went into the bank the other day and filled all the paperwork. It went really, really smoothly. I created an era of, or sorry, I created a revocable trust.
Similar to what, you know, crypto J, you know, teaches us how he does it, and I wanted to try it out just to, just to see, like, OK, what's another way of doing it?
And then I was, I was funny, I was filling out the fine print and what it said is they treat all assets of that trust as if they're my personal assets. Yeah, they do. That's why they love it when you do that. Because the banks help that system.
Yeah, so I was so I did that, and I was like, OK, great.
So it's just, it's like good to know, but I created it just so I can diversify some of the profits, right. It's good for cash flow and keeping it out of your state, and it's still tax deferred, so yeah, it has its benefits.
So what I wanted to ask, what I wanted to ask you is, is it will, you know, if I have, like any kind of student loans and defaults or anything like that, can they actually find that since it's under the census, under a different end, yeah, they will, they will treat that property as your personal property And though if they're doing is doing a levy, they'll take the money or property out of them, the bank will help them.
And the way around that is you would do something like, um, let's say your parents who are elderly. And you're going to help many ways with maybe taking some things out of their state, or whatever you're going to do.
And so you would use our vocal trust, make your mom the trustee, convey the property or whatever, make her the signer for the bank account, and then use that account as your own.
And just keep in mind, make sure she doesn't have any your own debt problems, right? But if she's good, then you can do it that way. So that's like a nominee. And no attorney is going to tell you that I'm not trying to compare myself to an attorney, but this is, it would laugh at, that they'll say that's crazy, but I've done things like that forever. It really works basically. A trusted family member as a nominee.
When you want to keep something away from creditors who have administrative power to levy, without suing you, like the DOE or IRS, you want to use a nominee family member and that creates an illicit party.
Then you can just use that account, and your mom's the trustee and your mom's designer, and maybe your wife is a beneficiary, or maybe your children are the beneficiary, and you're using it for cash flow on a rental.
That will work.
OK, so, what you're saying is, even though it has its own EIN, they can still, Oh yeah, they can still, yeah, does not create property rights. A little bit trying to tell.
Everybody ions are meaningless. They don't create liabilities or property rights. But it's the, it's the ownership that does it.
So, the trustee is the owner and if the trust is re vocable, OK. Guess what?
If you have the right to take the property out, you put it in, and you have the right to take it out, Remember, it comes down to those two factors. Do you have the right to spend or sell?
Yeah, then it's my property.
That's the test, and I got that back in the nineties when I was looking at the IRS levy statute and it really hit me hard, is like, OK.
The common denominator is my client has the right to spend money and sell stuff, then I had a back come out of that revocable trust does not back you out of that.
But for the most part, it will handle 90% of what you want very nicely.
It's just that when you have these other things, these collections going on, it's not going to make you uncle, like, yeah.
Yeah, I mean, I don't have anything actively going on, but I mean, it'd be pretty easy just to do a public search for someone, right, and then it would pop, you would know months in advance. So if you want to use it now, that's fine and then you'll know months in advance and you can simply stop using the account.
I'll stop putting money in there, the place where you run into problems is if the, if the revocable trust, owns an apartment complex, or a hotel, and you're not gonna easily liquidate that.
I mean, you can get a title that takes some time and then maybe you have to explain that.
So it's better to, that's why I deal with LLCs.
That's why you do an LLC. Yeah. So even if I were to create an ... Trust, and I was the trustee As the trustee, my personal debts don't become involved in the trust because there, it's not mine, it's OK. Right, like, it is correct. But it's revocable.
So when it comes to the collection phase, your personal liability would be, would be used to reach into the trust. Now there is a way around that.
Dare I say? Sorry, Jay.
No, no, no, no, sorry, I, OK.
So what I was saying is, if I made it irrevocable, and I did something like if I was just a trustee of it, but the beneficiary say was my mom. Yes.
That is irrevocable, and see? That's why the bank always asked for the trust document. Because if you, if it's not written properly, the bank will step over the irrevocable trust and take the property as if it's a revocable.
So it must be irrevocable for real, and it must be used that way.
So that's why don't mess with trust too much.
Yes, That's a good point. You can, Yes. You can use an irrevocable trust.
You can also create a situation like you were with two people that don't have joint liability. So let's say my brother and my sister and I are trustees on this trust.
And the trust document is written in such a way that neither trustee has exclusive rights individually without the written consent of the other trustee and or the beneficiary to do something to the property, like the bank account.
That would also preclude them, But then here's what you run into. You run into an competence at the bank.
So, what you're also trying to avoid is cost of litigation.
So while the bank may have done something wrong, your revenues to do what, go to the court. And now, because you've got to trust, you might have to go get an attorney you see kinda quagmire you get into.
