BE THE BANK™/® Life and Death, Personal and Family, Estate Planning: Lazy Proof, Crazy Proof & Divorce Proof your Children™:
Current-term Multi-Generational Wealth Creation-Management and Long-Term Multi-Generational Wealth Transfer-Management™
Audience: Do you have wealth, or plan to have wealth? Do you want to steward your wealth during your lifetime so that, upon your demise (or during your life), you would like to give some or all of your estate to one or more beneficiaries; either for altruistic, financial, tax or other reasons? Do you want to be assured you are not being disrespected, either now (while you are alive), or after you are dead?
This textbook is for Top Management of Organizations and Individuals (OIN™) interested in learning about the National and International Standard, MQCC Way™ of Personal Estate Stewardship (personal-, non-personal wealth creation, management and transfer) in the 21st Century, using the proven (tested), trusted and de facto global standards based upon the Anoop Bungay Scientific Method, known by its trademark source identifier brand name: 21st Century Scientific Method™.
After seeing evidence of hundreds of years of other people's mistakes, now is the time to learn to do it right.
- Organizations
- individuals
- families
- organized family offices
- managers of existing charitable organizations (public/private foundations); trusts
- fiduciary professionals
- Individuals
- benefactors
- beneficiaries
- family members
- non-family beneficiaries
Abstract
Since at least as early as August 14, 2001, there is only one way to assure your Estate will have the necessary and sufficient resources in place to successfully transition from your living phase, into your death phase and in beyond, into your after-life phase of multi-generational wealth; under the capable and trustworthy stewardship of your Estate Managers for the sole benefit of your Beneficiaries or, for the benefit of your joint Estate Manager-Beneficiaries. This way is the MQCC Way™.
For over 20 years, the MQCC Way™ is the only way on Earth that is proven (by over a decade of independent audit, testing and continual improvement), through correct and proper application of the MQCC Bungay International LLC trademark "Principles of 'BlockChain'", namely:- consensus or proven standards-based (rules-based)
- regulatory-integrated
- transparent
- traceable
- verifiable
- record immutable
- fact-non-repudiable
- incontestable
Communicated and quality managed via a:- technology agnostic
- federation (decentralized, distributed) of system
- network (FOSNET™)
within a global (National and International), regulatory-integrated environment (ecosystem) that conforms to the concepts, principles, techniques and core processes of the Anoop Bungay Scientific Method, known by its trademark source identifier brand name, The 21st Century Scientific Method™, visualized by the trademark source identifier design mark, as follows:
- consensus or proven standards-based (rules-based)
- regulatory-integrated
- transparent
- traceable
- verifiable
- record immutable
- fact-non-repudiable
- incontestable
Communicated and quality managed via a:
- technology agnostic
- federation (decentralized, distributed) of system
- network (FOSNET™)
within a global (National and International), regulatory-integrated environment (ecosystem) that conforms to the concepts, principles, techniques and core processes of the Anoop Bungay Scientific Method, known by its trademark source identifier brand name, The 21st Century Scientific Method™, visualized by the trademark source identifier design mark, as follows:
The Problem
As individuals, we are on this planet for a short period of time. While our time is short, much can be achieved in a single person's lifetime. An individual will grow into an adult, obtain an education, have a career, then retire. Along the way, the individual may find a spouse/partner, have children and start a family. In the 2000's there are many formations of families; one-parent; two-parent; separate but equal (co-parent) families; institutional families (adopted/foster home/state-managed). Despite these different formations, most members of Top Management [a technical term; learn more at www.mqcc.org] of families, namely, a "mother" or "father" (or "parents", jointly), have a desire to steward (manage) his/her/their family in a manner that is safe, steady and does not harm their way of life (lifestyle) and their children (and, if applicable, grandchildren).
This theme of desiring a life of "safe stewardship" extends throughout the duration of the family's existence; less important when the family is composed of adults and increasingly important as children are born. In most cases, as children grow, become educated and are necessarily and sufficiently mature enough to become independent, it is not unusual to see children leave the family and enter into the World on their own. Independence brings the freedom to discover the World on the children's own terms. Independence is often a consequence of the child moving away from the family unit for education or for work (after having received an education).
