E11 Unlocking Wealth with Spendthrift Trusts: A Conversation with Sally Marie Gimon

[0:00] This is the Wealthy Investor Show, where we don’t just talk about your wealth, we also talk about your holistic health. I’m your host, Matias. And I’m Erica. And this is the Wealthy Investor.

[0:15] Welcome back to the Wealthy Investor. It is just Matias today. Erica is with the kids. It is the start of summer. Our first grader and our preschooler all had their last days and it was a half day. So they are all together currently at our second home, CrossFit. The kids are probably playing on monkey bars or playing with the rings as monkey bars while Erica tries to work out. But yeah, we have an exciting summer ahead of us. I don’t know. You all probably all have exciting plans as well, but we are planning to go to Switzerland next month for two weeks. We are spending my mom’s 60th, 70th birthday. Let’s just go with 60th for my mom’s sake, right? 60th birthday in Switzerland. We are fortunate enough to be able to travel with our whole family.

[1:02] My sister and her family and our whole family are going. So it’s going to be a lot of fun. We’re really excited about it. Later on this month, we’re doing a music festival. My Realtor Hat sponsors that every year. So we’re excited to do that as well as a family. It’s a really family-friendly music festival here in Virginia. It’s going to be interesting to see how this podcast works over the summer vacation months. Kids are going to be in and out of the house. So there might be more times where it’s just me or we might get interrupted with eager questions. I just cannot wait. But any parents out there with little kids can probably understand or relate to that. So life is what it is. And we’re just going to keep going.

[1:43] Excited for the summer months. Excited to be out on the deck that we built last winter. And actually being able to use it. I’ve had a couple mornings where I’ve built a fire in our solo stove on the deck and written, you know, getting up at 430 and watching the sunrise, which has been a lot of fun. Yeah. So let’s get a little bit into our guest today. Our guest is Sally Gimmon. Sally had a series of events happen to her and she’ll tell the story in more detail where she realized her life was not flexible and a little bit fragile. But, you know, a series of bad events could upset her financially and put her in a really bad position. So that was her catalyst to getting into real estate. And then she made good money in real estate and realized that she had to pay Uncle Sam a lot of money.

[2:32] And she had worked really hard to pay off all her debt. Again, she’s going to get into this, but then was surprised to learn how much she owed Uncle Sam at the end. So she researched and figured out spendthrift trusts. It’s a certain type of trust that allows her to not need to pay capital gains tax. So this is a product that she sells. We will provide information about how you can reach out to her and we’ll get into details about where and how this could benefit you as a business owner, as an investor, as a realtor, and how you can, you know, have this trust set up for generations. Apparently the Rockefellers are now on the seventh generation of this trust is what she said. So something definitely to pay attention to.

[3:21] It is a legal tax thing. It is an incentive, I guess, is one way to look at it. Anything that the IRS gives as discounts or the government gives as discounts on taxes are essentially incentives for you to do them. So pay attention to this one. It’s interesting. And we will see you back next Thursday with a new guest. But for now, Sally Gimmon on The Wealthy Investor. And welcome back to The Wealthy Investor. I’m here with Sally Gimmon. Sally, you are currently out of North Carolina, but you were from Arizona before. Is that correct? Correct. And you are an investor and your story, we’ll let you get into it in a minute. But it was interesting, you were telling me a little bit before we got on air here that you started this interest in trust, specifically the Spent Thrift Trust, right?

[4:12] Because of your investing. So do you want to tell us a little bit about your story, what got you into investing and, you know, how you got into the Spent Thrift Trust area? I appreciate. Thank you. My October 2018 was my watershed month. I was working full time as a Medicare broker, living in Phoenix. My oldest nephew was getting married in Charlotte. I had asked for the Friday before the wedding, the Monday after the wedding, to have off because I had friends and family coming around the world. For Medicare, that’s open enrollment time? They told me no. I’m like, oh boy, not happy. Second thing that happened, my brand new car, a Hyundai Velostra, three weeks old, driving to work at 7 o’clock in the morning.

