A Pactrust ™ Deal Part (4 of 5)

I had first thought. I see him wince a little. At that point I tell him about the termite problem and tell him that he’ll need to pay the $2,000 for the tenting and spraying, but that I’ll take care of everything else. He heaves a sigh of relief and agrees, assuming that I’m paying the $10,000 that he estimated to cost to be and that I’m also paying all costs of marketing (‘when they say they don’t have money, what they mean is: I have some, but I don’t want to spend it unless you pull the right levers). April 1: The property is tented…at Mr. Brown’s expense. The poison is sprayed, the termites begin singing “***** Bah Ya” as they weaken and are no longer able to hold hands; and astheir grip fails them and their little arms fall to their sides, the house crumbles and falls down (no, just kidding…they all die and go to termite Heaven, I’m sure). April 10th. I complete the paper work for the “Joe Brown Land Trust” and have Mr. Brown execute the document (as the only beneficiary), thereby appointing PAC Holdings as the trustee. April 11th: I complete the “Assignment of Beneficiary Interest” agreement from Mr. Brown to my resident co-beneficiary and me. I then complete the “Beneficiary Agreement” between us. The Beneficiary Agreement designates our percentages of ownership of the beneficiary interest in the trust as: 10% to Mr. Brown; 40% to me; and 50% to the Resident Beneficiary. However, I arrange to have it stipulated in our agreement that Mr. Brown will forfeit his 10%, and any claim to profit, to me at termination (I just need him to hold onto it for now in order to avoid Due-on-Sale Clause issues, reassessment of property tax and the payment of transfer tax upon. Note here as well, that I leave Mr. Brown with 500f the voting rights so as not to invoke property tax increases, reassessment and conveyance tax: but I take a Power of Attorney from him so that I can vote his rights and not have to involve him in management decisions.