Personal Estate Giving
Once a child is born, raised and enters into the adult World, virtually all parents desire that their children mature into good individuals and have a joyful, safe and rewarding life of their own. Some parents, as they age into retirement and prepare themselves for passing away, consider the concept of estate "planned giving". This is a concept that means that: as a parent (or both parents) ENTER into a phase of their life where they may need to consider preparing for death, the parent/parents WRITE a plan that considers whole or partial distribution of the parent/parents (or surviving parent) personal Estate to a beneficiary (child/children/family/others, registered charity (public/private foundation), trust or other organization), while the parent/parents (of surviving parent) is either living or is in a state of permanent incapacity or has passed away. A "personal estate" is defined by MQCC™ by its trademark MQCC Concept™ terminological definition:
- PE™: tangible and intangible personal property or items of value owned by an individual (hence: "personal").™
and defined by Canada Revenue Agency CRA as:
- Your estate includes what you own (assets) and what you owe (liabilities) (Source)
- Assets are defined as (Source):
- cash, or money in a bank account
- real estate
- registered plans, like RRSPs and TFSAs
- investments, like stocks, bonds or mutual funds
- personal items and keepsakes
- Person items are defined as property, which means (Source):
- Property includes goods, real property, and intangible personal property such as trademarks, right to use a patent, and admissions to a place of amusement, but does not include money.
in a manner that might give back to ("pay it forward"; (divested in favor of)) a beneficiary (children, family, friend, foundation (public or private charity), trust) or some other purpose. This may be done for altruistic (or other, ie: tax avoidance) reasons and may be done while the person is alive or in the event of their permanent incapacity or their death.
Part of this "planned giving" approach requires Benefactors (parents, typically and jointly, individually or surviving spouses) to determine and decide:
(1) What portions of their Estate (if any) will go to applicable taxes; or, will the entire estate be extinguished by taxes or administration costs, fees, or outstanding debts.
(2) After taxes, if the Estate maintains a residual value, what portions of their remaining Estate (if any) do they plan to give to a beneficiary or group of beneficiaries.
(3) What portion of the remaining Estate (if any) will not be given directly to (divested in favor of) a beneficiary but rather, organized into a new legal entity (ie: a registered charities, namely: a charitable organization, public foundation, or private foundation; or trust or other organization), with its own "Mission, Vision and Values" for purposes of achieving a last wish or testament of the Estate creator. For example (see Canada Revenue Agency; and here);
- Creation of school
- Construction of a building
- Creation of a Foundation to achieve some
- The relief of poverty
- The advancement of education
- The advancement of religion
- Other purposes that benefit the community
Personal Estate Giving: Before Death
In the case of families; parents and their primary beneficiaries, namely and typically, children; the concept of giving is not a planned event limited to the singular transfer of an Estate composed of an individual's (parent's) assets and liabilities after death. Parents also give non-personally-owned items of value, to their beneficiaries (children) throughout the Parents lives, on a planned and unplanned, voluntary and involuntary, basis.
Reasons for Personal Estate Giving: Before Death may include:
- giving of the Personal Estate to feed the beneficiary/ies
- giving of the Personal Estate to clothe the beneficiary/ies
- giving of the Personal Estate to educate the beneficiary/ies
- giving of the Personal Estate to entertain (vacation, movies, parties, holidays, events, gifts) the beneficiary/ies
- giving of the Personal Estate to invest in a business idea of one or more beneficiary/ies
- giving of the Personal Estate to help one or more beneficiaries in a critical or complex, emergent or foreseeable situation including:
- medical situation
- natural event (physical (pregnancy/illness) or emotional (mental)
- unnatural event (accident or injury)
- major or minor nonconformity events:
- law enforcement infraction (speeding ticket; bail for jail; legal fees)
- school problems (bully/bullying; suspension; expulsion)
- This is not a complete list.
Non-Personal-Estate Giving
Also Known As: The Most Important Gifts Given to a Beneficiary, During the Life of a Benefactor
Unlike traditional, archaic (non-MQCC™ trademark 21st Century Scientific Method™ approaches), at MQCC™, consideration is made to the very important [and prior-to-MQCC™: unrecognized] phase of the giving of "Non-Personal-Estate" items of value to beneficiaries. Non-personal and non-material objects, given by a Benefactor to a Beneficiary, during the Benefactor's life.
Non-personally-owned items of value are classified as "assets" and "liabilities" in their own right, but do not exist in the "personal estate". The concept of a "non-personal estate" defined by MQCC™ by its trademark MQCC Concept™ terminological definition:
- NPE: Intangible personal property in the form of knowledge (assets) and mistakes (liabilities) learned and experienced by an individual resulting in the gain of value in either monetary and non-monetary terms.™
- This is part of the MQCC Family of Trademarks™ and the trademark definition serves as a source identifier of MQCC™'s family suite of Multi-Generational Wealth Management and Education Services.