[4:52] A guy ran the red light, T-boned me. I had the paperwork. I had the paperwork for Gap and Jures sitting on my kitchen table, not filled out. So I paid $8,000 upside down on my car loan, had to get a second car loan. Third thing that happened, my mom and dad, who lived in Goodyear, Arizona, about 20 miles west of Phoenix, drove to Charlotte for the wedding. And the Thursday before the wedding, I got a phone call from my dad saying my mom was in the emergency room and they weren’t sure what was wrong. She got septic of the blood, blood poisoning. She was on a ventilator for 13 months, in a hospital for 15 months. And my parents stayed in the Charlotte area for over nine months until my mom got strong enough to come back to Phoenix.

[5:31] So I was going out to their house every weekend to do the mail. First week of December, a letter that was 27 pages thick was from Medicare. It was my mom’s first month statement in the emergency room and on a ventilator. When I opened it up, it said it was $72,000. I’m like, wow. My dad, retired military officer. They had TRICARE for life. They had Medicare. She was taking care. I’m standing in my mom and dad’s kitchen. Thank God I wasn’t injured in my car accident because my deductible for my health insurance was $8,000. I have two car loans. I have a mortgage. I have student loans because I went to graduate school. And I have credit card debt. Right then and there, I used my phone to call my friend Glenn, who had introduced me to a real estate meeting back in August of 2018.

[6:18] And I just said, Glenn, I have to change my life today. He’s like, Sally, next Saturday, we’re having a potluck Christmas party. Bring a $5 gift and some food. Meet my fellow real estate investors. Best decision of my life. I went to the party and in 2009, I was 2019, still working full time as a Medicare broker. I wholesaled seven properties nationwide, paid off $184,000 in debt, and I was completely debt free. Woohoo. Yay, Sally. Rock star. Then my CPA calls me in April and says, you got to come in for an appointment. I don’t know about you, but when your CPA calls you, you don’t want to answer. Well, you should answer. But so I drive out to Scottsdale, park in the parking garage, go up to see him.

[6:58] And he goes, Sally, you know about capital gains. I’m like, yeah, I saved $50,000. It’s in my bank account. And he goes, no, your tax bracket went from 22% up to 24%. There’s seven different tax brackets from 10% to 37%. He goes, you now owe the federal government $97,000. I’m going to set you up on a monthly payment plan with the IRS. My stomach dropped to my feet, kept it together. I signed the paperwork, got my parking validated, go down to the parking garage and literally cry for 20 minutes. I mean, you’re a real estate investor, you know, wholesaling, it’s feast or famine. Either you got a deal in the pipeline or you don’t have a deal in the pipeline. And this is COVID. So a lot of things dried up.

[7:40] So I drive back to Phoenix. My boyfriend made dinner. We sat across from each other going, what the hell are we going to do? You know, I had some money, which we were going to pay for the first few months, but we had to find more deals. You were asking about my favorite book. My great aunt Kitty in Ireland always made a comment. When you have a problem, think about it and go to sleep. I woke up, it’s called Power of Your Subconscious Mind by Dr. Joseph Murphy. I woke up the next day going, I read an article about the Rockefeller Spendative Trust about five months ago. Let me get online and Google it. This sent me down the rabbit hole. The Rockefeller’s Trust is seven generations old. It started in February of 1913 when our tax code went into effect.

[8:25] And I started researching this. So the Spendative Trust is legal. It’s in the IRS tax code. It’s been in front of the United States Supreme Court on two different occasions. Both times it’s been approved. And I’m like, I got to find out how I can get one. September 2000, I started both my business trust and my beneficial trust. And I started, I was the first female mastermind in my real estate group. Very proud of that fact. And for 18 months, I was teaching other real estate investors how they can stop paying capital gains. Interest income taxes. If you do notes or seller financing. Rental income taxes. If you have Airbnbs, vacation rental. Five doors. Ten doors. Twenty doors. Or if you’re doing arbitrage.

[9:04] And keeping the money in the trust. And using all that money you save for more real estate. It’s an amazing thing.

[9:14] Yeah, that’s… Wow. What a story. Let me backtrack here for a second, if you don’t mind. You were completely debt-free. Does that include a mortgage? Like for your primary house? When do you pay that off? I paid off my house. I’m very proud of that fact. And when I got the message that I had $50,000 and I had to come up with another $24,000. The thing we decided to do was do a HELOC on my house. So I didn’t get on the payment plan. I paid off my taxes on time. The fees, the purpose of being paid off. And I’m like, it really irked me. And that’s why I wanted to find out about my own… How I could start my own spendthrift trust. My first property that I got July of 2020. It was a bank-owned reverse mortgage.

