The Intelligent Banker

THE VORTE BANKING CONCEP

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THE INTELLIGENT BANKE

Copyright © 202 The Intelligent Banke THE VORTEX BANKING CONCEP All rights reserved No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

The Intelligent Banke Printed in the United States of Americ First Printing 202 First Edition 202

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THE VORTE

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BANKING CONCEP

Table of Content Introduction .......................................................................1 Chapter 1 ...........................................................................5 The Client ......................................................................5 Chapter 2 ...........................................................................9 Identify a Solution .........................................................9 Chapter 3 .........................................................................13 Implement the Solution ...............................................13 Chapter 4 .........................................................................15 The IBC Secret No One’s Teaching ............................15 Chapter 5 .........................................................................19 The Future Could Get Much Brighter .........................19 Chapter 6 .........................................................................21 Part A ...........................................................................21 Policy Loans/Additional Vault & What No One Will Teach You ....................................................................21 Part B ...........................................................................27 IBC vs. Vortex Banking Comparison – Non-MEC Standard IBC Policy ....................................................27 Chapter 7 .........................................................................31 IBC vs. Vortex Banking Comparison – Vortex Banking Policy...........................................................................31 Chapter 8 .........................................................................41

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Final Outcome .............................................................41

Chapter 9 .........................................................................45 Bringing It All Together ..............................................45 Chapter 10 .......................................................................49 Conclusion...................................................................49 LiveIWS Spendthrift Trust Summary .............................51

Introductio I would like to open this book by thanking Nelson Nash and all the other legends who have gone before me to create, to provide, and to educate the masses on the in nite banking concept (IBC)! These folks have been an inspiration to me and are the reason I set out on this journey of exposing the corrupt and rigged nancial system we have all been illegally enslaved to our entire lives. If it wasn’t for their efforts of creating an easy-to-understand concept of utilizing a properly constructed whole life policy with a mutual company that pays dividends, I wouldn’t be where I am today, and I would not be writing this book sharing new concepts and ideas with you! I wanted to start by giving credit where credit is due, but now it’s time to go far beyond where these legends left off. Get ready to put this in nite banking concept onto ten jet engines, and I hope you’re buckled in and ready for the ride. This book is meant to complement Nash’s masterpiece and take his concept to the next level! I recommend reading Becoming Your Own Banker because I am not going to introduce the concept here. Nelson Nash laid the groundwork with the IBC bible, and now I am going to elaborate on it and show you how in 2021, there is a much more highly advanced concept that is being implemented right now all over the country, by all walks of life.

Imagine that as good as the IBC has been, it could actually get even better. It’s time to introduce you to the vortex banking concept brought to you by LiveIWS.com. It’s time to teach you

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how to truly unlock all the cash growth potential in a properly constructed IBC policy.

Imagine taking the simple concept of a traditional IBC policy that is used as a traditional bank and cranking it up into a cash warehouse and vortex estate fund. For example, say a standard policy had a lifetime cash warehouse potential after fty years of $1,681,452 building a traditional non-MEC policy, but by introducing the vortex banking concept, that same policy’s lifetime potential becomes $6,073,902! Would that pique your curiosity? This book is written to be a case study to introduce why the Vortex Banking Concept is the future foundation for families to build, create, grow, and maintain a vortex legacy estate fund and cash warehouse that will stabilize the family economies of millions of folks throughout the United States. It is my personal mission to teach this concept to as many families, churches, investors, and businesses as possible so they can execute their God-given right to opt out of the rigged system once and for good!

Before I let you in on all the goods, let’s make sure you are prepared. Forget everything you have ever been taught about nance for the duration of this read.

You may even want to forget all of it permanently after your done with this book! Your mind is like a parachute. It only works when it’s open, so if your mind is closed, take a deep breath, open it up for a bit, and give yourself a chance to learn some new knowledge that very few people currently possess.

What do you have to lose? If you close it back up after we are

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The Vortex Banking Concept

Introduction

done, then you’re still in the same spot you’re in right now, so you have nothing to lose and everything to gain by having an open mind. A closed mind can be the most expensive thing you own So now that we got that out of the way, let’s talk about the vortex banking concept. I am going to give you a real-life, recent example of one of my personal clients. I will call her Debbie for the purposes of this exercise to protect her privacy.

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The Vortex Banking Concept

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Chapter The Clien To set the stage, Debbie is a fty-seven-year-old healthy woman who is quite wealthy and owns lots of assets and investment properties as well as has hundreds of thousands of dollars parked away in low-risk investments. Debbie came to me with a goal of preserving her wealth and growing it in a taxfree environment with little to no risk, and she needed access to around 80 percent right away for some investment opportunities not too far down the road.

After I went through what we call our discovery phase, I determined about what Debbie would be able to qualify for in her current situation. Not to be too technical, but in the insurance world, it’s called the client’s AAR. Debbie wanted to put $150,000 into her vortex bank year one with a $20,000 annual premium. Debbie also wanted the ability to deposit $100,000 each year for the next twenty years! Unfortunately, with the traditional IBC strategies available, this is not possible. Even if it was, the policy would be what’s considered a modi ed endowment contract (MEC), which we will talk more about in a minute, immediately, and the client would need huge income to even qualify for the policy.

Due to the client’s age, using a term rider as the tax shelter to front-load the policy, which would be necessary even to attempt to make this work, would cost about $31,200 over ten

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years. That is cash that is not being utilized in the policy for growth. It is just purchasing temporary insurance to raise the death bene t to avoid the policy from becoming an MEC to avoid a taxable event. An MEC is where you earn too much in interest and dividends within a period of time and now the government wants to tax you! My opinion is that this rule is to deter people from what I am about to teach you. It reroutes people’s money away from their control and gives it to the government and Wall Street in quali ed plans such as 401(k)s and IRAs, just to name a couple.

Traditionally, insurance agents have to sell you a term rider if you want a banking policy because that has to be in place to avoid the MEC. So now I have run into a problem with Debbie’s bank. Because the term rider pushes the death bene t up so high, the client is maxing out her insurability with temporary insurance that is costing over $30K, and because the death bene t is so high, so fast, in order to avoid the MEC, now I can only get about $40K into the policy year one where the client can actually qualify for the policy. For this book we are going to assume that Debbie could qualify, to keep the numbers the same in our comparisons later on. So, at this point in my journey with Debbie, if I was a traditional IBC guy, I would be stuck here, and I would have to inform the client that I cannot get even close to what she wants to inject year one.

Now I would have to be really creative and try to write additional policies on kids or other family members, which is what is taught in this industry. Create ten policies on yourself?

Huh? What a pain in the ass! What if there was a way to

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overcome this? What if there were multiple “secret vaults” hidden within the policy where you have some options? For the rst time, LiveIWS is going to give you the key that will open these cash vaults.

We are going to show you options where each year you can deposit additional funds to your policy, adding to the interest and dividing earning potential! And, yes, when you deposit these funds into the secret vaults, you will have access to borrow it right back out immediately at a higher percentage than your baseline premium in the early years! What if there was a way you could unlock these new additional vaults, for up to twenty years—where you decide what you contribute, where you are now in full control of your bank and have a minimum performance metric as well as max potential, where it’s your foot on the gas pedal, not the feds’ or Wall Street’s. Until recently, IBC policies have been very standard: 60% to paid-up additions and 40% to the base pretty much across the board.

Sorry, but this kind of policy is no longer a true banking policy with what is available in today’s market. This is now becoming a dinosaur-like, antiquated policy, in my opinion.

Also, depending on tax policies and who’s in of ce, when the federal government decides to lower the guaranteed interest rate on whole life, getting a standard traditional IBC policy in the future will not be as sexy. One carrier, that I won’t name here, that we work with has a very sophisticated whole life tool that allows us to install a mechanism into the policy that changes the entire outcome.

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The Client

We now go from a “banking policy” to a cash warehouse and a vortex legacy estate fund to potentially pass on millions of dollars to your family. This mechanism I am talking about cannot be utilized on a traditional IBC policy. In order for this mechanism to work, it needs a key. We have discovered this key, and I discuss it in great lengths in my book Unveiling the Secrets of the Rich. I will touch on this as we go but will not go into great detail here. Grab my other book and give it a read. It will bring some great insight and expose the corrupt system

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Chapter Identify a Solutio So where do we go from here? How can I get closer to Debbie’s goal? I am now in a position where I need to gure out a way to unlock the deposit potential in Debbie’s cash warehouse as well as reduce the death bene t to allow the client to qualify for the policy and get in a lot more cash up front. Remember, because of the huge term rider as the tax shelter, it pushed what is called the client’s AAR (qualifying power) up to a point where the client was ineligible for that amount of initial deposit, let alone large amounts each year after. So how do I overcome this? Well, this is where we need to bring another tool into the strategy! Without this particular tool, what I am about to share with you wouldn’t be possible. If anyone tells you they can do this without this tool, turn and run the other direction because Uncle Sam will be knocking at your door real soon with a big 1099.

Now I am not going to go into a lot of detail about this particular tool here because this book is strictly about the entire Vortex Banking Concept and why it is the future of in nite banking by adding this unique tool to complement your banking policy and unlock its full potential.

Now this tool I am referring to is what I will call in this book our special trust. It’s special because all trusts are not created equal, and the one we have is copyrighted, and no one

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else can sell this particular trust! All I will touch on here is the fact that when you operate out of this special trust, you are essentially lawsuit- and judgment-proof. Your assets will now be held and owned, but in your control inside of a titanium vault with asset protection and massive tax bene ts as icing on top of the cake. See, our trust is not like a legislative law trust.

Our trust operates under contract law and is not subject to the myriad of legislative rules and regulations corporations are subject to. We use IRS C-643 to defer, so in a nutshell, our trust comes with huge tax bene ts! It les a 1041, has an EIN and a bank account, and operates from underneath the myriad of rules and regulations the government entities such as LLCs and corporations are subject to, and this has been held up by the supreme court (Eliot vs. Freeman 220 US 178) Now, of course this isn’t a ticket to break the law or commit fraud. This does not allow you to evade taxes, which is illegal and we do not condone at all. We legally defer taxes using the IRS code. I think you have enough here to understand how this works, and you can go grab Unveiling the Secrets of the Rich on Amazon to learn more on this powerful life-altering tool.

