SECRETS to Rockefeller's trust. How to create GENERATIONAL WEALTH!

In this clip Storm Leroy talks about the keys to build generational wealth through opening up a trust. #trust #generationalwealth #lifeinsurance

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Episode Transcript

Speaker 1 (00:01):
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Speaker 2 (00:43):
Yeah, in twenty nineteen, my life changed buying real estate,
doing all these great things. I understood the value of
having real estate and wanting to hand it over to
my legacy, to create a legacy with that. But once
I actually went to create a living trust and I
saw what it can do, That's when I knew I
had a bigger narrative I needed to share with the people.

(01:04):
So my thing was I looked at who created a
living trust to hand it down through their legacy, and
I said, it's Rockefeller. So I went on to read
the Rockefeller Trust from nineteen thirty four, and also there's.

Speaker 3 (01:17):
A book called What would Rockefeller Do?

Speaker 2 (01:19):
So I stayed up reading all these things about how
he would take this, put it in an account and
only give a portion to the legacy, and then have
his children create a trust. And now that money compound interest.
He wouldn't give it to him until they turn a
certain age. And I'm like, I could do that.

Speaker 3 (01:34):
We can do that.

Speaker 2 (01:36):
The information was right there. So I sat down with
my trust attorney. I said, I want to do that, Like, well,
you want to do it, but I want to do that.

Speaker 3 (01:42):
It can be done.

Speaker 2 (01:43):
So we structured it, worked it out where if not
if but unfortunately we all pass away. When I pass away,
a percentage of my properties would be sold, not the
ones that I hold long term, like I have properties
I do keep my short term properties those would be sold.
That money would now go into a brokerage account. That

(02:04):
brokerage account would be in the name of the trust.
That money for that specific account would be for my
grandchildren starting off, not my immediate family. My immediate family
would get my life insurance policies, which are millions of
dollars policies and the main properties that I hold, So
they are taken care of. But we need to start
thinking about the grandkids, the great grandkids, those generations.

Speaker 3 (02:27):
How do you start their growth? You start their.

Speaker 2 (02:29):
Growth by putting that money in a brokerage account, and
they don't get that money until they turn twenty one
years old. So let's use the example of a million dollars.
I put a million dollars in a brokerage account for
my grandkids. They don't get that till they turn twenty one,
gaining six percent interest six percent interest.

Speaker 3 (02:45):
They say, that's twenty one.

Speaker 2 (02:46):
So that money turns up to about three point eight
million dollars for my grandkids.

Speaker 3 (02:50):
My grandkids, they wouldn't get it all that we could have.

Speaker 2 (02:53):
By one point six till I leave one point six
in there for my great grandchildren for twenty one years,
turns into about three four five six. That turns into
about six point seven million dollars for my great grandchildren.
They don't get it all they could have, So now
that's about one point one know about two point two
point three two point three stays in for my great

(03:16):
great grandchildren so they get about eight point one million dollars.
You see how that happens. That's compound interest over twenty
one years. So we have to look at that number.
But what makes the trigger and the explosion even bigger
is the fact that what Rockefeller did is that was
just his trust. What he did was, now each children

(03:37):
opened up, each child opened up a trust. So now
his children had a trust, so he would pay his grandchildren,
and his children would pay them.

Speaker 3 (03:44):
That's twice.

Speaker 2 (03:45):
So now his grand his children, then his grandchildren have
a trust, so his great grandchildren would get paid three times.
So now if we look at rockefeller trust paid out
now eleven generations and counting continuously. And what he also
did was have a life insurance policy on every person
in the trust, creating his own bank.

Speaker 3 (04:04):
And now what does that do. This is my structure.

Speaker 2 (04:06):
Also, any one of my children or grandchildren who want
to start a business, what do they do? Talk to
the trustees and now you borrow money. We become our
own bank. So when someone dies, that money goes into
the trust. You pay when you get the policy, you
pay it outright, So now that money is available in
the trust. So now also what I did was I
retweaked my trust last year, and it was twenty one

(04:28):
that I wouldn't give them money.

Speaker 3 (04:29):
I changed it.