[9:56] You know, I had an LLC. So I was in North Carolina. So I could go visit my mom in the hospital. You know, there’s a reason for that. It was in the middle of COVID. It was going to go to auction for $50,000. So I bought it for $20,000. I knew my 24% was going to be over $7,010. And I’m like, okay, at least I know how much I’m going to owe on this house now. But it didn’t go to auction until August 28th of 2021. COVID restrictions. And I bought it in July. I put it into the trust in September. And the only thing I had to do was two simple bill of sales. I drove to the bank, got him notarized. I had $10 in my purse, gave $10 to my banker. He made a note in his notary book that there was consideration.

[10:40] Go back home. I scanned him, sent him to the attorney in Raleigh, North Carolina. Next day, the attorney says, I need the first page of your trust. Send that to him. So an hour, maybe let’s call it two hours of working. When it finally went to auction, August 28th of 2021, instead of $50,000, it went up to over $64,000. Yay, Sally made $44,000. But more importantly, I saved $10,357 in capital gains, short-term capital gains on that first property. And I’ve never looked back. Okay. So that would have been, that $10,000 would have been the 24% of capital gains tax. Is that correct? Exactly. Exactly. I personally use 24% on all my real estate because that’s how I started in the trust. I’ll be honest, I’m not trying to crow, but in the last three and a half years of having the trust, I’ve saved over six figures.

[11:33] I’ve done 28 wholesale deals. And now I’ve got 12 notes. And now I’m doing seller financing, which is a really neat way of doing when I can’t wholesale a house. Yeah. No, that makes sense. I mean, you want to talk a little bit about that strategy? So when this aired, we should have already had James Brown talk about his seller financing deals, his lease option deal. Yeah. Tell us a little bit about how you do your lease option. One of the reasons I moved to North Carolina, very odd rule. There’s 101 counties in North Carolina. Have you ever done an auction house anywhere in the country? What do you mean by that? Gone to an auction. Correct. Yes. Yes. I bought an auction. Well, I’ve done that before too.

[12:14] Here in North Carolina, you have to know what county you’re in. And it’s either 10 business days or 10 calendar days. So I came out Christmas 2001 and I went to two different counties and I won three upset bids. And I wholesaled all three of them, paid off the county. And then I did like a double close, paid off the county and then gave the paperwork to the person I wholesale to. My brother’s like, are you stealing money from the bank? How are you doing this? I’m like, it’s real estate. It’s great. So I stay out of Mecklenburg County where Charlotte is because it literally is a three-ring binder and people fight over it. I go to more rural places. One house that I got in November of 2023, I won for $259,000.

[12:56] I put it up to wholesale it and the market changed overnight. You know, interest rates went up and I wasn’t even getting nibbled. Nobody was contacting me. So I researched seller financing. I put it up on Facebook saying, hey, I’m going to seller finance it. I did get a hard money loan because I had to pay off the mortgage on the house, $259,000. Thank God they didn’t pour concrete down the sink or anything like that. The kitchen is a little bit old, but it was okay. I opened it up over the weekend and I offered it for $310,000. The husband and wife with two children, she’s a digital marketer. The bank won’t give them a loan because her salary is not, you know, she’s a stay-at-home mom working digital marketing.

[13:41] Self-employed. So she couldn’t get the loan. So they put $20,000 down. They’re paying me $2,000 a month. They have until November of 2025 to either get a loan, give me another $20,000 or move out. I mean, it’s the first time I’ve done that. And, you know, I do have a traditional bank loan against it for the first time ever, but I’m making $600. You know, I pay off my mortgage and then I have an extra $100. And just that one house alone, when it all finishes, let’s say she gets a loan in November of 2025, I’m going to save over $75,000 in interest income taxes because of my Spent Thrift Trust. And that’s all my money that I can reinvest over again. I mean, it’s an amazing thing. Yeah. Wow. Wow.

