The Special Purpose Fund Platform begins in 2016
It started as a whisper like many trade secrets do. Then the rustling of more voices amplified the wisdom of this messaging mechanism; and that’s how this Platform began.
The Special Purpose Fund Platform™ is the Business Owner’s ultimate blue print to construct, operate and coordinate business and personal financial matters effectively and efficiently. Components of the Platform are referred to as “planks” in keeping with the Platform concept.
The Platform planks are customized to include:
The most common planks on the Platform are:
Central Cash Management Plank – encompassing local banking functions and Discount Brokerage with on line services and lines of credit options if needed. Also, Money Market Fund access, Debit & Credit Cards, Investment Portfolio options and Tax-Free sweep account functions.
Many business owners may have these services in place already, but some may not. A comparison of services from various institutions and regions is helpful to know the marketplace.
Business Profitability Plank includes Specialized Tax Incentive Reviews, to include Engineer Based Accelerated Depreciation Studies, Personal Property Tax Studies, Employee Hiring Incentives with Software tracking and R & D tax credit studies.
Business Expense Reduction Plank – Merchant Services cost analysis reporting, Worker Comp audits, Mail and delivery expense reviews, waste collection and recycling reviews and more.
Tax Free Special Purpose Income Fund Plank – This is a medium to longer term tax favored strategy that’s multi-faceted. It creates a growing fund of money that can be used at the business owner’s discretion. It also includes various insurance benefits. The fund is formed by advancing massive amounts of borrowed and secured capital into it, earning safe market driven, tax favored value from that capital.
The use of (or the renting of) the capital creates a business tax deductible event for most plans when properly installed.
This sets a tax-free/tax advantaged plan in place, while preserving company capital, and creates income tax free money for retirement (and/or any other purpose). It’s not uncommon to create a Fund to generate $200,000/year, tax free, for 10-20 years as a retirement resource.
It also aids to organize an exit strategy for the business owner to pivot back borrowed capital used to kick start the Fund. There are additional and ancillary strategies and benefits to this plank as well.
Life Insurance Benefits Plank – Business Owners enjoy personal Life Insurance and Critical Illness benefits while having zero out-of-pocket after-tax premium payments. Business needs for Life Insurance (Buy-Sell Agreement insurance and pledged collateral loan insurance for example) can be included on the platform.
Employee Medical Insurance Premium Review Plank to include negotiated self-funding options for employee groups of 25 employees or more.
Estate, Trust, Tax and Asset Protection Planning Planks are essential elements that are coordinated on the Business Owners Special Purpose Fund Platform ™.
Business Owners always have things to do, right? The good news is that things like tax planning, estate planning, business tax incentives, operational expense reductions, and business structuring options all meld together on the Platform.
Some action items are more common place, and some are best served by more advanced strategies.
Today, asset protection planning can’t be a secondary thought. You have a better chance of losing money due to a legal or financial attack than you do to a common thief.
Also, your personal tax savings strategy must have a solid legal foundation. You can’t build a building from the roof down. You must have a solid foundation first.
Likewise, you can’t build your asset protection plan from the roof down. Your asset protection plan has to have a solid foundation built with legal components.
Most attorneys have only so many asset protection components available, like standard living trusts (not good asset protection tools), corporations, limited liability companies, and limited partnerships as the first line of asset protection components.
Advisors sometime overlook the ERISA plans, IRAs, life insurance policies, and other “commercial” components.
Life insurance is a component that can have tax savings, as well as income tax, estate tax, and asset protection potential. It may be used to knit the standard legal asset protection components together and make a fairly strong foundation and structure.
As an Insider, we’ve seen some people have a fairly elaborate asset protection set up, but they get little or no tax advantage out of it. That oversite can be remedied for many Business Owners by using our Platform, because frankly, the IRS is a major threat to your financial security and your asset protection.
When you add up the income taxes (federal income tax and state income tax), sales tax, property tax, business property tax, franchise tax on your little company, and the possible new VAT tax, you’ll see that between 50% to 80% of your annual income is taken away. Addressing the tax issues is the first thing your asset protection plan must do.
The common-place services discussed above provide valuable information for businesses and applies to most all business owners in our focus market, yet it is “common place” information, in terms of the general business consulting profession.
Make no mistake however, it is needed and necessary information yet at times you need to know more.
We do a “deep dive” into how you operate your business (like as an LLC or S-Corp or C-Corp or other state sponsored, statutory entity). For many business professionals we find that advanced knowledge of bullet proof asset protection and tax savings strategies that are directly correlated to all IRS codes should be discussed.
Think about this. How did you decide to start your business? How do you now run your business? Did you know one of your choices is to control and operate your business through a trust?
Why might that information be important to you?
Think about this. How you own your business and how you control your business separates the “Pro’s from the Population” of business owners.
The Special Purpose Fund Platform™ is clearly the unique and uncommon planning blue print for Entrepreneurs and Business Owners.
Here’s just one important advantage of using the Platform, and by doing so it remedies most of the issues discussed on page 3.
We share the mechanics of a copy written Non-Grantor, Irrevocable, Discretionary, Dual Track, Spendthrift Trust designed specifically for BOTH Asset Protection and Tax Reduction.
The special features of this Spendthrift Trust are ideal for doctors, hospitals, medical practice owners, and professional athletes as well as many business owners in general. Here’s why.
Moving from the wrong side of zero and into a positive financial future might feel impossible, but it’s not. Our strategies are tailored specifically to each of our clients, which can be easily implemented more than they thought possible with how we structure and protect assets via our unique menu of copyrighted Spendthrift Trusts. Our financial instruments are tools which will give you complete financial safety in all your professional and or personal financial areas which are the most vulnerable.
Financial affairs are maintained in total privacy, and paper trails are virtually eliminated. One of the most fundamental of our American rights is our right to financial privacy.
The Specialized Spendthrift Trust is a “Titanium Vault” of protection for business, estate, and individuals. The Trust has proven to withstand court judgments, tax liens, law suits, divorce claims, bankruptcies, levies, and seizures. It also eliminates the need for a Will and bypasses state and federal probate. Trust Assets are also protected from creditors.
As an extraordinary tax deferment instrument, it allows taxes to be deferred until the Beneficiaries take the assets out of the trust (if, when, and if ever they do). IRS law says, “There has to be a possibility for an end of the Trust for there to be a possibility of tax.” The Spendthrift Trust can be renewed every 21 years. The Trustee, at his or her sole discretion, determines what is income or extraordinary dividends to the Trust. The Trust is NOT subject to pay capital gains.
IRS Code 643B
This is a summary of IRS Code; Rule 643.
It says if a Trust has a Simple or Complex provision, is Discretionary, and no percent is designated to any one Beneficiary, that the Trustee may designate that income paid to the Trust corpus is in fact not actually income, but rather is an Extraordinary Dividend. It goes further to say that any property held in the corpus of a Trust is NOT subject to capital gains when sold.
Call or email Rob West or Steve Gillette for more information.