Becoming a Beneficiary: Process Steps

New Beginnings and Focus

• The session marks a new channel called Blue Sapphire, starting February 21st, 2025.
• This study hall focuses on process steps for those aiming to become beneficiaries.
• It's structured as an "ask us anything" session.
• Changes are occurring on the IAAT site, particularly in Blue Sapphire.

Upcoming Lessons and Key Information

• New lessons are being developed, which will be discussed in Wednesday Study Hall sessions.
• Starting March 5th, these sessions target individuals who have submitted treasury packets and are proceeding to recruitment, name changes, and contract novation.
• These lessons cover how to manage life after becoming a beneficiary.
• The goal is to refine processes, particularly for those starting with Sulphur, the Prator, and EIN acquisition.
• Two impromptu gatherings from January are available for viewing, set to be replaced with current content.

Platform Navigation and Resources

• Replays are organized by month, with only the most recent three months available to ensure current information.
• The trust class and foundational papers remain accessible.
• A termination packet section has been added to aid those unwinding private express trusts from 2024, including lessons on notice of termination, CSA cancellation, and UCCs.
• Bond order termination instructions and fiscal service form guidance are also provided.
• Optional resources are available for those who need to unwind certain pieces, with support available during Study Hall.
• The Treasury Packet Overview has been updated with new information.

IRS Packet Details

• An IRS packet is new and should be sent a minimum of 30 days after the Treasury packet has been delivered in DC, ideally after receiving the green card.
• This packet is essential for pursuing recruitment and contains lessons that open sequentially.
• It includes an overview and suggested points for composing a cover letter, rather than a sample letter.
• The status of the WABN form is under discussion, with a blank form and instructions provided for review.
• The W-8BEN form is to prevent tax withholding by payers by indicating beneficiary status which our admin team is having ongoing discussions about.

Knowledge Review and Quizzes

• Knowledge review boot camp is available, including quizzes for those who have completed Blue Sapphire.
• These quizzes are vital for solidifying foundational knowledge before moving into banking.
• There are three quizzes, with the third being "super easy" and the first two having 28 and 27 questions respectively.
• The IRS packet lessons may need to be marked complete to unlock the knowledge review.
• Those new to Blue Sapphire will find quizzes interspersed to ensure step-by-step progress, preventing rushing ahead.

Importance of Knowledge and Collaboration

• It's crucial to have a solid understanding of foundational knowledge, especially for recruitment and banking.
• Templates and samples will become less frequent in later stages so focus on your educational foundation now.
• Collaboration and small groups are encouraged for problem-solving and knowledge sharing.
• Emphasizing that participants are now in a "master's class" and should act accordingly.
• Those in White Diamond or Red Ruby who haven't sent their Treasury packet should consider waiting before attending meetings to avoid confusion.
• Taking the quiz is recommended to ensure a solid understanding, even if the Treasury packet is ready but waiting to be sent.

EIN and Sole Proprietorship Deep Dive

• The session addresses concerns about using a DBA in the sole provider name, clarifying the correct approach based on Louise's recent coverage of court cases.
• The IRS lessons are structured with attention to detail, trust the process.
• Creating a new entity is key of becoming a beneficiary.
• Creating a sole proprietor business under a proxy nickname is important.
• Key point: You can only get one EIN as a sole proprietor because it's a disregarded entity.
• Income flows through to the 1040 tax return.
• The proxy nickname should be added as a trade name, or "doing business as" (DBA).
• The legal business name will be your full, legal, spelled name.
• Spelling (of all names) must be correct. Contacting the IRS can be difficult for making changes.
• Adding the proxy nickname as a trade name helps the IRS see the link to the secured party leaner in the CSA and entitlement holder/settler in the trust agreement.
• The EIN is primarily for banking purposes.
• EINs are only available between 7-10 pm Eastern Time.
• It's suggested to call early in the morning for any phone inquiries with the IRS.
• The IRS still leans heavily for Fax-based, so consider having a fax number handy if needed.
• The processing time for EINs is approximately four weeks, possibly due to tax season and internal restructuring.
• The CP575 letter is basically a gold letter since it demonstrates your sole proprietor status, legal name, EIN, and trade name.
• If changes occur, request the 147(c) confirmation letter, as the CP575 is only issued once.
• Once the CP575 arrives, there may be an addition 1-2 weel for the letter to show on business portal.
• Do not register the trade name/DBA with any government agency; it should remain a reference name in the background at the IRS.
• It sits in the background so that the IRS can make the connection with our trust agreement when it receives its' copy.
• The business name is the full legal name, but will get passed along to recruiters, etc. The BMF creates a business master file.

Clarifying Name Usage and Master Files

• Discussion on legal name vs. trade name.
• The full legal name as sole proprietor is where recruitment happens and where the mess sits in the IMF (individual master file).
• To clarify, there is information in the nonmasterfile, but under the IMF. It's not ledgered, though.
• The sole proprietor creates a business master file (BMF).
• The entitlement folder is where the files are collected.
• Emphasis on the distinction between the individual master file (IMF) associated with the Social Security number and the business master file (BMF) created by the sole proprietor business.
• As entitlement holder, collect from the non master file, the collect it and pull it to the IMF so that its ledgerd.
• The sole proprietor (BMF) business will go collect on it (the IMF).
• The social security number cannot go into the nonmasterfile to claim (to clean up the books), so that's why we create the DBA.
• The business master file (BMF) allows us to make our claims and get the job done properly.
• The auditor, by way of the admin team, confirmed that this is exactly the correct way for the auditors to work.