That's why I use an LLC, because that is going to be my least, risk, starting with costs of litigation.
Nothing wrong with the trust, other than if I'm going to set you up with something, I want it to work nicely for 10 years without any problem.
No matter what happens. Yeah.
So, yeah, you could have two trustees, and then you get into the language of the trust, and then you hope that the people at the bank are competent, you know.
The bank can totally step.
They can step over. They can, they can step over, they can seize all your funds, they can turn it over, and then you have to go to them and then you have to bring the trust in. You have to litigate the language, you have to do all that.
And they're going to come in with a pretty good defense. They're gonna say, Well, we're just doing our job.
We're under this liability, they will say that, and, and they'll deferred onto the party, they actually took the money, so you might end up having this to the IRS and the bank, It's just messy.
I had one was, the one I had. I came to, this woman came to me, and she already had this thing, and she did something silly and it was a trust, and it was a good trust, she wasn't using it properly.
That's another thing, if you don't do it right. So she was, well, I'm like a title. So it basically, the IRS took some money out of the trust account.
So I had her appoint me as a trustee and I filed a claim for refund administratively, and I got the money back.
And then I resigned and made her the trustee again, which the IRS would, you know, take the money back if they knew that. Because I'm not supposed to do, but anyways, I did it, and it worked administratively. And if it went any further, I would have told her, sorry, I can't help you at that point.
So I got lucky.
Yeah, try to avoid those situations.
Got it, thank you.
OK, so I hope that gives you guys some ideas.
Just want to let you know, we do not have to re-invent the wheel, but we should own the fact that we had the property rights.
We enjoyed exercising those property rights for our entire lifetimes, and why should we go to albeit competent professionals? But why should we go to people outside of our family or strangers that we have to pay for the service and have other risks that go along with that To administer something that we took care and developing our entire lives.
I would call that a measure of immorality.
Alright. Not that, it's gross. It's just that, it's, it's outside of the character of what you've been doing, your entire life, you took responsibility, your whole life, now, you're not.
So just keep that in mind.
Yes, Elaine.
Let me just give you a ring when I when we're done here, OK? That's fine, OK, and there was a couple here, so.
OK, so somebody's asking about, what, when properties earned the Trust for Estate Planning.
So if I, let's say, aidid over my house for estate planning to a trust.
So I take care of my state.
So how would that work with titling each property to a separate LLC, OK, whenever you convey property real estate that you have in your name individually to an LLC, you'd use a quitclaim deed, um, that can remove the property from your state.
It does remove it from your state, because your LLC may not be in your state.
If you name the interests of the LLC in your, will, you bring, then, you bring the property back into your state, through the LLC. So be very careful about that.
So, just realized that when, when you want to take something out of your state, use an LLC or a separate party, a revocable trust does that. I don't like it.
For the reasons, like what kind of we discussed LLCs do that, be sure you understand what's happening with the LLC and your will. What you want to do is create a separation between your state, which may have nothing in it when you die.
And the property that you care about that you're you want your heirs to get, that may not really be your heirs in the probate sense because the probate court is never going to see them as your ears.
But you see them as your ears today, because you took the property rights out of your state, and put it in a structure that your family or friends can manage when you're gone.
Right. So I don't know if that answers your question.
I guess the question I have, I'm hearing for years is, what happens when I die now that I've transferred my property to an LLC and I explain, well it's not in your estate anymore. So the LLC doesn't die, it's you.
So as long as you haven't named the LLC interest in your will that stands alone and nothing happens to that LLC property other than what the LLC's intended to do.
So, if you wanted your children to step in and start managing the LLC fine. That's hopefully what you did, and maybe they decide, we don't like this LLC thing. We're just gonna take the house and put it back in RNA, it's fine.
That helps.
Alright, and then Umbrella Trust necessary at all. What are the advantages in business?
So I'd like to look at using a trust, um, for managing risk, and to the extent I can separate the risk out, let me give an example.
A dental office is different than an apartment complex, two different kinds of risk, two different businesses.
two different assets, two different types of risk. I would definitely use a different structure for each, probably going to be an LLC.
For holding the property ownership, I might use an S corp for running the dental office, though, so there's another issue there.
So I don't like umbrella structures.
I mean, I almost don't even like them for the same types of assets, like 12 houses in one neighborhood and maybe maybe it depends.
Um, but, yeah, they are, They are similar risks and similar assets. So, fine. But if in that same neighborhood, I want to buy an apartment complex, or a quadriplegics. I would probably use a separate structure. And also, if that ownership of the asset, collection of assets, that, that ownership, changes and beneficial interests. So, here's what I would happen, Let's say I own it.
