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Fresh Start Trust

Lesson #1 Checklist – Starting at the Beginning ***This condensed version of the main lesson is for review purposes only. For an in-depth explanation of each of the items listed here, please refer to the main PDF file or the MP3 audio version.

In this first lesson, we’re going to talk about: what actions you need to take to assure your home is protected from unscrupulous money grabbers and frivolous lawsuits. In this first lesson, we’re going to talk about: exactly what

a trust is and the major differences between the two basic

types. You will learn what perils might be ahead for you if you

don't take action now to protect what you have and what you

will have in the future.

We'll be making some important decisions with the

information from this first lesson. You'll be

learning the difference between owning your

Millions of Americans deserve a

second chance. If done right, they will be financially secure for the rest of their lives.

Fresh Start Trust

Lesson #1 - Starting at the Beginning Checklist

© 2011 Financial Success Institute. All rights reserved. www.financialsuccessinstitute.org

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business versus retaining full control of it

although it is technically owned by a Fresh Start

Trust. There are a lot of different types of

trusts established for many different reasons.

You need to know specifically why a Fresh Start

Trust is designed the way it is if you want to

fully protect your business and other assets.

There are five important parts to any trust. When

you finish this first lesson, you will know the

differences. Once you have that information

you'll understand other important concepts that

go into creating your own Fresh Start Trust.

What you will learn is not based on legal theory.

Asset protection has been around for centuries.

The rich use it all of the time so that they are

not sued. These concepts have been tested in many

court cases and by putting your Fresh Start Trust

together following the step-by-step directions

you'll be given, yours will stand up in court if

need be.

By the end of this very first lesson on Fresh Start

Trusts, you will have the tools and knowledge you need

to take immediate action. You won't need to wait to

complete the entire eCourse. After this first lesson,

you'll sleep better knowing you no longer need to

worry about putting a bunch of hard work into a new

business just to lose it in a lawsuit.

For some, this

concept is difficult to understand but the rich

use it all

the time

You'll be ready to

start planning

your future as soon as you finish this first eClass

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THIS eCLASS OBJECTIVE - Over the entire eCourse you'll be learning everything

you need to know about protecting all of your assets.

Both personal and business related. Al lot of people

are familiar with the concept of using trusts to

protect assets but very few understant the important

aspects of trusts that actually accomplish this. If

the trust is not created correctly it will not

accomplish its primary objective of protecting your

assets. A court will simply declare the trust

dissolvable to allow creditors access to the assets.

Correctly structuring your Fresh Start Trust is the

primary objective of this eCourse. Throughout the

modules, you will be given detailed instructions about

exactly what you need to do to accomplish this

important task. There will be variations depending on

the laws in your state. You will use the concepts and

instructions from this ecourse to work with an

attorney that specializes in the trust law of your

particular state.

The specific objective of this first module is to make

you familiar with the two primary differences in

trusts. The Fresh Start Trust is an irrevocable trust.

That is critical to asset protection. By the end of

this module you will understand the primary elements

of an irrevocable trust and the roles each one plays.

When it comes to

trusts, one size does

not fit all

You will need to

share what you learn with an attorney

specialized in setting up trusts

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By the end of your first eclass, you will be prepared to begin

taking immediate action. Specifically, you’ll have the

following things in place…

Knowledge of why you want to take all the equity in

your business out of your name.

Each of the five important elements that go into a Fresh

Start Trust and the important role each of them has.

Grantor

Intention of the grantor (Trust document)

Trustee

Beneficiary

Trust subject matter

The big difference between revocable and irrevocable

trusts and why making the Fresh Start Trust irrevocable

makes all the difference from revocable trusts that offer

no protection from lawsuits.

What the big lenders are doing behind the scenes that

could be disastrous for you if your business becomes

successful and you don't have asset protection in place.

The knowledge and tools you need to become an

immediate action taker and be rewarded for being

proactive.

You will establish a business

owned not by you but by a Fresh

Start Trust

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Major assets are always vulnerable to lawsuits. A great deal of

free information about asset protection planning can be found

on the internet. Most of it is simply wrong.

Exactly What a Trust Is

We hear the word Trust quite often in reference to protecting

assets and minimizing taxes, but what is a trust exactly and

how is it legally structured?

