A well-designed and well-managed dynasty trust is an engine of economic growth and stability, protects its beneficiaries from the vagaries and tyrannies of corporate and governmental managers, and enables the freedom of critical thought and honest conduct that is the essence of a republic.

Dynasty trusts can take many forms, but a common characteristic is that trust assets accumulate and are used for the benefit of trust beneficiaries free of estate taxes and free of generation-skipping transfer taxes for many generations, or even perpetually.

In an article published in the New York Times in July, 2010, Ray D. Madoff, a law professor at Boston College, warned that an increasing use of so-called dynasty trusts would create an American aristocracy. Americans prefer meritocracy over aristocracy, Madoff wrote, and he then proceeded to repeat some of the usual jargon-filled arguments against trusts without considering their societal benefits.

If Prof. Madoff intended to imply that the United States today is a meritocracy, then meritocracy must be a system that rewards its members based on their ability to extract wealth out of the economy, regardless of the social, moral and economic costs of their activities. It seems present-day meritocrats, the experts, are adept at pursuing recognition, superiority and money, but fall short on performing meritorious work. The pay of public school teachers is typically based on the number of college credits they accumulate, not on teaching performance. The dependence of professional politicians on donations and perquisites is well documented. The subservience of journalism and scholarship to prevailing popular thought and commercial considerations is an accepted, unfortunate fact. For example, legislators, government regulators and private-sector employees involved in deep-water oil drilling and the failed investment banking industry seemingly achieved professional success and were paid well, but caused great damage. After September 2001, politicians, academics, clergy and journalists failed to analyze critically the U.S. government’s policies and actions regarding passage of the Patriot Act, the occupations of Iraq and Afghanistan, the secret rendition of kidnapped prisoners, and the war against Islamic militants. But, they were well paid for their complacency and complicity. For decades, politicians, scholars, and journalists have shamelessly failed to debate openly the plausible idea that U.S. support of tyrannical regimes (e.g., Egypt, Jordan, Saudi Arabia) in the Middle East and U.S. support of the Zionist Israeli regime (which, as history shows, expelled native Arabs from Palestine in 1948, destroyed their homes, and expropriated their land) might be the real causes of aggression against the U.S. Instead of speaking, writing and acting for the public good, the pundits and puppets of conventional wisdom perpetrate myths that the U.S. is under attack because of the American way of life and Western ideals of liberty. Accordingly, the actions and omissions of the failed class of corporate-funded politicians and intellectuals-for-hire undermine the national security of the U.S. and the personal safety and liberty of its citizens. Yet, corporate and governmental paymasters regularly reward the unworthy conduct mentioned here with big paychecks and thereby maintain the compliance and conformity of the meritocrats. The dynamic of parasitic, subservient, mercenary behavior being rewarded with economic success might represent social Darwinism, but it takes the merit out of meritocracy.

A proliferation of dynasty trusts would enable an increasing number of citizens to act morally and responsibly because they would have an independent source of material support. One can only guess how many otherwise honest and intelligent people fail to act according to their conscience, or worse, act contrary to their values, because they fear retaliation from an employer or from a wealthy sponsor. Most people today have to earn a living, that is, they are not financially independent, and the more educated and specialized they become, the fewer job choices they have. For example, a climate researcher working in a government agency has very limited options to work in his field. If he is fired by his bureaucratic superior for publishing a politically unwelcome report, then he might soon be gathering shopping carts at the local supermarket parking lot and unable to support his family. The same is true, to a greater or less extent, for engineers, teachers, journalists, and just about everyone else who is an employee or who depends on public or private good will for his sustenance.

Of course, lots of good, honest work is being performed in society, but too little is done that actually challenges the vested interests of the selfish and profit-driven.

One could argue that many of the people who truthfully challenge self-serving myths and corrupt practices are supported directly or indirectly by independent sources of wealth. For example, the independent journalists and authors who succeed in exposing lies and corruption are often the benefactors of a few, enlightened wealthy individuals and their charitable foundations. They earn sponsorship through their merits, and arguably therefore are meritocrats. But, their financial support comes from privately accumulated and privately controlled wealth, not from taxes or popular commercial interests. In other words, a dynasty trust itself can be an independent source of funds for supporting important societal work that would never receive funding from the conventional establishment.

Consider how much more vibrant and truthful our public discourse would be, and how much more efficient and responsible our governments would be, if people could speak and act without needing to worry about being fired from their jobs and losing their material livelihood. More dynasty trusts would mean more people being insulated to at least some extent against the purely mercenary rules of economic Darwinism. Of course, dynasty trusts are no guarantee of moral, truthful, responsible behavior. On the other hand, the current circumstances in which corporate wealth and populist myths influence personal and professional decision-making make inefficient and corrupt social behavior inevitable.