I own the company, single member, LLC, and I want to take on a lender or an equity partner and the equity partner says, Hey, John, I've got one point five million dollars, I'm gonna throw into the party, and I wanna blow this up a little bit, right? Let's start investing in some other stuff. And I'm saying great, I got the structure for it. I got the company, and all this stuff will make sure that, that company that now takes on an equity partner, that beneficial interests have. She has changed where, Before it was only me, now, it's me, and this other crazy guy with one point five million dollars. Right now.
we're partners, OK, so make sure that that that structure, that LLC, let's say, doesn't also manage cash flow for your family on something else that's not related.
All right, so that's another reason to have a different structure.
So I guess that's I mean as far as an umbrella trust again, advantages.
Disadvantages, convenience if you want a trust that handles a bunch of stuff at once, convenience, but that may be far outweighed by risk, so be careful. Your first rule is what kind of risk am I managing here.
So identify the risk first. That's why you call me and say, John, I'm getting sued and get sued by Citibank.
And then, so I don't care about Citibank.
It doesn't even matter how much you're being sued by. I'm the only person on the planet and the country is going to say that.
I don't really care.
My question to you is, Do you own a business?
You're gonna be like, What? I don't know you. Are you asking me that? Do you have personal bank accounts? How many do you have Millimeter?
Or OK, there's a risk there that's probably unnecessary.
So, now I'm gonna look at your risk not in terms of being sued, but in terms of the creditor taking your stuff and so that your risk is your stuff.
So, I'm gonna remove that.
I'm gonna encumber it I'm going to lean it, I'm going to move it out of your name. I'm going to show you a different way to manage it.
So that if you do lose that case, if you want to fight that case or if you want to waste your time, putting that case, if you do lose that case, it's going to be meaningless to them.
And so, we, we manage all the risk. And now, the next thing is OK, but what about my credit? It's toast. And so, that's, we do do some work on that.
All right, if that answers, all right. I'd like to look at risks before I do convenience.
All right.
Oh, you want, OK, so somebody's asking about, this is just, oh, straight, OK, you want a letter Asking for a right to Sue letter?
Yeah, yeah, I guess the EEOC is not responding and so, he just wanted whatever it was. It's supposed to go to the DOJ. Does that make sense?
Oh, yeah. Yeah. I MRSA has. Are you working with Marissa?
Yeah, yeah, she's been working on janga and stuff, but they are.
Oh, really, OK, OK, cool.
And mentally ill thing, that he finished that whole thing, But I think he just wants to next steps if you have them by chance, the mentally ill thing for the invitation for? For involuntary mental evaluation Yeah, I believe the next steps. OK, but I'll remind him to send it again. Well, you guys, did you serve it on?
No, he doesn't. He filled out. Let me see here.
Let's see, he finished the letter concerning the governor, but he just doesn't know the next steps, and he was wondering who to send it to and what he should say, OK, well, you gotta file and get a case number, OK, I'll see if he did that. Get a file in the court and get a case number.
And if it's in New York, there's a bunch of pages is nonsense. You go far with it, and then serve on and that's when the fun starts then, once you serve it out and then you do a news release and say, hey, everybody, the mayor, just get sued because he's mentally competent, you know? That's, that's why we do it.
It doesn't matter what happens in the case, you know, then you want to have it, you want to have a hearing because then what happens is, the judge knows that his course policies are identical to the mayors and he's gonna be like, oh ****. It's a big mess for everybody. Yeah.
All right, OK, cool. Thank you.
All right, Jacob. Did you have something else?
You know, like comes to the whole idea of like Bank bail in the unsecured creditor.
Like, oh, how does the bank treat the LLC?
Is it all is it also like, know, susceptible to the bank Balan or the freezing of not being able to anybody else? Yeah, It's nothing special. Yeah, I think that having a special structure is gonna make you immune from the banks, criminal conduct.
Oh, yeah, they just look at your account, who the account holder is, and I think they underwrite it like it's a loan. Like, I think they actually somehow account for your account average balance as if they lend you the money.
I don't even understand. But, yeah, I mean, that's why they look at your credit, They pull your credit, And sometimes they don't even open your account, because of your credit. I mean, yes. So that you're nothing special matter what kind of trust.
No, don't keep a lot of, like.
So the whole, like, you know, private banking option is, is that, is that a way that stepping actually outside of that, at all outside of that private banking, is, you're almost in the club.
The thing is, it doesn't matter about the amount of money, like you can put $50 million in the bank, and they don't enter your blank.
You're still not in the club.
There has to be some sort of relationship with other people, that are given different access to society.
We all know. I think, what that means.
So, Most of the people, I'm, I've ever spoke with my entire life, they're not anywhere near in the club.
I mean, if you're already, if you're able to talk to people like that.