[14:28] And that sounds a lot like what James Brown was talking about where he basically, you’re finding people that aren’t quite eligible to get a loan right now, but they would be soon. And you had told me before, well, that that house was probably worth closer to $3.35, or at least that’s what Zillow was estimating. Zillow, if you trust Zillow, Zillow said it was $3.65. The contract I have with the husband and wife is for $3.10. And she, the wife is just like, I love this house. And the husband’s like, we have to redo the kitchen. Like, I love the 70s kitchen. Like, that’s your problem now. I’m not touching it. So you get the tenants that are interested in the house. They’re treating it like their own, right?

[15:07] Because they’re planning on buying it. You have the, you know, they’re getting a win out of it because they, first of all, would just be paying rent. Otherwise, they’d probably be paying $2,000 anyway for a house that they’ve lived in, like they’re not receiving nothing back. And they already have built-in equity if, you know, God forbid that the market isn’t crafted something, which we’re not anticipating. But, yeah, it’s a really creative. I think a lot of times people think that the lease to own, rent to own, lease option deals are kind of have the stigma to them. Like, you’re just taking advantage of the people that are using them because you’re setting them up for failure. But this is a perfect example again of how- Perfect example because they have equity.

[15:46] And by the time it comes up in two years, they’re going to have an extra $44,000 more in equity. She’s going to have two more years as being a digital marketer. You know, I’m not making fun of her, but the bank might say, hey, you’ve been doing this now for three and a half years. Right. I mean, the husband does have a W-2 job, but, you know, they couldn’t get a loan. You know, the husband, the price of the house and how much the husband was making that the bank was saying that they were, how do I say it? They needed her income as well. It wasn’t correct. And, you know, you talked about doing the BRRRR strategy. I don’t know if it’s going to turn into the BRRRR strategy or not. I now have three seller financing houses and all of them are the same situation.

[16:25] You know, I’m making money on all of them. And when it does come due in two years from now, because that’s how I’m writing the contract, they know the price. They know what they’re doing. They know that $20,000 is non-refundable. They know that $2,000 a month is non-refundable. They’re happy with it. You know, I tell them, here’s the contract. Take it to an attorney. Please decide before you sign. You know, I have nothing to hide. Yeah, because if it works out the way that everybody’s planning, it’s a win for them. It’s great, for sure. And, you know, got it right, doesn’t it? You could BRRRR it. You could rent it and try to get your cash out of the property as well and rent it out and hold it long term.

[17:03] Or you could just turn around and charge me the thing again. Right. And then you could, but I think ultimately the thing, you know, is setting the people up for success. You want them to be able to ultimately get the house that, you know, you want them to follow through with it. And often if they are self-employed, like maybe this person is, you know, you need two years of income to show the bank for them to count it. It’s a win-win-win. I’m happy. The husband and wife are happy. You know, I don’t have my crystal ball, but hopefully they’ll have this house. And they moved down here from Long Island. So they were looking at houses and like, we don’t have the money to buy these expensive houses.

[17:44] And, you know, I hope appreciation keeps going up. I, again, I don’t have the crystal ball. You can’t control it, but. It’s a three bedroom. It’s a four bedroom, two and a half bath house. And they love it. I mean, it’s perfect for a small family. That’s not a good point that $20,000 is not a huge down payment. So like if it, yeah, to be able to buy something. Yeah. I mean, it’s just, yeah, all around it. It’s just a really win, big, great win-win strategy. Now, Sally, I got to admit, I’m, I’m a little bit dense sometimes. Yeah. Come on. I want, I want you to explain to me like I’m five, um, the spent thrift trust and let’s do this. Let’s, let’s, let’s open up my world. Let’s open up this book of who I am and what I do.

[18:30] And maybe you can explain to me and the viewers how you, the spent thrift trust would benefit. So, so I am a licensed realtor. I sell real estate. I have an S corp for that business. I got to sell an LLC and I also will renovate houses. I do a few projects every year, probably three or so on average would be about what I do. If it’s in a location that I really like, I will hold that property. So we’re talking about the birth strategy where I basically buy a fixer upper, pick that house up, refinance the money out of it, and then put a renter in it and make a good, a cashflow off of that. So that’s a strategy I like to do. If I like the location of the house, I like the house. Um, and then I will also flip houses.

