Hi everybody, I’m Jacques Fouché, FOUNDER of Trust Focus the leading trust and tax com-pany in south Africa, where we teach entrepreneurs, property investors, business owners and wealth creators how to CREATE, PROTECT, and GROW their wealth so that they can be-come financially independent and be in a position to leave a legacy for their family and loved ones.

In this Video I am going to teach you how you can play the game of “business” and “property investment” with a new set of rules,

Where you can CREATE and PROTECT your wealth by placing them in separate compart-ments, we call them trust structures, so that during your life time and at death you will SAVE your family vast amounts in taxes.

At Trust Focus, our main objective is for you to own nothing, no assets, no money, no prop-erty literally N O T H ING, but to control everything – ALL your assets and all your wealth- just the way the wealthy people have been doing for centuries.

If you own nothing you have nothing to lose.We want you to become a bulletproof entrepreneur, property investor, business owner and wealth creator.We also want you to be in a position that you cannot be sequestrated, (think of it as being legally “untouchable”.)

If you don’t own any assets then you are not worth a cent to a liquidator, this means they can’t even sequestrate nor liquidate you.As I said - the goal of the game is to own ZERO in your personal capacity- to have a zero net worth in your personal name.

We will show you how you can legally and effectively separate your liabilities from your assets and minimize or even eliminate risk completely.

Here are 5 everyday risks that entrepreneurs, property investors, business owners and wealth creators come face-to-face with on a daily basis as they conduct their business operations.

1.DIVORCE - Your spouse could potentially become your biggest creditor. 50% of South Af-rican marriages end up in divorce (probability)

2.LEGAL ACTION by Business creditors who may be suing you for the repayment of loans or any accounts outstanding.

3.SARS actions are a massive financial risk that entrepreneurs, property investors, business owners and wealth creators face - in the form of Estate duty, capital gains tax and executors fees

If your assets (accumulated with your blood, sweat and tears) are not arranged or structured correctly in wealth-protection and wealth-creation trust structures - SARS can wipe out close to 35% of your net wealth - through taxation on death.

The fourth risk that entrepreneurs and property investors face.

4. BUSINESS FAILURE

If all your assets are retained in your own name, the first wave of creditors will obtain a ‘judg-ment’ as fast as possible so that they can attach your assets with a view to auctioning them off for an immediate cash settlement - most of the time your assets will only attain a maximum of 20% of their true market value.

On the other hand if your assets are protected in a Trust and the Trust is the legal and legiti-mate owner of your assets – you, personally will be ‘worthless’ to any creditor.

5.CLAIMS BY EMPLOYEES

There are occasions that an employee sues for unfair labour practice; or a tenant can sue for slipping while showering – and there are a whole host of what seem to be ridiculous events that people try to get compensation for - weird things do happen.

The rich and wealthy business owners of our time don’t own a car, a business, or assets or even money.

But they do, coincidently control their businesses, properties, and assets through setting up different trust structures and then operating within those structures .

The most successful entrepreneurs, business owners and property investors that I have met at our seminars and consulted with over the last 13 years all have separate trusts that containing and house their different investments and asset classes.

For instance they have a Family trust for their “paid-off ”, no-debt assets (the “unencumbered assets”)

They have a separate trust containing any bonded properties, which they use for wealth cre-ation.

They also have a third type of trust- called a “business shareholding trust” that contains the shareholding of their respective companies. And the more

companies you have the more separate business shareholding trusts must be set up to protect the business shareholding from your paid-up assets.

I would like to share with you the 5 ABSOLUTE myths about trusts, the 5 biggest misconcep-tions in the financial industry today that surround trusts.

I am also going to teach you the 10 indispensible reasons why every entrepreneur, proper-ty investor, business owner and wealth creator must have their trusts created before buying property or going into a new business venture,

Let’s start with what I call THE 5 ABSOLUTE MYTHS AND MISCONCEPTIONS ABOUT TRUSTS.