Speaker 2 (04:30):
I changed the way they get money at eighteen and
they can have a business started at eleven. You know
why because now with technology, kids are now figuring out
new ways to start a business.

Speaker 3 (04:40):
So I want them to be able to.

Speaker 2 (04:41):
Present a business loan, a business proposal to the trustees
so they could borrow money. These are the things where
we don't look at them. When people say I don't
have the money to do this. You know what, I
tell them, Yes, you do. The here you breathe is money,
a life insurance policy. Soon as you die, you worth money.
They are general and there are groups of people when
people die, their objectives to make sure they have a

(05:03):
policy on their grandmother, policy on their father, to do
exactly what we're talking about. But we look at this
taboo when it can't be taboo. It shouldn't be taboo.
The main thing about it is you're thinking about the legacy.
And when I tell people, when I speak to you,
I'm not speaking you don't speaking to.

Speaker 3 (05:17):
Your leg legacy. You're just a vessel for me to
get the message to you.

Speaker 2 (05:21):
So you can hear the message and see it and
it reverberates in your brain. And as it's doing this,
you literally are talking to your legacy. While I'm speaking,
going I got you, don't worry. Storm told me how
to do it. Now I'm gonna give me a life
insurance policy. When people have a life insurance policy, let's
say roughly four million dollars, you have half a million
dollars left on your home mortgage, and you say to yourself,

(05:43):
I'm leaving my family a million dollar. Actually you're not,
because when you die, that policy has to pay half
a million to the mortgage so they can stay in
the house. You're only leaving them half a million dollars.
We don't think about that mortgage behind us. So this
is where I say, get yourself a whole life. Excuse me,
get yourself a term that's for a half a million
or a million dollars just to cover the house so

(06:06):
your real policy doesn't get broken up. And now you
have that term, pay off the mortgage, any money left,
put it in a broken's account, and now you start
the system.

Speaker 4 (06:16):
So let's stay on this conversation about the trust for
a minute. So irrevocable life insurance trust or.

Speaker 2 (06:21):
A revocable Let's just start off as a revocable voc
because you want to be able to.

Speaker 4 (06:24):
Say something because you and you can change it. Yes,
all right, So all right, so who shut this up
for you? Your attorney?

Speaker 3 (06:31):
Yeah, my statement?

Speaker 4 (06:32):
You told them or they you educated them, or they
educated you. Obviously they're already educated because their attorney. But
it sounds like you kind of already had some idea
of what you wanted to do because you did some
reading before that.

Speaker 3 (06:42):
So what was the process?

Speaker 4 (06:44):
You kind of said this is what I want to do,
and then they kind of added to it or they
said this is what you should do.

Speaker 2 (06:50):
I came to them with my plan and my structure first,
and I really wasn't taking a note for an answer
because I know it could be done. And there are
some people that, like there are mechanics who are broke,
like they just don't know fully how to do certain things.
So you really have to find the right person that
does these things. And I would always say, speak to
someone who has a trust, speak to someone who you

(07:13):
know they can refer you to someone.

Speaker 3 (07:14):
But that takes time.

Speaker 2 (07:16):
But they would give me little tidbits of where we
can do this, or they have a network of people
and a law firm and they reach out to them.
Like my first trust costs me about twelve thousand dollars.
My newest one costs me roughly almost twenty thousand because
I have a lot.

Speaker 3 (07:31):
Of things to fund it with.

Speaker 2 (07:33):
But of starting out, trust probably run you anywhere from
three to six thousand dollars.

Speaker 3 (07:38):
But you have to look at the big picture.

Speaker 2 (07:39):
But I started out having a plan and I really
really was adamant about getting this structure done.

Speaker 3 (07:45):
That was it for me. You will too, Yeah, with
the trust, there's a thing called a poor over will.

Speaker 2 (07:51):
That's attached to the trust for all the items that
you don't put into the trust automatically palls over and
fall into the will, like jewelry, like they that are
air looms, it'll automatically go in that will.

