investing and was happy to share his experiences with me .
He is a VERY active real estate investor , previously using countless LLCs before switching to a Platinum Business Trust . At any time , Rod is involved in buying , selling , and / or rehabbing at least a dozen singlefamily properties .
A Case Study :
I called an Estate Planning Attorney
Next , I wanted a legal expert to validate the asset protection provisions . Nearly everyone in real estate uses LLCs for this . Previously I ’ d only known Living Trusts for naming beneficiaries and avoiding probate , or offshore Trusts to escape liability .
How could a Platinum Trust keep assets completely and permanently safe from adverse actions ?
Eventually , I was referred to an estate planning attorney with vast experience and a deep understanding of the Platinum Trust . First , I asked how this Trust gave better protection than LLCs . The answer I got was exactly what I heard from Bruce and saw in a Wake Forest Law Review : the LLC corporate veil is pierced in over 46 % of cases for closely held entities ( under 35 people ), completely exposing all contained assets . If a judgment can ’ t be satisfied from the first LLC ’ s assets , “ reverse veil piercing ” grants litigants access to other related LLCs and even personal assets . This occurs regardless of LLC structure and operation .
Conversely , a properly operated Trust with the specialized provisions ( like the Platinum Trust ) is not liable for judgements , liens or levies . The attorney backed that up with case law and regulations supporting all these points .
What protects assets better than LLCs ?
After hearing Bruce ’ s emotional story , I asked how the Platinum Trust would ’ ve protected him .
Even though Bruce couldn ’ t have prevented the lawsuit , Platinum Trust would ’ ve made his assets untouchable .
Interviewing an Existing Platinum Trust Client
While I was on the call with Bruce he
received a call from one of his clients , Rod K . Bruce asked if I could stay on the call to ask Rod K . some questions and I ’ d get the benefit of his realtime answers , to which Rod K . agreed . He loves real estate
Rod K . recently sold seven properties from his Trust totalling $ 1.6M in gross sales and avoided a huge capital gains bill exceeding $ 200,000 . He also receives a massive tax deferral on his passive rental income of $ 15,000 per month . This gives him a lot more money to continue building his portfolio .
“ I was able to recoup my investment in the Trust in one deal .”
I asked Rod how it worked and when taxes would be due . He shared that capital gains taxes are excluded , and deferred passive income taxes are payable when the Trust distributes : 21 years after the death of the last sole surviving heir to the last sole surviving beneficiary ( which likely will be 100s of years from now and in any case after anyone connected with the Trust has passed away ).
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