When I am talking about a trust I am specifically referring to an Inter vivos discretionary trust. (it’s a living trust that is set up while you are alive NOT a testamentary trust – which is created after death)

The First myth and misconception about trusts is. 1. Trusts are only for the wealthy.

The truth is. The wealthy have set up these incredible vehicles called trusts for themselves, their loved ones and their businesses BEFORE they became wealthy.

Trusts are there for ambitious, hardworking visionaries, entrepreneurs, AND for property investors who believe in their own ability to create and protect wealth the right and legal way, in order that they can enjoy the same tax advantages and asset protection advantages of the wealthy.

The irony is that a correctly structured property investment trust, a business trust or family trust is the exact vehicle that has been used for over 900 years with which to create wealth and leave legacies. Yes folks this thing called a trust is 900 years and it’s going to probably be here for another 900 years and more.

The vehicle you choose to create and protect your wealth in, is an indispensible way for you to achieve your financial freedom goals.

Remember you can be the best racing driver but - you if you are driving an old pick-up truck and your mother climbs into a new Ferrari she is going to make

you look silly, she is going to beat the pants off you (again) and she is going to win the race. You don’t want you mom to beat you -do you? I thought so.

Myth Number two.

2.Trusts have the worst Tax Rate.

This is only partially true.

Only where the Trustees decide to retain the profits and not distribute the profits to the bene-ficiaries will the trust be taxed at the 40% marginal tax rate.

Trust law and the income tax act allows a trust, in terms of a concept called the Conduit-Pipe principle, that the tax burden can be shifted from a trust to a beneficiary (such as an individu-al) and therefore paying tax at the individuals marginal tax rate.

You can legally be making use of this incredible mechanism and achieve a better tax efficiency that you would have done in your personal capacity.

3. MYTH NUMBER THREE

Trusts are expensive.

(Yes it’s true, trusts do cost money to set up the proper structure.)The question you should rather be asking is:How much money is it going to cost my family, and me by not having created a proper trust.

In practice, a correctly structured and administered Trust is a lot more economical and cost efficient than running a cc or limited company (PTY Ltd).

What really is most expensive is the cost of not having proper wealth creation trust and wealth protection trusts set up while you are alive.

The lack of knowledge can also be expensive as is the cost of not being properly informed as to the benefits and consequences of trusts.

The effects of these consequences mean that the cost of Estate duty, Capital Gains Tax, Exec-utors Fees and Income Taxes can be very, very, very expensive because of NOT taking advan-tage setting up a trust.

The B A D news is, You are going to DIE------ taxes will have to be paid and debts will have to be settled.

But NOT those held in trust as you will see shortly.

Another cost saving is that MOST trusts (IF it is specified in the trust deed) do NOT require to be audited annually which will save you a lot money from an administration cost perspec-tive. Of course ALL trusts must be registered for income tax with SARS.

MYTH NUMBER 4

I will lose control over my assets if it is owned by a trust

There is a Big difference on the notion of giving up control over your assets is executed in practice vs. how it is theoretically taught and interpreted in our academic society.

It’s very important to note that there should always be a minimum of two trustees, one of those being totally independent from the Founder and Beneficiaries.

There must be a clear distinction between having control and of having “enjoyment” of the trust assets.

AND the unbiased, unrelated and impartial third party called the (independent trustee) is the perfect person or (juristic entity) to satisfy SARS that there is INDEED a clear distinction between CONTROL and ENJOYMENT of the trust’s assets.

In practice the trustees are the parties that control the trust - that’s why careful consideration should be given as to whether a spouse needs to be part of the board of trustees.

There are ways of structuring your trust so that you don’t feel that you are giving up full con-trol over your assets and there are ways of structuring your trust where you will be the found-er, trustee and the beneficiary of the trust and still satisfy SARS and the Master of the High Court of the legitimacy and lawfulness of your trust structure.

The concept of a trust, having worked successfully for over 900 years, means that I am almost dead certain that it can work successfully for you as well.

Myth number Five

TRUSTS are being investigated by SARS

Most of our parliamentarians, politicians and friends from government have trust structures in place - and it would be very surprising to see them changing trust law so that they can lose millions of rands in their own wealth portfolios that are perfectly structured in a trust.