Many of the so-called founding fathers of the American republic inherited wealth and were arguably aristocrats. Aristocracy literally means rule by the best, not rule by the few (oligarchy) or rule by the mean and corrupted. A proliferation of dynasty trusts could indeed lead to creation of a privileged class, that is, a class of individuals who have the privilege of not being yoked to an economy that is increasingly centralized, mercenary and subject to decision-making based on maximizing profit or perpetrating lies and myths. As a practical matter, hard work and ingenuity alone are seldom enough to guarantee the livelihood of an individual and his family. The material existence of workers at all levels of society is increasingly subject to the arbitrary will of a manager who thereby wields an inordinate amount of power over the actions of the worker. But, the beneficiary of a dynasty trust is able to resist the will of a manager (or client or political lobbyist or commercial sponsor or spin doctor) because he is not totally economically dependent on him.

Variants of dynasty trusts include a life insurance policy. Because the insurance company lobby is so influential in national and state legislatures, life insurance proceeds in an irrevocable life insurance dynasty trust are exempt from income and estate taxes. Thus, the combination of a life insurance policy owned by an irrevocable life insurance dynasty trust can provide tax-free growth of assets, payment of insurance proceeds to the trust free of estate taxes, and increased financial sovereignty for generations.

The logic of the recent NY Times article seems to be that it is better for society as a whole if custodians of wealth are forced to squander it within two generations, rather than protect it, preserve it and make it grow indefinitely. A common complaint of economists is that publicly-held corporations focus on quarterly or annual financial results, rather than on long-term business growth. Closely-held and family businesses, on the other hand, are valued (at least in principle) for their ability to make business decisions that enhance long-term business viability. As a practical matter, however, unless a private business is held in a trust, it generally disappears, either because of division among heirs or because estate and generation-skipping transfer taxes compel its sale. A dynasty trust provides a vehicle for accumulating and preserving wealth in an increasingly centrally-managed economy controlled by large corporations, government (national and local) monopolies and popular myths. Although inheritance taxes are not paid by a dynasty trust, a trust-owned business must pay income taxes on business and investment income. There is no free tax ride for trust-owned enterprises. A trust, however, provides the long-term stability and continuity necessary for building a business culture based on honesty, service, quality and tradition.

Critics of dynasty trusts raise some legitimate concerns. One is that an individual who does not absolutely need a particular job for his survival will be prone to insubordination in the workplace. A related concern is that beneficiaries of dynasty trusts will cease contributing to society because they no longer need work to survive. An additional concern alluded to above is that dynasty trusts could create a privileged class of aristocrats that uses an unfair advantage to rule the less privileged. The hard facts of reality completely outweigh or negate these concerns, which will be addressed in detail in a future article. Let this article end here, however, with the idea that a society filled with subservient, economically beholden sycophants having no financial sovereignty is a greater danger to the republic than the risk of an economically privileged aristocracy. A general benefit of dynasty trusts for all of society is the financial independence of trust beneficiaries from the tyranny of increasingly centralized economic control and manipulated public opinion, which independence enables freedom of expression and honest, virtuous behavior in a morally corruptible body politic.

Copyright 2010 – Thomas Swenson

Relationships, to be successful, all require trust. Marriages, business partnerships, office colleagues or children and parents all need to feel that they will be treated with respect, listened to and their expectations met. I have had several clients who mentioned that they did not feel trust within their relationships.

In the workplace, when an employee feels trusted, they feel empowered and work a great deal better. Micro manage your employees by watching their every move and the message received will be that you don’t trust them. Do this and they will also send you a long list of questions about what they should be doing. Since you never let them feel capable of thinking for themselves, you built dependency in its place. They feel unsure of what is expected, hence the questions. Trusting people will save you time and energy long term.

There are many ways to build trust. Here are five:

=Being a good listener.

Don’t interrupt until your partner/child/ business partner etc has actually finished speaking. Interrupting shows you aren’t listening, that you make assumptions and don’t respect their words. If a person cannot express their feelings, there is little trust. Steven Covey points out that all too often we listen from our own point of view rather than listening properly. For example, little Edward says he doesn’t want to eat his sandwich. Rather than considering the feelings and position of Edward, many parents will see only the time spent preparing the food and interpret their child’s disinterest in eating as a rejection of them.

Practice good listening by reflecting back what was said. If little Edward says “I don’t want to eat any more”. Simply respond by using his words and say, “You do not want to eat anymore”. Never use sarcasm or an accusing tone; this only causes you to lessen trust. This is particularly true when the power in a relationship is not equal, such as between a teacher and student or parent and child. Reflecting back invites the other person to now explain themselves and feel at ease.

