table of contents - ron legrand, real estate course, real estate … · who is ron legrand? when i...

COPYRIGHT 2013 HERITAGE FINANCIAL, LTD. OF JACKSONVILLE

Table of Contents

Basic IRA Q & A 10

How To Grow Your Wealth In Your Roth IRA 33

Putting Your Children Through College… FREE 41

Know The Rules And Avoid The Dark Side 44

How Your IRA Should Own Assets 59

Agreement And Declaration Of Trust 61

Trust Agreement 75

Personal Property Trust Agreement 98

SEP Simplified Employee Pension 113

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Notice

This publication is intended to provide accurate and authoritative

information with regard to the subject matter covered. It is offered

with the understanding that neither the publisher nor the author is

engaged in rendering legal, tax, or other professional services. If

legal, tax, or other expert assistance is required, the services of a

competent professional sought (from a Declaration of Principles

jointly adopted by a committee of the America Bar Association and a

committee of the Publishers Association.)

This book is intended for instructional purposes only. Every effort has

been made to reflect the applicable laws as of the date of the

publication of this book. However, this is a dynamic field of endeavor

in which new laws are enacted, old laws revised and/or reinterpreted

on a continuing basis and where statutes, rulings and precedential

case law are constantly changing. Readers are advised to proceed

with the techniques described herein with caution. Neither the author,

printers, licensees nor distributors make any warranties, express or

implied, about the merchantability or fitness for any particular use of

this product.

Who Is RonLeGrand?

When I first got involvedwith real estate I was a dead-brokeauto mechanic trying to makeenough money to make ends meet.There was no such thing asdisposable income around my house.It was all disposed of before I got it.Thirty five years old, and I didn’t havea clue what I wanted to be when I grewup, but I knew it wasn’t fixing cars in thehot Florida sun.

The year was 1982. I saw an adthat said something like “come learn howto buy real estate with no money or creditand get rich by next Thursday.” Thatappealed to me because I had no moneyor credit, and I kinda liked the rich idea,so I attended the free seminar.

The instructor got us all excitedabout real estate and showed us howpeople were buying real estate with nomoney down. Then he said if you pay$450 and attend our two-day training thisweekend, we’ll show you all the secrets. Iwanted in but I had a big problem,actually 450 of them.

But something compelled me tofind a way to get the money and that’swhat I did. I borrowed it from two friendsand showed up for the seminar. Thatdecision changed my life forever, myfamily’s life and their family’s lives forgenerations to come, not to mentionhundreds of thousands of my studentsand their descendants into the millions.That one small, split-second decision thatcould have gone either way made memillions of dollars since and spawnedcountless numbers of millionaires all overNorth America and other countries I can’teven pronounce.

In fact, most of the stuff taughtin that seminar was over my head. I wasclueless and could barely spell realestate. But I picked up one idea I felt Icould do and within three weeks, I mademy first $3,000 from real estate usingnone of my money or credit, which I didn’thave. I immediately called my boss andsaid, “I’m upping my income …up yours!”

The biggest thing that seminardid was get me involved in real estateand committed to changing my lifestyle.For years, I’d been looking for somethingbut didn’t know what it was. When I gotmy hands on that three grand, it becamecrystal clear real estate was my future.

Fast forward two years, I hadamassed 276 units, some single family,

some apartments, not including someI sold along the way to live. I was amillionaire…on paper. I had over$1,000,000 in equity two years after

starting with no money or credit. RealityArrives!

I sat down one Fridayevening to pay my bills and

realized my outgo was biggerthan my income, and my upkeep wasbecoming my downfall. All I had

accomplished was a big, uglymess. I’d spent two years

buying the wrong properties thewrong way in the wrong areas for thewrong reasons. I built my empire on a

house of cards, not a solid foundation.You see, I really didn’t

understand the real estate business. Ijust bought properties because I couldwithout money or credit. I bought all thecrap savvy investors wouldn’t touch.They’d already been to the school I wasabout to graduate from…“The School ofHard Knocks.” All my low-incomeproperties in war zone areas withbrainless tenants were sucking me dry,financially and mentally. My whole dayswere spent solving their petty problemsand listening to all the worthless excusesthey couldn’t pay rent.

I spent the next five yearsselling off my junk for dimes on the dollar.It took me seven years into the businessto really understand it and get my lifeback. Oh, I made a good living duringthat time. Several times my job income.But I sure wish I’d have known me backthen and had the system then that mystudents have now. On second thought, itwouldn’t have mattered anyway. Iwouldn’t have listened. I’m a man, mendon’t follow instructions. It’s testosterone.It’s not our fault.

After about seven years into thebusiness and over 400 houses later, Ibuilt an easy system to turn real estateinto cash now, cash monthly and cashlater. I made it a real business anyonecould do from home and make obsceneamounts of money. That’s about the timeI started teaching what I had learned.Somewhere along the line someonecalled me “The World’s Leading Expert atQuick Turning Houses,” and the namestuck.

In the late ’90s the informationcompany I built went public with revenuesexceeding $20,000,000 annually from mybooks, tapes and seminars.

Now fast forward a few moreyears of teaching what I know whilesimultaneously doing what I teach, and Iwill admit I’m a weird dude. I’ve boughtand sold over 2,000 houses, and today,I’m heavy into commercial real estate allover America while partnering with someof my students who bring in deals.

Over the years, I’ve created amountain of home-study products, writtenmillions of words in print, shared theplatform with past presidents, movie

stars, actors, politicians, sports heros,business leaders, super wealthy from allprofessions and some of the bestspeakers in the world. I’ve spoken toaudiences as small as 20 and as large as20,000 in hotel meeting rooms andcoliseums all across North America I’vegazed in amazement and sheer joy as somany thousands of my clients and newfriends have pulled themselves out offinancial mediocrity, or downright poverty,and made themselves financiallyindependent millionaires and some multi-millionaires from the words that left mylips and the time we spent together.

So many new millionaireswho’ve now become leaders and arereaching a helping hand down to those inneed and helping them climb the ladderto success.

My legacy has spread like aswarm of locusts and millions will beaffected. New generations will profitdirectly or indirectly because theyattended one of my seminars then usedthe information and passed it on.

People constantly ask me why Icontinue to teach.

My answer is simple really. First,make no mistakes about it, I get paid wellfor teaching. It’s not a mercy mission, andwe’re not a nonprofit organization.Second, I have to do something with mytime. Golf, fishing and diving get oldquick. Making millionaires never gets old,and I can’t think of anything I’d rather doin my life. It’s fun to be me, and I lovedoing it.

Besides, I’ve been married over45 years to one woman. Her name isBeverly and between the honey do’s, thenine grandchildren, three live on ourestate, and five great grandchildren, it’snice to get away once in awhile.

Truthfully, I’m just a simple automechanic with a red neck backgroundwho barely got out of high school. I’drather have a good hamburger than asteak. I hate wine and all other alcoholicbeverages. I smoke cigars, listen tocountry music and jazz and go to themovies a lot. We have horses, cats, adog and chickens, and we grow stuff inour own garden. Yes, I even have myvery own tractor I use to plow thatgarden.

So, there you have it, the realme. Now, can I add your name to ourmillionaire club?

To Your Success

Ron LeGrandMillionaire Maker


Why I Created This CourseWhat you’ll learn in this course is not conventional wisdom and not taught

by CPA’s and attorneys. There’s a couple of reasons for that. First, they don’tknow it unless they’ve taken the time to investigate and if they aren’t a real estateentrepreneur that’s not likely. You’ll be very lucky to find good advice on thissubject unless you go to a specialist and there aren’t enough of those in theentire world to fill a school bus.

Secondly, the reason this information is not more widespread is becausethe professionals you rely on for advice cannot make a profit teaching you how touse a Roth IRA unless they can convince you to invest in what they’re selling.When it comes down to making investment recommendations, personal greedmust always be factored in to whom you listen. The advice will almost alwaysfollow the trail of the largest commissions.

Just for the record, I will profit from creating this course. Actually, Ialready have or you wouldn’t be reading this introduction. However, my profitended the minute you bought this package. From here on out I have nothing togain whether you use this advice or not.

For over thirty years I’ve been teaching good people how to take control oftheir own destiny and make a lot of money. For about half that time I’ve beenteaching how to do it tax free using an IRA. Unfortunately, only a small fractionof those folks have done anything about it and it’s not hard for me to understandwhy.

This world is full of bad advice from ignorant advisors on this subject thatonly serve to confuse the student and create doubt and more questions. Whenyou’re confused the only natural thing to do is nothing.

Then there’s the almighty procrastination monster that works hard to keepus from doing anything now we can put off until later. If it isn’t painful we don’tneed a cure. I’ll do it later. In fact, I’m just as guilty because it took me severalyears to get my IRA opened and several more to get around to creating thiscourse and qualifying to do so.

I’m not an accountant or an attorney or a licensed financial planner but Iam a multi millionaire who started with nothing and paid an enormous price toqualify to bring you this information. Use it wisely because it can easily be thedifference between living the life of your dreams or working until you die.

My goal is to make the process of using your IRA to grow rich tax free assimple as possible so you can get started immediately. It’s not complicated andvery easy to do once you learn a few simple basics and apply them. This coursewas created to assist you in that process, answer all your questions and firmlyplant the seed to financial freedom…TAX FREE!


How To Use This Course

Even though you’re looking at a manual that’s loaded withquestions and answers it was not designed to be a stand-aloneresource. The all day seminar on the CD’s contains much moreinformation than the manual, which was used as a guideline only.You don’t want to miss the in-depth discussions on important issuesand the back and forth interaction of the instructors and the audience.

Use the manuals as a reference guide, an easy place to get ananswer, a resource book, but by all means plug in the CD’s and listento them at least once in an environment where you can concentrateon the contents. When you find your mind wandering, turn them offand come back later. Better for you to take longer than blast throughand miss key facts. No one is pushing you.

Another Important Note

This course was meant to cover the use of Roth IRA’s Only .There are several different types of pension plans you can use inyour financial planning, some of which will be mentioned here butnone will be covered in detail. In your effort to create more wealthand reduce your taxes it’s highly probable you’ll use more than aRoth IRA, as do both the authors. However, there’s no good reasoneveryone shouldn’t have one or more Roth IRA’s regardless ofadditional plans. There is no other plan that gives you as muchcontrol and lets you grow tax free than the Roth IRA.


Don’t Try To BecomeAn IRA Expert.

Become A Real EstateWealth Expert Instead.

It Pays Much Better.The Biggest DecisionYou Have To Make IsTo Use Your IRA To

Earn And AccumulateTax Free Wealth.

The Rest Is Logistics.


Basic IRAQ & A

COPYRIGHT 2013 HERITAGE FINANCIAL, LTD. OF JACKSONVILLE10

What Is The Roth IRA?

A Roth IRA is a special type of individual retirement accountcreated by the Taxpayer Relief Act of 1997, which provides fortax free qualified distributions. The Roth IRA represents thebest way to accumulate tax free wealth for your retirement.

How Does TheRoth IRA Work?

Unlike traditional IRAs, your contribution to a Roth IRA isalways made with after-tax dollars, which means that you donot get to deduct your contribution. The advantages of a RothIRA are primarily that 1) you can withdraw your contributions atany time, tax and penalty free; and 2) qualified distributionswhen you retire are tax free!

Year Amount Investing Value 1 Yr. Later Taxes On Gain

1 $100,000 $115,000 $02 $115,000 $133,332 $03 $133,332 $154,612 $04 $154,612 $179,312 $05 $179,312 $207,983 $06 $207,983 $241,263 $07 $241,263 $279,892 $08 $279,892 $324,732 $09 $324,732 $376,780 $010 $376,780 $437,195 $011 $437,195 $507,322 $012 $507,322 $588,722 $013 $588,722 $683,207 $014 $683,207 $792,881 $015 $792,881 $920,189 $016 $920,187 $1,067,956 $017 $1,067,956 $1,239,481 $018 $1,239,481 $1,438,579 $019 $1,438,579 $1,669,682 $020 $1,669,682 $1,937,937 $0

Copyright© 2005– Global Publishing, Inc.

$100,000 Invested At 15%In A Roth IRA


Year Amount Investing Value 1 Yr. Later Taxes On Gain Adjusted After Tax Value

1 $100,000 $115,000 $5,250 $109,7502 $109,750 $127,393 $6,175 $133,5683 $133,568 $155,040 $7,515 $147,5254 $147,525 $171,240 $8,300 $162,9405 $162,940 $189,133 $9,167 $179,9616 $179,961 $208,896 $10,127 $198,7697 $198,269 $230,722 $11,118 $219,6048 $219,604 $254,906 $12,355 $242,5719 $242,571 $281,565 $13,647 $267,91810 $267,918 $310,987 $15,074 $295,91311 $295,913 $343,482 $16,649 $326,83312 $326,833 $379,373 $18,389 $360,98413 $360,984 $419,014 $20,310 $398,70414 $398,704 $462,797 $22,433 $440,36415 $440,364 $511,155 $24,777 $486,37816 $486,378 $564,565 $27,366 $537,19917 $537,199 $623,556 $30,225 $593,33118 $593,331 $688,712 $33,383 $655,32919 $655,329 $760,676 $36,871 $723,80520 $723,805 $840,160 $40,724 $799,436

Copyright© 2005– Global Publishing, Inc.

$100,000 Invested At 15%Taxed At 35% Rate



Here’s A ComparisonOf Growing MoneyTax Free Vs. Taxed

Time Period After Tax Value Non-Taxed RothValue Difference

10 years $295,913 $ 376,780 $ 80,86715 years $486,378 $ 920,189 $ 433,81120 years $799,436 $1,937,937 $1,138,501

It Would Cost You Over $1,000,000 To Not Use a Roth IRA!

Now just imagine how much more your Roth IRA could grow if youcould add even more money by doing deals which require little or nomoney down. If you invest the money in your Roth IRA at a high rateof return while simultaneously doing deals in it that don’t requiremuch money you will soon be so rich that you (and your heirs) willnever have to worry about money again!


If I Convert A TraditionalIRA To A Roth IRA,Do I Owe Taxes?

Generally, yes. Because you are moving money from apre-tax traditional IRA to an after-tax Roth IRA, the amountyou convert will generally be added to your taxable income inthe year of conversion. The only exception is for any after-taxcontributions made to your traditional IRA. The good news isthat once the money is in your Roth IRA it grows tax free!


How Will I Know If I Am AGood Candidate To Convert

My Traditional IRA To ARoth IRA?

This is a very complex question, and the feasibility will differ witheach individual’s financial circumstances. You may want to consult aCPA or other financial advisor to fully understand all of the effects ofa Roth conversion. Your analysis will boil down to whether or not thetax savings in the future are worth the pain of paying taxes today.With the power of a self-directed IRA, it may very well be worth it.Consider the following key questions:

• What are your assumptions about tax rates and tax lawsgenerally in the future?

• Do you expect to be in a lower or higher tax bracket when youretire?

• Can you afford to pay taxes from funds outside of your IRA?• Will the conversion put you into a higher marginal tax bracket or

will it affect deductions, credits, Social Security or Medicare dueto an increase in your AGI?

• Do you want to leave the payment of taxes to your beneficiariesor are you willing to pay the taxes now so your beneficiariesreceive tax free income for their lifetimes?

• What are your projected gains on your investments?

The last question is probably the most significant when consideringwhether or not to do a Roth conversion. Once you do transactions inyour Roth IRA sufficient to make back whatever it cost you in taxes,the rest is all tax free gravy!


Can I Transfer Funds FromOne Roth IRA To Another

Roth IRA?