Keep in mind that we are speaking in general terms here

because of the many variations in trusts, state laws, and how

different courts view them.

General Description of a Trust There are four primary players or elements to a trust. They

are:

The Grantor

The Trustee

The Beneficiary

The Trust Subject Matter

The trust is a legal and separate

entity from all the others. Some people find it easier to

understand this concept by thinking of the trust as an

"artificial person".

Some will tell you that you need an

off- shore trust but

you don't

Although you will benefit

from the trust, you and it are

legally

separate

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People set up trusts for a variety of reasons. The three main

reasons are to avoid an inheritance estate from having to go

through probate, to minimize taxes, and to protect assets.

The Fresh Start Trust eCourse primarily deals with asset

protection although it also touches on estate planning and

taxes where appropriate.

A trust is essentially a contract between the Grantor

(sometimes called a settlor) and beneficiary that is

administered by the trustee. The grantor initiates the trust by

drawing up the contract and placing specific assets inside the

trust. The contract is known as the "Trust Document" or "trust

agreement". It specifies the who, what, where, when, why,

and other conditions and terms for managing the assets.

As you can see, there is enormous variation between

individual trusts. This is definitely not a one-size-fits-all

concept.

The Trustee is an individual or law firm (many states allow it

to be any competent adult) that the grantor entrusts the

assets to. The trustee must follow the instructions established

in the trust document. Generally, the trustee is obligated to

manage the assets in the best interest of the beneficiaries.

State statutes may or may not address the duties of the

trustee. However, most of the law covering trustee's

requirements is found in state case law or court opinions.

You will not be the Grantor

that is key to asset

protection

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The Beneficiaries are the people or thing that the trustee

administers the contract for the benefit of. There are no

restrictions on who the beneficiary is. It can be the grantor or

their children, spouse, grandchildren or a charitable

organization or a university. The beneficiaries are the people

that the trust distributes assets to (usually money) according

to the trust document.

The Trust Subject Matter. This is the asset the grantor places

into the trust. It can be anything of value. Often it is money

or stocks and bonds. But it doesn't have to be. It can be a

valuable stamp collection or an operating business. It can

change over time as the trustee follows the instructions in the

trust document. Money in the trust can be invested in an

operating

business as an

example.

That is the

model the

Fresh Start

Trust uses.

The grantor

places seed

capital into the trust and the trustee is instructed to use the

capital to create an operating business. The size of the

business is irrelevant. It can be a small start up with a single

In many cases it is

the grantor and their family but not in the Fresh Start

Trust

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employee or it can be a huge investment with hundreds of

employees. We'll go into that later.

As you can see, the grantor and the trust document control

what can and cannot be done with the assets within the trust.

This gives the grantor great flexibility in what they dictate to

the trustee.

Some trusts are revocable and others are not. The Fresh Start

Trust is an irrevocable trust.

Revocable and Irrevocable Trusts

A revocable trust is associated with what many people know

as a living trust. This is done for estate planning and tax

purposes. It offers no asset protection at all.

What makes a trust

irrevocable is that changes

cannot be made once the

grantor signs the trust

documents and places the

title to assets inside the

trust.

Ownership of any assets placed in the trust will remain with

the trust until they are distributed according to the trust

document. And the assets have to be distributed to the

beneficiaries. That's were you come in. You can be the sole

You can also do

estate and tax

planning with an

irrevocable

trust

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beneficiary or you can have multiple beneficiaries to include

your spouse and children or whomever you want.

Asset Protection The concept behind an irrevocable trust is one put forward by

the Rockefeller family for generations. Asset protection is

accomplished when you "Own Nothing But Control

Everything".

Joe Q. and Josephine Q. Public want to own lots of valuable

assets. That sets them up for all kinds of lawsuits when they

have deep pockets. The rich know that controlling lots of

assets that they benefit from is a much safer way to go.

The world is transparent today. Almost anyone can learn what

anyone else owns if it's of any real value like real estate or an

operating business.

If you own real estate in your name, I could more than likely

gather a bunch of information about it without getting out of

the chair in front of my computer. All I probably have to do is

go to the website of your county recorder where I can look up

your real estate records. At that site, I can learn how much

real estate you own and get a good idea what it's worth from

the assessed value. I can also see how long you have owned it,

which gives me a good idea of how much equity you have in it.