For now, we will move on. Let’s talk about why we are using this special trust. Our trust allows you to defer all capital gains, rents, and royalties as well as any passive income. This puts us in a unique position to help Debbie even beyond her expectations. Since our trust can own assets, Debbie is going to sell her vortex banking policy to her special trust, making it the

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Identify a Solution

owner and bene ciary. This now allows the trust to control the asset as the policy owner and payor, and now the trust can use trust money or deferred dollars to fund the bank!

Remember, the trust has a responsibility to take care of and maintain its own assets, and it is now the owner and payor of the vortex bank! Without the trust, we all know we typically use after-tax dollars to fund life insurance! Now we are using tax-deferred money! This is typically not possible, and it’s only made possible due to the fact that when the trust owns the policy, it has to make the payments. Remember, the special trust is not subject to pay capital gains. This now allows me to do some really interesting things to Debbie’s new bank, such as create an MEC (more to come on that)

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Identify a Solution

Chapter Implement the Solutio Now that we have this special trust as a part of our strategy, I am going back into Debbie’s policy, and because I have this trust as the owner, I am able to get very creative now!

The rst thing I can do is remove the term cost of $31,200, which will remove a lot of death bene t and lower the client’s AAR immediately, drastically putting her back in range of qualifying for this policy. For Debbie, this lowered the death bene t by $1.6 million, which now allows me to inject more into the policy while being able to get Debbie quali ed.

Now because of the trust and the fact that an MEC policy is now fair game, due to the fact the trust isn’t subject to the capital gains tax on the policy because it owns it, I can take the $31,200 I saved her and use a portion of that to pay for and fund Debbie’s special trust! That is money that would have gone to Uncle Sam as capital gains that now purchased her a much larger warehouse with asset protection and tax bene ts.

Now Debbie has a trust with the ability to defer capital gains for the rest of her life.

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I can now take the difference in the savings from taking off the term rider and can inject that back into cash value dollars so instead of buying temporary insurance, Debbie is getting more permanent insurance and more cash value, and all of her dollars are being utilized for growth, not a tax shelter with no bene t other than a death bene t for ten years that goes to zero at the end! Term is like automobile insurance and has no place on an IBC policy unless the client is young, healthy, and makes sense. In this case of $31,200, it does not make sense for Debbie!

So now we have taken off the term rider cost and created the tax shelter (the trust), and now the trust pays the premiums with tax-deferred dollars. This means every single dollar Debbie is using to fund her bank is being utilized 100% in the most ef cient way possible. No money is leaking, and every dollar is being utilized to its maximum potential. You see, just by pairing the IBC concept with this special trust, we have already put Debbie into a much better position. Because the AAR dropped, I was able to get $105,000 into the policy year one! Now it’s not $150K, but it’s much higher than the original $40K on the traditional IBC policy. And it doesn’t stop here!

This is just one of the advantages of having the vortex banking conception place. There’s much more! We are just beginning to unlock the potential for Debbie

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Chapter The IBC Secret No One’s Teachin So now that we have Debbie in a position where she can qualify for the policy with a lower AAR, there is another key feature LiveIWS can build into these policies only because of this special trust. I discussed early in a previous chapter the potential of having multiple additional “secret vaults” that will allow you to deposit even more cash into your warehouse than a traditional IBC policy. One of the biggest issues I run into with IBC is that you typically need many policies, meaning when you get your rst one, maybe it’s $500 a month because that is what worked best at the time. Once that policy is issued, you can only put in $500 a month.

You don’t have an option to make larger deposits throughout the year—and why wouldn’t you? You earn interest and potential dividends on as many dollars as you can get in, and you would have to go back to your agent and write another contract! Now you have to manage two policies, and you’re paying costs on both as well as having to go through underwriting and taking another medical exam!

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No thanks! At LiveIWS, we can add additional vaults that are built into your policy based on your needs, can be activated at any time, and are optional! Imagine Debbie closes a big real estate transaction and makes $50K! Normally her policy wouldn’t have room to add any additional funds and she would have to call me and start from scratch to build another bank!

This would also require Debbie to commit to more annual premium in order to write a new policy! We don’t want to do that. We want premium low and space warehouse large! In this case, all Debbie has to do is exercise her right to add those additional funds each year, and she can choose how much! She can do a portion, or she can max it out! She doesn’t need to ask permission, do underwriting again, or even take another exam.

All of this is because the special trust unlocks features that can be utilized when building these policies that couldn’t even have been thought of before. Also, because we lowered Debbie’s AAR so much, she could more than likely qualify for another bank in the future! This special trust that LiveIWS offers takes a standard IBC policy and truly unlocks its earning potential! With these additional cash vaults, for the rst twenty years, you can stuff this bank so full that the interest and dividends can equate to a full-time retirement income and legacy fund

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The IBC Secret No One’s Teaching

See, the main issue with the traditional IBC policies is that they limit how much additional cash you can warehouse in the future outside of the set premium, unless you create additional policies! In order to truly have a bank and be your own banker, wouldn’t you agree it would be much more ef cient to have a policy with all the bells and whistles coupled with our special trust? This combination allows you to take a standard IBC policy and turn it into a legacy estate fund with a massive cash warehouse with the exibility to control the growth on your own terms. You literally pull the levers and now have a true bank where you can earn money as if you really were the bank!

Most IBC policies designed with most carriers all utilize the same software with the same limitations. Most of these dinosaur policies are outdated, with bells but no whistles. There are many factors that go into designing a policy this way, and we have spent thousands of hours analyzing hundreds of these to gure out how to unlock all of the earning potential inside a properly constructed IBC policy. Not only did we crack the code, but also, with all of the proper tools in place, I am now able to provide Debbie with a policy that looks like a Bugatti vs. a nice Corvette. A Corvette is still nice, don’t get me wrong, but when it comes to what is under the hood, the Bugatti is in a whole other league of its own. If I had a choice, I would prefer the Bugatti, how about you?

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The IBC Secret No One’s Teaching

Chapter The Future Could Get Much Brighte So, you are starting to see how complex our strategies can become when building a vortex strategy. Now Debbie is in a position to defer taxes on her real estate investment income as well as stocks and other passive investments, saving her potentially tens of thousands of dollars a year! That’s pretty cool, right? I thought so because this is an added bene t Debbie wasn’t even expecting. She now has a banking policy that is custom designed to meet her needs as well as provide a path for growth, where, with the additional vaults in place, she can unlock potential that was otherwise not possible with either of these tools standing on their own. The power of this special trust along with our custom policy designed with a carrier sophisticated enough to allow this kind of exibility and growth has never been accomplished before without these tools. So, when I shared with Debbie this strategy that I built, I used our vortex banking tool as well as our IBC tool to illustrate the original non-MEC policy that was dead in the water.

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I was able to show her how a traditional IBC policy did not have the capability of warehousing anywhere near what she wanted. I also showed her that with the special trust, I essentially saved her almost $18K, gave her a titanium vault with huge tax bene ts, and was able to get close to her original desires. Debbie now has the ability to have peace of mind from lawsuits and judgments, due to this special trust which is just another added bene t. Debbie can also legally use tax-deferred dollars to fund her bank, and then she can borrow against the policy to continue investing in her real estate business! Her money is protected, growing, and leveraged!

She is earning tax-free interest inside the vortex bank using legally tax-deferred dollars. Some of you may need to read that one more time! Debbie can then use the policy loans to access the money tax-free to then earn even more interest on the real-estate investment by leveraging those dollars in other investments. Debbie’s money is working in two places at once.

It’s earning tax-free inside the vortex bank while it’s also earning outside in Debbie’s other investments. This is all possible because Debbie is utilizing the vortex banking concept

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Chapter Part Policy Loans/Additional Vault & What No One Will Teach Yo Now this topic is where most insurance agents begin to disintegrate when asked! When do I take policy loans? Should I pay them back? If I don’t pay them back, I’m being charged interest! This is a topic that I personally believe there is no consensus on regarding what is the right or wrong way to utilize policy loans up till now. If you really want my opinion, which I’ll give to you anyway, it is that most, not all, insurance agents are commission driven. They discover the IBC concept, read a book or two maybe, and decide this is a good way to sell life insurance. So that’s what they do! They sell you a policy by talking about becoming your own banker, and then as soon as you fund your bank, they get paid, and they are gone! Now you’re left trying to decipher this new nancial vehicle you possess. It’s like someone handing you the keys to a Formula One car when you have never even sat in one! You need help learning how to be your own bank, and that’s where we come in. We will teach you what most won’t take the time to learn So, let’s go down this rabbit hole and discuss how policy loans work and why having a vortex banking system takes the traditional IBC concept into another realm. First and foremost, what happens when you take a policy loan? First, you need to

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make sure the carrier your bank is set up with has non-direct recognition loans. When you use us, we only use these carriers and also ones that have paid dividends for over one hundred consecutive years! What non-direct recognition means is when you borrow against your cash value, they do not deduct the loan from the principal balance where you are earning interest and dividends. This means you’re not penalized for borrowing money! This means you can take out a loan and still earn interest on those dollars even though they are being utilized by you somewhere else, i.e., an investment.

Now that we have addressed that part of the policy loan discussion, let’s discuss interest! Albert Einstein said that compound interest is the eighth wonder of the world. Those who don’t understand it, pay it, and those that do understand it, earn it! We should probably understand and look at how policy loan interest works so we can answer the posed question.

Interest on a policy loan is typically a set rate that can change depending on the carrier, and it is simple interest that accrues daily. This means if I take a loan for $1,000, I will be charged simple interest based on the number of days the loan is out.