Speaker 1 (08:03):
Yeah, I'm saying that thinking, obviously you're educated. How often
are you meeting with your trust attorney? Because I was
having a conversation with a young lady the other day
and she's finding it hard to have her parents, you know,
even buy into the idea of a trust. So how
often did you meet with family if you did at all?
And how often did you meet with the trust attorney?
Is that like a once a year thing or was
it every six months? Because I'm sure you acquiring properties

(08:24):
and other assets throughout the year, Like, how often is
that happening?

Speaker 2 (08:29):
In the beginning, when I started, we had to have
a conversation literally it was about almost every other week,
sometimes every week to plan us out with insurance and
all that stuff.

Speaker 3 (08:38):
Very complicated.

Speaker 2 (08:39):
But once it was set, the updating of the trust
is every three years, right, but if there's something of
urgency that I need to update, because here's the thing,
and I want to throw this part also, I'm gonna
drop it, y'all pick us up. When you're buying things
in you're holding company, you're holding LLC should be in
the name of your trust. So if something happens to you,

(09:00):
the properties automatically fall into the trust, automatically fall in there,
so you don't have to fund the trust because the
trust own the LLC. So if let me give a
quick example. You know how you put your name on
every single LLC. You open up a LLC, you put
your name on it, open up the LLC, you put

(09:21):
your name on it.

Speaker 3 (09:22):
But if you was to have.

Speaker 2 (09:23):
The property one two three Smith Street in its own LLC.
The name on that LLC would not be you, it
would be your trust. So if something ever happens, it
automatically goes to the trust because you sign the trust
over as the owner. Does that make sense? Automatically so
would trinkle effect. So with that being said, excuse me.

(09:46):
So with that being said, you wouldn't have to fund
one at a time. You could just have that trust
own it. All these LLCs bile straight in from your holding.
But also to let me not glaze over something you said,
it's so pot want to have the conversation with your
family and sit them down and explain. Because my thing was,
after everything's said and done, my lawyer, we would have

(10:07):
the conversation with each one of them. Here's who's getting this,
who's the trust, there's the trustee, this is what's gonna happen,
this is what it's supposed to be. I want you
to do this, and it's a thing I'll call a
letter of trust, handwritten. I want this copy of this
letter in my hand written form and my signature be
copied for every generation, every trustee, so they could look

(10:29):
and go.

Speaker 3 (10:30):
He thought about me. I want them to see what
I meant and.

Speaker 2 (10:35):
Why I did this, because that's powerful and they will
get it and go.

Speaker 3 (10:40):
Man, my great great grandfather thought about me. So that letter.
You don't have to, but the thing is always impacted.

Speaker 2 (10:48):
So you need to have that discussion with your kids,
your grandkids. There's only so far trust can go. It
only could go to the last person alive in your
generation up to a certain age. So like if I
have my grandchildren, my last one or he would have
to now take the trust format and restart it again

(11:09):
and follow the same thing. Trusts can't live on an infamy.

Speaker 1 (11:12):
So you've created the generational wealth and the other part
was just the sustainable wealth yep, Like that's the key, right,
because it could get mixed up from generation generation. Yeah,
but what you're doing is pretty much putting up the
barriers like, no, we're going to sustain this forever forever.

Speaker 2 (11:26):
The biggest, biggest mistake that a lot of people make,
unfortunately when we have real estate is thinking that our
children want to be landlords.

Speaker 3 (11:34):
We can't.

Speaker 2 (11:35):
We can't assume that they want to be landlords. I
had a friend of mine who I knew through someone else.
He died didn't have a trust, left the properties to
his kids in a will.

Speaker 3 (11:46):
They sold them because they didn't want nothing to do
with real estate.

Speaker 2 (11:49):
That's that destroyed me because I knew what his objective was.
So we need to put things in place to go, Okay,
if you don't want to be a landlord, this is
what we're gonna do. I'm gonna have a company do this,
gonna sell it, put the properties in the brokerage account
where it's gaining compound interest to do something.

Speaker 3 (12:06):
So that's the key.

Speaker 2 (12:07):
We need to stop, you know, really projecting our wants
and needs on children and grandkids when.

Speaker 3 (12:13):
They're like, yeah, I got my own plan. That's cree y,
that's Tree earners. What's up.

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