Yes, you can transfer funds directly between Roth IRAs asmany times in a year as you like. This is non-taxable and isnot even separately reported to the IRS. However, if you takea distribution from a Roth IRA and within 60 days roll it over toanother Roth IRA, this is reported to the IRS and can only bedone one time per year from each IRA.

Do I Need A Self-DirectedRoth IRA To Invest In

Real Estate?

Yes, but not just any self-directed IRA. You must choose acustodian who administers non-traditional assets such as realestate, promissory notes, options, private stock, LLCmembership interests, partnerships and the like. Custodiansfor the more traditional brokerage-style of IRA will not allow youto invest in real estate because they are not set up to handle it.


How Do I Set UpA Roth IRA?

It’s easy. Simply go to the website of your preferred self-directed IRAcustodian and download their application kit or ask for it by email.Contribute at least $200 so you have some money to work with.Although you can have fees deducted from your account, it is betterto pay fees with funds outside of your IRA. Most self-directed IRAcustodians will accept a credit card for payment of fees, but not forthe contribution.

How Much Do I HaveTo Contribute Each Year?

You don’t have to make any further contributions to your Roth IRA ifyou don’t want to, although many IRA owners do continue tocontribute the maximum each year so they have more money to dodeals.


If I Don’t Have ToContribute Money Each

Year How Am I Going ToGet Rich In My IRA?

Your wealth will come from your ability to take a minimalamount of cash in your IRA (as little as $100), and use it tocontrol real estate and other assets on which you can achievea high rate of return by leveraging your brain, not your moneyor your IRA’s money.

Should I Contribute TheMaximum Even Though I

Don’t Have To?

Yes! Every dollar you contribute still grows tax free forever.


Who Is Eligible To MakeFull Contributions To

The Roth IRA?

A single individual who has earned income at least in theamount of the contribution ($5,500 maximum for those underage 50 in 2013) and a Modified Adjusted Gross Income (MAGI)of no more than the maximum limit ($112,000 for a singleindividual in 2013) may make a full contribution to a Roth IRA.A married couple filing taxes jointly who have at least doublethe individual contribution limit in earned income may eachcontribute the maximum amount, provided that their MAGI doesnot exceed the limit for a full contribution ($178,000 in 2013).This is true even if one spouse does not work outside of thehome. Individuals whose filing status is married filing separatelyare not entitled to make a full contribution to a Roth IRA. Partialcontributions may be permitted within certain additional incomelimits. Age is not a factor in qualifying for a Roth IRA.

What’s The Definition OfEarned Income?

Wages, salaries, bonuses, tips, commissions, self-employmentincome, alimony and separate maintenance and non-taxablecombat pay are all considered to be earned income for IRAcontribution purposes. Rents from property, capital gains,interest, dividends, pension or annuity income, deferredcompensation, income from certain partnerships, and anyamounts you exclude from income are not counted in thedefinition of earned income.


Can I Have A Roth IRA If IMake More Than The

Maximum Limit For A FullContribution?

Yes, there are several ways you can still have a Roth IRA.

1) Partial contributions can be made if your MAGI is more than themaximum amount for a full contribution but less than the phaseout amount. For single individuals, the phase out limit is$10,000 more than the limit for a full contribution. For marriedpersons filing jointly, the phase out limit is $15,000 more thanthe limit for a full contribution. For married persons filingseparately, the phase out limit is between $0 and $10,000. Forexample, a single individual making $117,000 in 2013 is stillentitled to make a contribution of $2,750 (one half of the fullamount) to his or her Roth IRA.

2) Convert a traditional IRA (including a SEP IRA), a SIMPLE IRAyou have participated in for at least 2 years, or a formeremployer’s 401(k) or 403(b) plan to a Roth IRA. As of 2010there are no longer income limits for doing a Roth conversion,so anyone who either has one of these accounts or qualifies fora traditional IRA may have a Roth IRA.

3) You can inherit a Roth IRA. If you know of an elderly relative orother acquaintance who has earned income or who you canhelp to create earned income, you can assist them in creating aRoth IRA where you are the beneficiary. When they pass away


you inherit the account. The best part of inheriting a Roth IRAis that distributions from it are tax and penalty free regardless ofyour age, as long as the person who died and you had the IRAfor a combined total of 5 or more tax years.

4) If you are self-employed you may also be eligible for a Roth401(k). Although a full discussion of individual 401(k)/profitsharing plans is beyond the scope of this book, it is a goodthing to investigate if you are self-employed with no employees.

Do I Have To QualifyEvery Year?

Yes, there are several ways you can still have a Roth IRA.

1) Partial contributions can be made if your MAGI is more than themaximum amount for a full contribution but less than the phaseout amount. For single individuals, the phase out limit is$10,000 more than the limit for a full contribution. For marriedpersons filing jointly, the phase out limit is $15,000 more thanthe limit for a full contribution. For married persons filingseparately, the phase out limit is between $0 and $10,000. Forexample, a single individual making $117,000 in 2013 is stillentitled to make a contribution of $2,750 (one half of the fullamount) to his or her Roth IRA.

2) Convert a traditional IRA (including a SEP IRA), a SIMPLE IRAyou have participated in for at least 2 years, or a formeremployer’s 401(k) or 403(b) plan to a Roth IRA. As of 2010there are no longer income limits for doing a Roth conversion,so anyone who either has one of these accounts or qualifies fora traditional IRA may have a Roth IRA.

3) You can inherit a Roth IRA. If you know of an elderly relative orother acquaintance who has earned income or who you canhelp to create earned income, you can assist them in creating aRoth IRA where you are the beneficiary. When they pass awayyou inherit the account. The best part of inheriting a Roth IRAis that distributions from it are tax and penalty free regardless ofyour age, as long as the person who died and you had the IRAfor a combined total of 5 or more tax years.


If you are self-employed you may also be eligible for a Roth 401(k).Although a full discussion of individual 401(k)/profit sharing plans isbeyond the scope of this book, it is a good thing to investigate if youare self-employed with no employees.

Good news! You only have to qualify one year to keep a Roth IRA forlife. Once the money is contributed to your Roth IRA, it can earnunlimited amounts of gains tax free. Even if you cannot qualify tomake direct contributions in future years because of income limits,you still qualify to convert traditional IRAs into your Roth IRA,regardless of your income.

Will My Roth IRAContribution Affect The

Amount That I CanContribute To My

Employer-SponsoredRetirement Plan?

No, the amount you contribute to your 401(k) or otheremployer-sponsored plan will not be affected by your Roth IRAcontribution.


What Happens To My MoneyWhile It’s In My IRA

Account With MyCustodian?

With most self-directed IRA custodians, your uninvested cash will beplaced in a bank and will earn you little or no interest. You shouldverify with your custodian that your funds are kept in FDIC insuredbanks or other government insured institutions. Your money will earnnothing until you choose to make an investment. Your custodian willnot invest your funds until you direct them to do so.

Are The Funds With MyCustodian Insured?

Generally, most self-directed custodians keep funds in FDICinsured banks or other government insured institutions, but youshould verify this as part of your due diligence process in choosing acustodian for your Roth IRA. As of this writing, cash kept in an FDICinsured institution is insured for up to $250,000. Investments that youmake are not insured by any government agency or by the custodian.


Is My IRA ProtectedFrom creditors?

If you get a judgment against you personally, in most states yourRoth IRA is fairly well protected and is exempt from seizure. Infederal bankruptcy court, if you choose the federal exemptions youcan exempt up to $1,245,475 (for 2013) in Roth or traditional IRAsfrom creditors, and perhaps more if you choose state exemptions.You should check with an attorney in your state of residence to besure of the rules. Your IRA is not protected from an IRS levy. YourIRA is also not protected from liability associated with any transactionor property owned within the IRA. For this reason you may want toavoid taking title to any asset directly in your IRA.



Do I Have To Take MinimumDistributions From A

Roth IRA WhenI Reach Age 70½?

No, the Roth IRA is more flexible than a traditional IRAbecause you are not required to start taking minimumdistributions when you reach age 70 1/2. If you are retiredand don’t need the income, you can let your money continueto grow tax-free as long as you like.


When Can I Start TakingTax Free Distribution From

My Roth IRA?

You can withdraw your contributions tax-free at any time.Distributions are treated as first being attributed to yourcontributions until all of your contributions have beendistributed. There are two requirements to qualify for tax-freewithdrawals of the income your Roth has earned. First, yourRoth IRA must meet the “five-year test.” In other words, itmust be five years after the first year for which Rothcontributions were made. Second, one of the followingconditions must apply:

You are over age 59 ½; or, You have died and funds are going to your

beneficiary; or, You have become disabled; or, You are using the funds for a first-time home

purchase (lifetime limit is $10,000 per person.)


Can My Roth IRABe Inherited?

Yes, your Roth IRA can be inherited by your heirs. Assumingyou have had a Roth IRA for at least 5 tax years, your heirs can takedistributions from the account tax and penalty free, regardless of theirages. Unless your Roth IRA is left to a spouse who treats it as his orher own, your beneficiaries will be required to take distributions fromthe Roth IRA beginning in the year after your death, even though younever have to during your lifetime, unless an election is made to takeall the money out of the account within 5 years.

If I Inherit A Roth Do IHave To Pay TaxesOn Withdrawals?

No taxes are due as long as the deceased owner and thebeneficiary have had the Roth IRA for a combined total of atleast 5 tax years. If the 5 year test is not met, then anyamounts withdrawn beyond the contribution amount in theaccount will be taxable. There is never a penalty for a deathdistribution.


If I Buy An InvestmentHouse In My IRA Does ItCount As A Contribution?

No, it’s an investment. You direct your IRA to buy the housethe same as you would direct it to buy stock.

How Many Deals Can MyIRA Do Each Year?

There is no specified limit on how many investments your Roth IRAcan make in a year. However, if you are doing a lot of deals in yourRoth IRA and the IRS audits you they may consider your IRA to beoperating as a real estate dealer. If this is found to be the case, theIRS will charge your IRA with Unrelated Business Income Tax (UBIT)on any dealer income. IRAs pay taxes at the rate for trusts, whichreaches the highest marginal tax rate of 39.6% at around $12,000 ofUnrelated Business Income. More information on this topic may befound in IRS Publication 598. Remember, you can do transactions inmultiple IRAs of you and your family, so for most people this is not abig issue. Focus more on getting good deals done in your IRA andless about how many deals you can do.


Why Will My CustodianRequire My IRA To Put UpAt Least A $100 Deposit

When The Seller SometimesWould Accept Nothing?

This ensures that you are making an investment, not receivinga gift. A deposit is customary to secure a contract and providesevidence that the transaction is real.


How ToGrow

Wealth InYour

Roth IRA


33

How Do I Get Cash In My IRAUsing Little Of Its Money?

1. Option property and sell2. Lease Option and cash out3. Option or buy paper and resell4. Wholesale properties5. Buy a start-up business, build and sell while operating outside IRA6. Operate a start-up business and transfer after tax profits to your IRA


Can I Partner With My IRA?

Perhaps, in certain circumstances. Any co-investment withyour IRA must be done simultaneously, and all profits must bedivided in accordance with the percentage of investment made.For example, if you and your IRA each contribute 50% to thedeal, then each must pay 50% of the expenses and each willreceive 50% of the profits. You must not rely upon and cannotbe otherwise dependent upon the participation of the IRA inorder for you to undertake or to continue your share of theinvestment. Be sure that no conflicts of interest exist now or willexist in the future between you and the Roth IRA, and makeabsolutely certain you can demonstrate if audited that thetransaction was not part of an agreement, arrangement orunderstanding in which you cause Roth IRA assets to be usedin a manner designed to benefit yourself or any otherdisqualified person. Although many people partner with theirIRAs, the more cautious approach would be to avoid this if you

Is It A Good Idea For MySpouse And I To Make Our

IRA’s Partners On OurDeals?

There are advantages and disadvantages to doing this. As long asthe profits are divided in the same percentages as the funds arecontributed and the investments are made simultaneously it is mostlikely okay. Remember that your Roth IRA and your spouse’s RothIRA are disqualified persons as to each other. The most conservativeapproach is to have each IRA make its own deals. Simply alternatewhich Roth IRA gets to do the next deal. Having only one IRAinvolved in each deal may also save money on fees, depending onyour custodian’s fee schedule.

If My IRA Doesn’t Have AnyCash Where Do I Get The

Money To Do Repairs, MakePayments, Etc.?

First, you should always try to avoid this circumstance by not overcommitting your accounts. This can happen to anyone, so if you runinto this circumstance there are several solutions:

1) Make a contribution up to your annual limit to cover theexpenses.


2) Move money from another Roth IRA into your self-directed RothIRA.

3) Bring on a non-disqualified money partner who puts up themoney in exchange for a percentage of the deal.

4) Sell the asset in an as-is condition.5) Obtain a non-recourse loan to finance the repairs (which may

cause the IRA to owe Unrelated Business Income Tax).



Can My IRA OwnProperty Long Term?

Yes, your Roth IRA can own property for as long as it likes.Rents and expenses may be handled through a non-disqualified property manager or even directly through thecustodian. If there is a mortgage on the property, the IRA willbe subject to Unrelated Business Income Tax (UBIT). Moreinformation on this topic may be found in IRS Publication 598.

Can My IRA Buy ABusiness I Control?

No, that would be a prohibited transaction. Although an IRAcan own a business, you may not work in that business normay that business hire any other disqualified person.Remember that a business must pay taxes on its profits. Ifthe business is owned by a C corporation, the C corporationpays the taxes and remits dividends back to the IRA tax free.If the entity operating the business is a pass through entitysuch as an LLC or a partnership, the IRA must pay UnrelatedBusiness Income Tax. Always check with competent legaland/or tax counsel when setting up a business owned by yourRoth IRA.


Can My IRA Put Up AMinimal Deposit Like $100And Buy A Business With

Substantial Assets?No! It shouldn’t. The best business to buy is one with little orno assets unless your IRA will be investing larger amounts ofmoney to build a case for a reasonable transaction. Buying anewly formed entity before it acquires assets is a much saferstrategy to avoid ineligible contributions assessments.

Is There A Reason I MayWant To Operate A

Business Within My IRA?

Perhaps! Even if the business pays taxes what’s left over canthen grow tax free for life. If your business makes a profitoutside your IRA the income generated by the remaining capitalinvested is taxed. Do you want to pay taxes on the seed or thecrop?


How Can I Help My ParentsOr Any Elderly PersonCreate A Retirement

Account Using A Roth IRA?

As long as they have earned income, you can help them fill outthe paperwork and make a regular annual contribution. Theymay even appoint you or your children as beneficiaries of theirRoth IRA. You can assist them in doing deals by getting alimited power of attorney for the account. Remember thatbefore anything beyond the contributions can be distributedfrom the account the 5 year test must be met.

How Can I Get ThemThis Income?

Hire them yourself and pay them enough to get an IRAopened. Remember, it’s not the contribution that’s important,it’s what you use their IRA to buy and how much income thatasset produces for the IRA.


Is There A Penalty ToThem For Early Withdrawal

Of The Profits?

If they are under age 59 ½, then there will most likely be a 10%early distribution penalty, but not if they are over age 59 ½when the withdrawal occurs. Until the 5 year test is met, anywithdrawals beyond the contribution amount will be taxableincome, although depending on their tax bracket there may belittle or no actual taxes owed.

Should I Get My CPAAnd Attorneys Permission

To Use My IRA To BuyReal Estate?

