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Sunday, February 21, 2016

TNT :Craziness - General Advice by Mother, Esq., 21 FEB

    • Mother said
      09:18 AM Feb 20, 2016
    Dear TNT Family:

    I have put off writing this but felt compelled after the past week. Craziness abounds and I think it is time to once again bring folks back to reality on a few issues:   I am going to simply put some headings on some things below and make comments and share facts and my opinion.   Take it for what it is worth I am not charging my regular $300 an hour I am sharing my thoughts and analysis.  Some may agree and some may disagree that is what is great about this wonderful country.   We can agree to disagree respectfully.   So I will leave it at that.

    I want to say this.  There are many solid strategies one can use to protect assets, minimize tax liabilities etc.  However all of these cost money.  If you think it is free then you are getting exactly what you paid for it.     I have advised time and time again on the TNT forum to wait.   Do not get the “Cart before the Horse”. You have no idea at this point how much money you will have therefore you cannot even begin to ascertain what you need.   

    TRUSTS:

    A TRUST is not a panacea. That is what it is being hyped up for and it cannot do all the things being alleged. There are way too many arm-chair quarterbacks who have neither the experience nor knowledge to be giving advice on forum blogs etc.   If anyone sets up a TRUST with the idea they are going to be deferring taxes for current tax obligations they are fooling themselves.   Especially if they themselves are in any of the two roles.  Grantor/Trustor, Trustee, Beneficiary.   The IRS will look a these TRUSTS and treat them as a sham.   If you persist they will come after you for Tax evasion and fraud.  And then hit you with penalties and fines the whole purpose of which is to punish you for your ignorance.  “IGNORANCE OF THE LAW IS NO EXCUSE”

    FOUNDATIONS:

    Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a)). In addition, certain nonexempt charitable trusts are also treated as private foundations. Organizations that fall into the excluded categories are institutions such as hospitals or universities and those that generally have broad public support or actively function in a supporting relationship to such organizations.

    Even if an organization falls within one of the categories excluded from the definition of private foundation, it will be presumed to be a private foundation, with some exceptions, unless it gives timely notice to the IRS that it is not a private foundation. If an organization is required to file the notice, it generally must do so within 27 months from the end of the month in which it was organized. Generally, organizations use Form 1023, Application for Recognition of Exemption, for this purpose.
    All private foundations, including nonexempt trusts treated as private foundations, must annually file Form 990-PF, Return of Private Foundation. Forms 990-PF and 1023 (where applicable) are subject to public disclosure

    In addition, there are several restrictions and requirements on private foundations, including:

    1. restrictions on self-dealing between private foundations and their substantial contributors and other disqualified persons;

    2. requirements that the foundation annually distribute income for charitable purposes;

    3.limits on their holdings in private businesses;

    4. provisions that investments must not jeopardize the carrying out of exempt purposes; and

    5.provisions to assure that expenditures further exempt purposes.

    Certain nonexempt trusts that have charitable interests as well as private interests may also be subject to some of the private foundation tax provisions. These trusts must annually file Form 5227, Split-Interest Trust Information Return. See Form 5227 and Form 5227 instructions for more information.

    Violations of these provisions give rise to taxes and penalties against the private foundation and, in some cases, its managers, its substantial contributors, and certain related persons. For more information, see Recent Developments Under Chapter 42 or Private Foundation Issues. See Control and Power for a discussion of how the section 4941 self-dealing rules apply to private foundation dealings with disqualified person financial institutions and their financial products and services.

    A private foundation cannot be tax exempt nor will contributions to it be deductible as charitable contributions unless its governing instrument contains special provisions in addition to those that apply to all organizations described in 501(c)(3). See Publication 557, Tax-Exempt Status for Your Organization, for examples of these provisions.  In most cases, this requirement may be satisfied by reference to state law.  The IRS has published a list of states with this type of law.  See Revenue Ruling 75-38, 1975-1 C.B. 161.

    This is the BLACK LETTER LAW on Foundations.  It is merely a summary I have put references to subsections you need to be aware of:  Chiefly – self dealing which I think a lot of folks do not understand.  Additionally there are provisions in the code for foundational expenditures these expenditures are to further exempt purposes.   Go back and look at the points above enumerated.  I shared the above so you understand the complexity.  This is not a do it yourself device.

    BASIC ADVICE:

    Tony stated on many occasions and others have as well that the percentages of those who will have the majority of funds received from the revaluation proceeds in 18 months from “the exchange” is less than 4%.   You want to know why? In addition to family pressures, and schemes by dishonest brokers and schemers and  foolish ignorant strategies by folks who do not understand legitimate well constructed strategies as compared with knee jerk decisions.   