It's that simple in today's world.

This is the main

objective of the Fresh

Start Trust

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Same thing for any

business you own

in your name.

Businesses are

typically licensed by the state and local governments. I can go

to their websites to look up information about your business if

it is registered in your name.

It really is a transparent world. Once I know that you have lots

of assets, I can decide to sue you. Or if you already have

creditors that you owe, they can use the same time saving

techniques to get a quick picture of your worth. Then they

will hire a private investigator to dig deep and really find out

what you are worth.

Really scary stuff so why take any chance of ending up there

when you don't need to. If you don't own the assets they can't

try to take them away for you.

The truly rich use laws to protect their assets. They use Trusts

and Limited Liability Companies and Corporations that they

control and profit from to own their assets. These laws apply

to everyone, not just the rich.

These are very good

reasons for setting up your Fresh

Start Trust

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Trusts are a great way to protect assets. These are not public

records. No website where creditors or ambulance chasers can

go look at what assets you are protecting inside an irrevocable

trust. The irrevocable trust documents are kept secure in an

attorney's office. You'll probably want to keep your copy in a

safe or safe deposit box. Instruct the trustee to do the same.

The rich do it this way to control frivolous and real lawsuits.

When the assets are owned by the trust, they can't be taken

away by a court.

Own Nothing but Control Everything!

Concept of the Fresh Start Trust Okay, let's tie all of the information from this first lesson

together.

At the beginning of the lesson, we documented how millions

and tens of millions of people have been financially ruined,

Here is a big

advantage of having a Fresh Start

Trust

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often through no fault of their own. They were laid off, had

their house foreclosed, and to rub salt in the wounds, the

banks and other lenders are threatening to sue them. They

probably would sue but these people don't have anything to go

after even if the big lenders win the lawsuit.

The lenders are smart people, they must be, they earn $10

million bonuses every year even when their company is on the

verge of bankruptcy. They know that most of the people that

owe them money don't have any right now. They also know

these same hardworking Americans will soon be pulling

themselves up by their bootstraps. Soon they will buy a home

again. Some of the unemployed will decide to start their own

business. Some of these people will make it big time. They

could easily start earning six and even seven figure incomes by

owning and running their own business. I hope one of them is

you.

But watch out. These multi-million dollar executives are

waiting for exactly that to happen. These cold-hearted

bankers will wait until there is something to go after before

filing a lawsuit to recover deficiencies from foreclosures

and short sales. People with tens of thousands in credit card

debt they thought the lenders wrote off will start getting calls

from collection agencies again threatening to take them to

court to snatch the few assets they've been able to build up

If this happened

to you, you can stop it from ever happening

again

And you can protect yourself if

you are still vulnerable

to creditors

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again. I don't want that to be you. I have a better idea that I

want to share with you.

It's the Fresh Start Trust. Over the next several lessons, I will

share with you how the rich protect their assets. Now that,

you understand how an irrevocable trust works, you will be

shown step-by-step how to set one up that will protect a

business that you work for but the Fresh Start Trust actually

owns. You will control everything. You will be the beneficiary

of your Fresh Start Trust. Besides your business, you can

control and protect a home and other valuable assets inside

your Fresh Start Trust.

You Will Have Your Fresh Start and Your Old

Creditors Won't Be Able to Ruin It For You!

Richard Geller Publisher, Fresh Start Trust

Your “Assignment” for This Module

Read and familiarize yourself with the additional materials provided with this module. There is important information in those documents that you will want to know before starting your own business.

Begin today to think about what type of business you will want to start based on what you believe a close relative will grant to your Fresh Start Trust.

Send any questions or comments about the material to: [email protected]

http://www.freemyfunds.org/

http://www.freemyfunds.org/

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P.S. Be sure to review all of the materials that are included with this curriculum package. You should have received three other files:

1. Fresh Start Trust Module 1 – Start at the Beginning

2. Fresh Start Trust Module 1 – What You Need to Know About Protecting Your Intellectual Property

3. Fresh Start Trust Module 1 – Avoid Being Sued as a Small Business