You should always work with professionals who understandwhat you’re doing. It is rare to find an attorney, CPA orfinancial advisor who understands self-directed IRAs and howto buy real estate in an IRA, so you may have to educate them.Even the IRS states in the Frequently Asked Questions on IRAsthat it is legal to buy real estate in an IRA, although many CPAsand attorneys will say that you can’t do that. Be careful whoyou seek advice from.


Can My Children AndGrandchildren Have

An IRA?Yes, as long as they have earned income they can open a RothIRA at any age. Their regular annual contributions cannotexceed the higher of their earned income or the annualcontribution limit. For example, a 14 year old child with $3,000in income from helping you in your real estate business cancontribute only $3,000, whereas the same child with $6,000 inincome can contribute $5,500 (for 2013) or the annualmaximum to his Roth IRA.

How Can I Use An IRA ToPut My Children And

Grandchildren ThroughSchool?

Remember that annual contributions to a Roth IRA can bewithdrawn at any time tax and penalty free. So helping yourchildren and grandchildren get a Roth IRA started early withannual contributions is very helpful. If they need funds thatexceed the annual contributions in the account, the withdrawalswill be taxable at their low tax rates (possibly zero), and as longas the money is being used for qualified education expensesthere is no 10% penalty for early withdrawals. Additionally, youcan help them open a Coverdell Education Savings Account(CESA – formerly known as the Education IRA) with up to$2,000 a year before age 18. There is no deduction forcontributing to a CESA, but withdrawals are tax free for a broadrange of qualified education expenses.


What expenses are eligible tobe paid from my child’s

Coverdell ESA?For higher education, tuition, fees, books, supplies, requiredequipment, and expenses for room and board incurred bystudents who are enrolled at least half-time. For elementaryand secondary school, tuition, fees, books, supplies, requiredequipment, academic tutoring, room and board, uniforms,transportation provided by the school, and even the purchase ofcomputer technology, equipment, or internet access.

How do I go about payingfor the expenses of my

child’s education from hisor her Coverdell ESA?

You may submit invoices to your custodian and have them payvendors directly or you can have the money sent to you forqualified education expenses incurred or to be incurred withinthe same tax year.


What If My Child Doesn’tUse Up All The Money InHis Or Her Coverdell ESA

By Age 30?

If your child doesn’t use up all the money in his or her Coverdellbefore age 30, the designated beneficiary of the account can beswitched without any tax or penalty to a member of your child’sfamily who is under age 30 at the time, including your child’sspouse, child, brother, sister, father, mother, niece, nephew,aunt, uncle, or any of their spouses, or a first cousin. Otherwisethe designated beneficiary may withdraw the money and paytaxes and penalties.


How Can I Take MoneyFrom My IRA Before I’mEligible Without Paying

Taxes Or Penalties?Contributions to a Roth IRA can be withdrawn tax and penalty freeat any time. If you need additional money from your Roth IRAbefore age 59 ½, you can withdraw the profits and pay taxes butno penalties for the following reasons:

1) Total and permanent disability.2) Death distribution.3) First-time home purchase.4) Part of a series of substantially equal payments.5) Unreimbursed medical expenses exceeding certain limits.6) Medical insurance premiums during unemployment.7) Qualified education expenses.8) IRS levy.9) Qualified reservist distribution.

To learn more, see IRS Publication 590, which you can getfrom www.IRS.gov, a copy of which is printed as an appendix tothis book.

www.IRS.gov


What Can I Do To CausePenalties To Be Levied On

My Roth IRA?

1) Get caught doing a direct or indirect prohibited transaction.2) Investing in collectibles or other prohibited investments.3) Making excess contributions.4) Taking early distributions.5) Not distributing Required Minimum Distributions from an

inherited Roth IRA.

Can I Loan Myself Money?No, that is a prohibited transaction, whether done directly orindirectly


Can I Deed My RentalProperties To My IRA?

No, that would be a prohibited transaction. Your IRA mustpurchase property directly from non-disqualified sellers.

Can I originate a debt on aproperty outside of my RothIRA and have my Roth IRA

own the property?

No, it is a prohibited transaction for you to extend credit to yourIRA, including you guaranteeing a debt on an IRA ownedproperty.


Can You Give Me A List OfWhat My Roth IRA Can’t Buy?

Prohibited investments in an IRA include:

1) Art2) Rugs3) Antiques4) Metals (with exceptions for gold, silver, platinum and palladium

bullion)5) Gems6) Stamps7) Coins (with exceptions for certain U.S. minted gold, silver and

platinum coins)8) Alcoholic beverages9) Life insurance contracts

Additional prohibited investments would be anything you or any otherdisqualified person now own or are using for personal purposes and anyentity in which you or certain family members own 50% or more of.

Can You Give Me A List OfThings That Can Cause Me

To Be Penalized ForSelf-Dealing?

A prohibited transaction (self-dealing) is any direct or indirect:

(A) sale or exchange, or leasing, of any property between your IRAand a disqualified person, including transferring or leasing anyproperty owned by you to your IRA or vice versa;

(B) lending of money or other extension of credit between your IRAand a disqualified person, including loaning money to your IRAfor repairs to property or for earnest money or guaranteeing adebt on behalf of your IRA or an IRA owned entity;

(C) furnishing of goods, services, or facilities between your IRA anda disqualified person, including providing materials and yourpersonal services to build or rehab a house owned by your IRA;

(D) a disqualified person using the income or assets of a plan forpersonal use, including staying in a property owned by your IRAor receiving any kind of benefit at all from your IRA’sinvestments other than as a beneficiary of the IRA takingdistributions;

(E) act by a disqualified person who is a fiduciary (including the IRAowner) whereby he deals with the income or assets of a plan inhis own interests or for his own account (this is similar to D butis related specifically to fiduciaries, including the IRA owner); or

(F) receipt of any consideration for his own personal account byany disqualified person who is a fiduciary from any partydealing with the plan in connection with a transaction involving


the income or assets of the plan, including taking a commissionor receiving any benefit from a third party for an investmentmade by your IRA.

Disqualified persons include, among others, the IRA owner, hisor her spouse, parents, grandparents and other linealascendants, children, grandchildren and other linealdescendants and their spouses, and any corporation,partnership, trust or estate owned or controlled 50% or more byany of these family members, as well as managers, directors,highly compensated employees, and 10% or more owners orjoint venture partners of a disqualified entity. Remember, thephrase “direct or indirect” is construed very broadly, so be verycareful when entering into transactions either directly with thesedisqualified persons or where any disqualified person willdirectly or indirectly benefit.

If I Get Caught Self DealingWhat Is The Worse

Case Penalty?

To start with, your IRA is disqualified as an IRA as of January 1of the year in which you did the prohibited transaction. In otherwords, it is deemed to be distributed to you at that time. This canlead to many types of penalties, including early distribution penalties,underpayment of tax penalties, accuracy related penalties, excesscontribution penalties, and others. Additionally, any other disqualifiedparties involved may have to pay an excise tax of 15% of the amountinvolved in the prohibited transaction for each year it is outstandingplus up to an additional 100% penalty. You can also lose thebankruptcy protection for your IRA if the trustee or a creditor canprove you did a prohibited transaction. Sound like fun? It isn’t, so itis best to play by the rules.



What Could Cause My IRATo Get Taxed?

Actions related to your IRA which may cause you or your IRA toowe additional taxes include:

1) Investing in collectibles2) Making excess contributions3) Taking early distributions4) Failing to take Required Minimum Distributions (RMDs)5) Entering into prohibited transactions6) Making an investment which causes your IRA to owe Unrelated

Business Income Tax (UBIT) (discussed below)

The first 5 on the list above cause you personally to owe additionaltaxes, while a UBIT transaction means that your IRA owes taxes.

What Is UBIT (UnrelatedBusiness Income Tax)?

Normally investment income earned within your IRA is tax free.However, there are three main circumstances when your IRA (notyou personally) can owe taxes on its investment income if doneeither directly or through a pass-through entity such as an LLC or apartnership:

1) Operating a business, which may include being a dealer in realestate;

2) Renting personal property, such as a mobile home in a parkwhere your IRA does not also own the land; and

3) Owning debt-financed property (including ‘subject to’ property)More information on this topic may be found in IRS Publication 598.

How Do I Avoid UBIT?

Fortunately, there are ways to structure your investments to avoidUBIT. These would include:

1) Using options instead of owning the property subject to the debt;2) Taking a position as a lender instead of an owner;3) Instead of buying with debt, bring a money partner to the deal;4) Having your IRA own a C corporation for its activities which

would otherwise generate UBIT

There may be circumstances when the deal is so good you may justwant your IRA to go ahead and do the deal anyway. But remember,if your IRA owes taxes, make sure that you have IRS Form 990Tprepared and have your IRA (not you) pay the taxes.

What Happens If I Make AnExcess Contribution?

You will be subject to an excise tax penalty of 6% of the amount ofthe excess contribution for each year the excess contributionremains in the account. You can avoid this penalty by removingthe excess contribution and any net profits attributable to it by yourtax filing deadline, including extensions.


How Does The IRS KnowAbout My Contributions?

Both you and the IRS will receive from your IRA custodian IRSForm 5498 each year, which details, among other things, anycontributions to your account.


Step By Step Process ForUsing Your IRA To

Buy And Sell Property OrProperty Related Assets

(Other than “Subject To” deals)

1) Open a Roth IRA at your chosen self-directed IRA custodian oradministrator with $200 or more, or transfer your existing IRA to them.

2) Contract to buy or option a property or a note secured by property oreven unsecured. Your custodian or administrator must be the buyer oroptionee, for the benefit of your Roth IRA. Check with your custodian oradministrator for exact instructions on how to title assets in youraccount. A typical style is [Name of Custodian] FBO [Your Name] IRA #[Account Number].

3) Send your custodian or administrator a copy of the completedagreement used to buy or control the asset you want your IRA topurchase. Typically you will need to indicate in some way that you haveread and approved the agreement and that you want your custodian oradministrator to sign it on behalf of your IRA. Check with your custodianor administrator for exact instructions.

4) Complete a Direction of Investment form from your custodian oradministrator and order a deposit for earnest money or to buy the option(usually at least $100). This should be mailed to you but made outdirectly to the seller or title company. Note that depending on yourcustodian you may need to send another Direction of Investment formshortly before closing.

5) When the property is sold complete a Direction to Sell form from yourcustodian or administrator. Make sure all proceeds are wired to yourcustodian or administrator or that the check is made out to them for the


benefit of your IRA. Check with your custodian or administrator for exactinstructions on how to dispose of assets in your IRA.

Note: Do not send your custodian or administrator more than they need toprocess your investment, unless they request it. The less you get theminvolved the easier the transaction will get processed. If you need help fromthem, do not hesitate to ask.



Step By Step Process For UsingYour IRA To Buy A Business

1) Open a Roth IRA at your chosen self-directed IRA custodian oradministrator with $200 or more, or transfer your existing IRA to them.

2) Complete a Direction of Investment form from your custodian oradministrator to order funds for the purchase of the stock. You mayneed to submit the organizational documents and/or a subscriptionagreement for the stock. Check with you custodian or administrator forexact requirements. We suggest at least a $500 minimum stockpurchase, assuming that the business has no assets or value yet.These funds should be deposited into the company’s account so a clearpaper trail can be established.

3) If stock or other certification of ownership is issued send the originalcertificate to your custodian or administrator. Check with your custodianor administrator for exact titling of the stock. A typical style is [Name ofCustodian] FBO [Your Name] IRA # [Account Number].

4) If your IRA is receiving distributions from the business there is nothingelse for you to do until they are made. At that time the business shouldsend the funds directly to your custodian or administrator for deposit intoyour IRA.

Caution! You can’t have your IRA put up only $500 to buy a substantial stake in a

business worth $1,000,000 and expect the IRS to be happy. For thissmall amount you should buy only newly formed businesses.

Your IRA can own 100% of the stock as long as neither you nor anyother disqualified person are an officer or get any kind of salary or otherbenefits.

Your business will pay taxes before the after-tax distributions are madeto your IRA. You cannot have your IRA invest in a business and avoidtaxes but your Roth IRA does not pay taxes on the after-tax dividends itreceives. Once back in your Roth IRA, the net profits can continue togrow tax free forever.


Step By Step Process ForUsing Your IRA To Buy And

Sell “Subject To” Deals1) Open a Roth IRA at your chosen self-directed IRA custodian or

administrator with $200 or more, or transfer your existing IRA to them.

2) Get the deed in a land trust using a warranty or grant deed to thetrustee. Your IRA is not involved in this transaction.

3) Send your custodian or administrator an option agreement showing yourIRA is buying an option on the property from the land trust that got thedeed. You must not be the beneficiary of the land trust. The optionprice should be at least $500 more than the loan balance the land trusttook title subject to.

4) Complete a Direction of Investment form from your custodian oradministrator and order a deposit of at least $100 to cover the option feeto the trustee of the land trust that now owns the property and have itmailed to you. Make sure this deposit doesn’t end up in any accountowned by you or your linear family to avoid self dealing.

5) The day before the property is due to sell and cash out contact theclosing agent and instruct him or her to cut a $500 check to the trusteeof the land trust selling the property and the balance in a check madeout to your IRA that owns the option. Have the check made out to yourIRA sent to you.

6) Send the IRA’s check to your custodian or administrator with a letterinstructing them to deposit the check into the appropriate accounts andtelling them what the check is for.


“Subject To” Example

Your Purchase Price $153,000Loan Taken “Subject To”

Your IRA Option From $153,500The Land Trust

Sales Price $200,000Sales Cost on HUD-1 - $ 6,000Loan Payoff - $153,000Net Proceeds $ 41,000

Checks To:Land Trust $500Your IRA(s) $40,500


Cover Letter ToSend With A Check

When You Sell A Property

(Your Header Here)

“Custodian”Attn: Mary SmithIRA # 12345, FBO John Investor

6/03/13

Dear Ms. Smith,Enclosed is a check for $40,500 to be deposited in my account

above for the sale of an option on a property located at 1233 MainStreet, Anywhere, FL.

If you have any questions, please call (904) 555-5555.

Sincerely,John Investor


How YourIRA ShouldOwn Assets


Trust AgreementEnclosed are three different trust agreements, each designed

for a specific use. You’ll find a blank version followed by a completedexample of the pages requiring you to fill in blanks.

The first agreement is for ownership of property if your IRA willactually own it. Its titled “Agreement And Declaration Of Trust”,commonly referred to as a land trust or grantor trust. Simply makeyour IRA the beneficiary instead of you. Remember, you should notlet your IRA own a property you bought “Subject To.” You maytrigger UBIT. Simply let the IRA option the property from a land trustthat got the deed. You won’t own the land trust to avoid self dealing.

The second agreement titled “Trust Agreement” is for owningpaper; i.e. notes, mortgages, land contracts, deeds of trust, or otherdebt instruments. Note the language in paragraph 2. Your IRA willbe the beneficiary.

The third agreement titled “Personal Property Trust Agreement”is for any type of personal property such as stocks, bonds, options, ortangible assets. Your IRA will be the beneficiary.

Your custodian will want a copy of these documents once youpurchase the asset.

Don’t get confused by the role of Grantor and Trustee. Yourcustodian is no the trustee of the land, paper or personal propertytrust. They are the trustee for your IRA which will be the beneficiaryfor all the trusts enclosed. Your custodian will not appear on anydocument other than these trusts. Your trustee name will be on thedeed or the mortgage you’re buying or the stock certificate, etc. Thiswill aid in privacy and serve as a wall between your IRA andpredators.

Your trustee can be an entity you don’t control or an individualnot in your linear decent.


How Should I Take Title ToAssets In My Roth?

It depends on the type of asset.