    A well thought out plan takes into consideration; estate planning, asset protection, tax efficient strategies, management of assets, income strategies, age of recipients, mental capacity of recipients.   All of these things require the use of legal structures and tools to come out with the most efficient, effective use and the marshaling of assets to maximize the benefits for individuals involved.   And this is accomplished based upon factual information not needless speculation.   Again I refer you to what I said back in the opening paragraphs. Do not get the “cart before the horse”.  No one knows how much you will have, no one knows what the tax consequences will be if any.   And as I have said time and time again – a well thought out strategy takes time.   3 to 4 months up to 6 months.   It will include a myriad of legal devices, perhaps trusts, perhaps limited liability companies, perhaps private foundations, perhaps power of attorney, perhaps contracts for services, lease agreements, joint ventures, limited partnerships, charitable trusts.  There are so many I hesitate to even list them.  

    And the terms vary from jurisdiction to jurisdiction.  From the use of guardian, to curator, to life estate or usufruct, domicile to legal residence, corporeal to non-corporeal, to tangible, intangible, community, to tenancy in the entirety, perpetual to limited, Trust-or or trustee.    Each state has its own legal jargon – you cannot simply take a form from an office supply house or one from Amazon.com or from a seminar and fill it in.   Each state has different powers it grants to a Trustee versus another state.   All these things are defined within the various codes of the states and regulations that define the same.  

    My suggestion is to use basic common sense.   When this event “Revaluation of Currency” happens exchange into:

    1.Separate Accounts each currency you exchange

    2.Set up a Mirror account to transfer monies for anticipated taxes (You can do what you want I am going to put my monies in this “Tax Account - IQN” / “Tax Account – VNN) then the monies  of these tax accounts into  Grade AAA municipal bonds. I am going to be earning tax free income until whatever tax liability is determined.  The interest from the Municipal bonds will sweep into a third account.   (It is so ridiculous all these people wanting to put money into non-interest accounts that is poor stewardship in the first place and if you want to protect assets put into security that will not lose value is tradable and has a guaranteed value.   I do not care what you put it in but to leave in cash in a bank is foolish.  These monies set aside for tax purposes need to be liquid/tradable and the value protected.  I am just using Municipal bonds because I believe in being a good steward and I do not want to compound my tax situation if any by earning taxable income on taxable money.  


    3.And I am going to set these 3 accounts up for one currency under my name and social security number.  Not going to get cute and run through an LLC or Trust.  My main account might be invested the same way as above – at this point I do not know because I have no idea how much I will have.  

    4.My goal is to live by the 80-10-10 rule.  Live off 80% of the Interest generated, gift 10% and reinvest 10%.  


    5.If taxes are owed then you simply liquidate the municipal bonds in the Tax Accounts, pay the tax and go on. Meantime you have been earning tax free income off these monies.  And you have kept everything in distinct accounts. Do not merge accounts or monies until all the taxes if any are taken care of.  

    6.Keep meticulous records


    7.Use a Tax Attorney – not a CPA. Please go back and read that again.  Make sure when you meet with the Tax Attorney he will represent you if there is an error and will defend the same and will cover interest and penalties if his/her firm makes a mistake. You will still have to pay tax if owed but his/her firm should pay penalties and interest because it is their fault and should represent you before the IRS if there are any audits.     If a firm is willing to do this then use them.   If not look for someone else.  To be doubly safe find a well connected Democrat that is a tax attorney or former IRS attorney.   Just kidding ---- 

    Once the tax situation is finalized then you can do whatever you want with the balance of the monies. You could even go onto a gambling boat or casino and blow it all the IRS will not care.    


    My main advice:

    1.Keep all accounts separate
    2.Do not try and get cute with trusts and LLCs in the United States with before tax income
    3.TRUSTS do not defer or hide income – 
    4.LLCs do not defer income – as a matter of fact all income is passed down to you the tax payer and is for certain taxable if you directly exchanged monies into an LLC upon exchange you will remove any doubt about the taxation and it will be taxed.  So WAIT be PATIENT

    There are plenty of good people out there – go look for them.  Again I have suggested Wealth Managers of large banks. However there are other Private Financial Planners use the Internet and contact them ---- after you have the money.   Do not insult the planner by hypothetical situations when you cannot pay them.  They are professionals treat them with courtesy and respect – their  time with you is their currency it is their stock in trade.   Do not waste their time until you can put your money where you mouth is.  

    RIDICULOUS STUFF:

    1. Golden Age of Gaia. ----> “Gaia means Goddess of Earth”
    2.Ascension with Mother Earth
    3.Galatic Connection
    4.Nesera
    5.Starship Earth

    I list these above because many folks get gleeful when they hear such official sounding terms as USN, TRN, Republic, Humanitarian Projects, Prosperity Packages, Trading Platforms.    

