00:00If you come into a bunch of money, how do you make sure your kids don't f**k it up and end up trust fund kids?
00:04Okay, so there's a lot of ways to go about this.
00:07I help people set up family offices and put together the governance, the family compass,
00:11all the things that are involved with making sure that those things don't happen.
00:14So one fantastic way to do it is to set up a board of directors or also a financial committee within your family office that helps make decisions.
00:22And there can be stipulations and time frames around when the children are able to do certain things with the money and how much they're able to take out.
00:28One fantastic way to do this is to make sure that they have skin of the game when they do take a loan from the family bank.
00:34So they still have to perform it together, the business plan, whatever it is, present it to the committee.
00:38Once it gets approved, they have to come up with 20% of whatever that investment is.
00:42So if it's a million dollar apartment complex that they're going to buy, they are able to get a 80% loan from the family at 0% interest.
00:49But they have to come up with the $200,000 to put in on the deal.
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