[19:18] So that usually is going to be less than a year of, you know, owning that property. So tell me what am I missing out on by not having a spent thrift trust. Let me ask you not to put you on the spot, but the last house you flipped, how much did you make in profit on that house? The last one that I flipped. I’m trying to remember now. So there, there have been a couple that I’ve, I’ve resold and not done much to, but I would say, and I’ve often had partners. So I would say anywhere from the low end would be like 17,000 to the high end would be if I had a partner, have I done, have I actually sold something that I owned by myself? I don’t think I have. So I think the high end would be like 40 or 50,000.

[20:05] Right. Just to give you an idea. If I’m assuming you and your wife filed jointly on your taxes, correct? Yes. Yes. So there’s four ways to file your taxes. Single, headed household, jointly married, uh, married separately. Just to give you an idea. If you’re at 22% where I was, where I thought I was $50,000 in profit would be $11,000 in capital gain. At 24% where I ended up being $50,000 in profits would be $12,000 in capital gain that you would say, instead of paying the federal government, I’m not, you know, I’m not anti-government, but this is, it’s in the IRS tax code. So that $11,000 or $12,000, depending on your tax bracket, do you know where your tax bracket is right now? Not off the top of my head.

[20:51] Just the main, the main thing. Taxes have gotten so complicated that I, I, we have a bookkeeper, an accountant, and my wife is the layer between me and all those people. I’m not a, I’m not a tax accountant. I just take people out to a free website, a nerd wallet, N-E-R-D wallet. Yeah. So you can figure things out. And, you know, again, they give you a chart and things like this. Those numbers are from 2023, but still, it’s still true for 2024. And then when you’re doing, here’s what I, I, I’m not a tax accountant, but if you’re doing the birth strategy, you’re taking the equity out and redoing that. That’s usually tax free. But when you go to home, when you go to sell that house, that’s when you’re going to pay, because it’s an investment property, more than a year, capital gains are either 15% or 20%.

[21:39] So give you an idea. I work with business brokers, you know, people who are selling something, a restaurant that just sold May 31st. So Jim and his two brothers built the restaurant. That got good for them. They left, they sold it with everything in it. It was going to be long-term capital gain. He, he’s 69. His wife is 64. They sold the house, the restaurant as is, all the food, the cutlery, the, everything in it. At 15%, he saved $460,000. At 20%, he saved $600,000. And I said, you know, I don’t know if you want the trust. He’s like, who gets that money? I’m like, it’s now your money. You’d have to pay this money April 15th, 2025. And he’s just like, sign me up. If I’m going to save that much money and, you know, six figures for the retirement.

[22:28] That’s, that’s huge. So, so the, the trust acts as an entity, right? I mean, it’s, it’s, I mean, explain to me how a trust works. So instead of Matthias Clymer, you know, filing for my taxes or whatever, or, you know, one of my LLCs at the trust that, that would be the taxable entity. Or how do they work? You’re going to get a new EIN. You said you’re in an S corp right now. So you currently have an employee identification number, correct? Yeah. I have like five, but yeah. Okay. With the Benson Financial Trust, what I sell, the four ways it’s going to save you. It’s going to save you taxes year after year, generation after generation. It’s going to keep your information completely private. No offense.

[23:09] I can go to the secretary of state in Virginia and look up old S corps and 40% of old LLCs get sued every year because people do that. Third way it’s going to do it. If you get every asset into the trust, your personal home, your vehicles, your real estate, it’s a titanium vault. They can’t get to it. But if someone tries to sue me, they can sue me, the individual. I’m worth nothing. I mean, you can’t get money from, from a stone. So it becomes frivolous. And in the fourth way, are you aware of the 2024 Corporate Transparency Act from the Treasury Department? Oh, I did hear about this, but I’m not an expert. But it’s fine. Okay. Some people call it the CTA. The Treasury Department is requiring all entities.

[23:52] I don’t care if you’re an LLC doing business as S corp or corporation to fill out the paperwork for the Treasury Department. If you have the Benson Financial Trust, you’re exempt from doing that. My question is, what’s the Treasury Department or FinTech going to do with this information? They’ve been hacked three times so far this year. You know, if I’m a hacker from Russia or China, guess what? They want your driver’s license. They want your phone number. They want your address. They want your passport number. I mean, all in one location. No, no, no, no. No, it’s too easy. So with this trust, it will go from generation to generation. Like, I don’t have any kids, so I have six nieces and nephews.