    LISTEN TO ME:  I challenge you on your own go google those terms.   If you google USN your going to get US Navy.   You will have to google United States Note and for TRN you have to google Treasury Reserve Note. -----> these do not exist.  All of these things I have mentioned are preached on sites all with the names above.  When you go their sites you are entering the “Twilight Zone”. 

    In all my years of practicing law I cannot even begin to tell each one of you the numerous times I have heard about Humanitarian Projects, Trading Platforms and Prosperity Packages.   They are as old as the word FRAUD.    On behalf of numerous clients usually after they have loaned or given thousands and in some cases millions of dollars to Fraudsters I get called in to help look for the money or try and recover.   I am telling you in every single case and that is 100% I could never locate the person or persons behind the alleged schemes.   You would think for a Humanitarian Project I could find public documents after all these are all for Good alleged purposes. ---> “NOT”.    If the person approaching you cannot and will not give you a registered address and persons to talk to on the phone and tax identification number for such an entity or project it is a FRAUD.    And most likely connected to a Ponzi scheme to take your money and the perpetrators will then be headed to Chile or Argentina or Brazil or to South East Asia someplace out of the jurisdiction of the United States.      I know some folks will resent me saying the above, however, in every single case of a client coming into my office begging me to help them after making such foolish investments – each and every one has turned out to be based upon fraud.   Oh you can go to the U.S. Attorney’s office or F. B. I.You should however they are going to want to know how you met the person or persons you invested with and they are going to want you to prove where you got the money to invest which means you will be audited and when you are finished you will be no richer as a matter of fact much poorer and will be under a cloud of suspicion for having dealt with dishonest people.   

    Gold Back Currency:

    The amount of gold in the world theoretically above the ground would fit into 3 Olympic size swimming pools.  There is not enough gold in the world to back every currency in the world.   So when you hear gold back currency – think ignorance.   Asset Backed Currency is the phrase you need to think.   I referred to United States Notes above.  Those were notes backed by Gold or Silver in the United States.  They no longer exist.  There are still a few notes floating around.   However today there is no such thing and in my lifetime and probably yours it will still be the same.   

    Federal Reserve Note:  

    This is the form of currency we use in the United States.  This will not change despite all the gnashing of teeth by the republic crowd etc.   At some point I would hope it could be asset backed but for the time being it will be “The Good Faith & Government of the United States” that backs your currency.

    Federal Reserve:

    This is our Central Bank.   This is an institution it is not perfect but it works.  The Chinese have studied it, the Japanese have studied it.   The Federal Reserve is charged with managing our money supply and providing liquidity through member banks.   I wish I could go into the history here suffice to say we did not always have a Central Bank and if you go back and study it you will find it had humble beginnings and there are have been many changes to it before it has taken the form it has today.   It is not the evil empire it is perceived.  All the negative about it comes from the sites I shared above.  And guess what the day after the exchange it will still be there, still functioning doing its job!

    Chinese Yuan:  

    When you see Chinese you need to think Take out, dry cleaners and or fortune cookie.  There are no elders – think Gaia sites and kook sites.   As far as the Yuan being of any significant value.   I challenge you to read the Financial Times – out of London and The Wall Street Journal.   Each of these publications that draw on many sources and journalists and economists have stated over and over until the government of China is ready to play by the rules of free market including their currency they will not be a reserve currency.  And China has been selling off gold like crazy not acquiring it.   They do not have near the reserves they allege.   They cannot tell the truth and have a problem telling the truth.   It is a cultural thing that maybe will change one day but not anytime soon.   Sure China is setting up accounts with Iran, Russia and others to do trade but those countries have to have Yuan and can only acquire things directly.   However, the measuring or peg as you will is the U.S. Dollar the most freely traded currency in the world.   And the nearest to it is the Euro which is not even close by any measure. If the dollar is traded 80% around the world the next currency is the Euro at 25%.   All other currencies are below that.  I say all this because the day after the exchange – it is still going to be the same way do not want anyone freaking out and slashing their wrists that United States is not crashing down.   

    The United States

    For most of you – we live in the United States the greatest nation on earth.  Regardless who is in power this nation has created more wealth, freed more people, created more prosperity for so many around the world and in this country.   Why is immigration a problem if we are such a bad country? Why are people from all over the world wishing they could obtain citizenship in the United States? Why are the Chinese wanting to invest in real estate and in our financial institutions if we are so bad?   Sure we have issues and problems but we will solve them, we will go on and that beacon on the hill still lights the way to those who seek freedom and the bountiful blessings our Good Lord has bestowed upon this nation.   

    Again please accept my comments and observations in the spirit intended that is to educate and hopefully keep some folks out of harms way.   

    God bless you always and may he cause his light to shine upon you and your loved ones and bring you peace, good health, prosperity and joy

    Mother, Esq.

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