=Use ‘I’ statements rather that ‘You’.

If you keep the focus on yourself, the other person will not feel accused or pointed at. ‘Why haven’t you tidied up the living room’ when changed to ‘I would really appreciate you helping me to tidy up’ lowers the negative impact or any possible criticism which might be felt. People also like doing things for others, so phrase it as such.

Phrasing sentences using ‘I’ will help bring the relationship closer. ‘I feel that..’ is better than saying ‘You don’t..’ or ‘You make me feel…’

=Fight fairly.

Keep to the issue at hand and don’t drag up old conflicts which are irrelevant. Don’t use sarcasm, especially with children, I can’t emphasis this enough. Don’t start a discussion at a silly time such as just before a family gathering or late at night when it’s time to go to sleep. But do bring up issues. If you don’t, issues either get worse, leading to deeper relationship difficulties or you will get a tumor.

= Express your needs clearly.

If you need to have Tuesday evenings with your friends playing bingo or watching a movie, say so. You have a life and your partner should understand that your emotional wellbeing and happiness is important. If your partner wants to do something and you would rather not, express your needs to them in a respectable manner. Again use ‘I’ sentences. We often don’t speak up because we fear rejection or are ashamed to admit that we have needs. However, especially in marriage, your partner, we assume, actually wants to ensure you are happy, so speaking up is beneficial. If your child wants you to take them shopping and you have just come home from a long and tiring day, you are not being a bad parent by saying no, as long as you do so in a respectful and pleasant way. Don’t use a put down or lose your temper; what do you gain?

= Give pleasure and be nice.

If you are nice and pleasant in your manner, others will be nice and pleasant to you too. If you are unreasonable and aggressive, people will soon move away. They say that criticsm should be given in a ‘sandwich’. This means that you firstly praise the person for work well done, then mention in a respectful way what you were unhappy about and then end with some sort of praise. In relationships of any kind, be nice at least in a ratio of 4 to 1. Say at least 4 nice things for every slightly critical thing. If you aim higher and are consistently nice, then trust comes along too. Obviously I am saying to be nice in a genuine way. Being a creep or ‘sucking up’ to others won’t do much to increase trust, rather people won’t trust you.

Would you like to work on improving your relationships at work or at home? Coaching will help you make significant changes. Coaching provides skills and techniques to communicate better and feel greater confidence.

In order for a democracy, or democratic republic, to work/ function effectively, the public/ citizens must believe and have faith, in, and feel, they can TRUST their public, and elected officials! Unfortunately, we often witness, individuals elected, who, seem to feel they deserve this, rather than needing to earn it, every day, in all ways! Perhaps, never before, in recent memory, have American voters elected anyone, who is trusted by as few people, as the present occupant of the White House. Since, President Donald Trump, according to political fact – checkers, has either lied, or significantly misstated information, at such an amazing frquency, especially in times of fear/ conflicts/ confusion, many believe they have no one, to look to, for accurate, realistic information, and/ or, expertise! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and indicates, and why it’s so significant.

1. Truth/ truthful; timely, trends: Doesn’t the public deserve, and shouldn’t it expect, public officials, to be, absolutely, truthful, in order to serve and represent citizens, rather than any personal/ political agenda, and/ or, self – interest? If we can’t expect to be told the truth, why would we have faith, in these people, and their ability to lead, effectively, and in our best interests? We need leaders, with open – minds, who are ready, willing, and able, to take timely, well – considered, actions, rather than resorting to blaming and complaining others, and procrastinating! It’s important for these individuals, to recognize trends, and determine which ones, align with the mission of the nation!

2. Relevant; responsible; responsive; reliable: Instead of dwelling on the good – old – days, we are better served and represented, when relevant, responsive, reliable leadership, is offered, consistently! We must hold those, we elect, responsible for fulfilling, to the best of their ability, the essence of the American Dream!

3. Useful; urgent: We can’t accept any diversions from these leaders, when we need, and deserve useful direction, ideas, and true leadership! We must demand they prioritize addessing urgent issues, with a combination of idealism and pragmatism, instead of dwelling on petty stuff!

4. Service; solutions; system; sustainable: Too often, we permit these officials, to resort to populist rhetoric, and empty promises, when we need, and deserve viable, meaningful solutions! These must be, both, relevant and sustainable, and the priority must be, quality service, and creation of the best system, to make a difference, for the better!

5. Time – tested; true: How can anyone provide the service we need, if they, consistently, attempt to reinvent – the – wheel, instead of taking the time, and having the discipline and commitment, to learn, discover, and use, time – tested ideas, which might help, make things better? Perhaps, most importantly, we must begin to be able to believe, what we are being told, is absolutely, true!

