A wealthy person with five rental properties earning $20,000 monthly can create a trust, transfer the properties into it, and declare themselves a beneficiary taxed on just $50,000 annually instead of their actual income. The trust keeps the rest.
How rich people reduce tax for dummies. So let's say I have five investment properties. Each investment property makes $4,000 worth of rental income every month. If they're all under your name, you're getting taxed. Crazy. So as a rich person, you make a trust and put them in your trust. You set yourself as a beneficiary. So now, even though there's a lot of income here, you can set your annual income. So let's say it's $50,000. You'll only get taxed as a $50,000 earner. It's wild, but this is how people reduce their tax. And even though they earn a lot of income,