You're probably talking to people that are close to human trafficking, they're probably, yeah, them in some way with whether they know it or not, or they're involved in some sort of corruption.
I don't know that I don't want to seek the favor of the banks. I think we need to ignore them.
And I think that's my motivation.
Be, by talking, like this, today, is, it's a way to show people how they can ignore a system that's been used to exploit us. And, in fact, we are the system.
We are the government.
No, and we should act like it.
So, I don't know, what do you think, and you think, there's some safe haven. I mean, life insurance is probably a safe haven.
If you have to life insurance Maybe of bolts service maybe?
Well I mean that's what I was that's kinda what I was referring to is is you know depriving banking duo on on crypto Js podcasts that then I think his name is advanced or something like that. They talk about life insurance policies.
I think that they talk about that like it's OK, They talk about like it's outside of you know, like the club it has its place. So notice, I don't talk about it very much, but if you've come to me and say John, what do I do with $200 million? And I'm gonna say, What's your net worth? And if you say A billion dollars, I'm gonna say, well you need to get into the I'm not saying the $2 billion to do this, But You need to look at this, this life insurance, this whole life policy, the infinite banking, because that is a way to manage risk, and like Jay and I were talking last year about this.
And he diary meant that.
It's not for people that want to squirrel away $2 million, you're wasting your money.
You're better off buying a restaurant or a brick and mortar location in your neighborhood.
But if you have 10 million, and it's a portion of your state, and you want to put it in the life insurance policy, that's a great idea, because the rest of your state is going to be invested in assets.
And you can use this life insurance policy as a lender and offset your risk this way.
OK, there's that understanding, And it's a long term commitment. I'm talking like, 20 years. Why? Because there's a big, there's a lot of front loading or commissions. They don't call it front loading, but they call it commissions.
It's High Commissioner.
All right.
But also keep, keep in mind that, um, investors, real investors, are not spending their own money.
So we're talking, I mean, our level, every conversation I have is about hey John, I've got this windfall. It's cash flow and I want to invest it.
OK, cool but the mid-level and up those businesses. Those people, they're investing other people's money and that's where you start getting it to private placement, memorandums and SEC regulation and I don't like to do any of that, so I'm always gonna be the cash investor and maybe I'm gonna take a lender money and more more off and I'm gonna use joint venture money.
I've got a project right now, I'm using joint venture money, not yet, but I'm going to start next year. So, I don't know if that answers your question, but I don't I mean, I have a video on this that talks about ideas. Like, for example, loose diamonds, gold, silver, Platinum, yeah. I mean, these are not real investments, but it's a holding place, Or going between one thing to another site.
Perfect, yeah, thank you. Yep.
All right. Well, good questions, guys. Appreciate that. Elaine just want to say something. It looks like you're about, you know, just waiting to talk to you, OK?
I'm gonna give you being involved in it, all right. And I did record the last one, so from last week, I'm gonna publish. I'll send you guys the link. It's those who are on this call.
I'll send you both, less this week and last week, so that'll be coming up, hopefully, very much good thing.
Oh, sorry.
So did you want me to text or e-mail Marissa again? or e-mail? Or But I'll send a note right now on Telegram and say, hey! what's up with strange? Asking for a couple of things. It doesn't take any work. She just, she has the latest and greatest. That's why I asked you because like if I want something, if we're dealing with that they'd pandemic case and I want something, I asked her, are asked son. Those guys have all my stuff. Perfect. Alright.
We're going to you all enjoy. Enjoy your weekend.
Thank you to, Thanks.


1. John Jay’s talk is a continuation from the previous session on the use of Private Membership Association (PMA) for estate planning.
2. The discussion covers the advantages of avoiding probate court by using PMA, as it allows individuals to handle their estate privately, reducing potential exploitation.
3. The talk emphasizes the need to understand the use of PMA, especially in protecting assets and preventing them from being subject to state and federal administration of tax laws.
4. Jay likens estate planning to organizing a garage sale, wherein every item (asset) needs to be cataloged and decided upon.
5. Probate is explained in its etymology and historical use, with Jay emphasizing the need to understand it fully when engaging in estate planning.
6. Discussion of state-specific statutes, like the Official Code of Georgia, underlines that each state has different laws and procedures for starting a probate proceeding.
7. Cryptocurrency and other assets, including businesses, can fund the LLC for the PMA, as discussed in the Q&A segment.
8. Jay explains how the LLC is designed to separate personal income from the assets in the PMA, thereby potentially reducing tax liabilities.
9. The concept of revocable and irrevocable trusts is discussed in relation to property ownership and levy protection.
10. Lastly, Jay advises on the need to segregate cash flow from partnerships and other business involvements, cautioning that one’s credit can be negatively affected if not properly managed.

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