Property- land trust making your IRA the beneficiary

Mortgages, Tax Liens, Debt Instruments- paper trustmaking your IRA the beneficiary

Businesses- your IRA will own stock in the businessentity usually a C corporation to avoid UBIT

Options and Wholesale Contracts- you can put the IRAon the agreement but I’d prefer you option in a paper trustand let the IRA be the beneficiary of the trust

Stocks, Bonds, Tangible Assets- buy in a personalproperty trust making the IRA the beneficiary

AGREEMENT AND DECLARATION OF TRUST

THIS AGREEMENT AND DECLARATION OF TRUST Is made and entered into this

__________ day of _______________________________, 20 _______, by and between

_____________________________ ____________________________, as Grantors and Beneficiaries,

(hereinafter referred to as the "Beneficiaries", whether one or more, which designation shall include all

successors in interest of any Beneficiary), and

_______________________________________________________________, whose address is

____________________________________________________________, hereinafter referred to as

the "Trustee", which designation shall include all successor trustees). The name of the trust

is:_________________________________________________________________________________

______,

IT IS MUTUALLY AGREED AS FOLLOWS:

1. Trust Property. The Beneficiaries are about to convey or cause to be conveyed to the Trustee by

deed, absolute in form, the property described in the attached Exhibit "A", which said property shall

be held by the Trustee, in trust, for the following uses and purposes, under the terms of this

Agreement and shall be hereinafter referred to as the "Trust Property".

2. Consideration. No consideration was paid by Trustee for such conveyance. The conveyance will

be accepted and will be held by Trustee subject to all existing encumbrances, easements,

restrictions or other clouds or claims against the title thereto, whether the same are of record or

otherwise. The property will be held on the trusts, terms and conditions, and for the purposes

hereinafter set forth, until the whole of the trust estate is conveyed, free of this trust, as hereinafter

provided.

3. Beneficiaries. The persons named in the attached Exhibit "B" are the Beneficiaries of this Trust,

and as such, shall be entitled to all of the earnings, avails and proceeds of the Trust Property

according to their interests set opposite their respective names.

4. Interests. The interests of the Beneficiaries shall consist solely of the following rights respecting

the Trust Property:

a. The right to direct the Trustee to convey or otherwise deal with the title to the Trust

Property as hereinafter set out.

b. The right to manage and control the Trust Property.

c. The right to receive the proceeds and avails from the rental, sale, mortgage, or other

disposition of the Trust Property.

The foregoing rights shall be deemed to be personal property and may be assigned and otherwise

transferred as such. No Beneficiary shall have any legal or equitable right, title or interest, as

realty, in or to any real estate held in trust under this Agreement, or the right to require partition of

that real estate, but shall have only the rights, as personally, set out above, and the death of a

Beneficiary shall not terminate this Trust or in any manner affect the powers of the Trustee.

5. Powers of Trustee.

a. With the consent of the Beneficiary, the Trustee shall have authority to issue notes

or bonds and to secure the payment of the same by mortgaging the whole or any part of the

Trust Property; to borrow money, giving notes therefore signed by him in his capacity as

Trustee; to invest such part of the capital and the profits therefrom and the proceeds of the

sale of bonds and notes in such real estate, equities in real estate, and mortgages in real

estate in the United States of America, as he may deem advisable.

b. With the consent of the Beneficiary, the Trustee shall have the authority to hold the

legal title to all of the Trust Property, and shall have the exclusive management and control of

the property as if he were the absolute owner thereof, and the Trustee is hereby given full

power to do all things and perform all acts which in his judgment are necessary and proper for

the protection of the Trust Property and for the interest of the Beneficiaries in the property of

the Trust, subject to the restrictions, terms, and conditions herein set forth.

c. Without prejudice to the general powers conferred on the Trustee hereunder, it is

hereby declared that the Trustee shall have the following powers, with the consent of the

Beneficiaries:

(1) To purchase any real property for the Trust at such times and on such

terms as may seem advisable; to assume mortgages upon the property.

(2) To sell at public auction or private sale, to barter, to exchange, or to

dispose of otherwise, any part, or the whole of the Trust Property which may, from time to

time form part of the Trust estate, subject to such restrictions and for such consideration

for cash and for credit, and generally upon such terms and conditions as may seem

judicious, to secure payment upon any loan or loans of the Trust, by mortgage with or

without power of sale, and to include such provisions, terms, and conditions as may

seem desirable.


61

(3) To rent or lease the whole or any part of the Trust Property for long or

short terms, but not for terms exceeding the term of the Trust then remaining.

(4) To repair, alter, tear down, add to, or erect any building or buildings

upon land belonging to the Trust; to fill, grade, drain, improve, and otherwise develop any

land belonging to the Trust; to carry on, operate, or manage any building, apartment

house, or hotel belonging to the Trust.

(5) To make, execute, acknowledge, and deliver all deeds, releases,

mortgages, leases, contracts, agreements, instruments, and other obligations of

whatsoever nature relating to the Trust Property, and generally to have full power to do all

things and perform all acts necessary to make the instruments proper and legal.

(6) To collect notes, obligations, dividends, and all other payments that

may be due and payable to the Trust; to deposit the proceeds thereof, as well as any

other moneys from whatsoever source they may be derived, in any suitable bank or

depository, and to draw the same from time to time for the purposes herein provided.

(7) To pay all lawful taxes and assessments and the necessary expenses

of the Trust; to employ such officers, brokers, engineers, architects, carpenters,

contractors, agents, counsel, and such other persons as may seem expedient, to

designate their duties and fix their compensation; to fix a reasonable compensation for

their own services to the Trust, as organizers thereof.

(8) To represent the Trust and the Beneficiaries in all suits and legal

proceedings relating to the Trust Property in any court of law of equity, or before any

other bodies or tribunals; to begin suits and to prosecute them to final judgment or

decree; to compromise claims or suits, and to submit the same to arbitration when, in his

judgment, such course is necessary or proper.

(9) To arrange and pay for and keep in force in the name and for the

benefit of the Trustee, such insurance as the Trustee may deem advisable, in such

companies, in such amounts, and against such risks as determined necessary by the

Trustee.

6. Duties of Trustee. It shall be the duty of the Trustee in addition to the other duties herein

imposed upon him:

a. To keep a careful and complete record of all the beneficial interests in the Trust Property

with the name and residence of the person or persons owning such beneficial interest, and

such other items as he may deem of importance or as may be required by the Beneficiaries.

b. To keep careful and accurate books showing the receipts and disbursements of the Trust

and also of the Trust Property, and such other items as he may deem of importance or as the

Beneficiaries hereunder may require.

c. To keep books of the Trust open to the inspection of the Beneficiaries at such reasonable

times at the main office of the Trust as they may appoint.

d. To furnish the Beneficiaries at special meetings at which the same shall be requested a

careful, accurate, written report of his transactions as Trustee hereunder, of the financial

standing of the Trust, and of such other information concerning the affairs of the Trust as they

shall request.

e. To sell the Trust Property and distribute the proceeds therefrom:

(1) If any property shall remain in trust under this Agreement for a term

which exceeds that allowed under applicable state law, the Trustee forthwith shall sell

same at public sale after a reasonable public advertisement and reasonable notice to the

Beneficiaries and, after deducting his reasonable fees and expenses, he shall divide the

proceeds of the sale among the Beneficiaries as their interests may then appear, without

any direction or consent whatsoever, or

(2) To transfer, set over, convey and deliver to all the then Beneficiaries of

this Trust their respective undivided interests in any non-divisible assets, or

(3) To transfer, set over and deliver all of the assets of the Trust to its

Beneficiaries, in their respective proportionate shares, at any time when the assets of the

Trust consist solely of cash.

7. Compensation of Trustee. The Beneficiaries jointly and severally agree that the Trustee shall

receive the sum of $ ____________ per month for his services as Trustee hereunder.

8. Liability of Trustee. The Trustee and his successor as Trustee shall not be required to give a

bond, and each Trustee shall be liable only for his own acts and then only as a result of his own

gross negligence or bad faith.

9. Removal of Trustee. The Beneficiaries shall have the power to remove a Trustee from his office

or appoint a successor to succeed him.

10. Resignation and Successor.

a. Any Trustee may resign his office with thirty (30) days written notice to Beneficiaries and

Beneficiaries shall proceed to elect a new Trustee to take the place of the Trustee who had COPYRIGHT 2013 HERITAGE FINANCIAL, LTD. OF JACKSONVILLE

62

resigned, but the resignation shall not take effect until a certificate thereof, signed, sealed, and

acknowledged by the Trustee, and a certificate of the election of the new Trustee, signed and

sworn to by the Beneficiaries and containing an acceptance of the office, signed and

acknowledged by the new Trustee, shall have been procured in a form which is acceptable for

recording in the registries of deeds of all the counties in which properties held under this

instrument are situated. If the Beneficiaries shall fail to elect a new Trustee within thirty (30)

days after the resignation, then the Trustee may petition any appropriate court in this state to

accept his resignation and appoint a new Trustee.

b. Any vacancy in the office of Trustee, whether arising from death or from any other cause

not herein provided for, shall be filled within thirty (30) days from the date of the vacancy and

the Beneficiaries shall proceed to elect a new Trustee to fill the vacancy, and immediately

thereafter shall cause to be prepared a certificate of the election containing an acceptance of

the office, signed, sealed, and acknowledged by the new Trustee, which shall be in a form

acceptable for recording in the registries of deeds of all the counties in which properties held

under this instrument are situated.

c. Whenever a new Trustee shall have been elected or appointed to the office of Trustee

and shall have assumed the duties of office, he shall succeed to the title of all the properties of

the Trust and shall have all the powers and be subject to all the restrictions granted to or

imposed upon the Trustee by this agreement, and every Trustee shall have the same powers,

rights, and interests regarding the Trust Property, and shall be subject to the same restrictions

and duties as the original Trustee, except as the same shall have been modified by

amendment, as herein provided for.

d. Notwithstanding any such resignation, the Trustee shall continue to have a lien on the

Trust Property for all costs, expenses and attorney's fees incurred and for said Trustee's

reasonable compensation.

11. Objects and Purposes of Trust. The objects and purposes of this Trust shall be to hold title to

the Trust Property and to protect and conserve it until its sale or other disposition or liquidation.

The Trustee shall not undertake any activity not strictly necessary to the attainment of the

foregoing objects and purposes, nor shall the Trustee transact business within the meaning of

applicable state law, or any other law, nor shall this Agreement be deemed to be, or create or

evidence the existence of a corporation, de facto or dejure, or a Massachusetts Trust, or any other

type of business trust, or an association in the nature of a corporation, or a co partnership or joint

venture by or between the Trustee and the Beneficiaries, or by or between the Beneficiaries.

12. Exculpation. The Trustee shall have no power to bind the Beneficiaries personally and, in every

written contract he may enter into, reference shall be made to this declaration; and any person or

corporation contracting with the Trustee, as well as any beneficiary, shall look to the funds and the

Trust Property for payment under such contract, or for the payment of any debt, mortgage,

judgment, or decree, or for any money that may otherwise become due or payable, whether by

reason or failure of the Trustee to perform the contract, or for any other reason, and neither the

Trustee nor the Beneficiaries shall be liable personally therefore.

13. Dealings with Trustee. No party dealing with the Trustee in relation to the Trust Property in any

manner whatsoever, and, without limiting the foregoing, no party to whom the property or any part

of it or any interest in it shall be conveyed, contracted to be sold, leased or mortgaged by the

Trustee, shall be obliged to see to the application of any purchase money, rent or money borrowed

or otherwise advanced on the property; to see that the terms of this Trust Agreement have been

complied with; to inquire into the authority, necessity or expediency of any act of the Trustee; or be

privileged to inquire into any of the terms of this Trust Agreement. Every deed, mortgage, lease or

other instrument executed by the Trustee in relation to the Trust Property shall be conclusive

evidence in favor of every person claiming any right, title or interest under the Trust that at the time

of its delivery the Trust created under this Agreement was in full force and effect; and that

instrument was executed in accordance with the terms and conditions of this Agreement and all its

amendments, if any, and is binding upon all Beneficiaries under it; that the Trustee was duly

authorized and empowered to execute and deliver every such instrument; if a conveyance has

been made to a successor or successors in trust, that the successor or successors have been

appointed properly and are vested fully with all the title, estate, rights, powers, duties and

obligations of its, his or their predecessor in Trust.

14. Recording of Agreement. This Agreement shall not be placed on record in the county in which

the Trust Property is situated, or elsewhere, but if it is so recorded, that recording shall not be

considered as notice of the rights of any person under this Agreement derogatory to the title or

powers of the Trustee.

15. Name of Trustee. The name of the Trustee shall not be used by the Beneficiaries in connection

with any advertising or other publicity whatsoever without the written consent of the Trustee.

16. Income Tax Returns. The Trustee shall be obligated to file any income tax returns with respect to

the Trust, as required by law, and the Beneficiaries individually shall report and pay their share of


63

income taxes on the earnings and avails of the Trust Property or growing out of their interest under

this Trust.

17. Assignment. The interest of a Beneficiary, or any part of that interest, may be transferred only by

a written assignment, executed in duplicate and delivered to the Trustee. The Trustee shall note

its acceptance on the original and duplicate original of the assignment, retaining the original and

delivering the duplicate original to the assignee as and for evidence of ownership of a beneficial

interest under this Agreement. No assignment of any interest under this Agreement, other than by

operation of law, that is not so executed, delivered and accepted shall be valid without the written

approval of all of the other Beneficiaries who possess the power of direction. No person who is

vested with the power of direction, but who is not a Beneficiary under this Agreement, shall assign

that power without the written consent of all the Beneficiaries.

18. Individual Liability of Trustee. The Trustee shall not be required, in dealing with the Trust

Property or in otherwise acting under this Agreement, to enter into any individual contract or other

individual obligation whatsoever; nor to make himself individually liable to pay or incur the payment

of any damages, attorney's fees, fines, and penalties, forfeitures, costs, charges or other sums of

money whatsoever. The Trustee shall have no individual liability or obligation whatsoever arising

from his ownership, as Trustee, of the legal title to the Trust Property, or with respect to any act

done or contract entered into or indebtedness incurred by him in dealing with the Trust Property or

in otherwise acting under this Agreement, except only as far as the Trust Property and any trust

funds in the actual possession of the Trustee shall be applicable to the payment and discharge of

that liability or obligation.

19. Reimbursement and Indemnification of Trustee. If the Trustee shall pay or incur any liability to

pay any money on account of this Trust, or incur any liability to pay any money on account of being

made a party to any litigation as a result of holding title to Trust Property or otherwise in connection

with this Trust, whether because of breach of contract, injury to person or property, fines or

penalties under any law, or otherwise, the Beneficiaries, jointly and severally agree that on demand

they will pay to the Trustee, with interest at the rate of ____________% per annum, all such

payments made or liabilities incurred by the Trustee, together with his expenses, including

reasonable attorney's fees, and that they will indemnify and hold the Trustee harmless of and from

any and all payments made or liabilities incurred by him for any reason whatsoever as a result of

this Agreement; and all amounts so paid by the Trustee, as well as his compensation under this

Agreement, shall constitute a lien on the Trust Property. The Trustee shall not be required to

convey or otherwise deal with the Trust property as long as any money is due to the Trustee under

this Agreement; nor shall the Trustee be required to advance or pay out any money on account of

this Trust or to prosecute or defend any legal proceedings involving this Trust or any property or

interest under this Agreement unless he shall be furnished with sufficient funds or be indemnified

to his satisfaction.