So, if the loan is out 365 days at 5%, I would pay $50 in interest! That’s cheap rent compared to a bank! What if I only kept the loan out for thirty days? Take $50 and divide that by 365 days to get the daily rate, which is 13.5 cents. Now multiply that by 30, and you get $4.10 to borrow $1,000 dollars. Now also bear in mind you are earning a minimum of 4% plus potential dividends at the same time, and this

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compounds annually! So, you borrow at simple interest and earn annual compound interest!

Now imagine that Debbie borrowed $1,000 for one year at a cost of $50 in interest, but she invested the thousand in cryptocurrency and doubled her money. So, Debbie borrowed $1,000 and paid $50 in interest to her own bank. Over one year she earned $1,000 in pro t plus the internal growth she is already guaranteed inside the policy, which is also all tax-free!

So, you see, Debbie can use this system to borrow against her own cash value for pennies in interest and now double dip on every dollar she is leveraging Now let’s look at one more aspect of the Vortex Banking Concept, that wasn’t even on Debbie’s radar at the time. With the special trust, Debbie is able to purchase the crypto under the trust EIN, where she doesn’t own it. When the trust sells the crypto, or real estate, for pro t, Debbie is able to defer the capital gains and then turn around and inject that cash right into her vortex cash warehouse, also increasing her vortex legacy fund all at the same time! It goes without saying, Debbie was not mad at me for providing her an additional tax bene t that wasn’t even part of her original strategy. This will put even more pro ts in the win column for Debbie Now back to policy loans for a second. When do I pay them back? Should I even pay them back? Well, the answer is, we need to analyze how interest versus growth works and the secret vault rules. Let’s discuss this for a few minutes. I must rst bring your attention back to the additional secret vaults we

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Policy Loans/Additional Vault & What No One Will Teach You

create, unlocking additional warehouse space for additional deposits. We need to look at the numbers and understand interest. If Debbie has additional funds outside of her normal premium, she now has two options. She can pay back a policy loan and stop the simple interest, or she can put additional cash into the additional vault, where those dollars add to the bottomline principal where Debbie is earning tax-free growth!

So, let’s use some common sense for a minute. Does Debbie pay back a loan or add additional dollars into the warehouse, which gives her more legacy fund growth and more cash available in the warehouse, where all of these dollars are earning additional growth tax-free, or does Debbie pay back a policy loan to stop $50 in interest? I think you know the answer; it’s pretty obvious at this point. So, the question becomes, does Debbie save up to $50 to pay back the loan, or does she fund the additional vault where she is earning compound interest each year on that $1,000 for the life of the policy? What option carries more value? Obviously, funding the additional vault!

You see, with the Vortex Banking Concept, your banking system is a real investment system with a plan where you control the outcome! It’s your own family economy, giving you full control to earn and run your policy like an actual pro table bank while protecting you from the federal government’s overreach! Typically, the rst twenty years, you want to continue adding as many additional dollars to your policy as possible! I call it “insuring your income”! If you have room to keep depositing, why not? You get additional cash in your

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Policy Loans/Additional Vault & What No One Will Teach You

legacy fund, additional cash in your cash warehouse, and access to the money with the ability to now earn interest in multiple investments using the same dollar over and over again! There is no other system I know of that will lay this solid of a nancial foundation with no risk! Remember, every dollar you give the traditional bank is a dollar that when you spend it, you’ll never see it again. “Don’t waste any dollars,” is my motto So, as you can see, the old way of doing IBC has its limitations. When you have a policy that limits your premium dollars and gives you no additional cash warehouse space, do you really have a bank, or just a glori ed savings account? You need a policy with freedom and access to continue overfunding it for life! This is the only way to truly build generational wealth quickly and ef ciently! Most IBC policies that I have seen built drop off the banking component after ve or ten years, which really limits their earning potential—by about 90%!

So, the moral of the story on this subject of policy loans is that depending on your strategy, it may not make any sense to pay back loans today or maybe even ever. Every client’s path will be different. It all comes down to the ef cient use of your dollar, and we custom tailor each of these policies to each individual client’s needs. Most of my clients will not pay back a policy loan for ve to ten years while they stuff the additional vaults with cash, which drives up the earning potential of these policies, and the compounding happens very rapidly. Imagine if your special trust owned policies on all the bene ciaries and

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you had a bank for each member, where the trust is now using tax-deferred dollars to fund all the banks, creating massive cash warehouses, huge legacy estate funds, which are creating wealth for future generations to come!

So, in summary on this topic of if you should pay back loans, the answer is, numbers don’t lie. If building growth is more important than saving a few dollars, keep stuf ng your warehouse with as much cash as the carrier will allow! Doing this will ensure the earning potential of your bank increases every year and that every dollar is being utilized in the best way possible! If you’re going to be a bank, then you better earn money like a bank. Right? Or what is the point of all this?

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Part B IBC vs. Vortex Banking Comparison – NonMEC Standard IBC Polic In this chapter, I am including some images of a tool we use as in nite wealth strategists that shows our future clients how their new bank will operate. I am going to take this chapter to walk you through how to read this tool so that when your agent builds this for you as an example, you know what you’re looking at! Let’s walk through what I just put together for Debbie together, looking at the tool If you’re getting an IBC policy and your agent shows you an illustration only from the insurance carrier, ask them for an example that breaks the numbers down like a bank, not like an insurance policy. That is apples to oranges, and we are creating a bank, not a death bene t. When you have an insurance illustration, they don’t show what you’re earning year over year, when your break-even year is, or how much cash you can access each year, and so forth. You can gure it out if you have lots of time and love to play around with spreadsheets! They are very confusing and just about impossible to analyze from a banking perspective.

We created our own proprietary tool called a Cash Flow Analysis, which you will see on the following pages. Let’s take a look and review Debbie’s now. (See Image 1

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So immediately you’ll notice that on this non-MEC, traditional IBC policy, in order to get even $105,000 of the client’s $150,000 goal into the policy year one, look at how much death bene t Debbie would have to purchase with the term rider to make sure the policy does not MEC: $3,120 a year!

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IBC vs. Vortex Banking Comparison – Non-MEC Standard IBC Policy

That’s $3,120 x 10 years = $31,200 worth of term, which pushes Debbie’s initial death bene t up to almost $2.2 million and literally eats up $1,600,000 in insurability for 10 years!

(See Image 2

This pushes her AAR over what she could qualify for. But let’s just assume that Debbie did qualify; I want to compare apples to apples. Here is an example of what Debbie’s legacy fund would be on a standard policy. (See Image 3 Her total cash warehouse potential over $1,681,452, with a death bene t of $1,810,914.

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fty years is

This means that over a fty-year period, Debbie would have injected $688,920 of her own money, and she would end up earning an additional $992,532. So overall, a traditional IBC policy is good and could work, but you can see there is a lot of term cost that is unnecessary, and with all the added death bene t, most clients won’t qualify at that point. What if that $31,200 in term cost was in the policy with annual compound growth for the next fty years? Now we are talking a lot of lost earning potential. Now let’s get back to reality. I just said the policy could work, but in this case it’s not possible because the client wouldn’t qualify! We need to get the AAR lower as well as the initial death bene t so we can inject more cash up front.

So, as you can see, without any other additional tools or resources, the traditional IBC concept will not work for Debbie in this case. Let’s see what the vortex can do for her!

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Chapter IBC vs. Vortex Banking Comparison – Vortex Banking Polic Now let’s look at the example for Debbie with the special trust in place as part of our strategy. Remember, we removed the term rider, which saved Debbie $31,200. She was able to have the trust created, and all her cash, including the $18K saved, went right into her bank to begin earning interest. Let’s take a look at what the impact was by doing this. (See Image 4

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Notice her death bene t is now $713,807 to start, down from over $2 million. This allows her to now qualify for this policy based on her income! That term rider can be a deal killer in some cases, such as this one. Because of how this client’s policy was structured, which I won’t go into here, I met Debbie’s goal and got her 87% access to her rst-year deposit, so she had the available funds to invest in the near future in her real estate business! This was available to Debbie within ve to seven days after funding her new vortex bank. Without the trust in place, none of this would have been possible for Debbie.

Now keep in mind because Debbie has this powerful tool in place, her trust owns the policy, is the bene ciary, and will receive the 1099-R because the policy is an MEC and is now able to legally defer the capital gains incurred from the policy, being a modi ed endowment contract! Again, without the vortex banking concept in its entirety, none of this would have been possible for Debbie. I was stuck staring at a brick wall Let’s look even closer at how powerful this policy is.

What you see in the vortex illustration is an example of if Debbie only pays her minimum premium! Remember, each year Debbie has additional vaults that she can opt to open and pump additional interest-earning dollars into based on what she quali es for. Remember, on the old IBC example, we could only get in $40K max and not much annually after because the term rider ate up all her insurability. Now we have unlocked almost $80K more per year for the rst ten years and a little over $70K the next ten years! Now let’s see what this unlocking potential has on Debbie’s cash warehouse and vortex

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IBC vs. Vortex Banking Comparison – Vortex Banking Policy

legacy fund. Here are the numbers that we include in one of our vortex proposals so you can see what Debbie saw! Remember her initial goals and see what I was able to deliver to her with tax bene ts and asset protection! (See Images 5-9

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IBC vs. Vortex Banking Comparison – Vortex Banking Policy

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IBC vs. Vortex Banking Comparison – Vortex Banking Policy

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IBC vs. Vortex Banking Comparison – Vortex Banking Policy

As you can see, the vortex banking concept changes the entire outcome. Here are some of the biggest differences. Let’s look at the policy over fty years and see how potential was unlocked by creating the vortex Debbie’s vortex legacy fund, if she just paid her required premium, was $2,075,796 after fty years, and Debbie has only contributed 795,000. (See Image 10

Her cash warehouse has $1,928,723 available for access.

This means with her interest and dividends, her ROP (return of premium), or we can just say her gains, are $1,133,723. So after all is said and done, when Debbie is no longer here on earth, her $795,000 in deposits into her vortex bank earned her $2,075,796 over her lifetime with access to $1,928,723 of that while she was living, and she used it to build wealth and leave a legacy for her family Now for the sake of time, you can see in the illustrated example here what would happen if Debbie continued funding her additional vault space. You can see an example of if she used 25% of the space, 50%–75%, or if she maxed it out 100%.