[24:32] They’re all W-2 employees. I can’t help a W-2 employee. But for every Christmas and birthday, they get a silver coin so they have something in the trust, you know, if something happens to me. Sure. That’s interesting. I want to touch a little bit about the lawsuit stuff. This is something I’ve gotten into or I thought about a little bit. And I think there’s a common misconception or people are, you know, don’t really understand why you would need to. Like, if I’m not doing anything wrong, why should I even worry about, you know, getting through? And I think especially when you’re getting into space where you’re investing and you’re building assets, you’re building wealth, it’s smart to have asset protection, right?

[25:09] I mean, so even if they help me consider you, force them to know what’s your fault. I think I heard an example once about the owner of a nightclub. There was a valet parking employee that hit somebody and paralyzed them. And that owner of that nightclub didn’t have his assets protected. And the lawyers went after the owner of a nightclub, even though the owner had really nothing to do with what just happened. And since all the, you know, a lawyer can look up to see, you know, how much is available. And you’re talking about, you know, if you don’t have anything to your name, well, you’re not going to be very attractive to a lawyer. But they can look up how much assets you have. And if you have a lot, they’re going to be a lot more incentivized to sue you and to take you more than what the insurance was to pay out.

[25:55] And so it’s not about like not if you make a mistake of an accident, you know, your insurance is there for that reason. You’re going to, you know, cover the people with what your insurance has. But if you have a lot of wealth, then a lawyer could see that and then come after you. And so putting these things in place just makes it more difficult, I guess, for what you’re saying. I’ve got two different stories about this. Sure. One story from my real estate group in Arizona. Brandon, Brandon’s sister is a real estate agent. Her entire job for him is to find houses near. He’s got this beautiful multimillion dollar house near Mayo Clinic in Scottsdale. She found it a good price. Brandon does Airbnb on it.

[26:38] This is 2023 Memorial Day. So we just did. What were 2024? So 2023 Memorial Day. He gets a text. He’s down in Rocky Point, New Mexico. And the text says, my daughter’s renting your house here in Scottsdale. I chipped and fell, broke my wrist. I’m going to do you and put a mechanics lien on your house. Brandon’s like, oh, I won’t say curse words. He’s calling me from this is the Saturday Memorial Day weekend. He’s calling me. What the heck do I do? I was like, Brandon, calm down. Don’t worry about it till you get back to Phoenix. Then we’ll have a conversation. You know, enjoy Mexico. He gets back. I said, wait until you get the information from her attorney. When you get the information, send the first page of the trust to the attorney and it’ll go away.

[27:24] Well, this is last year. Brandon gets curious because he’s a curious person. He researches the attorney’s name and the woman who tried to put a million dollar lien against his house. You know, this beautiful house there. In the first six months of 2023, she had sued six other Airbnb hosts all over the, you know, Nevada, California, Arizona. It was a scam. They put a lien on the house to get the equity out of the house. And he’s just like, Sally, you just saved me a million dollars, let alone the rent I’m making on the house. I’m like, congratulations. If I have time, I have a second story. I’m in a national real estate group. This was, I went to the national real estate group, March, April, 2022.

[28:06] They, they give us assigned seats and I’m sitting next to this guy who is madder than a wet head. His name is Patrick. And I’m like, hey, what happened? He has a hundred doors in Chicago. One of the renter’s dogs got out, bit the mailman. The mailman hired an attorney and he found four of Patrick’s rental properties. The insurance company paid him $400,000 for, for a dog bite. And so Patrick’s like, now my insurance is going to go up. This is just crazy. So I told him about the trust. He became a client. Again, this last, this past summer, I have not seen his RV, but knowing Patrick, it is one of those quarter million dollar humongous RVs that the infections come out and everything else. He couldn’t slow down for traffic.

[28:49] He hit the car in front of him that squished the, hit her into the car in front of her. The, the RV is in the trust. The insurance card shows the trust name. Patrick’s Illinois license shows Patrick’s name. They exchange information. No one’s hurt. The insurance company pays to fix the cars, everything else. Six weeks after the accident, he gets for pain and suffering, a half a million dollar lawsuit from the woman who got squished. He’s like, well, my insurance company paid you. My insurance rates went up. I’ll take the responsibility of everything. But I refuse to pay pain and suffering. She had his name. She had the name of the trust. She had no clue. He had 120 doors in Chicago. She just knew he had this RV.