Yes, long before death, virtually all Benefactors (parents) invest a lifetime of giving (often unplanned) to their beneficiaries (children), in the form of educating their children about:
- the ways of the world
in order to enable the children to leverage from the parent's personal life experience and be better equipped with knowledge, to "take on the world". As the old adages go:
- Why reinvent the wheel
- Learn from other's mistakes
- I want give my children to better life than I was given or had
Why give of your Non-Personal-Estate?
Also known as why educate your child on the 'ways of the world'?
- because virtually all parents have a desire to make sure that their children have a better life than their own; and,
- to prevent their children from experiencing the same negative experiences caused by nonconformity (mistakes, errors, omissions, bad treatment by others) events in their own lives, as parents, for example:
- learn from my experience, 'don't do drugs';
- don't hang out in peer groups that encourage unlawfulness, anarchy or negative activity;
- be careful about who you trust because the world has people who are only interested in being your friend because they want something from you;
- even professionals and people in high society or people in power like lawyers, bankers, teachers, priests, can work or act in a sub-standard manner by being incompetent (in general terms), unprepared (in specific terms), unethical, lie, cheat or steal from you;
- be careful if you go into business and partner with one or more business persons because they may not be as smart as you, or they may take advantage of your confidence; resulting in you losing your interest in a business, or idea or other thing of value:
- Remember the movie Ocean's Thirteen; the character Reuben Tishkoff (played by Elliott Gould) had some money, he used his money to acquire an asset in the from of land [presumably he bought the land with all cash, so he had something called a clear title property or free and clear property which means property (land) without any financial interest (also known as a death-deed or mortgage) owned some other party (like a banker or lender)] and Reuben Tishkoff contributes his land into a new company in which he had an agreement for a 50% interest. While the agreement was prepared by Reuben's lawyers and was supposedly ironclad, the other 50% interest owner Willy Banks (played by Al Pacino), enforced a clause that made Reuben sign over his 50% share to Willy. The implication was clear: Reuben lost his money, land, hopes and dreams to a business partner who was clearly not worth of Reuben's trust. (Source: Script (unofficial) of the movie);
- Another example is the movie called the Social Network. In this movie, Mark Zuckerberg (played by Jessie Eisenberg) effectively removed his co-creator Eduardo Saverin (played by Andrew Garfield) from the company management by reducing his shares to 10%, using a technique called "dilution" (Source). Imagine, working so closely with someone and then finding this happens to you. The heartbreak. And remember, the movie Social Network is adapted from real life and the public history of law suits (plus evidence found in the source article) shows that this dilution event was real. And finally, if you think such actions are typical of 60 year-old business people, Zuckerberg and Saverin were only in their 20's! While they both may have had lawyers who were in their 60's, the ultimate decision-maker (in this case Zuckerberg) was in his 20's. The implication is clear: it does not matter how young you are, you may still become victim of an effort to have something of value taken from you;
- There are millions of such examples;
- There are also millions of examples of people working well and honestly together. The 'secret' is to find people who work well with you and look for your best interest. The answer? Hint: The word "fiduciary";
- if you fall in love and get married, make sure you take the time to know you are marrying. A marriage is a legal contract and love can be "blind"; which means that you may overlook some character flaws that could harm you in the future;
- work hard, get a good education; knowledge unlocks doors of opportunities;
- treat every one how you want to be treated; but don't be afraid to follow Oprah's rule and "You teach people how to treat you." (Source);
- avoid negative people who don't support you ideas (as stated by Steve Harvey) (Source);
- don't suffer fools and don't become anybody's fool;
- love yourself;
- demand quality (MQCC Verified Quality™), it last longer;
- be polite, be punctual, be prepared, follow rules; obey the law; read instructions and DON'T BE AFRAID TO ASK FOR HELP.
- This is not a complete list.
These are a fraction of real-world situations which many parents will agree, are good and important things to give to their children. So ubiquitous is the concept of parents giving knowledge to children about "the ways of the world", that this concept was memorialized in at least one song. For example, a song performed in 1971 by Yousef Islam (Cat Stevens) and written about himself (Source) [though, it can easily be interpreted as a song sung by a parent to a child who is about to exercise his or her independence and leave into the "adult world"] entitled "Wild World":
"your leaving ....if you want to leave, take good care.... a lot of nice things turn bad out there.......it's a wild world...remember there is a lot of bad and beware..."