You see what the potential can be, and it’s 100% up to Debbie because she is in control. (See Image 11

Let’s look at the maximum potential here. Her vortex legacy fund is now $7,121,843, and her cash warehouse

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potential is now $6,073,902! With $2,340,300 total premium paid in, Debbie has now increased her cash warehouse by $4,257,630!

As you can see, with the vortex, we took a standard policy that wouldn’t have met this client’s goals, and we far surpassed her expectations! You haven’t ever seen these kinds of numbers just leveraging a whole life policy until now! We have now shown you how to truly unlock the potential using the vortex banking concept!

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Chapter Final Outcom As you can see here, with a traditional IBC policy, at age 85, Debbie would have a return of premium of $399,977 with $1,345,379. Her total cash warehouse would be $963,197. (See Image 12

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Now let’s wrap this up by looking at the total outcome of the vortex banking concept with the special trust in place and compare apples to apples. (See Image 13

Keeping this example in line with the non-MEC let’s see where Debbie is at age eighty- ve. Because of the special trust and the ability to write Debbie an MEC policy with the vortex banking system in place, at age eighty- ve, Debbie would have a return of premium of $1,869,261 with a vortex legacy fund of $5,506,840!

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More than an additional $4 million was created to pass on a legacy to Debbie’s family with access to almost $1 million more than a traditional IBC policy!

So as you can see, folks, the vortex banking concept takes what the godfather Nelson Nash started and for the rst time ever, truly unlocks the potential to create massive amounts of generational wealth as well as be fully protected from lawsuits, judgments, and divorce, giving you the peace of mind that your assets are in a titanium vault! The vortex banking concept will take your business, personal, and investment life to an entirely new level, giving you all the control while reducing taxable income, protecting your assets, and allowing your cash to be warehoused in a tax-free environment with full access and no penalties! There is no system that we have found that will allow you to do what these two powerful tools can accomplish together. It is truly amazing, and for those who may be skeptical, we have legal letters of opinion from multiple law rms documenting our tools are legitimate. We also have a copyright on our trust, and these documents can be provided at your request

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Bringing It All Togethe Now that you see the full potential of creating a vortex banking system for your family, let’s quickly discuss what happens next. When most agents sell you a policy, once they get paid, that’s the last you hear from them. I call these commission-only agents. These are salespeople, not wealth educators like us! Now that you have these amazing tools, how do you utilize them the way Debbie is? Well, that is where LiveIWS’s nancial mapping comes in! We will build you a nancial map to give you a plan on how to fund your vortex cash warehouse and how to create your vortex legacy fund ef ciently! The key to success in anything is training, and LiveIWS does just that Every client that we set up with an in nite bank is able to utilize our proprietary mapping software. Our mapping team will develop and design a custom map to help you use your new bank to achieve whatever your nancial goals are. If your goal, for example, is paying off debt, your agent’s job is to design your LiveIWS policy, which now becomes your warehouse for cash. The mapping team’s objective is to position you in a manner that will allow you to apply every dollar that goes through your vortex banking policy in the most ef cient manner possible.

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Chapter

There are three simple steps, and there is never any cost to you! All you need is a vortex bank.

Step 1: We create what we call a cash ow index analysis.

This identi es which debts are ef cient and which debts are not. We call this the discovery phase.

Step 2: We evaluate your debt pro le and identify exactly how much third-party debt is scheduled to slip right through your hands. We further identify how long your cash ow will be tied up under your current circumstances.

Step 3: With the help of our mapping software, we will prioritize and solidify a winning “workable” strategy using your banking system to pay off debt in as much as one-third of the time, saving potentially thousands of dollars in third-party interest.

Here is a sample of how sophisticated our mapping software is, and this is exclusive to LiveIWS clients.

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Bringing It All Together

(See Image 14)

The LiveIWS mapping tool is available to all LiveIWS clients free of charge. If you’re going to be a banker, you need the manual on how to operate your new vortex system, and this is your road map to success

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Chapter 1 Conclusio Now you know what the elite do. You now see that there is one system for us and one system for them! The ones who created the rigged system do not want you to know this information! It’s been kept under lock and key for centuries and held closely by very powerful families. You now have the knowledge to go down the path I did and do your own homework! Put us to the test! Wealthy people don’t pay taxes like the rest of us, and they also create wealth in ways that should be taught in school but unfortunately are not.

Find an agent with LiveIWS.com—more than likely this book was given to you by one—and ask them to build you a vortex banking illustration. It’s free of charge, and you actually have more to lose by not having this done. We will build you a custom-tailored plan, so you don’t have to just take our word for it, and we will show you with real numbers. Remember, numbers don’t lie; people do! Give us an opportunity to prove to you that this concept will work for anyone, and trust me, we won’t sell—we will make it make sense!

We have clients that thought they couldn’t get started, and through this exercise, we were able to create a plan that worked for them. There is no client we can’t help. We will always nd a way! That is just who we are

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Thanks for taking the time to give this a read. Again, I thank and honor all the IBC gurus who have paved the way for LiveIWS to bring this new concept to the world! It’s time to make a major move and create your vortex banking system today!

See you at the top

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LiveIWS Spendthrift Trust Summar IWS SPENDTHRIFT TRUST BROCHUR Bene cial Trus Create Your VORTEX LEGACY FUN IWS Bene ciary Trust Boo Rede ning Legac

Why a Non-Grantor Irrevocable Complex Discretionary Spendthrift Trust 1. These trusts were originally created in 1533 in England by wealthy landowners to keep their lands from be con scated by King Henry the 8th 2. These trusts are based on contract law and not legislative law, which gives them signi cantly more bene ts and protection 3. Our founding fathers brought these trusts to the US and used them to protect their assets and placed our Constitution in a Spendthrift Trust

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4. Many of the wealthiest families in the US have used these trusts to build, sustain and perpetuate their wealth and legacy 5. These trusts were written to comply with Scott on Trust Law, Restatement of Trusts and The Internal Revenue Code 6. They are protected from turn over orders by any court or judge, with exception of fraudulent conveyance 7. The Discretionary terms and condition of the Trust are established to insure absolute and sole discretionary power of the Trustee in determining the distribution of the Corpus assets to the Bene ciaries 8. Taxes on Interest Income, Dividend Income, Capital Gains, Rental Income and Royalty income can be Deferred in Perpetuity 9. Sales of assets held in a Spendthrift Trust are not subject to Seasoning. In other words, an asset can be transferred into the trust one minute and sold the very next minute 10. A Demand Note is created for all assets transferred or sold to the Trust. This Demand Note is NOT subject to seizures or claims by any court or jurisdiction 11. Property held by a Spendthrift Trust CANNOT BE SEIZED

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LiveIWS Spendthrift Trust Summary

12. Trustees and bene ciaries are not liable for the debts of the Spendthrift Trust 13. A Spendthrift Trust is NOT ILLEGAL, even if formed for the express purpose of reducing or deferring taxes

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IWS Bene ciary Trust Boo Executive Summary Non-Grantor, Irrevocable, Complex, Discretionary, Spendthrift Trust Our Trusts provide exceptional bene ts for our clients. We would welcome an opportunity to discuss your speci c situation from an asset protection, tax bene t and legacy perspective. We offer this Bene ciary Trust Book, which is a titanium vault for all your assets, plus it allows you to defer all taxes on passive income, capital gains and K1 income in perpetuity. Our Business Trust protects your business and coupled with the Bene ciary Trust will allow you to convert ordinary business income to passive income within the Bene ciary Trust, which can be deferred in perpetuity Our Trusts were written to comply with Scott on Trust Law, the Restatement of Trusts, and the Internal Revenue Code. This was done so the Trust corpus would be protected from turn over orders by any court or judge, with the exception of fraudulent conveyance The non-grantor designation exempts the Trust from any alter ego status that brings into action the management or bene cial enjoyment by the Settlor. If the creator of a Trust has management of the corpus, or is a bene ciary of the Trust, it becomes a so-called living trust which has limited bene ts and no tax advantages or asset protection

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LiveIWS Spendthrift Trust Summary

In order to have asset protection, the Trust must be Irrevocable and Non-Grantor. This Trust separates the Settlor, or Creator, from the corpus of the Trust. When assets are irrevocably transferred to the Trust, they may never revert to the one who is making the endowment, or the Settlor of the Trust. Under these terms and conditions upon creation, legal separation has occurred, and the corpus may not be breached by claimants of the Settlor In order to serve the Bene ciaries of the Trust and protect the corpus, the Trust must be complex in nature, with terms and conditions that plainly and fully state the powers and limitations of the Trustee(s). Complex Trusts are governed by terms and conditions that may not be altered or changed by the Trustee(s). The purpose of the Trust is established once and for all time The Spendthrift Provision of the Trust is the critical element of the document, in that, no Spendthrift Trust Corpus may be penetrated to reach the assets of that Corpus. Case law upholds this and has upheld this over the many long years of its existence and will continue to uphold it. No judge or court may issue a turnover order against a properly constructed Spendthrift Trust. The sole exception to this rule of law is fraudulent conveyance to avoid judgment, and this applies to a Trust created after litigation has been led, not before The Discretionary terms and conditions of the Trust are established to insure the absolute and sole discretionary power of the Trustee in determining the distribution of the Corpus

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assets to the Bene ciaries of the Trust. If any single percent of the Corpus is designated to be held or distributed to one or more Bene ciary(ies), the Discretionary designation of the Trust would be invalid. This in no way would affect the asset protection but could adversely affect the taxable structure of the Trust The Internal Revenue Code is explicit and clear with regard to the Discretionary nature of a Trust, plainly stating that if a duciary has the sole and absolute authority to designate something as Extraordinary Dividends or Taxable Stock Dividends, and that designation is paid to the Corpus of the Trust and not subject to distribution, this is not income to the Trust according to Rule 643. Another advantage to this Trust is that any asset held in the Corpus of the Trust, when sold, is not subject to capital gains taxes Thus, our Bene ciary Trust was created and written to be Non-Grantor, Irrevocable, Complex, Discretionary, Spendthrift Trusts, and Copyrighted

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LiveIWS Spendthrift Trust Summary

Frequently Asked Questions with Answer 1. Annuitie 2. Assets & Moving Asset 3. Bene ciarie 4. Charitable Donation 5. Credit Cards & Credi 6. Currencie 7. Distributing & Transfer 8. Documenting & Keeping Receipt 9. Function Of Trus 10. Housing & Rental 11. Incom 12. Insurance Policie 13. Leasing & Lease Agreement 14. Legalities & Trust Protectio 15. Loan 16. Medica 17. Miscellaneou

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18. Notarizin 19. Quit Claims: When & How to Use The 20. Reimbursemen 21. Retiremen 22. Running A Business Through A Trus 23. Taxes & Deferrin 24. Vacations Vs. Business Tri 25. Vehicle 26. What Can & Can’t the Trust Pay For 27. Overvie

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LiveIWS Spendthrift Trust Summary

1 ANNUITIE 1 Can I purchase a non-quali ed annuity from a trust and pay it to an outside person Yes, the Trust can purchase a non-quali ed annuity, but no, the bene ciary cannot be an outsider. They must be the Trustee or Trust Bene ciary. The Trust should be the owner and bene ciary of the annuity and the annuitant will be the Trustee or Bene ciary 2 What is a more speci c example regarding annuities? A mom is a Trustee, and she lists her daughter as a bene ciary.