We can’t afford to continue to elect individuals, who don’t earn our TRUST! Wake up, America, before it’s too late, to save the American way of life!

Flipping a property means to settle on a piece of property for one price and immediately (within minutes, hours, or a day) “flip,” or sell, the property to another end-buyer for a higher price. It’s a great situation for an investor who has little cash, as usually the investor doesn’t even need to come to closing with his or her own funds.

In today’s real estate market, it’s not uncommon for an investor to find property in which the seller is in default of his mortgage and the outstanding mortgage balance is higher than the value of the house. To make a profit, the investor will offer an extremely low price, get it accepted by the bank, and attempt to “flip” the property to another end-buyer. This flipping technique, when successful, can yield impressive profits. Unfortunately, trying to flip short sales can be problematic for several reasons:

• First, the seller’s lender must approve the contract of sale, which includes approving the buyer. If the lender smells a flip, the contract will not go through.
• Second, even if the investor can overcome the first issue, the end-buyer’s lender will likewise not allow it. The new lender requires the title to the property be “seasoned.” In other words, the property deed must already be in the investor’s name and recorded at the County land records for some period of time before they will agree to lend on the property. And, if the investor has not yet gone to settlement with the seller, how can he satisfy this requirement?

A land trust may be the solution to both these problems. A land trust is simply a private agreement whereby the property is placed into a trust and a named trustee is empowered by the trust documents to sign over deed, but the “beneficiary” is the one entitled to all the “benefits” of the property just as if that beneficiary were in title herself. Here’s what a land trust transaction would look like:

1. Seller’s bank has a mortgage against Seller’s property for $150,000.00, but agrees to accept $100,000.00 as a short sale payoff;
2. Seller creates a Land Trust naming herself as a beneficiary and records a deed at the land records placing the deed into the Trust;
3. Investor contracts with Seller to buy her “beneficial interest” in the Trust for $100,000.00. At the same time, Investor finds an end-buyer willing to pay $125,000.00 for the property;
4. On the day of settlement, the Seller assigns her beneficial interest in the Trust to Investor, and the Investor gives Seller $100,000.00 which, in turn, is paid to Seller’s bank;
5. A few moments later, the end-buyer shows up for settlement and pays $125,000.00 to Investor, and the trustee of the Trust executes a deed for the property to the end-buyer.

By using a land trust, the investor solves both problems mentioned above. First, the Seller’s bank will have no idea that this transaction is a flip. The bank only sees that the investor has come to settlement for $100,000.00. Second, the end-buyer’s lender doesn’t question the transaction because there is no deed that needs to be recorded at the County land records placing the Investor in title. The Investor gained title to the property simply by purchasing the beneficial interest in the Trust, and this type of purchase does not require a deed recordation. Thus, the new lender will only expect to see a deed from the Trust to the end-buyer. In essence, the Investor becomes “invisible” to the lender and this eliminates any seasoning issues. Although this is an advanced investor strategy and only to be used under the guidance of a competent real estate attorney, this may be the best way to get short sale flip transactions done in today’s real estate market.

If your marriage must be successful, there must be an elements of trust. This can only be initiated in courtship before it flows into the marriage:

1. Be Best of Friends: It is impossible for someone to trust his enemy. You can only trust your friend. If you want to build trust in your courtship, then you need to be best of friends. I mean intimate friendship. Beware of somebody you can talk to or approach freely. Ability to build friendship will enables you to build trust between you.

2. Reveal Your Past: Before you go into marriage, endeavour to reveal your past to one another. Reveal your past now lest it makes your relationship a past tense.

3. Lie – Not: To build trust, lie not even if it is ugly, shameful or disgraceful. No matter what happens, tell the truth, face the shame now, it will not last long compared to when the truth expose you. Be truthful in all things. Always remember that one lie will destroy the trust you have built over the years.

4. Hide nothing: What destroy trust most often is the unveiling of hidden facts called secrets. If you have nothing to hide, you will have nothing to fear. Love is open while lust and infatuation. Do not lie about your financial ability; open up let him or her know your financial weight.

5. Talk Through: Never belief or hide any negative information relayed to you about him. Instead call him and talk through with a positive mind even if he or she offends you, do not report to a third party. Call him or her, talk through, discuss together and settle in the spirit of love.

6. Demonstrate Acceptance: To trust, you must accept his or her person. Demonstrate acceptance instead of rejection; accept everything about him or her.

More and more people nowadays are doing business without meeting personally. However, with so many Internet scammers rampant today, getting people to trust your online business can be challenging. Check out below how you can display your company’s trustworthiness.