20. Entire Agreement. This Agreement contains the entire understanding between the parties and

may be amended, revoked, or terminated only by written agreement signed by the Trustee and all

of the Beneficiaries.

21. Governing Law. This agreement, and all transactions contemplated hereby, shall be governed by,

construed and enforced in accordance with the laws of the State of __________________. The

parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a

court of subject matter jurisdiction located in _____________________ County, State of

__________________. In the event that litigation results from or arises out of this Agreement or

the performance thereof, the parties agree to reimburse the prevailing party's reasonable attorney's

fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition

to any other relief to which the prevailing party may be entitled. In such event, no action shall be

entertained by said court or any court of competent jurisdiction if filed more than one year

subsequent to the date the cause(s) of action actually accrued regardless of whether damages

were otherwise as of said time calculable.

22. Binding Effect. The terms and conditions of this Agreement shall inure to the benefit of and be

binding upon any successor trustee under it, as well as upon the executors, administrators, heirs,

assigns and all other successors in interest of the Beneficiaries.

23. Trustee's Liability to Beneficiaries. The Trustee shall be liable to the Beneficiaries for the value

of their respective beneficial interests only to the extent of the property held in Trust by him

hereunder and the Beneficiaries shall enforce such liability only against the Trust Property and not

against the Trustee personally.

24. Annual Statements. There shall be no annual meeting of the Beneficiaries, but the Trustee shall

prepare an annual report of their receipts and disbursements for the fiscal year preceding, which

fiscal year shall coincide with the calendar year, and a copy of the report shall be sent by mail to

the Beneficiaries not later than February 28 of each year.

25. Termination. This trust may be terminated at any time by the Beneficiaries and with thirty (30)

days written notice of termination delivered to the Trustee, the Trustee shall execute any and all


64

documents necessary to vest fee simple marketable title to any and all Trust Property in

Beneficiaries.

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year

first above written.

Signed, sealed and delivered in the presence of:

BENEFICIARIES

____________________________________ ____________________________

Witness

___________________________________

Witness

___________________________________ ____________________________

Witness

___________________________________ ____________________________

Witness

___________________________________

Witness

___________________________________

Witness

___________________________________

Witness

___________________________________ _____________________________

Witness Trustee

___________________________________

Witness

STATE OF_________________________

COUNTY OF_______________________

Before me personally appeared _______________________________________________ to me well

known and known to me to be the person described in and who executed the foregoing instrument, and

acknowledged to and before me that he executed said instrument for the purposes therein expressed.

WITNESS my hand and official seal in the State and County aforesaid, this day of _________, 20____

___________________________

Notary Public

(SEAL) State of _____________

My Commission Expires:

__________________________


65

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________


66

EXHIBIT "B "

Name and Address Interest

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________


67

AGREEMENT AND DECLARATION OF TRUST

THIS AGREEMENT AND DECLARATION OF TRUST Is made and entered into this __3RD___

day of ________JUNE______, 20 _13__, by and between ____CUSTODIAN_______

____________________________, as Grantors and Beneficiaries, (hereinafter referred to as the

"Beneficiaries", whether one or more, which designation shall include all successors in interest of any

Beneficiary), and _____ABC CORP (YOUR TRUSTEE)____, whose address is ____(YOUR

ADDRESS)_________, hereinafter referred to as the "Trustee", which designation shall include all

successor trustees). The name of the trust

is:_________________________________________________________________________________

______,

IT IS MUTUALLY AGREED AS FOLLOWS:

1. Trust Property. The Beneficiaries are about to convey or cause to be conveyed to the Trustee by

deed, absolute in form, the property described in the attached Exhibit "A", which said property shall

be held by the Trustee, in trust, for the following uses and purposes, under the terms of this

Agreement and shall be hereinafter referred to as the "Trust Property".

2. Consideration. No consideration was paid by Trustee for such conveyance. The conveyance will

be accepted and will be held by Trustee subject to all existing encumbrances, easements,

restrictions or other clouds or claims against the title thereto, whether the same are of record or

otherwise. The property will be held on the trusts, terms and conditions, and for the purposes

hereinafter set forth, until the whole of the trust estate is conveyed, free of this trust, as hereinafter

provided.

3. Beneficiaries. The persons named in the attached Exhibit "B" are the Beneficiaries of this Trust,

and as such, shall be entitled to all of the earnings, avails and proceeds of the Trust Property

according to their interests set opposite their respective names.

4. Interests. The interests of the Beneficiaries shall consist solely of the following rights respecting

the Trust Property:

a. The right to direct the Trustee to convey or otherwise deal with the title to the Trust

Property as hereinafter set out.

b. The right to manage and control the Trust Property.

c. The right to receive the proceeds and avails from the rental, sale, mortgage, or other

disposition of the Trust Property.

The foregoing rights shall be deemed to be personal property and may be assigned and otherwise

transferred as such. No Beneficiary shall have any legal or equitable right, title or interest, as

realty, in or to any real estate held in trust under this Agreement, or the right to require partition of

that real estate, but shall have only the rights, as personally, set out above, and the death of a

Beneficiary shall not terminate this Trust or in any manner affect the powers of the Trustee.

5. Powers of Trustee.

a. With the consent of the Beneficiary, the Trustee shall have authority to issue notes

or bonds and to secure the payment of the same by mortgaging the whole or any part of the

Trust Property; to borrow money, giving notes therefore signed by him in his capacity as

Trustee; to invest such part of the capital and the profits therefrom and the proceeds of the

sale of bonds and notes in such real estate, equities in real estate, and mortgages in real

estate in the United States of America, as he may deem advisable.

b. With the consent of the Beneficiary, the Trustee shall have the authority to hold the

legal title to all of the Trust Property, and shall have the exclusive management and control of

the property as if he were the absolute owner thereof, and the Trustee is hereby given full

power to do all things and perform all acts which in his judgment are necessary and proper for

the protection of the Trust Property and for the interest of the Beneficiaries in the property of

the Trust, subject to the restrictions, terms, and conditions herein set forth.

c. Without prejudice to the general powers conferred on the Trustee hereunder, it is

hereby declared that the Trustee shall have the following powers, with the consent of the

Beneficiaries:

(1) To purchase any real property for the Trust at such times and on such

terms as may seem advisable; to assume mortgages upon the property.

(2) To sell at public auction or private sale, to barter, to exchange, or to

dispose of otherwise, any part, or the whole of the Trust Property which may, from time to

time form part of the Trust estate, subject to such restrictions and for such consideration

for cash and for credit, and generally upon such terms and conditions as may seem

judicious, to secure payment upon any loan or loans of the Trust, by mortgage with or

without power of sale, and to include such provisions, terms, and conditions as may

seem desirable.


68

(3) To rent or lease the whole or any part of the Trust Property for long or

short terms, but not for terms exceeding the term of the Trust then remaining.

(4) To repair, alter, tear down, add to, or erect any building or buildings

upon land belonging to the Trust; to fill, grade, drain, improve, and otherwise develop any

land belonging to the Trust; to carry on, operate, or manage any building, apartment

house, or hotel belonging to the Trust.

(5) To make, execute, acknowledge, and deliver all deeds, releases,

mortgages, leases, contracts, agreements, instruments, and other obligations of

whatsoever nature relating to the Trust Property, and generally to have full power to do all

things and perform all acts necessary to make the instruments proper and legal.

(6) To collect notes, obligations, dividends, and all other payments that

may be due and payable to the Trust; to deposit the proceeds thereof, as well as any

other moneys from whatsoever source they may be derived, in any suitable bank or

depository, and to draw the same from time to time for the purposes herein provided.

(7) To pay all lawful taxes and assessments and the necessary expenses

of the Trust; to employ such officers, brokers, engineers, architects, carpenters,

contractors, agents, counsel, and such other persons as may seem expedient, to

designate their duties and fix their compensation; to fix a reasonable compensation for

their own services to the Trust, as organizers thereof.

(8) To represent the Trust and the Beneficiaries in all suits and legal

proceedings relating to the Trust Property in any court of law of equity, or before any

other bodies or tribunals; to begin suits and to prosecute them to final judgment or

decree; to compromise claims or suits, and to submit the same to arbitration when, in his

judgment, such course is necessary or proper.

(9) To arrange and pay for and keep in force in the name and for the

benefit of the Trustee, such insurance as the Trustee may deem advisable, in such

companies, in such amounts, and against such risks as determined necessary by the

Trustee.

6. Duties of Trustee. It shall be the duty of the Trustee in addition to the other duties herein

imposed upon him:

a. To keep a careful and complete record of all the beneficial interests in the Trust Property

with the name and residence of the person or persons owning such beneficial interest, and

such other items as he may deem of importance or as may be required by the Beneficiaries.

b. To keep careful and accurate books showing the receipts and disbursements of the Trust

and also of the Trust Property, and such other items as he may deem of importance or as the

Beneficiaries hereunder may require.

c. To keep books of the Trust open to the inspection of the Beneficiaries at such reasonable

times at the main office of the Trust as they may appoint.

d. To furnish the Beneficiaries at special meetings at which the same shall be requested a

careful, accurate, written report of his transactions as Trustee hereunder, of the financial

standing of the Trust, and of such other information concerning the affairs of the Trust as they

shall request.

e. To sell the Trust Property and distribute the proceeds therefrom:

(1) If any property shall remain in trust under this Agreement for a term

which exceeds that allowed under applicable state law, the Trustee forthwith shall sell

same at public sale after a reasonable public advertisement and reasonable notice to the

Beneficiaries and, after deducting his reasonable fees and expenses, he shall divide the

proceeds of the sale among the Beneficiaries as their interests may then appear, without

any direction or consent whatsoever, or

(2) To transfer, set over, convey and deliver to all the then Beneficiaries of

this Trust their respective undivided interests in any non-divisible assets, or

(3) To transfer, set over and deliver all of the assets of the Trust to its

Beneficiaries, in their respective proportionate shares, at any time when the assets of the

Trust consist solely of cash.

7. Compensation of Trustee. The Beneficiaries jointly and severally agree that the Trustee shall

receive the sum of $ _1.00___ per month for his services as Trustee hereunder.

8. Liability of Trustee. The Trustee and his successor as Trustee shall not be required to give a

bond, and each Trustee shall be liable only for his own acts and then only as a result of his own

gross negligence or bad faith.

9. Removal of Trustee. The Beneficiaries shall have the power to remove a Trustee from his office

or appoint a successor to succeed him.

10. Resignation and Successor.

a. Any Trustee may resign his office with thirty (30) days written notice to Beneficiaries and

Beneficiaries shall proceed to elect a new Trustee to take the place of the Trustee who had


69

resigned, but the resignation shall not take effect until a certificate thereof, signed, sealed, and

acknowledged by the Trustee, and a certificate of the election of the new Trustee, signed and

sworn to by the Beneficiaries and containing an acceptance of the office, signed and

acknowledged by the new Trustee, shall have been procured in a form which is acceptable for

recording in the registries of deeds of all the counties in which properties held under this

instrument are situated. If the Beneficiaries shall fail to elect a new Trustee within thirty (30)

days after the resignation, then the Trustee may petition any appropriate court in this state to

accept his resignation and appoint a new Trustee.

b. Any vacancy in the office of Trustee, whether arising from death or from any other cause

not herein provided for, shall be filled within thirty (30) days from the date of the vacancy and

the Beneficiaries shall proceed to elect a new Trustee to fill the vacancy, and immediately

thereafter shall cause to be prepared a certificate of the election containing an acceptance of

the office, signed, sealed, and acknowledged by the new Trustee, which shall be in a form

acceptable for recording in the registries of deeds of all the counties in which properties held

under this instrument are situated.

c. Whenever a new Trustee shall have been elected or appointed to the office of Trustee

and shall have assumed the duties of office, he shall succeed to the title of all the properties of

the Trust and shall have all the powers and be subject to all the restrictions granted to or

imposed upon the Trustee by this agreement, and every Trustee shall have the same powers,

rights, and interests regarding the Trust Property, and shall be subject to the same restrictions

and duties as the original Trustee, except as the same shall have been modified by

amendment, as herein provided for.

d. Notwithstanding any such resignation, the Trustee shall continue to have a lien on the

Trust Property for all costs, expenses and attorney's fees incurred and for said Trustee's

reasonable compensation.

11. Objects and Purposes of Trust. The objects and purposes of this Trust shall be to hold title to

the Trust Property and to protect and conserve it until its sale or other disposition or liquidation.

The Trustee shall not undertake any activity not strictly necessary to the attainment of the

foregoing objects and purposes, nor shall the Trustee transact business within the meaning of

applicable state law, or any other law, nor shall this Agreement be deemed to be, or create or

evidence the existence of a corporation, de facto or dejure, or a Massachusetts Trust, or any other

type of business trust, or an association in the nature of a corporation, or a co partnership or joint

venture by or between the Trustee and the Beneficiaries, or by or between the Beneficiaries.

12. Exculpation. The Trustee shall have no power to bind the Beneficiaries personally and, in every

written contract he may enter into, reference shall be made to this declaration; and any person or

corporation contracting with the Trustee, as well as any beneficiary, shall look to the funds and the

Trust Property for payment under such contract, or for the payment of any debt, mortgage,

judgment, or decree, or for any money that may otherwise become due or payable, whether by

reason or failure of the Trustee to perform the contract, or for any other reason, and neither the

Trustee nor the Beneficiaries shall be liable personally therefore.

13. Dealings with Trustee. No party dealing with the Trustee in relation to the Trust Property in any

manner whatsoever, and, without limiting the foregoing, no party to whom the property or any part

of it or any interest in it shall be conveyed, contracted to be sold, leased or mortgaged by the

Trustee, shall be obliged to see to the application of any purchase money, rent or money borrowed

or otherwise advanced on the property; to see that the terms of this Trust Agreement have been

complied with; to inquire into the authority, necessity or expediency of any act of the Trustee; or be

privileged to inquire into any of the terms of this Trust Agreement. Every deed, mortgage, lease or

other instrument executed by the Trustee in relation to the Trust Property shall be conclusive

evidence in favor of every person claiming any right, title or interest under the Trust that at the time

of its delivery the Trust created under this Agreement was in full force and effect; and that

instrument was executed in accordance with the terms and conditions of this Agreement and all its

amendments, if any, and is binding upon all Beneficiaries under it; that the Trustee was duly

authorized and empowered to execute and deliver every such instrument; if a conveyance has

been made to a successor or successors in trust, that the successor or successors have been

appointed properly and are vested fully with all the title, estate, rights, powers, duties and

obligations of its, his or their predecessor in Trust.

14. Recording of Agreement. This Agreement shall not be placed on record in the county in which

the Trust Property is situated, or elsewhere, but if it is so recorded, that recording shall not be

considered as notice of the rights of any person under this Agreement derogatory to the title or

powers of the Trustee.

15. Name of Trustee. The name of the Trustee shall not be used by the Beneficiaries in connection

with any advertising or other publicity whatsoever without the written consent of the Trustee.

16. Income Tax Returns. The Trustee shall be obligated to file any income tax returns with respect to

the Trust, as required by law, and the Beneficiaries individually shall report and pay their share of


70

income taxes on the earnings and avails of the Trust Property or growing out of their interest under

this Trust.

17. Assignment. The interest of a Beneficiary, or any part of that interest, may be transferred only by

a written assignment, executed in duplicate and delivered to the Trustee. The Trustee shall note

its acceptance on the original and duplicate original of the assignment, retaining the original and

delivering the duplicate original to the assignee as and for evidence of ownership of a beneficial

interest under this Agreement. No assignment of any interest under this Agreement, other than by

operation of law, that is not so executed, delivered and accepted shall be valid without the written

approval of all of the other Beneficiaries who possess the power of direction. No person who is

vested with the power of direction, but who is not a Beneficiary under this Agreement, shall assign

that power without the written consent of all the Beneficiaries.