Let’s say the daughter is a single mom having a hard time making ends meet. Her mom wants to help by giving her daughter $2,000 a month for 20 years with no taxes except for interest earned on the annuity. Can this be done No. Because the daughter did not pay for the annuity and any payments from the trust would be taxable income to her. If the mother personally gifts the daughter the amount needed to purchase the annuity, then the principal payments from the annuity would be tax free to the daughter. A gift over $15,000 would require a Gift Tax Return and would go against the mother's lifetime exemption. If the annuity is purchased by the Trust, the Trust must be the bene ciary and receive the payments, not a Bene ciary of the Trust. If the mother deposited the purchase amount into the Trust, this would increase her Demand Note which she could then draw out principal payments tax free. The only exception to the above

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would be if the is the Annuitant is the daughter and the annuity carries a Death Bene t on the daughter, then the daughter's estate would receive the death bene t tax free when she passes 2 ASSETS & MOVING ASSET 1 What are the implications of moving assets from one trust to another This can be dangerous, because there is an obscure IRS regulation that could be violated by this action. The IRS says that any diversion of anticipated income is tax evasion. Assets, or anything in the Corpus of the Trust, are Trust property and have no gift basis when placed in Trust. Therefore, for a Trust to endow, or gift another Trust, with one of these assets is not an authorized transfer. Currencies purchased for the revaluation prospect could be considered diversion unless sold or loaned to the Bene cial Trust. The proper way to accomplish this is to have the second or third Trust purchase the currency before the revaluation. Now, the currency has simply gained in value and this gain is declared to the Corpus and is Extraordinary Dividends declared by the Trustee, and is not current taxable income to the Trust 3 Do I get a Demand Note for assets I put into the Trust Yes, the basis (cost) of any asset legally sold to the Trust will be re ected on the Demand Note. The Trust must own the asset

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LiveIWS Spendthrift Trust Summary

4 Can bene ciaries convey assets into their Trust and draw the principal out tax free Yes, they can transfer assets into the Trust, BUT (1) the Trust owns the asset, (2) they can never take back the asset without buying it from the Trust, and (3) they take a Demand Note for their cost, or basis in the Asset. The principal payments on the note are tax free payments. The interest on the note will be taxable income and must be reported and taxes paid each year. The demand note is the payment for the transfer (sale) of the asset to the Trust 5 How is the household furniture value used Household Furnishing can be valued at the amount up to the value authorized by your homeowners Insurance Policy (usually about 25% of Insured value of a home). Lump all household furniture, xtures, appliances, and other household items as one item = Household Furnishings using a value up to 25% of insured home value. This must be listed on (or attached to) the Notarized Bill of Sale 6 What is the purpose of putting “equipment” in the Trust The Spendthrift Trust does not take depreciation on business assets it owns. All business assets are sold to the Bene cial Trust at Book Value (Cost less Depreciation taken) There is no need to generate a tax deduction of the business when the business now will Lease those assets and intellectual

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property from the Bene cial Trust, and deduct the Lease Payment as an expense. The Bene cial Trust reports the Lease Payments as Lease Income, and that income is Passive Income and tax deferred per IRC 643B. When an asset is sold from the Bene cial Trust and sale generates a Capital Gain, that Capital Gain is deferred per IRC 643B 7 When should I move assets into the Trust in order to maximize savings? Let’s say both husband and wife are retired.

The only income they’ve had so far are these three categories a around 6 weeks of 1099 income from my husband working for his previous general contractor 1099 Income is Business Income and cannot be income to the Trust. You can have checks direct deposited into the Trust to fund the Trust, but the Income will still be recorded on a Business Tax Return b Some interest and dividend income from bank and brokerage accounts If the account has been legally moved to the Trust and the Interest and Dividend income is Reported using the Trust’s Name and EIN, this income will be Ta Deferred c Rental income from three local rental. This will be the same as above

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If the Rental Properties are legally sold to the Trust, the Rental Income will be Tax Deferred 8 If husband or wife earn future 1099 consulting income, is there a way to put that income directly into the Trust for tax purposes No, this is Business income. Checks can be direct deposited into the Trust to fund the Trust, but the income must be reported on a Business Tax Return (Business Trust, LLC or probably a Schedule C in this case.

9 I will be purchasing a new rental house that I would like to directly deed into the trust. How do I sign the Purchase & Sale Agreement, and how will the Owners Name be listed on the Warranty Deed All Sale Papers and the Deed must be in the name of the Trust and the Trustee will sign all papers with “TTE” behind their name 10 I’m involved in three apartment properties. My LLC is on the management side as well as the investor side.

Management income on all properties will come to the LLC. Should I le a manager change with the Secretary of State’s Of ce and make the Trust as the manager, and remove my name completely? Is there another way to move the LLC into the Trust Once the Rental Property is sold and deeded to the Trust, the Trust is the Manager. All income and expenses are recorded

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in the Trust. Rental Income is Passive to the Trust and is Tax Deferred. The LLC’s will then have no function with Rental Properties. Your Trust can do all of that. Close the LLCs after the property is sold and deeded to the Trust 11 I’ve added all assets I’ll be moving into the Trust on the Purchase of Assets & Liabilities sheet. Should my husband and I both sign with a witness to prove agreement in moving to the Trust The Purchase of Assets and Liabilities Form is for my info only and is not a legal sale to the Trust. You must use a Notarized Bill of Sale for all assets SOLD to the Trust. A Notarized Deed must also be used of Buildings and Land. I use the Purchase of Assets and Liabilities Form to property construct your Trust’s Balance Sheets and give credit to your Demand Note 12 Can we sell the property in the trust at any time Yes. The trust can sell any asset it owns at any time. There is no “seasoning” with trust asset sales 3 BENEFICIARIE 1 Suggestion for how a bene ciary should be set u Your Trust is a Discretionary Trust and the Trustee (at his or her discretion) can add or remove bene ciaries at will. An individual with a US SSN would be the Trustee and the others would be designated Bene ciaries

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LiveIWS Spendthrift Trust Summary

4 CHARITABLE DONATION 1 Can a Trust make donations to churches and charities Yes, any Trust can make a Charitable Contribution to a 501c3 organization and take the deduction on the trust tax return 2 Who is the bene ciary on a Charitable Trust? What would be the best wording to use for bene ciaries if you don't want to put individual companies down Charitable Trusts are not 501c3 but make contributions to 501c3 organizations and these 501c3 organizations do not need to be listed as bene ciaries of the Trust. Non 501c3 organizations doing charitable works must be named as a bene ciary to receive funds from the Trust. These funds would be reported to the bene ciary on a K-1. If the non-501c3 "work" (i.e.: distributing bibles to China) is a function of the Trust, then the expenses incurred would be authorized expenses of the Trust. A Charitable Trust is a Trust for the bene t of Charities, Charitable Bene ts, Religious Causes, Religious Works, Churches, Education, Academics, and all Charitable Works as its function 3 How do I give to a ministry Donations/contributions to a 501c3 organization are fully deductible by the Trust as charitable contributions. A payment made to another trust or foundation that is a bene ciary would create a K-1 to that trust or foundation. If the 2nd trust is also a

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Spendthrift Trust, that K-1 income would be Extraordinary Dividends to that Trust. Giving funds to any person or organization not a bene ciary of your trust, and not a 501c3 organization, will create a Form 1099 issued to that person/ organization. Most ministries and missions work through a 501c3 organization – give the funds to the 501c3 organization and designate the donation for the bene t of the ministry/ missionary 4 What method do I use when giving to a ministry Trust checks are all you need, but the Trust can transfer funds bank to bank or even wire the money. Be sure to keep the receipt. A LiveIWS Charitable Trust can have bene ciaries that are not 501c3 organizations but are organizations that do “charitable work”. As such, they will receive a K-1 and can deduct the charitable work expenses from the K-1 income they get from the LiveIWS Trust. Also, the Charitable Trust can deduct all expenses it incurs doing charitable work directly 5 CREDIT CARDS AND CREDI 1 Can I charge Trust expenses to my personal Credit Cards and then pay them off with Trust funds A Spendthrift Trust cannot hold a Credit Card because the issuing agency could not collect on default 2 What type of card should I use for Trust expenses

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I recommend a personal Credit Card marked For Trust Use Only. Maintain a receipt for each expenditure and attach the receipts to the Credit Card bill and then the Trust can pay the bill. Only charge Trust authorized expenditures to this card.