1. Good website design – First impression in the online realm is just as crucial in the face-to-face environment. Your website is your brick and mortar store that needs to be professionally designed and easy to navigate. Besides, no one wants to deal with a suspicious-looking and or poorly-designed site.

2. Make your site and payment system secure – Encrypt your site to protect anything customers submit online. Get trust marks like SSL certificate, third-party logo and other credible signs that your website can indeed be trusted. Create a Privacy Policy for your website to ensure users that their personal information will be guarded. Also, be sure to use a recognised, trustworthy payment processor like PayPal, WorldPay and Google Checkout to give them further peace of mind.

3. Get testimonials – Customer feedback or testimonials are great for building trust and confidence in your products/services. Nothing beats word-of-mouth marketing (WOM). So request testimonials or reviews from your satisfied and happy customers. Even better if you can get consent to publish their photo including the product/service they bought so no one will question your claim.

4. Create a business blog – An informative and engaging blog can do wonders for fostering trust, most especially when you write about topics that are related to the products and services you provide. This is the platform where you can demonstrate authority and profound knowledge in your industry. And when customers realise that, trust in your company follows almost immediately.

5. Offer a guarantee or free trial – A satisfaction/money-back guarantee or free trial is an effective way to show you really mean what you say. This also signifies that customers have nothing to lose when they try your products/services. But ensure to always honour your guarantee, as your reputation is on the line here.

Like any other human relationships, doing business via web stems from trust. Keep in mind these pointers above to help establish trust and confidence in your online business.

Did you know that helping yourself to repair your own credit may just be the best option you have? You see credit repair agency advertisements in the newspapers, on the television and across the internet. Radio jingles, flyers in the morning mail. Even calls from telemarketers plying their wares. They all make the same claims:

o “Credit problems? Don’t worry, we can help you!”

o “We can erase your bad credit – yes, we 100% guarantee it.”

o “Create a new credit identity – legally; without breaking the law.”

o “We can remove judgments, bankruptcies, liens, and bad loans from your credit file forever! Leave it with us!”

But, you just shouldn’t believe these statements. Save your money, do yourself some good. With a little conscious effort, time, and a personal debt repayment plan you will improve your credit score and future ability to borrow.

Every day, companies across the country appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can go out and buy all the nice things in lie again. A new car, fancy holiday, house improvements, a mortgage, insurance even a job. Your credit is vital it seems to your very existence.

The ‘credit repair’ business is big business! They seem to ‘know the score’, no pun intended! But the truth is, they can’t deliver. Most of these companies, rather than repair or delete your bad credit history, simply run away with your money. Yes, scary indeed.

Take Heed though…

If you decide you are interested in a credit repair offer then it is in your best interest to pay attention to these tips beforehand:

o companies that will only provide you with their credit repair services after you have paid them for their service.

o companies that would prefer to avoid telling you your legal rights and that many options you have are actually free.

o companies that even recommend that you do not directly contact a credit reporting company.

o companies that go as far as to suggest that you try to invent a “new” credit identity – and then, a new credit report – by applying for, and using, an Employer Identification Number instead of what you know you should be using, your Social Security number.

o companies that ask you to follow illegal advice and commit fraud by first disputing all information in your credit report, twisting the truth or take any action that seems illegal, like creating a new credit identity, which, yes, is totally fraudulent.

Providing false information when applying for a credit card or a loan, to misrepresent your Social Security Number, or to apply for your Employee ID number under false pretenses, are all federal crimes. Don’t even go down that path.

The good news is that under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they themselves have completed the services they have promised you.

Tread carefully when using a credit repair agency; often all is not what it seems to be.

It is commonplace for clients to ask their builder to use a trade contractor with whom they have an established relationship, and to allow that trade contractor to purchase his or her own materials, supplies, and surface protection. Homeowners commonly do this to establish an apparent environment of accountability and trust. However, this is oft a detriment to the building process. Builders purchase from their suppliers and select subcontractors based upon positive lessons learned through prior experience, as a builder’s reputation is vital to maintaining ongoing success. Allowing the builder to use familiar subcontractors and suppliers is in the best interest of the homeowner.

Purchasing from Experienced and Reliable Suppliers

Allowing a builder to purchase from previously tried and tested suppliers provides assurance that all products are reliable, consistent, dependable, and pose no threat of damage to a client’s home. Builders use established suppliers precisely because they can stand behind the reliability and dependability of the purchased products, and because they truly feel that using these products is in the best interests of the homeowner. What good is protecting a newly installed carpet with cut-rate temporary carpet film when it leaves a residue on the new carpet. The extra cost spent cleaning the carpet is significantly more than the price savings of five or ten dollars.