SARS have been investigating Trusts for many years, but they have also been examining and investigating every year other entities like companies, cc’s and private individuals.

Trusts are only being investigated when they have been brutally misused and mismanaged. If a trust is correctly structured and properly administered I accordance with the Trust deed, trust law and the trust property control act that governs trusts in South Africa, you can have peace of mind and sleep well at night that there won’t be any problems.

Here are the 10 indispensible reasons why you must set up your trust before you do anything else.

The Type of trust that we are referring to is an Inter Vivos Discretionary Trust. (this is a trust that is set up while you are alive)

THE FIRST REASON WHY a trust is indispensible and why you must seriously consider CREATING A TRUST

1. ASSET PROTECTION

Without any DOUBT, the best and most holistic asset protection strategy for any entrepre-neur is to have a minimum of two trust structures consisting of the following.

A WEALTH PROTECTION TRUST and a Wealth Creation trust.

IN the WEALTH PROTECTION TRUST the (FIRST TRUST) also referred to as a FAMILY TRUST.

You want to effectively separate assets from liabilities in separate trust structures.

Your paid up ASSETS should be housed in the WEALTH PROTECTION TRUST.

This is referred to as a “No Risk” trust. your WEALTH PROTECTION TRUST will hold debt- ‐free and risk- ‐free assets like paid- ‐off cars, furniture, household contents (typically your movable assets),

Investments, listed share portfolios, unit trusts, equipment, cash and even your life insurance.

There are (massive tax and protection advantages if your trust owns your life policy)

The 2nd trust is your WEALTH CREATION TRUST (property trust or business share trust)

This can be in the form of a property or business share trust (where your business sharehold-ing is protected in the business share trust)

Remember that having all your assets in the same trust can potentially cause the proverbial domino effect.

One single asset being at risk can expose all the other assets contained in that particular enti-ty.

This is the core reason you don’t ever want to mix your indebted assets with your paid- ‐up assets in the same entity.

For example bonded properties should not be mixed with paid up assets like your paid up vehicles, furniture and equipment.

By the way - ‐ an Inter Vivos Trust is the perfect entity in which to purchase your “buy- ‐to- ‐let” property portfolio.

THE SECOND REASON WHY A TRUST IS INDESPENSIBLE IS BECAUSE

2. There is no Estate Duty payable on your death.One of the biggest tax bills (besides your personal income tax bill) you will ever incur - ‐- ‐ oc-curs on your death.

As much as one third of all your life’s assets (your blood, sweat and tears) will go to SARS - ‐ these are assets that you have acquired with money you paid tax on while you were alive.

An important thing that you have to remember is that a trust lives in perpetuity (forever) your TRUST NEVER DIES.

By having a trust created the saving is 20% in the form of death taxes (above the 3.5million abatement amount).Effectively estate duty is a tax on after tax assets (this is what I call double taxation) and seems to me absolutely insane to have to pay it, especially if it could be so easily avoided.

3. THE THIRD REASON WHY A TRUST IS INDESPENSIBLE IS BECAUSE There are no Capital Gains Taxes payable on death.

Capital Gains Tax is a tax levied on the event of the disposal of an asset. The death of an indi-vidual is deemed such an event.

On your death it is seen as you have disposed of your assets to your deceased estate and this triggers the tax on all assets that appreciated in value.

By having your properties and all your assets in a trust, there will be NO Capital Gains Tax of 13.32% payable.

This means zero Capital Gains Tax on your death.

4. THE FOURTH REASON WHY A TRUST IS INDESPENSIBLE IS BECAUSE

On your death there are no executor’s fees of 3.5% plus VAT payable. Please note the executor who is appointed to wind upon your estate will charge 3.5% of the GROSS value of your estate - ‐ which means this could effectively end up being hundreds of thousands of rands.

If all your assets are in trust you will have no estate to wind up and therefore no executor’s fees are applicable nor payable.