If using Bill Pay or direct Debit, print a copy of the payment receipt and attach that to the Credit Card Bill along with the receipts for each expenditure 3 Why do I need to keep such a strict record of my receipts and payment methods Strict records must be kept maintaining full records of all authorized Trust expenditures. Unauthorized expenditures (personal expenses) will be charged to your Liability Account (Demand Note) or, if no balance is in your Demand Note, then a Form 1099 will be issued to a Trustee, or a K-1 will be issued to a Bene ciary for the personal expenses paid by the Trust 4 Can the Trust get a Credit card? Can Trust build credit?

If so, can bene ciaries use it. If they can, is it considered cash No bank or credit card company will issue a credit card to a Spendthrift Trust since they have no way to collect on defaulted payments 6 CURRENCIE 1 If a person has ordered a trust and does not pay for it until after the RV, can they exchange just enough to pay for the trust and then put the balance of the currency in the trust to defer taxes

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Making a down payment on a trust does not give you a legally working Trust. The Trustee does not have the pages outlining what the Trustee legally can do. Once the RV takes place, purchase a full trust then transfer the currency certi cate into the legitimate Trust. The Trust then exchanges the certi cate for US dollars. The US dollars then go into the Trust bank account and then the Trust can use those dollars to pay for Trust expenses 2 If a person exchanges currency and it's not in the trust, is the tax based on the date of their receipt As with any asset sold, the basis is what was paid for the asset and the tax is a capital gain based on the date bought. If the Trust does not own the foreign currency certi cate prior to the exchange, the gain is personal and reported on a personal 1040 tax return. *See Assets & Implications (1.

3 If I put certi cates into my trust before the RV and then take out cash, is the tax rate based on the date of the receipt or the date from when they exchanged the currency Any cash taken out of the Trust is 100% taxable income to the person taking the cash. A distribution after RV would be a K-1 Dividend Distribution. If the Trust held the currency more than a year, the dividends would be quali ed dividends 4 Would a K-1 still be issued at the end of the year if cash or currency before RV was moved between the trusts

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Funds moved between bene cial trusts is a taxable event requiring a K-1 unless a Note Payable (for funds) or Bill of Sale (for asset transfers) is properly executed 5 If I put all the currencies I have bought into the trust, does that mean I could also take a tax-free draw from the trust from the principal Transfer the asset (currency) at your "Cost" (or "Basis") and take a Demand Note. The principal payments on the Demand Note are just that and are not taxable income to you.

The interest will be taxable income to you each year you hold the note 6 When we exchange our currency, will it be drawn out tax free No. The gain on the RV will be Extraordinary Dividends and held in the corpus 7 What percent of my total RV exchange should I hold in my personal account vs. my trust account Hold only 3 months’ worth of personal expense funds in your personal non-trust bank account. This will be the money used for Food, Fun & Fashion – again, 3 months’ worth. This is because any funds in the personal bank account can be seized or levied in a lawsuit For example – I have all my Social Security and funds Direct Deposited into my Trust Bank Account so that the funds

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are untouchable and, while I still must pay taxes on that income, it can’t be seized or levied. Next, I Bank Transfer enough funds for each month to support my family’s monthly budget for the 3 F’s 8 Can I transfer my Cryptocurrency into my Trust and enjoy the tax bene ts of the Trust There are several Crypto Exchanges, but many will not allow a Trust with a Trust EIN number to own the Cryptocurrency. Coinbase Pro will support and allow a Trust to own and hold the Cryptocurrency, but many people need a way to get the Currency transferred into their Trust and then into an Exchange like Coinbase Pro that will support a trust and allow the Spendthrift Trust to defer the capital gains tax on the currency for in perpetuity. With the new Biden proposed Capital Gains hike for 2021 on Cryptocurrency, which will take the current rate from 20% to 39.6%, here is how you can use your Trust to defer all this capital gains First, move your Cryptocurrency from your exchange to a Wallet. Then move your wallet to a device, such as a USB thumb drive or a laptop. Now with your Cryptocurrency on a physical device you can transfer that device to your Trust and now the Trust owns all the content on that device including the Cryptocurrency Next, is to set up an exchange account with Coinbase Pro or another exchange that supports a Trust owning the Cryptocurrency in the name of your Trust and it’s EIN number.

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LiveIWS Spendthrift Trust Summary

Now any capital gains associated with the Cryptocurrency will be within the corpus of the Trust, and will be deferred in perpetuity 7 DISTRIBUTING & TRANSFER 1 Can I donate to other Trusts as a bene ciary The word “Donate” only applies to a 501c3 organization.

“K-1 Distributions” are made to another Trust(s) or bene ciar(ies) 2 If an exchange was not taxable, can I still distribute it to the bene ciaries You can distribute an asset or funds, but the action will generate a taxable event (K-1 to bene ciaries and 1099’s to anyone else). I recommend a “Transfer” to the Trust at “cost” or “book value”. This will generate a Demand Note from the Trust to the person transferring the asset. The Demand Note gives that person a means of taking note principal payments from the Trust with no taxes due. Endowments have no basis or value, and as such would not be recorded in the Trust’s Financials and would not be added to a demand note 8 DOCUMENTING AND KEEPING RECEIPT 1 How do I document Trust expenses To document, keep any and all receipts. You must have receipts for ALL expenses of the Trust. Bank and Credit Card

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statement should be kept as well. statement are not proof of the expense 2 Should I keep gas receipts? Yes 9 FUNCTION OF TRUS 1 What is the function of the Trust The Trust functions for the bene t of a bene ciary(ies) and to maintain, operate and manage the Trust and the Trust assets. The Trustee is a duciary and cannot bene t from the Trust, or its assets 10 HOUSING & RENTAL 1 If you buy a house for your spouse (bene ciary) is it in their name or trust name Trust must own the house and pay for the house. If the home was owned by the Trustee or Bene ciary, it must then be transferred (sold) to the Trust by a Quit Claim Deed or a new Warranty Deed 2 If you buy a TV to go in the house, owned by the trust, is that a 100% authorized Trust expenditure If the Trust owns the home, yes. The Trust must pay for the appliances and xtures and maintain receipts for all purchases

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LiveIWS Spendthrift Trust Summary

3 My spouse is a bene ciary - if I buy a house for the trust, how does the living in it work The bene ciary can live in the house without paying rent.

The Trustee can use the house to perform all Trust functions but must pay rent for the personal use of non-trust portions of the house (i.e.: bedroom, kitchen, etc.)

4 If a Trust buys the house, does the trust pay the property tax? Yes, and all other expenses necessary to maintain the property 5 Can the trust pay for construction costs of a house if the house is being built on land which belongs to the trust The Trust must own the land and must be the Payee on the Interim Construction Note (if a note is needed) for the Trust to pay for the construction 6 If a person has a trust and they put their home into the trust, do they go back to the date the house was purchased to recap the expenses for the demand note, or is it only from the date the house was put in the trust Like any asset transferred (sold) to the Trust, expenses are authorized starting with the date the asset is legally transferred (sold) to the Trust. The Demand Note amount is based on the basis (cost) of the asset not the fair market value 11 INCOM

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1 If I deposit my job income into the Trust Account, do I report it as income if the 1099 is made out to me Income from 1099’s and W2’s will still be reported as income to whomever the form is made out to (you or your business). The dollars can be direct deposited into the Trust to “fund” the Trust and add to your Demand Note, but the income reporting will still be on your personal tax or business return 2 If my 1099 is made out to the Trust, how will it affect my 1040 A 1000-Misl means “Contract Labor” (Business Income).

A business should not be run from a Bene cial Trust. A business should be run from an LLC using the Bene cial Trust as 90% Limited Partner, or from a Business Trust’s Tax Return.

The 10% General Partner Income from the LLC would be reported to you on a K-1 and end up on your personal tax return as Supplemental Income. The Pass-Through Business Income that is passed from the Business Trust after a lease Payment for the use of assets and intellectual Property to the Bene cial Trust’s expenses and then pass to you personally on a K-1 as Supplemental Income, if you are a Bene ciary of the Bene cial Trust or on a 1099 if you are the Trustee of the Bene cial Trust 3 How should I report interest income from investments to the IRS

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LiveIWS Spendthrift Trust Summary

If the Trust is the owner of the investment account, all passive income is tax deferred. Passive Income is Interest, Dividends, Capital Gains, Rents, Royalties and Passive K-1 income. Ownership of the account must be recorded in the Investment Company’s books as the Trust with the Trust’s EIN and all 1099’s must be reported in the Name and EIN of the Trust. If you have legally sold these investments to the Trust and changed the ownership on the books of Investment Company, the income would not be reported on your personal tax return since the 1099’s would be in the name of the Trust 12 INSURANCE POLICIE 1 Can the Trust fund annuities to auto pay the Life Insurance policies on each of us and each 1099 worker with the Trust as bene ciary The Trust is the owner and bene ciary of the insurance policies and as such pays the premiums on those policies directly. The Trust can be the owner and bene ciary of the annuity and the distributions on that annuity can be used to pay for the insurance policies that the trust owns 2 Who should own policies The Trust should own the policies and be the bene ciary on those policies. IRS code 7702 allows for the tax fee distributions on the policy to pass tax free to the person insured on the policy. The Trustee then manages those policies. The

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original owners can take a Demand Note for the Cash Value in the policy when transferred to the Trust 13 LEASING AND LEASE AGREEMENT 1 When a Trustee leases the Personal Use of the House, do they pay income tax on the rent they receive A Trustee completes a Trustee Personal Use Lease Form and leases the Personal Use of the home and vehicle from the Trust. Since there is a Legal Leas Agreement and payments to the trust, there will be no requirement to report the personal use of the house and vehicle as income on your personal tax return. Trustee must maintain, oversee and protect all the assets owned by the Trust, including the house and vehicle. As such, the Trustee must have access and occupy the house and vehicle for Trust Business. As such, only the personal use would be taxable compensation to the Trustee if a Lease Agreement were not in place 14 LEGALITIES & TRUST PROTECTIO 1 Can you add a Trust rule or salary There is no RULE needed. The Trustee has full DISCRETIONARY powers and has absolute and sole discretion in making Trust expense payments. A “salary” is not needed. A Form 1099 will be issued to the Trustee for funds he(she) takes out of the Trust. A K-1 will be issued to Bene ciaries for funds they take out of the Trust

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LiveIWS Spendthrift Trust Summary

2 Are the trust accounts subject to Bail-in N 3 Can the IRS grab money that is in the Trust N 4 What happens to a loan if the Trust closes Per the Trust Document – all balances (assets & accounts) must be distributed to the bene ciaries when the Trust is closed. Any outstanding notes/loans would have to be paid off before the distributions. Although; (1) don’t close the Trust, extend it another 21 years just prior to the 21year period ending and (2) be sure there are Successor Trustee(s) and Compliance Overseers named so someone else can take over if something happens to you 5 Can my personal work checks be issued in name of Trust You can have your check direct deposited or endorsed to the Trust Bank Account but not issued in the Trust name. The W-2 would still be reported as personal income and listed on your personal tax return 6 What is the purpose of the Chart of Accounts The Chart of Accounts are used to identify categories for Income, Expenses, Assets, Liabilities and Equity in the Trust. I need all Income, Expenses, Purchase or Sale of Assets and

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payments on Liabilities (Note Payments) or adding new Liabilities (new notes) categorized so I can produce a valid Financial Statement for the Trust each year and produce a Tax Return for the Trust. The Bene cial Trust is run like a business, (but not a business) in that all income and expenses must be reported, and receipts must be maintained for all expenditures.

