True Assets in Trust
What is it?
Rich Dad defined an asset as something that puts money in your pocket. A liability takes money out. Many people think their home is an asset, but if it costs money every month without producing income, it's actually a liability. Trusts should hold true assets: income-producing real estate, dividend-paying stocks, business interests, royalties, and other investments that generate cash flow.
Why is it important?
When funding your trust, focus on transferring assets that build wealth—not just things you own. Rental properties, business interests, investment portfolios, and intellectual property rights are ideal trust assets. This mindset shift from "what do I own" to "what produces income" is fundamental to building multigenerational wealth. Your trust should be a wealth-building vehicle, not just a storage container.
Example Language
The Grantor transfers to this Trust the following income-producing assets: (1) rental property at [address] generating $2,400/month; (2) dividend portfolio valued at $500,000 yielding 3.5% annually; (3) 50% interest in [Business LLC] with annual distributions of $75,000. The Trustee shall manage these assets to maximize long-term income and growth for beneficiaries.