18. Individual Liability of Trustee. The Trustee shall not be required, in dealing with the Trust

Property or in otherwise acting under this Agreement, to enter into any individual contract or other

individual obligation whatsoever; nor to make himself individually liable to pay or incur the payment

of any damages, attorney's fees, fines, and penalties, forfeitures, costs, charges or other sums of

money whatsoever. The Trustee shall have no individual liability or obligation whatsoever arising

from his ownership, as Trustee, of the legal title to the Trust Property, or with respect to any act

done or contract entered into or indebtedness incurred by him in dealing with the Trust Property or

in otherwise acting under this Agreement, except only as far as the Trust Property and any trust

funds in the actual possession of the Trustee shall be applicable to the payment and discharge of

that liability or obligation.

19. Reimbursement and Indemnification of Trustee. If the Trustee shall pay or incur any liability to

pay any money on account of this Trust, or incur any liability to pay any money on account of being

made a party to any litigation as a result of holding title to Trust Property or otherwise in connection

with this Trust, whether because of breach of contract, injury to person or property, fines or

penalties under any law, or otherwise, the Beneficiaries, jointly and severally agree that on demand

they will pay to the Trustee, with interest at the rate of ___6___% per annum, all such payments

made or liabilities incurred by the Trustee, together with his expenses, including reasonable

attorney's fees, and that they will indemnify and hold the Trustee harmless of and from any and all

payments made or liabilities incurred by him for any reason whatsoever as a result of this

Agreement; and all amounts so paid by the Trustee, as well as his compensation under this

Agreement, shall constitute a lien on the Trust Property. The Trustee shall not be required to

convey or otherwise deal with the Trust property as long as any money is due to the Trustee under

this Agreement; nor shall the Trustee be required to advance or pay out any money on account of

this Trust or to prosecute or defend any legal proceedings involving this Trust or any property or

interest under this Agreement unless he shall be furnished with sufficient funds or be indemnified

to his satisfaction.

20. Entire Agreement. This Agreement contains the entire understanding between the parties and

may be amended, revoked, or terminated only by written agreement signed by the Trustee and all

of the Beneficiaries.

21. Governing Law. This agreement, and all transactions contemplated hereby, shall be governed by,

construed and enforced in accordance with the laws of the State of _(YOUR STATE)__. The

parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a

court of subject matter jurisdiction located in __(YOUR COUNTY)___ County, State of

__________________. In the event that litigation results from or arises out of this Agreement or

the performance thereof, the parties agree to reimburse the prevailing party's reasonable attorney's

fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition

to any other relief to which the prevailing party may be entitled. In such event, no action shall be

entertained by said court or any court of competent jurisdiction if filed more than one year

subsequent to the date the cause(s) of action actually accrued regardless of whether damages

were otherwise as of said time calculable.

22. Binding Effect. The terms and conditions of this Agreement shall inure to the benefit of and be

binding upon any successor trustee under it, as well as upon the executors, administrators, heirs,

assigns and all other successors in interest of the Beneficiaries.

23. Trustee's Liability to Beneficiaries. The Trustee shall be liable to the Beneficiaries for the value

of their respective beneficial interests only to the extent of the property held in Trust by him

hereunder and the Beneficiaries shall enforce such liability only against the Trust Property and not

against the Trustee personally.

24. Annual Statements. There shall be no annual meeting of the Beneficiaries, but the Trustee shall

prepare an annual report of their receipts and disbursements for the fiscal year preceding, which

fiscal year shall coincide with the calendar year, and a copy of the report shall be sent by mail to

the Beneficiaries not later than February 28 of each year.

25. Termination. This trust may be terminated at any time by the Beneficiaries and with thirty (30)

days written notice of termination delivered to the Trustee, the Trustee shall execute any and all


71

documents necessary to vest fee simple marketable title to any and all Trust Property in

Beneficiaries.

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first

above written.

Signed, sealed and delivered in the presence of:

BENEFICIARIES

____________________________________ ____________________________

Witness

___________________________________ ____________________________

Witness

___________________________________ CUSTODIAN

Witness

___________________________________ ____________________________

Witness

___________________________________

Witness

___________________________________

Witness

___________________________________

Witness

___________________________________ SIGNATURE OF OFFICER OF CORP OR

OTHER ENTITY

Witness Trustee

___________________________________

Witness

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________


72

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________

STATE OF_________________________

COUNTY OF_______________________





___________________________

Notary Public

(SEAL) State of _____________


__________________________


73

EXHIBIT "B "

Name and Address Interest

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________

____________________________________


74

TRUST AGREEMENT

THIS TRUST AGREEMENT is made this ______ day of _______________, 20_____by and between

__________________________________________, Grantors and Beneficiaries,(hereinafter collectively referred to as the “Beneficiaries”) and

__________________________________________, Trustee of the________________________ Trust, (hereinafter referred to as the “Trustee,” which designationshall include all successor trustees).

WHEREAS, the Beneficiaries are about to convey or cause to be conveyed a certain noteand mortgage to the Trustee and

WHEREAS, the Trustee has agreed to accept such conveyance and hold the note andmortgage in trust under the terms and conditions set forth below.

NOW, THEREFORE, the parties, intending to be legally bound hereby, agree as follows:

1. TITLE. The trust created by this instrument shall be known as the ________________Trust.

2. OBJECTS AND PURPOSES OF TRUST. The purpose of this trust is for the Trusteeto take and hold title to the note and mortgage conveyed to the Trustee and to preserve the sameuntil its sale or other disposition.

The Trustee shall not undertake any activity which is not strictly necessary to theattainment of the foregoing objects and purposes, nor shall the Trustee transact business withinthe meaning of applicable state law, or any other law, nor shall this Trust Agreement be deemedto be, or create or evidence the existence of a corporation, de facto or de jure, or a MassachusettsTrust, or any other type of business trust, or an association in the nature of a corporation, or aco-partnership or joint venture by or between the Trustee and the Beneficiaries, or by or betweenthe Beneficiaries.

3. TRUST PROPERTY. The Beneficiaries are about to convey or cause to be conveyedto the Trustee in trust a certain note and mortgage as described more particularly in Schedule“A” attached hereto and made a part hereof. This property, together with any property lateradded to the trust, shall be designated as the “Trust Property”. The Trustee will hold the TrustProperty according to the terms and conditions of this Trust Agreement for the purposes, termsand conditions contained herein until such time as all of the Trust Property has been sold orotherwise conveyed, or until this trust has been terminated.


4. POWERS AND DUTIES OF TRUSTEE. The Trustee shall have all of the powersallowed to him by the provisions of the state law governing this Trust (see Paragraph 18). TheTrustee shall specifically have the power to make and execute contracts for the sale of the TrustProperty, option agreements for the sale of the Trust Property and to otherwise dispose of theTrust Property as the Trustee shall be directed by the majority in interest of the Beneficiaries. Inaddition, the Trustee shall have the power to perform any act that the majority in interest directthe Trustee to perform. The Trustee shall exercise his powers only upon the written direction ofa majority in interest of the Beneficiaries.

The Trustee shall have the duty to maintain an accurate record of the Beneficiaries of thisTrust, which record shall include the names and addresses of the Beneficiaries and theirrespective interests in the Trust and be designated as Schedule “B”. The Trustee shall only havesuch other duties as required in writing by a majority in interest of the Beneficiaries.

The Trustee shall not have the power to bind any of the Beneficiaries personally to anydebt or obligation without the express written consent of the Beneficiary.

5. COMPENSATION OF TRUSTEE. The Trustee shall be compensated for his actionsas Trustee according to the Schedule of Compensation set forth in Schedule “C” attached heretoand made a part hereof. The Trustee shall be promptly reimbursed by the Beneficiaries for theexpenses incurred by the Trustee in the administration of the Trust. The Trustee shall have a lienon the Trust Property for any unpaid compensation or unreimbursed expenses.

The Trustee shall not be obligated to advance any money on account of this Trust. TheTrustee shall not be obligated to commence any legal action or to defend against any legal actionunless the Trustee, in his sole discretion, is satisfied with the security provided by theBeneficiaries for the payment of the Trustee’s costs and expenses in connection with thelitigation.

If the Trustee shall pay or incur any liability to pay any money on account of this Trust,or incur any liability to any money on account of being made a party to any litigation as a resultof holding title to the Trust Property or otherwise in connection with this Trust, without regardto the cause of action asserted or complaint filed, the Beneficiaries, jointly and severally, agreethat on demand they will pay to the Trustee all such payments or liabilities, his expensesincurred in connection therewith, including reasonable attorney’s fees, and any other sumsadvanced by the Trustee on behalf of the Trust for any reason whatsoever. These amounts, if notimmediately paid to the Trustee, shall bear interest at the rate of ten (10%) percent per annumuntil paid in full. These amounts and any compensation due to the Trustee, until paid in full tothe Trustee, shall constitute a lien on the Trust Property. Further, as long as these amounts orany compensation due to the Trustee remain unpaid, the Trustee shall not have any obligation totake any action with regard to the Trust Property.

6. LIABILITY OF TRUSTEE. The Trustee shall not be personally liable for any


obligation of the Trust. No Beneficiary shall be able to bind the Trustee nor contract on hisbehalf without the Trustee’s express written consent. The Trustee and any successor Trusteeshall not be required to give a bond. Each Trustee is liable only for his own actions and thenonly as a result of his own gross negligence or bad faith.

7. REMOVAL OF TRUSTEE. A majority in interest of the Beneficiaries shall have thepower to remove the Trustee from his office and appoint a successor to succeed him.

8. RESIGNATION AND SUCCESSOR. The Trustee may resign by giving writtennotice to each of the Beneficiaries of his intention to resign.

The majority in interest of the Beneficiaries shall have the power to elect a successortrustee. If the Beneficiaries have not elected a successor trustee within thirty (30) days of thedate of the notice from the Trustee of his resignation, then the Trustee shall have the right toconvey the Trust Property to the Beneficiaries in the same proportion as their interests in theTrust may appear at the time of said conveyance.

If the office of the Trustee shall become vacant for any reason, then the Beneficiariesshall proceed to elect a successor trustee. Said election shall occur within thirty (30) days of theoccurrence of the vacancy. Upon election, the new Trustee shall cause to be prepared acertificate of his election containing a notice of election and his acceptance thereof in a formacceptable for recording in the office of the register of deeds of all of the counties in which theTrust Property is located. The certificate of election shall be filed in the office of the register ofdeeds of all of the counties in which the Trust Property is located.

A successor Trustee shall have all of the rights, duties and powers of the original Trusteeas if the successor Trustee was the original Trustee.

The removal, resignation or death of the Trustee shall not affect the lien of the Trusteeupon the Trust Property for compensation or expenses owed to the Trustee.

9. INCOME TAX RETURNS. The Trustee shall not be responsible for the preparationand/or filing of any tax returns which may be due for the reporting of income and expenses of theTrust, although he will sign such returns upon request. The Beneficiaries shall each individuallyreport receipt of their respective share of the profits, earnings, avails and proceeds.

10. INDEMNIFICATION OF THE TRUSTEE. The Beneficiaries agree to indemnify,hold harmless and defend the Trustee from any and all liability incurred in his capacity asTrustee. If the Trustee shall pay or incur any liability to pay any money on account of this Trust,or incur any liability to any money on account of being made a party to any litigation as a resultof holding title to the Trust Property or otherwise in connection with this Trust, without regard tothe cause of action asserted or complaint filed, the Beneficiaries, jointly and severally, agree thaton demand they will pay to the Trustee all such payments or liabilities, his expenses


incurred in connection therewith, including reasonable attorney’s sees, and any other sumsadvanced by the Trustee on behalf of the Trust for any reason whatsoever. These amounts, if notimmediately paid to the Trustee, shall bear interest at the rate of ten (10%) percent per annumuntil paid in full. These amounts and any compensation due to the Trustee, until paid in full tothe Trustee, shall constitute a lien on the Trust Property. Further, as long as these amounts orany compensation due to the Trustee remain unpaid, the Trustee shall not have any obligation totake any action with regard to the Trust Property.

11. DEALINGS WITH TRUSTEE. No party dealing with the Trustee, in relation to theTrust Property in any matter whatsoever, including, but not limited to, a party to whom theTrust Property or any part of it or any interest in it shall be conveyed, contracted to be sold, bythe Trustee, shall be obligated to see to the application of any purchase many or money borrowedor otherwise advanced on the property; to see that the terms of this Trust Agreement have beencomplied with; to inquire into the authority, necessity or expediency of any act of the Trustee; orbe privileged to inquire into any of the terms of this Trust Agreement Every contract,assignment of mortgage or other instrument executed by the Trustee in relation to the TrustProperty shall be conclusive evidence in favor of every person claiming any right, title or interestunder the Trust that at the time of its delivery the Trust crested under this Agreement was in fullforce and effect; and that the instrument was executed in accordance with the terms andconditions of this Agreement and all its amendments, if any, and is binding upon allBeneficiaries under it; that the Trustee was duly authorized and empowered to execute anddeliver every such instrument; if a conveyance has been made to a successor or successors-in-trust, that the successor or successors have been appointed properly and are vested fully with allthe title, estate, rights, powers, duties and obligations its, his or their predecessor in Trust.

12. BENEFICIARIES. The beneficiaries are the persons or legal entities identified,along with their respective interests, on Schedule “B” which is attached hereto and made a parthereof.

The beneficiaries are entitled to all of the profits, earnings, avails and proceeds of theTrust Property.

13. INTEREST OF BENEFICIARIES. The interests of the Beneficiaries shall consistsolely of (a) the right to manage and control the Trust Property; (b) the right to directthe Trustee with regard to the disposition of the title to the Trust Property; and (c) the right toreceive the profits, earnings, avails and proceeds from the sale or other disposition of the TrustProperty.

The foregoing rights of the Beneficiaries are hereby declared to be personal property andmay be assigned or otherwise transferred as such. The death of any Beneficiary shall not affectthe existence of the Trust nor in any way diminish or alter the powers of the Trustee. NoBeneficiary shall have any right, title or interest, whether legal or equitable, in the propertywhich is held as Trust Property. No Beneficiary shall have the right to require partition of the


Trust Property.

The Beneficiaries shall not use the name of the Trustee for advertising or other publicitypurposes without first obtaining the written consent of the Trustee.

The Beneficiaries shall be required to carry liability insurance in such forms and in suchamounts as the Trustee, in his sole discretion, shall deem necessary to insure the Trust Propertyand the Trustee. If the Beneficiaries fail to obtain or maintain the required insurance policies,then the Trustee shall have the right, in his sole discretion, to advance the money necessary topay for said insurance policies. The Beneficiaries will reimburse the Trustee for the insurance asset forth above in Paragraph 5.

No Beneficiary shall have right to bind or otherwise contract for any other Beneficiaryexcept as provided for elsewhere under this Agreement.

14. ASSIGNMENT OF BENEFICIAL INTERESTS. The Beneficiaries have the right toassign any part or all of their interests under this Trust. No Assignment shall be valid or affectthe interest of a Beneficiary hereunder until the original of the assignment shall be delivered tothe Trustee and the Trustee’s acceptance acknowledged thereon. The trustee shall revise andupdate Schedule “B” as necessary. Any assignment of the right to direct the Trustee by a personwho is not a Beneficiary hereunder shall not be valid unless all of the Beneficiaries consent inwriting to said assignment.