M computer program imports this income and expenses directly using the Charts of Accounts to identify the proper category to produce a correct Financial Statement and Tax Return 7 If my wife and I start out as Co-Trustees and Cocompliance of cers, can we easily amend that later to one of us just being the Bene ciary A Trustee or Compliance overseer can resign at any time and then the Co-Trustee will take over. If no Co-Trustee, then the Successor Trustee/Compliance Overseer will take over. I usually recommend that one spouse be the Trustee and the other spouse be a Bene ciary. Since the Trustee is a Fiduciary Role, and has no ownership of any of the Trust’s Assets, there is no con ict with this procedure 8 If a couple divorces, who owns property within the Trust

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LiveIWS Spendthrift Trust Summary

If all your property is legally sold to the Trust, neither party has any right to any of the property. The Trust owns the property, not the individual 9 Whomever the Trustee names as the Successor Compliance Of cer and Successor Trustee, have no powers until the Trustee dies or resigns, correct Yes. The successor can remain a Bene ciary until they assume the role as Trustee or Compliance Overseer. You cannot be a Bene ciary at the same time as being a Trustee or Compliance Overseer 10. What powers does the Settlor have The Settlor has no power after they convey the Trust to the Initial Trustee 11 Why does the Settlor have to give their Social Security number if there aren’t tax consequences for them Sometimes the Settlors SSN is used to get the Trust’s EIN before the Trust is conveyed to the Initial Trustee 12 Can a non-US citizen be a bene ciary of this trust A foreign national can be a Bene ciary as long as they do not take Taxable Distributions from the Trust that would require a K-1. Otherwise, they will need a US SSN or ITIN 15 LOAN

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1 If I take a loan, can I set up insurance policies as the collateral, so that when I die the Trust would be bene ciary for the death bene t, which would cover the loans The Cash Value of the insurance policy when transferred into the Trust can create a Demand Note and you can take principal payments tax free from that Demand Note. Your Demand Note at your death would go to anyone you designate.

If you take a loan from the Trust, then you will have to make periodic payments to the Trust of principal and interest with a set amortization schedule. The insurance policy as collateral will still be needed in order to take the loan from the Trust. The Trust must have a means of collecting on the loan should you fail to make the required payments- just like any other loan from a bank, etc 2 If I take a loan from the Trust, and set up a repayment plan, what do I use to repay the loan with If you take a standard loan FROM the Trust, you repay the loan as you would with any other loan - from personal funds. If you transfer an insurance policy to the Trust, the cash value can create a Demand Note to them. If a Trustee or Bene ciary takes a loan from the Trust, the loan must be repaid per an amortized schedule 3 When can loans be utilized and by who "Anyone" can take a loan from the Trust, BUT (1) the loan must be amortized with periodic payments with interest paid,

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LiveIWS Spendthrift Trust Summary

and (2) the loan musts be backed by collateral (the Trust must have recourse if the loan is not paid back) 16 MEDICA 1 Can I pay for health insurance out of the Trust The Spendthrift Trust can pay for education and medical for the Trustee and the Bene ciaries. Expenses must be paid directly to the provider and not to Trustee or Bene ciary 2 Can the trust pay for something such as, cosmetic surgery Personal expenses are not authorized expenses. If a doctor orders the procedure for medical reasons, then it is an authorized expense (i.e. doctor prescribes a pool for therapy – the Trust can pay for the installation of a pool) 3 Can the trust pay for alternative medical treatments for well-being, meditation retreats, reiki, acupressure, acupuncture, etc If any medical treatments are doctor recommended or you feel are necessary to keep you healthy, then they can be a trust expense 17 MISCELLANEOU 1 I have a brokerage account and do investing. Should I invest inside the Bene cial Trust, or should I do that inside a Business Trust

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I recommend all Family Trust assets/investments be transferred to the LiveIWS Bene cial Trust. The LiveIWS Trust provides a lot more asset and legal protection and income tax advantages. Investments would then be done through the LiveIWS Trust. A Business Trust is not needed for investments.

All investments can be owned by the LiveIWS Trust 2 As bene ciaries, can my son, his wife and daughter have the Trust pay for their house rent, leased cars and college/ school needs and overhead, such as insurance, maintenance, utilities, etc.? If yes, on the leased car, does the Trust have to be the one leasing car The Trust must own or be on the lease for the house or vehicle. Only the bene ciaries can bene t from the Trust. As above, the Trust must be reimbursed for any personal use of a Trust Asset used by the Trustee. This would only apply to a small portion of the house and vehicle used for personal use by the Trustee– i.e. sleeping, eating, using the vehicle for food or clothing shopping. The Trustee is the caretaker of the house or vehicle, so all other expenses for the house or vehicle would be authorized Trust expenses. The Trust must own the vehicle or be on the lease agreement. Education, training, medical and wellness of a bene ciary are authorized Trust expenses. All expenses for a minor, underaged or incapacitated bene ciary are Trust expenses 18 NOTARIZIN 1 Do I need a statement when I get a notary

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LiveIWS Spendthrift Trust Summary

Most notaries will need to have a statement that the person signing the document is the person appearing before them 2 Notary vs. Witness The bank can notarize any papers that require notary. You must use a third-party Witness for papers that require a witness.

A person who is a Bene ciary or might be a Bene ciary in the future should not be the Witness 3 Do I need a Bill of Sale notarized within the state the property is being sold in The notary is only notarizing the signatures not the effective date or origin of the transactions stated on the document. When you sign the document and have it notarized it can be anywhere and at any time 19 QUIT CLAIMS: WHEN & HOW TO USE THE 1 What is a Quit Claim A Quit Claim Deed can be one of the simplest methods of transferring a property to a new owner. In other words, the property owner (also known as the grantor) can offer this type of deed and transfer the entire interest in the property to the recipient, or the grantee. Generally, no money is involved in this transaction. There’s no need for title insurance and no title search is conducted to verify the property owner Whereas a general or even a special warranty deed offers some protection for the grantee, the Quit Claim Deed offers the

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property “as-is.” What this means is that there aren’t any warranties, such as claims that the title is free and clear of restrictions or liens 2 How do I get one A quick internet search will give you several sources to download a Quit Claim Deed for your state and speci c need.

These are standard forms and are not complex in nature. Once you ll it out the grantor’s signature needs to be witnessed by a notary, with proper notarization 3 What do I use it for Quit Claim Deeds are most commonly used when property is transferred without a traditional sale. Examples include, when property is transferred between family members (such as parents transferring a home to their children), between married spouses (after marriage when one spouse wants to add the other to the title of his or her separate property), between divorcing spouses (when one spouse will keep the home), or when property is being transferred into a trust The deed transfer is done simply and there is no title search or title insurance used. It is fast and easy. Quit Claim Deeds are not used for real estate sales, because the new owner receives no guarantees about the title, and how valid it is A Quit Claim Deed is also used to clear up title to property. If there is an issue with someone else possibly having

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LiveIWS Spendthrift Trust Summary

an ownership right in the property, he or she can be asked to sign a quitclaim to make sure the new owner has complete title 20 REIMBURSEMEN 1 Can a Trustee be paid for their services Yes - and would receive a 1099 for this compensation. The Trust could set up a payroll account and pay the Trustee through a W-2, but this would create additional reporting (W-2, W-3, 941, 940 & State UI). I would recommend 1099 Contract Labor and an Independent Contractor Agreement be drawn up 2 Can a Trustee be paid Yes. If the Trustee takes funds out of the Trust, the Trust pays for the personal expenses of the Trustee, or if the Trustee lives in a Trust owned residence and operates a Trust owned vehicle and does not pay rent for the personal use of these assets, the amounts for personal use will be added to a 1099 issued to the Trustee. This is where a Demand Note to the Trustee can be used to pay for these unauthorized expenses 21 RETIREMEN 1 Can this trust buy or rent a future retirement home for bene ciary Yes, but The Rental Agreement must be in the name of the Trust, or legally Assigned to the Trust for the Trust to be able to pay the Rent

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2 How will the IRA withdrawal effect my personal return if I put my IRA in the Trust Quali ed Plans (Retirement Plans) cannot be put into the Trust. Distributions from a Retirement Account (SS, 401K’s, 401B’s, IRA’s, Roth’s, Etc.) can be direct deposited into the Trust to “fund” the Trust and add to your Demand Note, but the income reporting will still be on your personal tax return 22 RUNNING A BUSINESS THROUGH A TRUS 1 Can I sell items that I bought with my Trust to my clients Business inventory should be kept outside the Trust and then when sold would be income in the business 2 What can be done to reduce the tax on my income I would get a Business Trust and contract the work from the Trust. Then have all assets and intellectual property used by the business owned by the Bene cial Trust. The Business Trust would then lease the use of those assets from the Bene cial Trust, converting some of the Contract Labor Income to Lease Expense in the Business Trust and Lease Income in the Bene cial Trust. This Lease Income in the Bene cial Trust would be declared Extraordinary Dividends and no current taxes paid 3 Must all expenses for the bene ciary be speci cally paid for by the truste