Understanding Proxy Names and Status

• The significance of using a distinct proxy name that the system doesn't recognize for name changes (legal or otherwise).
• Using the proper name ensures the name is not already seen in the system.
• Key Goal: To come forward but in a new way, so as to easily separate from existing obligations etc.
• Emphasizes separating oneself emotionally from the legal name and entity.
• Caution against sharing too much "free knowledge" due to the risk of people skipping essential steps.
• Addressing the issue of individuals attempting legal name changes by merely altering the spelling.
• Legal name changes dont always work because you may have the same trustee.
• Those name changes don't work because you didn't change the entity.
• The reason those name changes may not work is because the birth certificate is matched.
• Reiterate you are aiming for the benefits not the responsibilities.
• The importance of unwinding yourself from the knots we’ve been put into.
• This process is not for living persons, since it keeps the system out of it. The legal system is designed that way, said Bill in the post.
• We put on the glasses of the trust.

Visualizing the Process with Analogy

• The dead system only exists on paper.
• Non -Master File, Business Master Card, individual master file.
• Creation: Corporate Creation Business Master File.
• Use a business master file to clean up the books in order to see and navigate clearly to go about what you need to do.
• Someone is going to need to to be able to pull in the non-master file to the IMF.
• Someone will load the cargo onto the pirate ship.
• The entities do contracts with each other.
• When they have completed their task, everything goes up in flames to eliminate the mess.
• Important reminder that they're all businesses

Answering Questions and Providing Clarity

• Clarifying that sending back the entitlement order is proof they're waiting for direction, not a sign to restart.
• It may be important to address, specifically, in your trust agreement.
• Removing the sole proprietor name from trustee's powers in the trust agreement.
• Duplicating applicable laws in both the CSA and trust agreement.
• The Appendix A laws need to be attached to the CSA. They are essentially repeats of the documents of the schedules between agreements.
• Adding codes related to control and delivery to the UCC section.
• Paul commented on if you can use the IRS entity transcript for business copy of a business copy the same info as CP575? The decision is the same and to mail it to the 147 (c).
• Mention to Tim by Lynn a good resource on quantum physics dummies. In general, deep subject, there's lots involved, very cool.

Trademarks and Trust Positions

• Discussing any possible trademark issues.
• Determining the Trustee trademark and then acting with knowledge. the position of the trust.
• If those friends are still connected to the business entity, then so be it, but the information here is to proceed as a beneficiary (not those other entities).
• No harm in it being trademarked, just caution.
• Legal name or name changes are not necessarily as beneficiaries either.
• Is it helpful: No
• Harmful: No.

Small Group Importance:

• The small groups are how we take the next step.
• Be ready to ask Treasury Packet questions.
• Discuss joining or forming small study groups for support and knowledge sharing.
• Leaders from these groups are invited to join the Boot Camp for additional support.

Additional Considerations

• Confirm that there is no real checklist, so just focus on filing paperwork and instructions.
• Address frequency asked taxes and car purchase questions and issues.
• If you operate as trustee, so be it so you are are in commerce and not breaching a contract. Don't breach the reverse either.
• Your status is your position basically in the contact, so long as know what you are actually doing. No one position negates. The other as long as we know what we're doing.
• In that regard, do discuss Cookie Trust (trust and more).
• We are all 3 position is many different ways. The information helps with the basics.
• Those are will be clean things up it will be easy to contract it's like the contracts have a different effect on the person who is taking control as a trusty.
• But what we are going to do as a trustee, beneficiary - trustee?
• How that happens?

Tax Filing Guidance

• This section contains recommendations on tax filings.
• When you sign a 1040 what are you acting at? - The Trustee!
• A scribble will be an unqualified signature.
• What does it mean that signature from the Trustees? What is that signature for the Trustee? - A doctor's scribble!
• Some of the members had problems with the sign authorized rep got kicked back.
• Recommend hesitating to the signature on the 1040 with Auth. Rep. Or Owner.
• The IRS individual signature on a 1040 is just a regular, run of the mill signature as Brenda mentions.
• Then the filing of the tax return - automatic extension for the filing that you can push to October 15, or let your proxy clean it up.
• However, do be warned, that by April 15 one must give the IRS their Tax Liability.
• Also, keep in mind there can possibly be a credit in your treasury packet if you want to get the cash - is it going to get squared away then you work it out?
• Banker’s acceptance of 10 40 to the books being due!

Specific Tax Scenarios

• Those of you who sent in your messy, messy Treasury packet, you’re awesome, and it’s good.
• Share a tip with Kim, that perhaps she should file her tax, and then wait.
• To address Craig, the 1040 or will is hanging out on the non-master record.
• Norma wants to file by Norma Jane Langwell, and Brenda says it’s OK to. The importance is that you need to know with the hat that you were, wearing when writing this 10 40.
• Another tax: How to finance that new car! By out of pocket means (white diamonds).
• Reminds everyone turbo taxes sign that the signature will not give all the pieces, we're not to, and Brenda will show it.
• One member loves these quizzes! She wants to be 100%!