Currency Exchange Related & In Bank Procedures submitted by DebTarHeelgirl
(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
Good Morning Dinar Friends:
NOTICE: These instructions have been put together from conversations with high net worth individuals who have extensive experience in these areas; however, this is only a suggestion and is not to be construed as legal or professional financial advice. You should always seek the counsel of your own attorney or professional financial advisor if you have any questions or concerns. DebTARHeelGirl
Exchange-related In Bank Procedures
There have been several changes due to recent events with Wells Fargo that will dictate how we structure our accounts at the bank for the best level of protection and functionality.
During the initial visit there are several imperative steps that must be taken. I will separate the two based upon whether one would have a trust established before the RV or whether there is no pre-established trust.
I. Procedure if NO Trust is established prior to exchange:
1. Request the bank to open a NEW non-interest bearing account. They will try and establish an interest bearing account. It must be NON-INTEREST as of now. This is called Account #1.
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2. Open up a separate account for each kind of currency i.e. Account #1a for IQD and Account #1b for VND. The reason for separate accounts for different currencies is to differentiate, if necessary for tax purposes, between currencies which were tradable and currencies which were not tradable prior to revaluation. It is our understanding that the revaluation of a tradable currency is not, in and of itself, a taxable event. (The following steps 3 thru 6 must be followed with each currency separately. You may combine the separate currency account assets into the Holding Account at step 7).
3. Once Account #1 is opened, deposit your currency into the account and exchange into the new Treasury currency.
4. Immediately have the bank open a second account (Account #2) and have the bank “sweep” everything from Account #1 into Account #2. Have the bank close Account #1. Repeat this step for Account #3 and have the bank sweep Account #2 into Account #3 and close Account #2. The reason you are doing this is that the bank is required to report the opening of Account #1 to the federal government and that information can find its way into the public domain;
however, the bank is NOT required to report intrabank transfers between accounts. What this does is effectively eliminate your digital trail so that nobody outside of the bank knows how much money you have on deposit and, more importantly, whether or not you are a good target for a lawsuit.
5. If there is a need to utilize funds for personal use or to pay for a trust to be established, it is encouraged to pull these funds either in cash (less than $10k), or in a cashier’s check on your first visit and take it to your respective bank and use Account #3 for this.
6. It is IMPERATIVE to request a “clean and clear certificate” while you are at the bank on your FIRST visit. This certificate states that your money is clean and clear of all criminal activities to which it could be associated. It is encouraged to get NO LESS THAN 20 COPIES!!! I was told that the bank “should” offer 3 copies but will charge for additional copies. Pay for them! The purpose for these is for future use for your money. You may be requested to prove where your funds came from and if they are clear of criminal activity. These certificates prove that the bank certifies that your funds are clean and clear.
7. After your trust is established; you will then take all trust documents to Wells Fargo and have them put Account #3 into the trust. Label this account as your Holding Account.
8. Once the funds are in the trust account; it is encouraged to establish no less than 4 accounts within the Trust. I will label and describe them below.
a. Holding Account – This will be a non-interest bearing account which will hold the bulk of your funds.
b. Tithe Account - 10% of your funds to be used for charitable giving.
c. Mad Money Account - 10% of your funds to be used for self-indulgent playing, vacations and luxury purchases.
d. Tax Account – You are encouraged to hold 15% of your funds for a year to offset any possible tax implications. If there are no tax implications after a year, have the bank “sweep” these funds back into the Holding Account and close this account.
e. Project Account – We recommend no more than 20% of your funds in this account. This account will be the funding source from where all funds will come for business ventures and projects.
f. Maintenance Account – This is the only account that WILL NOT BE IN THE TRUST!!! This account will be the one you use daily. This account should never hold over $50k for liability purposes. This account can be funded with a reoccurring transfer from the “Holding Account” in the form of a monthly stipend that shall be used to cover monthly expenses such as your mortgage payment, your auto loan or lease payment and your monthly utility and maintenance payments. (It is not clear at this time whether this would create a taxable event.)
9. Remember that the Trust will purchase, provide and own everything that you need. You own nothing, but control everything. The reason you still want to be making monthly mortgage or loan payments is because these liens “encumber” an asset and make it less desirable to someone looking for assets to attach.
II. Procedure if there is an established Trust prior to exchange:
A. If at all possible, you should take your trust documents into the bank and set up a non-interest bearing account in the name of the trust. Open the account as a “business trust” entity.
B. Transfer ownership of all interest in your currency to the trust by executing a Bill of Sale for the amount at which the currency was purchased. That way, the currency is revalued inside the trust and your personal tax liability is only for the amount at which you sold the currency.
C. Take the currency and your Trust Documents into the bank for the exchange and start at step 2 in Section I above.
III. Issues with LLC’s and LP’s and any other business entity and trust accounts:
It has recently come to our attention that Wells Fargo will not work with LLC’s and LP’s and other business entities serving as a Trustee under a trust. By utilizing these business entities, it may be necessary to understand that a taxable event may be inevitable in order to fund these from the Trust Project Account. This will be one of the first issues that will be addressed with Attorney’s Post/RV