The Family Trust: Legacy of Blessing | HealthWealthVictory
Do you know how the rich build and protect their wealth? They own nothing but control everything. How? They create a Family Trust through which they leave a legacy of blessing. You can too.
32 The whole group of believers was united, heart and soul; no one claimed private ownership of any possessions, as everything they owned was held in common.
33 The apostles continued to testify to the resurrection of the Lord Jesus with great power, and they were all accorded great respect.
34 None of their members was ever in want, as all those who owned land or houses would sell them, and bring the money from the sale of them,
35 to present it to the apostles; it was then distributed to any who might be in need.
36 There was a Levite of Cypriot origin called Joseph whom the apostles surnamed Barnabas (which means ‘son of encouragement’).
37 He owned a piece of land and he sold it and brought the money and presented it to the apostles.
The Family Trust: Own nothing, Hold everything in common
This verse in the First reading really spoke to me:
32 The whole group of believers was united, heart and soul; no one claimed private ownership of any possessions, as everything they owned was held in common. Acts 4
Huh. It’s like a Trust where assets are given and held there by the grantor.
In so doing, he no longer owns his assets. But instead, he appoints a trustee to manage the assets and distributes the earnings to the beneficiary.
In this case, the donors are the grantors, the apostles are the Trustee, and those in need are the beneficiaries.
This is what I intend to do when I’m able to buy my insurance policies aka buying my net worth.
My dream is to be able to leave a legacy of Blessing for my family and for the world.
I intend to leave my family with equal opportunity, and the world with 90% of all recurring profits to fund the work of God in the world.
I don’t have kids right now so all assets I’ve made will definitely go to my siblings. But even if I have kids, I would not like to give them an inheritance that they could just squander as they please.
I would like to leave an inheritance that will give them a financial start on every opportunity that God opens up for them but will also ask them to be financially responsible in return by paying the debt when they’re financially able.
The solution: Hold everything in common, in a Family Trust, distributed to those in need through the Family Bank, managed by a Family Board of Trustees, guided by the Family Constitution.
The beneficiary will be the Trust. This means that all investment gains and death benefits payout will be given to the Trust.
Since the Trust cannot hold gains and interest earnings, they will be redistributed the way the Trustor, or the one who created the trust.
In my case, I want my assets and investment gains to be managed as follows:
- 90% will be given to the Family Charitable Trust (that I hope also to create) to donate to Christian organizations involved in works of charity: spread the Gospel, take care of orphans and widows, help in disasters, Health & Medical, Business education and capital
- 10% will be either reinvested into the businesses that the Trust holds; used to buy new insurance policies; lent to those family members who are in need or they can just borrow against the policies which they have to pay with interest otherwise they can no longer borrow from the family Bank.
Control Everything: Leaving a Legacy of Blessing
How do I make sure this will all be carried out long after I’m gone?
The Trust as a business entity will live forever so my assets will be held there forever.
I just have to make sure the Trustee will be guided and directed in managing those assets as I want them to be managed.
That’s where the Family Constitution comes in.
It will hold all my wishes as the grantor or trustor regarding how my assets will be managed by the Trustee.
The Trustee (group or person) manages the investment and distribution but they will all be according to how I wish all the assets will be managed and earnings distributed, trusting the trustee, (In my case, I would choose a board of trustee will be composed of the elders in my family, chaired by me while I’m still alive, to do it responsibly and with wisdom from God.
If properly managed, whatever wealth God will allow me to create in my lifetime will be passed on to bless my family and the world for generations to come!
Consequently, my dream of leaving a legacy of Blessing will be fulfilled, generations after generations.
That’s my WHY. That’s why I want to create generational wealth so I can leave a generational legacy of Blessing.
Here’s an article excerpt from “The Rockefeller Method to Building Wealth” that I’m copying here that also explains these concepts of the Trust, the Will or Family Consitution, and the whole life insurance:
The ‘Rockefeller Method’ of estate planning combines Life insurance, an irrevocable trust and a well-crafted Family Constitution.
Here’s the high level of how the Rockefeller estate plan works:
The family forms a trust to hold their assets and document how they wish for their wealth to be passed on in each subsequent generation.
The trust owns and is the beneficiary of a life insurance policy on each of the family members. When each person passes, the proceeds of their policies are payable to the trust. And so it goes from generation to generation. Over time, the trust is well-funded with these proceeds and can afford the premium payments on each new family member.
The originators of the trust determine how the proceeds can be spent and under what circumstances they may be distributed to the heirs.
It should be noted that unless your assets are such that you have an estate tax issue (US $15M+ net worth) then an irrevocable trust may not be appropriate.
A revocable trust offers fewer protections during life but may be better suited for lower levels of wealth.
Regardless of the trust instrument used, families that implement this structure are not trying to leave a huge pile of money for reckless spending. Instead, this strategy requires careful planning to create incentives for how recipients of trust dividends should arrange their affairs.
Building a Legacy that Lasts Six Generations…
The Rockefeller plan is just one example of how to arrange your affairs for longevity. The problem is that most people do not want to think about death or make proper provisions for it.
The point is to actually arrange your affairs. /To build a legacy takes planning and foresight. With a diligent, concerted effort you can build a powerhouse for your family.
It’s not about how much money you have, it’s about what you do with what you have.
How do I build generational wealth?
If you want to follow in Rockefeller’s footsteps and build generational wealth, realize that it is possible. You just have to take a counter-cultural approach.
The Rockefellers, Kennedys, Marriotts, and Hiltons are old money families that you can learn from.
Creating a legacy is a framework and system for ensuring that your wishes are carried out and that your family benefits from the hard work you put in every day.
It’s sad when a person leaves an inheritance that the children squander or do not adequately honor the person who worked so hard to create a life for them.
The practical components of making generational wealth a reality are:
Life insurance
A will
A trust
Life insurance is for when you want to leave more money that you already have to your loved ones. It’s a way to create liquidity when there may not be any.
A will determines where you’d like your assets to go.
A trust is a legal entity that, when funded, owns assets that are not tied to the lifespan of any one individual but can benefit numerous people.
Now Your Turn
Have you ever dreamt of leaving a legacy of blessing behind after you’ve passed from this earth?
Do you think of what you can leave generations after you?
If you haven’t, think about it.
We will all die someday. That’s for certain.
We cannot all be famous, our names being remembered by the world.
But if we leave a legacy of blessing, like a generational wealth to bless our families and many others in their time of need, they will all definitely remember us with smiles on their lips and thank God for us long after we are gone.
Don’t you want that?
If you want that, do something about it now while you still have the time. Ask God what you can do to position yourself and your family to create real wealth that will last for generations.
Here are a few things you can do:
- Start small. Establish a savings account to hold your emergency fund and capture wealth.
- Try to apply the 10-20-70 rule of handling your money that I find easy to follow: 10% tithe to pay God first, 20% savings to pay yourself second, 70% to live on.
- Take asset protection seriously. You are your number 1 asset. Protect yourself with a whole life insurance policy designed well for high cash value. I thought of paying the premium annually, and then use my monthly savings for the next year’s premium as my current emergency fund.
- Start a business or other means of producing wealth.
- Invest in income-producing assets – such as real estate.
So now I hope I’ve given you an idea.
Now do the work.
- Ask God to bless you and make you a blessing
- Create generational wealth
- Leave a Legacy of Blessing
Dear Lord,
Please bless me. Make me Your source and symbol of blessing for my family and for the world. And help me to leave a legacy of blessing for generations to come. In Jesus’ Name. Amen.
This is it for now. Till next time.
To our health, wealth, and victory – GODSPEED!