In an effort to save on material costs, homeowners will frequently look online and look towards multiple suppliers to provide necessary fixtures for their homes. People are frequently unaware of the intricacies and the risks involved through sourcing their own products. It is commonplace that small parts of plumbing fixtures, lighting arrangements, etc… need to be ordered separately. In addition to creating time delays, this may pose the risk that the ordered products ultimately fail to meet the needs of the project, resulting in breakage and tremendous damage to a home. If in an attempt to save a little bit on a remodel, a homeowner may inadvertently order a sink that fails to meet the water pressure limits of a home. This can result in flooding damage to a home that cannot be covered by any warranties. The best way to minimize any risk in a home remodel is to allow the builder to purchase from proven suppliers.

Builder-selected Subcontractors

There are even more compelling reasons for using regular subcontractors. Builders depend on subcontractors as much as they depend on employees-trade partners are an integral part of the builder’s team. Thus, builders tend to award major contracts (the wiring of a custom home, for instance) only to subcontractors that have proven themselves. With proven trades, accurate bids can be assembled quickly, and the builder understands and trusts the quality promised by those bids.

Builders often evaluate subcontractors over the course of years. Subcontractors are initially placed to complete small jobs to evaluate their abilities. Yet even once a subcontractor has demonstrated great ability, they are still evaluated on metrics such as how available for contact they are, how accurate their bids are, how well they work with the customer and the builder, and how their work hold together over a period of years. Further, allowing the builder to choose subcontractors allows both the sub and the builder to coordinate on efforts such as using temporary surface protection to protect the home from dust and damage.

Ultimately, it is in a subcontractor’s best interest to complete the work as best as possible. Completing projects in a professional and attentive manner ensures future work for the subcontractor. A builder that uses an undemonstrated subcontractor risks losing his or her control over the quality of the building. As such, any problems caused by painters, contractors, and products bought by the customer cannot be prevented by the builder’s due diligence. Perhaps the painter suggested by the homeowner failed to protect the newly installed wood floor from paint splatter resulting in costly resurfacing. Any of these problems will reflect poorly on a builder’s reputation, and a builder’s reputation is the basis for earning future work.

Builders prefer purchasing from certain suppliers and use specific subcontractors because they believe it is in the best interest of the homeowner. If builders fail to do as best a job as possible, they’ll soon be out of work.

Becoming a Trustee

Relatives have asked you to become a Trustee for their Living Trust. Perhaps flattered by their belief in your honesty, or because of ignorance, you accept. Even if there are few assets and the transition after the Grantor of the Trust dies, the Successor Trustee has much to learn. This is explained through the Estate of Bowles, discussed later in this article.

If there is not much in the estate you are asked to administer, it might be easy to pay out the funds and be done quickly with the responsibilities. Not all issues of inheritance are difficult, especially if there are few Beneficiaries. If this is the case, you are lucky.

It is a different experience when millions are at stake, and from court cases on these more dire examples, the rest of us learn what not to do. Where passing wealth is handled with expertise, there is no contest to be decided, so the more well-run Trusts remain silent on how the administration provides proper distribution. After all, the bigger Trusts go on for generations. There must be a trick to it.

Passing the Mantle

Remember this, all Trusts become irrevocable when the Grantor(s) passes. While he or she is alive, though, the Grantor can spend the money, allegedly earmarked for Beneficiaries, without being questioned. The rules and set legalities about the Trust are found in its Declaration of Trust or Indenture. They govern the conduct of the Trustee(s) after the Grantor(s) die. This is when the conflicts and confusion can begin.

A common way to chose the Successor Trustee, though, is the surviving spouse takes the reins of the family finances. The logic is that this person cares about the children, and will use prudence in dispensing the wealth. Unfortunately, the spouse is not necessarily the right choice. When the Trustee is elderly and finds those friends who visit often more valuable than the children, wealth can easily be given away. Passing out the children’s assets to close associates is not uncommon. You will see how this works when some of the issues are examined in the Estate of Bowles.

Trustee Training

Despite its vital importance, across the entire subject of inheritance, we find training of Trustees has been systematically neglected. Through this neglect, billions of dollars are lost; while the courts and lawyers make millions, and wealth is gone to the future generations of the family. This happens mostly because those who receive the assets have little experience with money management.

It is common for the uninitiated Trustee to consult with CPAs and lawyers, who have little-to-no experience about Trust Administration. While knowledgeable about their particular fields of expertise, they lack the particulars about internal Trust administration. Left with a pile of paper and assets, the new Trustees do their best, and many of them are successful-if they have enough education and common sense.

How do you learn to be a Trustee?