Another way to look at the concept of "non-personal-estate" giving, is to educate you children to be:
- savvy in the ways of the world
- shrewd: having or showing sharp powers of judgment; astute (Source)
- street-smart in the ways of meeting, evaluating and dealing with people
Ill-Prepared Beneficiaries or Untested Managers
With over 35 years of commerce experience; one thing yours sincerely (the Author) has learned about multi-generational wealth transition is the following:
- An ill-prepared beneficiary is not a beneficiary worth giving any part of your living or after-death personal estate to.
- There are hundreds of millions of examples world-wide, of a well-meaning parent or parents who died and left their personal Estate in whole or part to a beneficiary (child); and once the child got his or her hands on the Estate (property, cash, asset, whatever), it was not long before the money ran out, the property was sold for cash (then the money ran out) or the asset was was liquidated for cash (and the cash ran out).
- Some examples include: maybe the beneficiary:
- trusted the wrong advisor
- trusted the wrong business partner
- made errors in judgement
- became addicted to a 'high-cash' lifestyle and got entangled with:
- drugs
- alcohol
- gambling
- persons of the opposite-sex (in vast quantities)
- high-risk, adrenaline lifestyles
- attracted the 'wrong' crowd
- did not have job, so could not generate income to pay for the management of the property
- did not understand how to correctly and properly invest the Estate in a business machine that would make money for them on a long term, low volatile (no-volatile) and lossless (see www.LossLessInvesting.com) basis
- This is not a complete list.
The Need for a 21st Century Benefactor-Beneficiary Framework
For a Family and Family Members (Future Executors/Managers/Beneficiaries)
With over 30 years of observation and business experience, it was determined by your's sincerely (the Author) that no benefactor with a prudent mindset and an understanding of the importance of having a risk-based approach, has no business even considering a beneficiary without first taking the time to train and test (educate) the beneficiary on the ways and means to effectively manage their benefits.
It is recognized and understood that not all beneficiaries are necessarily and sufficiently mature enough to be told in advance that they may be a beneficiary of a Personal Estate. So it is incumbent upon the benefactor, (in cases of families) to start the education process at an early age, so that once the time is right, the benefactor (parent, parents, surviving parents) are satisfied that they have "done the best they can do" to educate (train and test) their beneficiary/ies and have provided them with the necessary and sufficient skills, resources and knowledge to maintain longterm stewardship of the benefactors giving (gifts).
For Non-Family Organizations and Individuals (OIN™) (Future Non-Family-Member Executors/Managers/Trustees)
Similar training applies....
Canadian and other parents around the world (Africa, Europe, South America, Asia) may be in a worse position.
And up to 99% or more of investment (wealth) advisors do not hold specific credentials which means it is very likely they are not are not classified as fiduciary-class advisors which means that 99% or more of investment (wealth) advisors are legally permitted to put their own interests a head of your own and your family (spouse, children, beneficiaries). See www.FINRA.org (https://www.finra.org/investors/professional-designations/pd-rules-and-resources)
The implication to you? Not all financial advisors are bound to act in your best interest. Only fiduciary-designated investment (wealth) advisors are legally obligated to you best interest before their own. This consumer-investor risk was well explained by John Oliver in the June 13 Edition of Last Week Tonight - found at YouTube: www.youtube.com/watch?v=gvZSpET11ZY (see below)
Your Solution?
"MQCC™: Enter the BlockChain™; Enter the World of the MQCC™ Fiduciary Class™ Investment-Wealth Officer"
Fiduciary investment (wealth) advisors are legally obligated to you best interest before their own.Read the rest in the book entitled:
21st Century Estate & Wealth Stewardship: Create, Manage, Transfer in an Increasingly BlockChained World: Lazy Proof, Crazy Proof & Divorce Proof your Children™ - Be The Bank™/® Level 08
Citation: This document may be cited as: Bungay, Anoop. (2020). 21st Century Estate & Wealth Stewardship: Create, Manage, Transfer in an Increasingly BlockChained World: Lazy Proof, Crazy Proof & Divorce Proof your Children™ - Be The Bank™/® Level 08; Calgary, Alberta: MQCC.org Money Quality Conformity Control Organization.
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