[29:32] He sends the first page of the trust to the attorney. It completely went away. And he’s like, I got to tell more real estate investors about this. This is, this is amazing because, you know, I’m not wishing her to be in pain, but a half a million dollars for pain and suffering when the accident happened at less than 10 miles an hour. That’s crazy. And I think, I think this is the, the, the sad reality of what the environment we live in right now is that we have attorneys that when there’s the opportunity to sue, they will. And the opportunity is actual having money. So that’s, you know, it’s unfortunate that we have to take these measures to prevent that kind of thing from happening. But I think that’s just, you know, the reality of where we live.

[30:15] I mean, if you go to the Las Vegas strip, you know, the two miles of Las Vegas strip, there are over 118 billboards dedicated to insurance, to attorneys who will do accident fraud and everything. I mean, that people make their livings off of that. I, I, I’m sorry to say that. Personal injury and all. Yeah. Yeah. And I mean, you, you feed on TV, you’ll find people like, you know, they, they’re wearing the, like the mech brace and then they get out of wherever they’re doing to take it off. But yeah. And, and, and the bottom line is that we have insurance and the insurance will pay out, you know, what’s appropriate to the group. Right. I mean, obviously there’s limit to it, but it, when the attorney wants to take the next step further to, to really.

[31:01] I never heard of someone putting a mechanics lien on an Airbnb, but she had this entire, when I started talking to, you know, the law firm, they’re like, oh, that used to happen a whole lot. People, people know how to do this. I’m like, that’s just criminal. That’s just not fair.

[31:18] Yeah. Yeah. Especially because, I mean, you know, who knows if she actually tricked and that would probably her fault. Correct. Okay. Okay. Tell me a little bit about, you’re saying that the trust passes down to different generations. So I’ve got three kids and I know that there, it could be a bit of a mess too. I know a trust for one thing often cleans up or make like probate, that kind of stuff a lot more smooth, a lot easier. What, what happens when I, you know, read my kid properties, you know, that they, if they choose to sell them, like what happened with the expander of trust? Great question. Yeah. So 97% of the trusts out there are what my mom and dad had and what Sue Norman talks about on television, the family trust or the living trust.

[32:05] Yeah. There’s nothing wrong with that. And it avoids probate and then it dissolves and it goes away. This trust avoids probate, avoids inheritance tax. And then your children, you know, let’s say you leave them an empire of a hundred doors. Congratulations. You know, 33 to one child, 33 to another child, and your favorite child gets 34. So they’re going to, they’re going to continue to save rent on income. They’re going to continue. If they decide to sell the property, they won’t pay capital gain. If one of your children marries Susie the floozy, just making fun of this, you know, and they have three, they have two kids and then they get divorced. You can decide Susie the floozy is a beneficiary for the five years they’re married.

[32:46] And then when they get divorced, she’s no longer a beneficiary, but your grandchildren are still beneficiaries. Like you, you can decide who’s a beneficiary and who’s not the beneficiary. So you said that up in the beginning. It could be business partner. It could be your parent. It could be your cousin. You know, once you start the trust, you are in charge of who the beneficiaries are. We’re not telling you who to make a beneficiary or how to make a beneficiary. We’ll answer your question, but you decide and you decide when that person is no longer a beneficiary. You know, one of my clients, the true story, three kids, one child is unfortunately on drugs. She, the parent, they have apartment buildings in Los Angeles.

[33:25] They, they’re requiring her to pass three drug tests a month to stay in the apartment building. She went to go sue her mom and dad saying, this is unconstitutional, saying you can’t do this. And the judge was like, you can live for free and be drug free and not have to pay rent. This, you know, you do this. And she’s just like, well, I want my equity out of the apartment buildings now. And they’re like, they, they’ve no longer made her a beneficiary until she gets cleaned up, if that makes sense. I mean, it’s, it’s a hard decision, but that’s what they had to do. Yeah. Yeah. It, I think the wealth and parenting is a whole nother topic. And, and I think you do want to leave a legacy for family and family and you want to make sure it’s, it’s done correctly.

