Nick Perry explains why keeping money in your personal bank account leaves it vulnerable to lawsuits and creditors. He outlines a three-step strategy wealthy families use: create a revocable living trust, get an EIN for it, and open a bank account in the trust's name so you control the money without legally owning it.
Never keep your money in a personal bank account. I didn't understand this until my billionaire mentor taught me the day I got my first deal. See, the moment significant money sits in your personal name, it's exposed, which means creditors can see it, lawyers can locate it, and anyone with a judgment against you can legally freeze it. So if you want to avoid that and do what wealthy families have secretly been doing for generations: Number 1, create a revocable living trust. Then number 2, apply for an EIN at irs.gov to give your trust a tax identity. And finally, number 3, open a bank account under the trust's name. By doing this, you still control your money, but you don't own it, which means nobody can take it from you if you get sued.