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LiveIWS Spendthrift Trust Summary

Yes. You may have expenses paid by personal funds, but they must be reimbursed by the Trust and the Trust maintains the receipt of the expense. Try not to do this as common practice. Try to have the Trust pay Trust expenses directly to the third party 4 Is the income received from a rental home business considered Passive income Yes, if the Trust owns the rental property. Then, any rental operation is Passive Income and is Tax deferred by the Trust 5 Can the EPA come after the Trust for any reason The Trust is bullet proof from any legal action, except for negligence. Therefore, you must carry insurance on all property owned by the Trust 6 Can I transfer the money from LLC account into ST bank account once a year, after LLC tax return is led If an account payable was established, then the payments can be made the next year. The LLC’s Lease Payments for equipment and intellectual property should be made monthly, per a per-established lease agreement. The lease agreement must be established for the accounting period before the payments are made. The LLC’s 90% LP income can be distributed any time. A K-1 will dictate the amount of income to the trust, even if not actually paid to the Trust. Income payments in excess of the 90% shown on the tax return would create a real problem

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23 TAXES & DEFERIN 1 If I have multiple trusts with the same bene ciaries, can any one of those bene ciaries receive maximum yearly gift allowed by law without taxation from each trust Trust cannot give gifts. Any funds given to a Trustee or Bene ciary are taxable income. The Trustee gets a Form 1099, and a bene ciary gets a K-1 2 Can I move money out of the Trust tax free NO. It is taxable income regardless of whomever you are giving the money to 3 How do I get a taxable 1041 Trust return “untaxed” Passive Income in the Bene cial Trust is Tax Deferred under IRC 643B. Thus, after the Trust Expenses are deducted from the Trust Income, the balance is prorated between Passive Income and Non-Passive (Business or Farming) Income and the Passive portion is declared Extraordinary Dividends by the Discretion of the Trustee and moved to the Trust Corpus (Equity) per IRC 643B. These Extraordinary Dividends are held in the Corpus until distributed, if the Trust is Active. Upon dissolution of the Trust these Dividends must then be distributed 4 How does the setup of a Bene cial Trust affect IRS reporting

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The Bene cial Trust has its own reporting on a Form 1041. All income being reported by the Trust must legally belong to the Trust. That means all investment accounts must have the ownership changed to the Trust so the reporting entity will report the investment income in the name and EIN of the Trust. Property receiving rental income must be legally sold to the Trust using a Bill of Sale and Deed in the name of the Trust 5 Can I take draws from my Demand Note for Food, Fun and Fashion Yes, but draws from the Demand Note must be Accrued Taxable Interest rst, then tax free principal. For example, a couple has a $24,000 exemption on their personal tax return for 2019. If their taxable income falls below the $24,400.50 for 2019 and there was no refund due them, they would not be required to le and tax return for 2019. If a refund is due though, (i.e. income taxes withheld on a W-2 or 1099-R) and their taxable income is below $24,400.50, they will need to le a return to receive the refund 6 Is purchase of a boat or car considered a trust expense Yes, but only if the trust purchases the asset at cost, and that is what is recorded in the books at capital asset value.

There is no expense for the purchase, it is simply an Asset Purchase. All expenses for that asset are expenses of the trust

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7 Do we still take depreciation on the properties since it’s already tax deferred? No, because the trust does not take depreciation on its property 24 VACATIONS VS. BUSINESS TRIP 1 My wife is a bene ciary of my trust, and we will be vacationing in an area that we will be looking at property to invest in. My question is - what expenses can I run through my trust? Such as transportation, lodging, meals and clothes Your Trust can pay for any and all expenses associated with the management, maintenance and operation of the Trust.

The Trust can buy, sell and invest in property, equipment and other investments. So, if you can justify the travel for any of the above reasons, then associated expenses are authorized expenses of the Trust. Food and entertainment would be personal expenses, unless in conjunction with a trust business meeting -a real business meeting. Clothing would be personal expenses unless it is safety clothing used when working on a Trust Asset. Clothing with the Trust LOGO could be considered trust clothing. The Trust must maintain receipts for travel and entertainment with the WHO, WHAT, WHERE and WHY written on the back of the receipt. You must also have proof of the travel for Trust Business - photos, newspaper adds, real estate agent business cards, investment brochures, etc 25 VEHICLE

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1 If you are going to purchase a new vehicle, is it better to pay for it in full or take out a loan and let the trust make the payments The Trust can purchase the vehicle or can execute a note on the vehicle. The lender may not allow the Trust to be on the Note since they cannot demand payment from a Spendthrift Trust. The Trustee/bene ciary may have to personally Guarantee the Note 2 Can a leased car be put into a trust if it's the car that the bene ciary drives The Trust must be on the Lease and then the expenses to operate that vehicle used by a bene ciary are Trust expenses. If a Trustee uses the vehicle, then the Trustee must pay rent for the portion of the vehicle used for personal use. Keep a mileage log. The Leasor may require a personal guarantor on the lease 3 Can I buy a car for myself as Trustee, to drive without having to keep detailed record The Trust must own the vehicle and then all Trust uses of the vehicle are Trust expenses. The Trustee must pay rent/lease for the non-trust (personal) use of the vehicle. A mileage log of personal mileage will help to calculate this rent/lease. Trustees cannot bene t from the Trust or its assets 4 How do I buy a truck for another person's LiveIWS Trust

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Your Trust CAN NOT buy any asset FOR another person or trust. You can pay a “distribution” (K-1 income) to that trust and then they can buy the asset. All funds leaving your Trust must be for (1) buying an asset for your Trust, (2) paying an authorized expense of your Trust, (3) making a “taxable K-1 distribution” to a bene ciary or (4) making a “taxable 1099 payment” to a Trustee or other person not a bene ciary. Your trust cannot make gifts or donations that are not to a 501c3 organization 5 My car is paid for, but can I deed it to Trust and have maintenance paid for by the Trust Vehicles are transferred into the Trust at basis or cost through a notarized “Vehicle Transfer” Form. As Trustee you must pay the Trust for the Personal Use of the vehicle. Use the IRS mileage rates to reimburse the Trust for the Personal Mileage 6 What is the purpose of valuation on motor vehicles All Assets must be sold to the Trust at their Cost Basis (original purchase price plus improvements and other costs) or Book Value (purchase plus improvement and other costs less depreciation taken). The exception would be your home. Your home should be sold at close to Fair Market Value. This Sale will generate a Demand Note for payment of the purchased asset, or the trust can pay cash for the purchase. There must be an exchange of value for a sale to be legal, as well as a Notarized Bill of Sale. Real Property (buildings and land) must

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LiveIWS Spendthrift Trust Summary

also have a Notarized Quit Claim Deed or Recorded Warranty Deed with a Title Policy 26 WHAT CAN & CAN’T THE TRUST PAY FOR 1 What can’t the Trust pay for The Trust CAN NOT pay for personal expenses 2 What is considered a “personal expense Just remember “The Three F’s.” Food, Fun and Fashion 3 What can the Trust pay for Remember M-O-M. Maintenance, Operation and Management. If M-O-M pertains to the Trust and its assets, it’s an authorized expense. It can also pay for the Education, Medical and Wellness of a Bene ciary. Also, all expenses for a minor or incapacitated bene ciary, paid to a parent or legal guardian, are considered authorized Trust expenses 4 Can the Trust pay for jewelry or assets, such as gold The Trust can purchase (and own) any asset such as jewelry or gold 5 Can the trust pay for marketing expenses pertaining to the trust Yes. Expenses relating to Trust Asset purchases or potential purchases are a trust expense

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6 Can the trust pay for seminar traveling and tuition For the bene ciary, yes. For a trustee the education must be related to the performance of the trustee’s duties for the management and operation of the Trust 7 Can the trust pay for food or meals during traveling to seminars or market research in another city No. Food, unless strictly pertaining to trust business, is only a trust expense for an underaged child or incapacitated bene ciary 27 Overvie 1 Spendthrift Trust is a Non-Grantor Trust and as such the grantor has no management or administrative function in the trust and can NEVER be a Trustee, Compliance Overseer or Bene ciary 2 Our spendthrift trusts are based on Contract Law and all actions must be in the form of a legal contract – Notarized Bills of Sale for all assets, Notarized Quit Claim Deeds for all real property, Witnessed Lease Agreements, Witnessed Assignment of Notes, and other liabilities, etc 3 All assets are legally sold to the spendthrift trust through a notarized Bill of Sale and witnessed Letter of Transfer. Real Property must also have a notarized Quit Claim Deed or other form of notarized deed

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LiveIWS Spendthrift Trust Summary

Ownership, control, and management of the asset is given up 4 Spendthrift Trust is an Irrevocable Trust and as such the document is irrevocable and sales of assets to the trust are also irrevocable. Assets could be sold from the trust, but the original owner can never “take back” the asset 5 Personal expenses are not authorized expenses of the spendthrift trust 6 Depreciation is not an authorized expense of the spendthrift trust 7 Trustees must pay rent (lease) for the personal use of a spendthrift trust owned home and vehicle and a witnessed Lease Agreement must be drawn up 8 Only Passive Income authorized by IRS Code Section 643 can be declared (on a witnessed declaration form) extraordinary dividends and allocated to the corpus to be taxed when distributed to a bene ciary 9 All required tax returns must be led annually or when required 10 No Off-Shore accounts are authorized, and all banking must be done through a recognized US bank 11 All trustees must have a US SSN or ITIN

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12 All Non-Passive (Business and Farm) Income must pass-through and be reported on a personal tax return and taxes paid currently. Declaration of Extraordinary Dividends are not authorized for Non-Passive Income

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LiveIWS Spendthrift Trust Summary

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