15. DISCLOSURES OF BENEFICIARIES. The Trustee and the Beneficiaries shall notdisclose the identity of any Beneficiary without the written consent of said Beneficiary except asmay be required by law or at the direction of an order of court issued by a court of competentjurisdiction. Any party who discloses the identity of a Beneficiary shall be personally liable forany and all losses and damages incurred by that Beneficiary as a result of the disclosure.

16. RECORDING OF AGREEMENT. This Trust Agreement shall not be placed ofrecord in any jurisdiction. If this agreement is placed of record, then it shall not be notices of anyinterest which may affect the title or the powers of the Trustee.

17. ENTIRE AGREEMENT. This Trust Agreement contains the entire understandingbetween the parties hereto and may be amended, revoked or terminated only be writtenagreement signed by the Trustee and all of the Beneficiaries at the time of the amendment,revocation or termination.

18. GOVERNING LAW. This Agreement shall be governed by, construed and enforcedin accordance with the laws of the State of ___________________. In the event that litigationshall rise between parties to this Agreement, then it is agreed that the losing parties shallreimburse the prevailing parties for all of those parties’ reasonable attorney’s fees, costs andexpenses in addition to any other relief to which the prevailing parties may be entitled.


19. BINDING EFFECT. This agreement shall be binding upon and inure to the benefitof the Trustee, any successor trustee, the Beneficiaries, and the Beneficiaries’ successors, heirs,executors, administrators and assigns.

20. ANNUAL STATEMENTS. The Trustee shall be required to furnish annualstatements to the Beneficiaries of the income and expenses of the Trust for each calendar year.The statements shall be provided to the Beneficiaries no later than March 1st of the followingyear.

21. PERPETUITIES. If any portion of the Trust Property is in any manner or timeperiod capable of being held in this Trust for longer period of time than is permitted underthe laws of the state law governing this Trust Agreement (See Paragraph 18), or the vesting ofany interest under this Trust could possibly occur after the end of such permitted time period,then, upon the occurrence of the foregoing, the Trustee is directed to immediately terminate theTrust and to distribute the Trust Property to the Beneficiaries as their respective interests mayappear at the time of the termination of the Trust. As much as possible, the Trustee willmaintain the Trust Property intact and not liquidate it, but, rather, distribute the Trust Property inkind.

22. TERMINATION. This Trust my be terminated thirty (30) days or more after thedate upon which all of the Beneficiaries agree in writing to said termination. The Beneficiariesshall immediately give the Trustee written notice of the effective date of termination. TheTrustee shall execute any and all documents necessary to effectuate the transfer of the TrustProperty to the Beneficiaries as their interests may appear.

23. NOTICE. Any notice that is given in connection with this Trust Agreement shall begiven (a) to the Beneficiaries at the address set forth in Schedule “B” as shall be changed fromtime to time upon notice to the Trustee from the Beneficiaries; and (b) to the Trustee at suchaddress as he may hereafter specify. The notice shall be deemed to be validly given if personallydelivered or mailed to a person by first class mail, postage prepaid, at the above specifiedaddress.

24. DEFINITION OF MORTGAGE. The term “Mortgage” as used herein also includesany Trust Deed used to secure the lien of a trust-owned note against real property.


IN WITNESS WHEREOF, we have executed this Trust Agreement on the day and yearfirst above written.

WITNESS BENEFICIARIES

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

TRUSTEE:

_________________________ _________________________


ACKNOWLEDGMENTS

State of _________________________

County of _______________________

Before me, the undersigned officer in and for said county and state, personally appeared_______________________________, known to me (or satisfactorily proven) to be theperson(s) whose name(s) (is) (are) subscribed to the foregoing instrument and acknowledgedthat (he) (she) (they) executed the same for the purposes contained therein.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal this _____ dayof _______________, 20____.

________________________Notary Public

My Commission expires:

State of ______________________

County of ____________________

Before me, the undersigned officer in and for said county and state, personally appeared________________________________, known to me (or satisfactorily proven) to be theperson(s) whose name(s) (is) (are) subscribed to the foregoing instrument and acknowledgedthat (he) (she) (they) executed the same for the purposes contained therein.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal this _____ dayof ______________, 20____.

________________________Notary Public



SCHEDULE “A”

The following is the legal description of the Trust Property contained in the foregoingTrust:


SCHEDULE “B”

The following are all of the Beneficiaries who own all of the beneficial interest in theforegoing Trust:

Name Address Percentage of Interest

1.


SCHEDULE “C”

The Trustee will be compensated in the following manner:


TRUST AGREEMENT

THIS TRUST AGREEMENT is made this 3RD day of _JUNE_, 20_13_ by and between

CUSTODIAN___, Grantors and Beneficiaries, (hereinafter collectively referred to as the“Beneficiaries”) and

_______ABC CORP____________, Trustee of the ___MAIN ST MORTGAGE_ Trust,(hereinafter referred to as the “Trustee,” which designation shall include all successor trustees).

WHEREAS, the Beneficiaries are about to convey or cause to be conveyed a certain noteand mortgage to the Trustee and

WHEREAS, the Trustee has agreed to accept such conveyance and hold the note andmortgage in trust under the terms and conditions set forth below.

NOW, THEREFORE, the parties, intending to be legally bound hereby, agree as follows:

1. TITLE. The trust created by this instrument shall be known as the _MAIN STMORTAGE_ Trust.

2. OBJECTS AND PURPOSES OF TRUST. The purpose of this trust is for the Trusteeto take and hold title to the note and mortgage conveyed to the Trustee and to preserve the sameuntil its sale or other disposition.

The Trustee shall not undertake any activity which is not strictly necessary to theattainment of the foregoing objects and purposes, nor shall the Trustee transact business withinthe meaning of applicable state law, or any other law, nor shall this Trust Agreement be deemedto be, or create or evidence the existence of a corporation, de facto or de jure, or a MassachusettsTrust, or any other type of business trust, or an association in the nature of a corporation, or aco-partnership or joint venture by or between the Trustee and the Beneficiaries, or by or betweenthe Beneficiaries.

3. TRUST PROPERTY. The Beneficiaries are about to convey or cause to be conveyedto the Trustee in trust a certain note and mortgage as described more particularly in Schedule“A” attached hereto and made a part hereof. This property, together with any property lateradded to the trust, shall be designated as the “Trust Property”. The Trustee will hold the TrustProperty according to the terms and conditions of this Trust Agreement for the purposes, termsand conditions contained herein until such time as all of the Trust Property has been sold orotherwise conveyed, or until this trust has been terminated.

4. POWERS AND DUTIES OF TRUSTEE. The Trustee shall have all of the powersallowed to him by the provisions of the state law governing this Trust (see Paragraph 18). TheTrustee shall specifically have the power to make and execute contracts for the sale of the TrustProperty, option agreements for the sale of the Trust Property and to otherwise dispose of the


Trust Property as the Trustee shall be directed by the majority in interest of the Beneficiaries. Inaddition, the Trustee shall have the power to perform any act that the majority in interest directthe Trustee to perform. The Trustee shall exercise his powers only upon the written direction ofa majority in interest of the Beneficiaries.

The Trustee shall have the duty to maintain an accurate record of the Beneficiaries of thisTrust, which record shall include the names and addresses of the Beneficiaries and theirrespective interests in the Trust and be designated as Schedule “B”. The Trustee shall only havesuch other duties as required in writing by a majority in interest of the Beneficiaries.

The Trustee shall not have the power to bind any of the Beneficiaries personally to anydebt or obligation without the express written consent of the Beneficiary.

5. COMPENSATION OF TRUSTEE. The Trustee shall be compensated for his actionsas Trustee according to the Schedule of Compensation set forth in Schedule “C” attached heretoand made a part hereof. The Trustee shall be promptly reimbursed by the Beneficiaries for theexpenses incurred by the Trustee in the administration of the Trust. The Trustee shall have a lienon the Trust Property for any unpaid compensation or unreimbursed expenses.

The Trustee shall not be obligated to advance any money on account of this Trust. TheTrustee shall not be obligated to commence any legal action or to defend against any legal actionunless the Trustee, in his sole discretion, is satisfied with the security provided by theBeneficiaries for the payment of the Trustee’s costs and expenses in connection with thelitigation.

If the Trustee shall pay or incur any liability to pay any money on account of this Trust,or incur any liability to any money on account of being made a party to any litigation as a resultof holding title to the Trust Property or otherwise in connection with this Trust, without regardto the cause of action asserted or complaint filed, the Beneficiaries, jointly and severally, agreethat on demand they will pay to the Trustee all such payments or liabilities, his expensesincurred in connection therewith, including reasonable attorney’s fees, and any other sumsadvanced by the Trustee on behalf of the Trust for any reason whatsoever. These amounts, if notimmediately paid to the Trustee, shall bear interest at the rate of ten (10%) percent per annumuntil paid in full. These amounts and any compensation due to the Trustee, until paid in full tothe Trustee, shall constitute a lien on the Trust Property. Further, as long as these amounts orany compensation due to the Trustee remain unpaid, the Trustee shall not have any obligation totake any action with regard to the Trust Property.

6. LIABILITY OF TRUSTEE. The Trustee shall not be personally liable for any

obligation of the Trust. No Beneficiary shall be able to bind the Trustee nor contract on hisbehalf without the Trustee’s express written consent. The Trustee and any successor Trusteeshall not be required to give a bond. Each Trustee is liable only for his own actions and thenonly as a result of his own gross negligence or bad faith.


7. REMOVAL OF TRUSTEE. A majority in interest of the Beneficiaries shall have thepower to remove the Trustee from his office and appoint a successor to succeed him.

8. RESIGNATION AND SUCCESSOR. The Trustee may resign by giving writtennotice to each of the Beneficiaries of his intention to resign.

The majority in interest of the Beneficiaries shall have the power to elect a successortrustee. If the Beneficiaries have not elected a successor trustee within thirty (30) days of thedate of the notice from the Trustee of his resignation, then the Trustee shall have the right toconvey the Trust Property to the Beneficiaries in the same proportion as their interests in theTrust may appear at the time of said conveyance.

If the office of the Trustee shall become vacant for any reason, then the Beneficiariesshall proceed to elect a successor trustee. Said election shall occur within thirty (30) days of theoccurrence of the vacancy. Upon election, the new Trustee shall cause to be prepared acertificate of his election containing a notice of election and his acceptance thereof in a formacceptable for recording in the office of the register of deeds of all of the counties in which theTrust Property is located. The certificate of election shall be filed in the office of the register ofdeeds of all of the counties in which the Trust Property is located.

A successor Trustee shall have all of the rights, duties and powers of the original Trusteeas if the successor Trustee was the original Trustee.

The removal, resignation or death of the Trustee shall not affect the lien of the Trusteeupon the Trust Property for compensation or expenses owed to the Trustee.

9. INCOME TAX RETURNS. The Trustee shall not be responsible for the preparationand/or filing of any tax returns which may be due for the reporting of income and expenses of theTrust, although he will sign such returns upon request. The Beneficiaries shall each individuallyreport receipt of their respective share of the profits, earnings, avails and proceeds.

10. INDEMNIFICATION OF THE TRUSTEE. The Beneficiaries agree to indemnify,hold harmless and defend the Trustee from any and all liability incurred in his capacity asTrustee. If the Trustee shall pay or incur any liability to pay any money on account of this Trust,or incur any liability to any money on account of being made a party to any litigation as a resultof holding title to the Trust Property or otherwise in connection with this Trust, without regard tothe cause of action asserted or complaint filed, the Beneficiaries, jointly and severally, agree thaton demand they will pay to the Trustee all such payments or liabilities, his expensesincurred inconnection therewith, including reasonable attorney’s sees, and any other sums advanced by theTrustee on behalf of the Trust for any reason whatsoever. These amounts, if not immediatelypaid to the Trustee, shall bear interest at the rate of ten (10%) percent per annum until paid infull. These amounts and any compensation due to the Trustee, until paid in full to the Trustee,shall constitute a lien on the Trust Property. Further, as long as these amounts or anycompensation due to the Trustee remain unpaid, the Trustee shall not have any obligation to takeany action with regard to the Trust Property.


11. DEALINGS WITH TRUSTEE. No party dealing with the Trustee, in relation to theTrust Property in any matter whatsoever, including, but not limited to, a party to whom theTrust Property or any part of it or any interest in it shall be conveyed, contracted to be sold, bythe Trustee, shall be obligated to see to the application of any purchase many or money borrowedor otherwise advanced on the property; to see that the terms of this Trust Agreement have beencomplied with; to inquire into the authority, necessity or expediency of any act of the Trustee; orbe privileged to inquire into any of the terms of this Trust Agreement Every contract,assignment of mortgage or other instrument executed by the Trustee in relation to the TrustProperty shall be conclusive evidence in favor of every person claiming any right, title or interestunder the Trust that at the time of its delivery the Trust crested under this Agreement was in fullforce and effect; and that the instrument was executed in accordance with the terms andconditions of this Agreement and all its amendments, if any, and is binding upon allBeneficiaries under it; that the Trustee was duly authorized and empowered to execute anddeliver every such instrument; if a conveyance has been made to a successor or successors-in-trust, that the successor or successors have been appointed properly and are vested fully with allthe title, estate, rights, powers, duties and obligations its, his or their predecessor in Trust.

12. BENEFICIARIES. The beneficiaries are the persons or legal entities identified,along with their respective interests, on Schedule “B” which is attached hereto and made a parthereof.

The beneficiaries are entitled to all of the profits, earnings, avails and proceeds of theTrust Property.

13. INTEREST OF BENEFICIARIES. The interests of the Beneficiaries shall consistsolely of (a) the right to manage and control the Trust Property; (b) the right to directthe Trustee with regard to the disposition of the title to the Trust Property; and (c) the right toreceive the profits, earnings, avails and proceeds from the sale or other disposition of the TrustProperty.

The foregoing rights of the Beneficiaries are hereby declared to be personal property andmay be assigned or otherwise transferred as such. The death of any Beneficiary shall not affectthe existence of the Trust nor in any way diminish or alter the powers of the Trustee. NoBeneficiary shall have any right, title or interest, whether legal or equitable, in the propertywhich is held as Trust Property. No Beneficiary shall have the right to require partition of the

Trust Property.

The Beneficiaries shall not use the name of the Trustee for advertising or other publicitypurposes without first obtaining the written consent of the Trustee.

The Beneficiaries shall be required to carry liability insurance in such forms and in suchamounts as the Trustee, in his sole discretion, shall deem necessary to insure the Trust Propertyand the Trustee. If the Beneficiaries fail to obtain or maintain the required insurance policies,then the Trustee shall have the right, in his sole discretion, to advance the money necessary to


pay for said insurance policies. The Beneficiaries will reimburse the Trustee for the insurance asset forth above in Paragraph 5.

No Beneficiary shall have right to bind or otherwise contract for any other Beneficiaryexcept as provided for elsewhere under this Agreement.

14. ASSIGNMENT OF BENEFICIAL INTERESTS. The Beneficiaries have the right toassign any part or all of their interests under this Trust. No Assignment shall be valid or affectthe interest of a Beneficiary hereunder until the original of the assignment shall be delivered tothe Trustee and the Trustee’s acceptance acknowledged thereon. The trustee shall revise andupdate Schedule “B” as necessary. Any assignment of the right to direct the Trustee by a personwho is not a Beneficiary hereunder shall not be valid unless all of the Beneficiaries consent inwriting to said assignment.