[34:08] And the neat thing, when you do decide you’ll want, you got three kids with a hundred doors, one child gets more houses than the other one. You’ll, they can’t contest that. They can’t take it to the court because it’s all in the trust. Either you’re six feet under the round or you’re cremated. They can’t come back. They might say negative words about you, but they can’t change whatever you decide. So if you decide I’m leaving 50 doors to one child, 25 doors to another child and 25 doors to the third child, that’s your decision. Great. Yeah. That’s really interesting. So you say you’re selling this product. Is that, is that correct? Correct. If you go out. I’m sorry, go ahead. No, keep going.

[34:50] If you, if you research 643 B tax code, 643 B there’s going, you’re going to find an opinion letter from the IRS saying they want to change the rule. It’s an opinion letter. IRS can’t change the tax code. Only Congress can change the tax code. Worst case scenario. If they ever, I’m not calling it the do nothing Congress, but they don’t do very much. If they ever get their act together and change the tax code, my business trust and my beneficial trust are already established. And it’s a contract, it’s contract law. The only people who can change it is the law firm or myself. IRS can’t do it. If they change the code, I might not be able to sell any more trusts, but my trust will keep on going.

[35:33] I mean, not, not to crow, but with my business trust, I have three online businesses. 2022 and 2023, I saved 92% on my federal income taxes. I didn’t pay any North Carolina taxes. I was happy to pay 8% to the federal government for my online businesses. And I’m like, well, I just saved a whole bunch of money and that money will never be paid back. Wow. Yeah. And, and people, you know, I think one thing about the official tax code or, or people talking about these tax, is that a book negatively, right? I think like, you know, it’s really, it’s really, you know, it’s all written in the, it’s what only, it’s all written in the code. And the only difference is if you know about it or not. And like anybody will take advantage of what tax code they, they, they know of.

[36:22] I mean, I think that, I don’t know of anybody that, you know, refuses to, you know, claim their children as dependents or whatever, you know, tax advantages they take. So learning more about, and another thing, another way to look at it would be, it’s kind of like you’re giving yourself a raise, a 24% raised, you know, for the short term capital gains or whatever, but it’s another way to look at it. So that’s super interesting. What are some good ways? Go ahead. The first page of the tax code says it’s up to each individual to save as much as they can. And again, I just followed the breadcrumbs. You know, I read the article about the Rockefeller’s trust. It’s called the office. Anybody else can go out there and research this too, but I’m trying to learn.

[37:04] I’m trying to make the learning curve as easy as possible for other people. That makes sense. But what would be the next steps for people to reach out if they’re interested? I appreciate that. I have a free class. Have you ever heard of Six Sigma? The consulting group? Yeah, I think so. Tell me about it. They just started a new competition versus Kajabi in school. So my free class is my name, www.sallygibbon.com. I have a presentation with slide decks. I have three articles from Forbes magazine. I have two pages of case law there. And then I do have, again, talking about the most expensive way to file your taxes is single. So if you’re making $80,000, how much you would save in all 50 states?

[37:46] You know, seven states don’t have state income taxes. South Dakota, Nevada, and Texas. So you would only save $11,348 a year. But here in North Carolina, I’m saving over $14,000 a year because state and federal income taxes put together. It’s just to give people information because so few people have ever heard of this. It’s not taught in school. It’s not taught in university. I mean, I took five months. My background is research, and it took me that long to find this. Awesome. And we’ll link that in the show notes as well. Are you on social media? Do you want anybody to follow you on those platforms, any platforms? My first name and my last name, I’m on Facebook. I’m on TikTok. I’m on TikTok with my name.

[38:33] And then also I’m on there with Spinswift Trust. I’m trying to grow my YouTube channel. I’m at 936 people. I’m growing it slowly. But I think it’s Sally Gimmon. The only thing where it’s backwards is, what’s it called? It’s not Twitter anymore. What’s it called? X. X. It’s Gimmon Sally. I mean, having a different last name helps. Yeah. Okay, cool. We’ll link that as well. Well, thanks so much for being on. It’s been a really informative conversation. I appreciate you having me to talk here. Thank you so much. Yeah. Yeah. Looking forward to connecting.

[39:09] Thanks for listening to the Wealthy Investor Podcast, where we talk about wealth and holistic health. If you enjoy our content, subscribe wherever you get your podcasts and hear new episodes every Thursday. If you really like our content, you can follow us on social media at The Wealthy Investor. Wealthy Spell, W-E-L-L-T-H-Y.