THE FIFTH REASON WHY A TRUST IS INDESPENSIBLE IS THAT

5. There will be no costs on death payable.

Many costs will arise on your death like costs to cancel bonds, costs to transfer any properties. The estate cannot be wound up if there is any debt in the estate.

When your properties are held in trust the debt will not have to be settled and there will be no bond cancellation costs nor any transfer costs as the beneficiaries become follow- ‐up trustees to manage and administer the trust assets.

The sixth REASON WHY A TRUST IS INDESPENSIBLE IS THAT

It gives you incredible income tax benefits and advantages.

The primary reason why we create trusts is for asset protection.

However there is a very important concept firmly entrenched in the income tax act called the conduit principle. The trustees of the trust can choose to let the trust pay income tax on its income,

or they can choose for the individual beneficiaries to pay income tax at their personal mar-ginal tax rates, if the trustees decide to distribute the trust income.

If your children are beneficiaries and not paying tax, it would make sense for them to pay the income tax, rather than have the trust pay it, wouldn’t it.?

The first R70 700 income received for individuals earning income in South Africa is tax free.

So if you have children that are minors, it will be a good idea to declare the tax liability of the trust income in their personal hands instead of the trust.

This means the tax liability of the trust can be drastically minimized and cash flow can be optimized.

You can do the same with rental income and earned interest. This is absolutely awesome.

The seventh REASON WHY A TRUST IS INDESPENSIBLE IS THAT minors will be protect-ed.

The South African law does not allow for minors to inherit, this is because they do not have contractual capacity.

If you want to bequeath (or leave) your assets to your minors (children under the age of 18) the assets will have to be liquidated and paid to the Guardians fund which is like a money market fund administered by government. You definitely don’t want the government looking after your children’s money - ‐ until they reach the age of majority (18 yrs. and older)

Take care of you children and show your love by creating a family trust to protect your wealth not just today or on your death, but also for future generations to come.

THE EIGHTH REASON WHY A TRUST IS INDESPENSIBLE IS THAT THERE IS NO ES-TATE FREEZING AND YOUR LOVED ONES, LIKE YOUR SPOUSE, HAVE ACCESSto your accounts, assets and your cash immediately on death.

The Ninth reason why a trust is indispensible is because it is perfect for “buy- ‐to- ‐ let” prop-erty investment.

Unlimited losses can accumulate in the trust and refinancing is tax- ‐free. The trust can be used to accumulate more losses and purchase more properties with tax free money.

If you understand the bigger picture regarding this scenario and know how to practically implement it, it will be a total game changer for you and your property portfolio. We explain property investment, refinancing and building a property portfolio at our very popular IGrow property investment seminars

THE TENTH REASON WHY A TRUST IS INDISPENSIBLE IS BECAUSE YOU CAN LEAVE A LEGACY

If your trust is properly structured and drafted there will be comprehensive continuity and succession planning for generations to come and assets will transfer tax free from the one generation to the next.

11.THE REASON why a trust is indispensable. IS THAT THE TRUST CAN BE SELFSUS-TAINING AND SELF SUFFICIENT OVER THE NEXT FEW YEARS

THIS means that your trust will look after itself based on sound, progressive financials, as well as be in position to do AWAY with the need for any sureties and will qualify to be able to accumulate its own properties or assets without you standing surety for the trust in your private capacity.This means that a lot more properties and assets are able to be qualified for, and can be pur-chased which allows you or the trust to expedite your wealth creation strategies.

I really hope that what I have shared with you has shed some light on the myths, the advan-tages and incredible opportunities that lie in waiting for the entrepreneur and action taker.

Wealth protection and wealth creation are both critically important in today’s society and volatile economy. An unfortunate reality and frightening statistic is that more than 90% of business owners close their doors within 5 to 7 years of opening them.

If you are serious about creating, protecting, and growing your wealth while, very importantly leaving a legacy, don’t wait another minute.

It’s your responsibility to create, protect and grow wealth for yourself and your loved ones while you leave a legacy for generations to come.

Do it now, do it today and give yourself the peace of mind that you and your family deserves.

Successful investing