15. DISCLOSURES OF BENEFICIARIES. The Trustee and the Beneficiaries shall notdisclose the identity of any Beneficiary without the written consent of said Beneficiary except asmay be required by law or at the direction of an order of court issued by a court of competentjurisdiction. Any party who discloses the identity of a Beneficiary shall be personally liable forany and all losses and damages incurred by that Beneficiary as a result of the disclosure.

16. RECORDING OF AGREEMENT. This Trust Agreement shall not be placed ofrecord in any jurisdiction. If this agreement is placed of record, then it shall not be notices of anyinterest which may affect the title or the powers of the Trustee.

17. ENTIRE AGREEMENT. This Trust Agreement contains the entire understandingbetween the parties hereto and may be amended, revoked or terminated only be writtenagreement signed by the Trustee and all of the Beneficiaries at the time of the amendment,revocation or termination.

18. GOVERNING LAW. This Agreement shall be governed by, construed and enforcedin accordance with the laws of the State of ___________________. In the event that litigationshall rise between parties to this Agreement, then it is agreed that the losing parties shallreimburse the prevailing parties for all of those parties’ reasonable attorney’s fees, costs andexpenses in addition to any other relief to which the prevailing parties may be entitled.

19. BINDING EFFECT. This agreement shall be binding upon and inure to the benefitof the Trustee, any successor trustee, the Beneficiaries, and the Beneficiaries’ successors, heirs,executors, administrators and assigns.

20. ANNUAL STATEMENTS. The Trustee shall be required to furnish annualstatements to the Beneficiaries of the income and expenses of the Trust for each calendar year.The statements shall be provided to the Beneficiaries no later than March 1st of the followingyear.


21. PERPETUITIES. If any portion of the Trust Property is in any manner or timeperiod capable of being held in this Trust for longer period of time than is permitted underthe laws of the state law governing this Trust Agreement (See Paragraph 18), or the vesting ofany interest under this Trust could possibly occur after the end of such permitted time period,then, upon the occurrence of the foregoing, the Trustee is directed to immediately terminate theTrust and to distribute the Trust Property to the Beneficiaries as their respective interests mayappear at the time of the termination of the Trust. As much as possible, the Trustee willmaintain the Trust Property intact and not liquidate it, but, rather, distribute the Trust Property inkind.

22. TERMINATION. This Trust my be terminated thirty (30) days or more after thedate upon which all of the Beneficiaries agree in writing to said termination. The Beneficiariesshall immediately give the Trustee written notice of the effective date of termination. TheTrustee shall execute any and all documents necessary to effectuate the transfer of the TrustProperty to the Beneficiaries as their interests may appear.

23. NOTICE. Any notice that is given in connection with this Trust Agreement shall begiven (a) to the Beneficiaries at the address set forth in Schedule “B” as shall be changed fromtime to time upon notice to the Trustee from the Beneficiaries; and (b) to the Trustee at suchaddress as he may hereafter specify. The notice shall be deemed to be validly given if personallydelivered or mailed to a person by first class mail, postage prepaid, at the above specifiedaddress.

24. DEFINITION OF MORTGAGE. The term “Mortgage” as used herein also includesany Trust Deed used to secure the lien of a trust-owned note against real property.


IN WITNESS WHEREOF, we have executed this Trust Agreement on the day and year firstabove written.

WITNESS BENEFICIARIES

_________________________ ___CUSTODIAN___

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________

TRUSTEE:

_________________________ __SIGNATURE OF CORP OFFICER___


ACKNOWLEDGMENTS

State of _________________________

County of _______________________

Before me, the undersigned officer in and for said county and state, personally appeared_______________________________, known to me (or satisfactorily proven) to be theperson(s) whose name(s) (is) (are) subscribed to the foregoing instrument and acknowledgedthat (he) (she) (they) executed the same for the purposes contained therein.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal this _____ dayof _______________, 20____.

________________________Notary Public


State of ______________________

County of ____________________

Before me, the undersigned officer in and for said county and state, personally appeared________________________________, known to me (or satisfactorily proven) to be theperson(s) whose name(s) (is) (are) subscribed to the foregoing instrument and acknowledgedthat (he) (she) (they) executed the same for the purposes contained therein.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal this _____ dayof ______________, 20____.

________________________Notary Public



SCHEDULE “A”

The following is the legal description of the Trust Property contained in the foregoingTrust:


SCHEDULE “B”

The following are all of the Beneficiaries who own all of the beneficial interest in theforegoing Trust:

Name Address Percentage of Interest

1. CUSTODIAN 100%


SCHEDULE “C”

The Trustee will be compensated in the following manner:

TEN DOLLARS PAYABLE BY DECEMBER 31ST.



PERSONAL PROPERTY TRUST AGREEMENT

THIS TRUST AGREEMENT made and entered into as of the ____day of __________

20____, by and between ________________________, of _____________________ County,

_______________________(state), as grantor, referred to in the first person, and

____________________________________________________., a _______________(state)

corporation, as trustee, with the successor trustee collectively referred to as the “Trustee,” which

term shall refer to whomever shall be acting as trustee under this agreement.

1. The name of this trust shall be “______________________________.”

2. I have transferred to the Trustee the assets described in the Schedule A attached

hereto together with any additional assets deposited by me or any other person, with the consent of

the Trustee.

3. The Trustee shall invest and reinvest the assets of this trust. The Trustee shall pay to

me, or to such other beneficiary or beneficiaries, such portion of the net income and principal of this

trust as I from time to time direct in writing.

4. In the event I am unable to manage my financial affairs due to legal, mental or

physical disability, or illness, the Trustee may apply such sums of the net income and principal of the

trust as it deems necessary, in its sole and absolute discretion, for my health, support and

maintenance, or those dependent upon me for their support. Determination of my incapacity shall be

made by two licensed physicians (including my personal physician, if any), and the Trustee may rely

upon written certification of that determination.


5. I may revoke or amend this trust, in whole or in part, by written notice signed by me

and delivered to the Trustee. The duties, liabilities and powers of the Trustee shall not be materially

or substantially changed by any amendment without the Trustee's written consent.

6. After my death, the Trustee shall pay the undistributed net income and remaining

principal of this trust to the trustee of the last dated revocable trust (as amended from time to time)

created by me during my lifetime and into which my probate estate, if any, would pour, or if no such

trust is in existence, to the personal representative of my estate, and upon such payment this trust

shall terminate.

7. The Trustee shall have the powers now or hereinafter conferred by the statutes of the

State of _______________________ upon the trustee of a ______________________ trust. In

addition to the powers granted by law, the Trustee shall have the power to:

a. Invest and reinvest in any forms of property;

b. Sell any property transferred to the Trustee pursuant to the provisions of this

agreement;

c. Register securities in the name of a nominee;

d. Vote stock for any purpose in person or by proxy, or decline to vote, at its

discretion; and

e. Sell, grant and purchase options.

8. No statute with respect to underproductive property shall apply to this trust.

9. The Trustee may resign upon thirty (30) days written notice to me. In the event of the

Trustee's resignation, I shall within thirty (30) days appoint a successor Trustee. If I shall fail to

appoint a successor Trustee, the Trustee, in its discretion, shall have the right to either: (i) appoint a


99

successor Trustee; or (ii) terminate this trust and deliver all remaining trust assets and undistributed

net income to me. In the event there is no Trustee serving, the beneficiaries may appoint a Trustee.

10. The Trustee shall have the right to be reimbursed for any out-of-pocket expenses

associated with this trust and the right to be paid reasonable compensation for its services rendered.

11. The Trustee agrees to submit to me at least annually a list of the investments of the

trust and a full statement of account, showing all transactions of the principal and income since the

date of the last preceding statement.

IN WITNESS WHEREOF, the undersigned has signed this instrument in duplicate, each of

which shall be deemed an original, in the presence of the witnesses, whose names are subscribed

below, as of the day and year first above written.

GRANTOR

The foregoing was published, declared and signed by ________________________, as

grantor, as and to be his trust agreement, and we, at his request, in his presence and in the presence of

each other, hereby subscribe as attesting witnesses.

WITNESSES:

Print Name:

Print Name:


101

STATE OF ________

COUNTY OF

Acknowledged and subscribed before me by ________________________, the grantor,( ) who is personally known to me or ( ) who produced asidentification, and sworn to and subscribed before me by the witnesses, ,( ) who is personally known to me or ( ) who produced as identification,and , ( ) who is personally known to me or ( ) who produced

as identification, and subscribed by me in the presence of the grantorand the subscribing witnesses all on this day of , 20____.

Signature of Notary Public

This trust agreement is accepted as of the day and year first above written.

WITNESSES: _________________________, a ________corporation

By:Print Name: As its:

Print Name:

As to Trustee


102

SCHEDULE A


PERSONAL PROPERTY TRUST AGREEMENT

THIS TRUST AGREEMENT made and entered into as of the _3RD_day of __JUNE_

2013_, by and between _CUSTODIAN_, of ___LORAIN_ County, _OHIO_(state), as grantor,

referred to in the first person, and ___YOUR TRUSTEE’S NAME HERE____., a STATE

TRUSTEE ENTITY FORMED(state) corporation, as trustee, with the successor trustee collectively

referred to as the “Trustee,” which term shall refer to whomever shall be acting as trustee under this

agreement.

1. The name of this trust shall be “__MAIN STREET OPTION_.”

2. I have transferred to the Trustee the assets described in the Schedule A attached

hereto together with any additional assets deposited by me or any other person, with the consent of

the Trustee.

3. The Trustee shall invest and reinvest the assets of this trust. The Trustee shall pay to

me, or to such other beneficiary or beneficiaries, such portion of the net income and principal of this

trust as I from time to time direct in writing.

4. In the event I am unable to manage my financial affairs due to legal, mental or

physical disability, or illness, the Trustee may apply such sums of the net income and principal of the

trust as it deems necessary, in its sole and absolute discretion, for my health, support and

maintenance, or those dependent upon me for their support. Determination of my incapacity shall be

made by two licensed physicians (including my personal physician, if any), and the Trustee may rely

upon written certification of that determination.


5. I may revoke or amend this trust, in whole or in part, by written notice signed by me

and delivered to the Trustee. The duties, liabilities and powers of the Trustee shall not be materially

or substantially changed by any amendment without the Trustee's written consent.

6. After my death, the Trustee shall pay the undistributed net income and remaining

principal of this trust to the trustee of the last dated revocable trust (as amended from time to time)

created by me during my lifetime and into which my probate estate, if any, would pour, or if no such

trust is in existence, to the personal representative of my estate, and upon such payment this trust

shall terminate.

7. The Trustee shall have the powers now or hereinafter conferred by the statutes of the

State of _LOCATION OF THE ASSET_ upon the trustee of a _PERSONAL PROPERTY trust. In

addition to the powers granted by law, the Trustee shall have the power to:

a. Invest and reinvest in any forms of property;

b. Sell any property transferred to the Trustee pursuant to the provisions of this

agreement;

c. Register securities in the name of a nominee;

d. Vote stock for any purpose in person or by proxy, or decline to vote, at its

discretion; and

e. Sell, grant and purchase options.

8. No statute with respect to underproductive property shall apply to this trust.

9. The Trustee may resign upon thirty (30) days written notice to me. In the event of the

Trustee's resignation, I shall within thirty (30) days appoint a successor Trustee. If I shall fail to

appoint a successor Trustee, the Trustee, in its discretion, shall have the right to either: (i) appoint a


successor Trustee; or (ii) terminate this trust and deliver all remaining trust assets and undistributed

net income to me. In the event there is no Trustee serving, the beneficiaries may appoint a Trustee.

10. The Trustee shall have the right to be reimbursed for any out-of-pocket expenses

associated with this trust and the right to be paid reasonable compensation for its services rendered.

11. The Trustee agrees to submit to me at least annually a list of the investments of the

trust and a full statement of account, showing all transactions of the principal and income since the

date of the last preceding statement.

IN WITNESS WHEREOF, the undersigned has signed this instrument in duplicate, each of

which shall be deemed an original, in the presence of the witnesses, whose names are subscribed

below, as of the day and year first above written.

GRANTOR

COSTODIAN

The foregoing was published, declared and signed by ___JUNE 3, 2013_, as grantor, as and

to be his trust agreement, and we, at his request, in his presence and in the presence of each other,

hereby subscribe as attesting witnesses.

WITNESSES:

Print Name:

Print Name:

105


STATE OF ________

COUNTY OF

Acknowledged and subscribed before me by ________________________, the grantor,( ) who is personally known to me or ( ) who produced asidentification, and sworn to and subscribed before me by the witnesses, ,( ) who is personally known to me or ( ) who produced as identification,and , ( ) who is personally known to me or ( ) who produced

as identification, and subscribed by me in the presence of the grantorand the subscribing witnesses all on this day of , 20____.

Signature of Notary Public

This trust agreement is accepted as of the day and year first above written.

WITNESSES: _________________________, a ________corporation

By:Print Name: As its:

Print Name:

As to Trustee


SCHEDULE A

DESCRIBE THE ASSET HERE.


What Should I Do With The CashIn My IRA To Get A High

Rate Of Return In My IRA?

1. Buy short-term properties for cash and resell

2. Buy defaulted paper (ugly)

3. Buy good paper (pretty)

4. Buy tax liens

5. Make equity loans

6. Buy a business


What Not To Do WithCash In My IRA?

1. Bury it in real estate long term

2. Take foolish risks on investments you can’t controlor don’t do proper due diligence.

3. Leave it sitting in a money market account or CD.

Why You Shouldn’t BuryCash In Real Estate

(Inside or Outside Your IRA)

You can buy all the real estate you want without cash.

If you can buy the property without cash it will appreciate at thesame rate with or without your cash invested.

Money you leave buried in property is money you can’t investpassively and create large returns exclusive of real estateholdings. Therefore you lose this wealth that can only come byusing cash to put into assets and back to cash.

Leverage Your Brain To Buy Real EstateTo Generate Capital Without Using Your Money.

Then Use That Capital To Generate More Capital.

Let’s assume you can buy a property using $100,000 of yourmoney that will generate a 10% annual return on that money plusexpected appreciation of 10%. If you bury that $100k in theproperty it’s not a bad return for that capital. However, theproperty will appreciate the 10% with or without your $100k cash.Therefore, in reality you’ve decided a 10% cash on cash return isadequate assuming you can get an equal property that generatesa minimum 10% net operating income without burying the $100kcash, and of course you can.

Now the bitter truth. If you can get the property without cashand generate a 10% return…


You’re Actually Getting A 0%Return On Your 100k If You

Bury It In Real Estate…And It’s Costing You A Fortune

Example:$100,000 invested through your IRA tax free in high yieldingassets is worth

10 years 15 years 20 years10% $270,704 $445,392 $732,80715% $440,021 $935,633 $1,971,54920% $726,825 $1,959,500 $5,282,753

Putting your $100k in the wrong place could easily cost you$5,282,753. Imagine the cost of spending your entire lifefinancially illiterate.



SEPSimplifiedEmployeePension


What Is A SEP, SimplifiedEmployee Pension?

A pension plan for self employed people.

How Does It Differ FromAn IRA?

You get a deduction for contributions but you must pay taxes uponwithdrawal. You can contribute much more to a SEP than an IRA.


Do I Have To Have ACorporation To Utilize A SEP?

No, but you must be self employed or be an employee of an entityyou own or control.

What Are The Basic RulesFor A SEP?

You can contribute 25% of your income up to $41,000 a yearplus

You can extend contribution date to match tax returnextensions

All eligible employees must be includedGenerally governed by IRA regs


How Do I Set One Up?

Contact Equity Trust and discuss your needs with a qualifiedrepresentative.

Can I Have Both? Should I?

Probably so but this would require planning with your CPA andconsidering the rest of your business structure.

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