Sources of Information

Apprenticeship is the most important aspect, except in our world, there is no formal apprenticeship program available. The next choice is to read books on the subject of inheritance, except there are few. Left with no direct source, reading what initially appear to be dry and boring court cases becomes the next alternative; how does one find the cases to read, and how does one find the meanings to foreign and alien terms?

Ways to get Informed

Although there are books on the subject of inheritance, most people do not know this and so, the only real option left is to read court cases. Filled with obscure legal terminology, most people find this a daunting task, but here are some pointers of how to continue for those who have no formal legal training:

1. Find court cases by searching through legal sites and look for terms such as: Probate, Wills, Estates, Trusts; or if you know a lawyer, ask him or her to find you any relevant cases to read.

2. Skim through the case, just to pick up the ideas and terms.

3. Ignore all the references to other court cases. Unless something intrigues you, it is not necessary to get the information. Just absorbing the gist of the issues involved is enough at this point in your journey through a strange land of alien ideas and a complicated forest of people.

4. Read the first and last sentence of each paragraph.

5. Put the case down, walk away and then come back to it when you feel like it.

6. Read sections.

7. Get a legal dictionary and look up every word or term you do not understand.

8. Start at the beginning of the court case; read it slowly.

Deliberate Obscure Language

Our legal setup stems from Roman law, and when William the Conqueror, who was from France, established himself as King of England in 1066 A.D., he changed the legal format and required that cases be argued in French. This deliberate maneuver ensured the English people had no direct access to the courts.

The two languages most needed to understand the root of legal words are Latin and French. Most people have no such training, so forgive yourself immediately as you muddle through the jargon used. You will be surprised how well you do! Once you understand the complexities of the language and are able to deal with it, you will astound yourself how much you grasp. Even reading one court case provides a mountain of information.

Getting an Education

Usually, the motive for tackling a task of this size is there is no place else to get the information. If you feel responsible for others, you need to get some education about what you are doing.

By the way, I have no formal legal training. I gained my knowledge while muddling through the jargon, and direct experience with many issues of inheritance. I am a Trust Administrator, so I see many events, and I set up the paperwork. What I share with you, I learned the hard way, and every time a new strange incident occurs, I have to whack away at the mountain of new ideas presented. There is no reason you cannot do the same.

Profitable Business

The subject of inheritance is in such disarray, and is so important to surviving into the future, it cannot be neglected. Please note: By not providing an educational forum for Trustees, the mistakes listed in the following battle among the Beneficiary, the courts and the Successor Trustee happen more often. This is lucrative business for the legal profession. This is why those who become Plaintiffs are likely to have oodles of money. The average person will run out of funds long before an Appellate review like this ever happens.

Dissipation of Wealth

Through the following example, you will see how a Trustee, totally and wholly ignorant of her duties and role, simply ignores all her obligations. Others were more than willing to help her squander the funds of this large fortune.

The court case discussed in the next several paragraphs has been simplified. I have left out the Trust Types mentioned, and all the citations to other court cases. This is a bare bones version of a complex and lengthy court battle.

Prohibitive Court Costs

Because the costs of pursuing legal remedies are prohibitive, most of the Trust cases reaching the Appellate level are worth millions. This one is no exception.

Loss of 15 Million Dollars

In 1988, the Estate of Bowles was worth over 17 million dollars when Thomas C. Bowles passed. The assets had dwindled to 2.7 million when his wife, Mary J. Bowles, died in 2006. She had been named the Successor Trustee, and is the one responsible for squandering the assets between 1988 and 2008.

Lacking Substantial Evidence

First Regional Bank in California had been named as the Successor Trustee after Mary J. Bowles passed. The question haunting the bank, as well as the Beneficiaries, was where did the funds go? After a lengthy review of paperwork and an investigation by First Regional Bank, it was determined there was not enough of a paper trail to make a full recovery. Thus, lacking substantial evidence of what occurred, the bank decided it was not worth pursuing those who received funds from the Trust.

This leaves the Trust without a Trustee, as the one named is not willing to make restitution on behalf of the Beneficiaries. Believing only tools of “formal discovery” would get the needed information, the bank determined the effort to recover the lost assets would not be “productive.”

Who Can Sue?

The next issues revolve around what court has the authority to decide the matter. This became a lengthy debate among judges about the Probate Code, and who has jurisdiction to sue the culprits who got the funds from Ms. Bowles. Clearly under their influence, she gave away the assets held for the Beneficiaries to strangers and her preferred Beneficiary, Richard Cavalli.

The brother of Richard Cavalli is Kevin Cavalli who has launched this lawsuit. Because he is a Beneficiary of the Estate of Bowles, he has no standing to sue for this Trust. Kevin Cavalli argues the Trustee, First Regional Bank, will not sue for the Beneficiaries, and thus, he has the right to continue.

The Probate Court did not agree, and thus this matter was taken to the Appellate Court for a decision.

Kevin Cavalli prevailed. The Appellate Court stated third parties can be sued by a Beneficiary of a Trust, and since the Bank will not make the effort to recover the property, the Appellate Court determined Kevin Cavalli has the right to sue. The matter was returned to the Probate Court for proceedings.

The proper procedure would be for Kevin Cavalli to sue Mary J. Bowles as Trustee. Since she has passed, that is not possible.

Less Than Market Value

Richard Cavalli, a Trust Beneficiary, induced the Trustee, Ms. Bowles, to sell directly to him Trust property for less than full value. To handle this transaction properly, Ms. Bowles would have sold the property at fair market value and the earnings would be put into the Trust to be shared by the Beneficiaries. Because Mr. Cavalli got all the property for less than its value, the other Beneficiaries were cheated out of their inheritance. These Beneficiaries included his brother and four of Ms. Bowles grandchildren.

Mary J. Bowles Estate

Mr. Richard Cavalli was named the Trustee of a separate Trust in which Ms. Bowles put all her personal assets. After she died, he was to manage it for the Beneficiaries she named. Somehow, she trusted him? Because Ms. Bowles’s assets are held in a separate Trust, and by her negligence the Estate of Bowles assets were squandered, her estate can now be ordered to reimburse the Estate of Bowles.

Breach of Fiduciary Responsibilities and Duties

The confusion entangles the Estate of Bowles in legal controversy. All of this could have been avoided if Ms. Bowles were trained. Because she was not, we assume she either deliberately or ignorantly engaged in fraudulent transactions, by both reducing the size of the Trust and squandering the inheritance of the children and grandchildren.

In this lengthy court case; the following breaches of Trustee responsibilities were listed. This is one of the longest lists ever attributed to one Trustee. It has been adapted to be applicable to all incompetent and untrained Trustees:

1. Distributes Trust principal to him or herself when it was not necessary for health, support, or maintenance;

2. Fails to invest prudently all Trust property;

3. Commingles Trust assets with other assets, including those of the Trustee’s own property and other Trusts;

4. Make imprudent loans to a third party, who provides no security and, after receiving the funds from those loans, later defaults. The Trustee takes no action to collect;

5. Sells Trust property to third parties for less than fair market value;

6. Gives out Trust property to a third party who has no right to the property;

7. Fails to keep complete and accurate records of transactions;

8. The Trustee puts his or her own interests over those of the Beneficiaries, thus in breach of the responsibility to act neutrally;

9. Encourages the third party to whom loans were made to file for bankruptcy so the third-party gets a discharge of debts owed to the Trust;

10. Fails to give out income and principal of the Trust according to the Trust terms.

11. Fails to make required distributions to beneficiaries.

We assume, without training, any Trustee could make these errors. If possible, get the court case of the Estate of Bowles (2008), Cal.App.4th [No. B203254. Second Dist., Div. Five. Dec. 22, 2008.] for a thorough tour of the facts, and an incredible education.

If you suffer because of the missteps of an errant Trustee, share this article with that person. It just might save a fortune.

It is a well known truth that successful marriages are rooted in mutual trust and they can withstand any stormy circumstances. Such a strong foundation of a marriage can never be shaken any force in the world. Dependability tops the list of qualities that most people look for in a marriage partner.

Mutual trust is nurtured by constant and conscious effort from both partners in a happy marriage. Trust is not built in a single day. It takes a long period of time to take deep roots and become unshakable. On the contrary a single stupid word or action can ruin trust in no time.

How to build such a strong pillar of trust?

The first and topmost way is to keep your words. Make it a priority to keep all your promises. Never make a promise that you cannot keep. Live your words at all cost to become dependable at all times. It reinforces not only trust in your partner’s heart but also promotes a happy and lasting marriage. It says how far you can go for the sake of making your spouse happy. So remember, a broken promise is an easy trust and marriage killer. Take the initiative to live your words.

If you are unable to keep your promise or have a change of mind, admit it honestly. Explain why and how that change is necessary. If you failed to keep your promise because of forgetfulness, you can always apologize and make a firm decision not to forget such important things again. You can consciously try to follow some methods of reminders or even request your spouse to remind you of important promises occasionally.

You can also rebuild trust if you have problems already. Respecting each other’s space, forgiveness, open communication are some of the ways in which you can develop a strong and unbreakable trust.

Marriages thrive on mutual trust. Foster trust and keep it strong and permanent.