If You Only Watch One XRP Video, Make It This

Ajouté : 2026-05-12

[00:00:00]70% of wealthy families lose their fortune by the second generation, 90% by the third. The Vanderbilts lost a h 100red billion in just three generations. Another family lost 9 billion in two decades. The Hartfords built A&P into the world's largest retailer with over 16,000 stores and filed bankruptcy 156 years later. But the Rothschilds, well, they've been in business for seven generations. And they still control banks, vineyards, and real estate across multiple continents. Same wealth, completely different outcomes.

[00:00:28]So, what's the difference? In this video, I'm going to break down the seven pillars you need to know to build and pass down generational wealth, whether you hold real estate, stocks, or digital assets. Pillar number one, trust structures. The typical approach most families give assets directly to their children when they die, which is then subject to estate taxes, and the children inherit what's left. Those children die and then more estate taxes hit and again, the next generation loses even more of the wealth. At a $10 million estate taxed at 40%, every generation becomes 6 million and then 3.6 six and then 2.1 and by the fourth generation more than 80% of the original wealth is gone just to taxes. So that's why a lot of the families will structure a dynasty trust. Assets go into the trust once transfer taxes are paid once and the trust grows taxfree for multiple generations. Family members receive income from the trust during their lifetimes and they can borrow against the trust assets for investments or other opportunities but the principle will stay intact. No estate taxes between generations, no force liquidation, no dilution. So why does this really matter? Well, personal ownership exposes you to a lot of different things. Taxes, lawsuits, divorces, all can take your money and your wealth. The trust structure protects you against all of those. The Vanderbilts gave up assets directly.

[00:01:33]Each generation paid taxes, spent freely, and diluted the fortune until nothing remained. The Rothschilds used trust structures from the beginning.

[00:01:39]Seven generations later, the wealth is still compounding. So, how does this apply to digital assets? Well, XRP and other crypto held in a properly structured trust avoid probate, estate taxes, complications, and force liquidations. Without a trust, your heirs may be forced to sell the crypto at unfavorable prices and pay the estate taxes. With a trust, the assets transfer seamlessly. No court involvement, no public record, no force sales. So, you're good to go. Pillar number two, the family constitution. So, here's the problem. If there's no written rules, it's going to end up with conflict and lawsuits and force sales and all the things I just talked about. So, let me give you a real scenario. Let's say there's three siblings. They inherit rental portfolio. Okay? One wants to sell, one wants to hold, and one wants to refinance and expand. No rules means lawyers get involved. The family loses money fighting each other instead of growing the wealth together. What a family constitution does is it has distribution rules. Who gets what when and under what circumstances. It creates voting rights and how decisions are going to be made for family members when there's a disagreement. There's also exit procedures. So what if happens if somebody wants out? How do you you know provide liquidity to them while maintaining the wealth for the family?

[00:02:39]And it also provides dispute resolutions. How conflicts are going to be managed and resolved without courts in mediation or with other advisers.

[00:02:46]Let's take the Ford family for example.

[00:02:47]The Fords established a governance structure that included family members, independent adviserss, and professional trustees. There's three different advantages to this. One, there's objective decision-making. It's protected against a rogue family member, and they educate the next generation.

[00:03:00]So, the Ford family still controls Ford Motor Company after 120 years. So, when's the best time to do this? Well, when you first set everything up and starting right means continuing right when everyone is calm, level-headed, they're better able to make decisions without the emotional issues that come up later on. Right now, that would be the best time to get this going. If you have an investment digital assets or you're planning on a liquidity event, yesterday would have been the best, but right now is the second best time to get going. And nothing great has ever happened without being written down first. So, let's take this back and how it would work out for crypto. Well, you need rules for who controls the private keys, how that crypto is distributed, what happens if somebody dies or gets divorced or wants out. All of that needs to be written down. And without those rules, one family member could drain the wallet or heirs could fight over the control of the access. As long as there's written rules, everyone knows the game before it's even being played.

[00:03:43]and you have all of this stuff structured so you don't have the issues down the road. Pillar number three, the liquidity engine. Many families often have assets but then they have no cash flow and they don't have the money when taxes come due. When you don't have cash flow or liquidity, you end up having to have a situation where there's forced sales at unfavorable prices. Fire sales, estate sales. You've seen that where people liquidate things way below what they could actually sell it for because they have to raise the money. And when there's market downturns, this can be even worse. So selling the family business just to pay the IRS, not a good plan. You should probably think about this far before that. Talk with CPAs, estate planners, and wealth advisers to make sure that your stuff has cash flow to be able to mitigate these situations and you're not put in a bad situation.

[00:04:19]So, the answer for this, you might have guessed it if you watch some my other content, but it's a family bank. A trust buys life insurance policies for every member. As policies mature, they provide cash value and dividends. Family members can borrow from them from the family bank or for investments for real estate or other business opportunities or to cover taxes if you need to. When those investments pay off, the money goes back into the family bank. Every new family member gets a policy. Every death adds liquidity back to the bank. And this is the infinite banking that a lot of people talk about leveraging life insurance here in the US. You don't need cash sitting idle. You need access to cash. And every dollar sitting in a checking account is a lazy dollar. But every dollar you have invested that you can access when you need it, that money is working for you. So there's seven different ways that you can structure this. Many of which you're already going to know, but maybe some of them you won't. Credit lines. You should go to the bank, set these things up when you're in good times, before you need them. A heliloc on your home is another great option, right? It's a home equity line of credit. If you have real estate properties and you want to be able to borrow against them when you need cash, this is all taxree, by the way. That's another fantastic way to go about it.

[00:05:14]Another one is borrowing against your securities or security backed loans. LTV is not quite as good on these, but they're favorable interest rates and it's an easy cash injection if you need it. The other one that we just talked about is cash value life insurance, whole life policies, PLI, and other products which you should talk with an investment adviser or an insurance professional about. You also have cryptobacked loans. So if you have a bunch of digital assets and you need access to liquidity, well there are lenders out there that will provide you liquidity against your Bitcoin, your ETH, your Salana, your XRP, mostly the larger cap tokens. The sixth option is going to be private credit. You can always go out. Interest rates on this are obviously going to be significantly higher than what it is on the other ones that I just talked about, but it is an option. And then last but not least are business lines of credit. Again, probably should go after these when cash flow is good, you have cash in the accounts, things are on the up and up.

[00:05:58]you should be doing these things on the front end so that you're positioned when things get skinny later on. So, we talked about the cryptoback loans and we talked about life insurance. So, what does that look like together? How could you blend these two or you know which one should you use? Well, life insurance provides cash to pay estate taxes without forcing the liquidation of crypto in a bare market. If somebody were to pass away and you don't want to sell the assets to be able to cover the estate taxes if there is a transition or you haven't structured it the right way, life insurance can provide that buffer.

[00:06:22]You can also borrow against that policy.

[00:06:24]Now, cryptoback loans, they're going to let you borrow against your Bitcoin, your XRP instead of selling it. you maintain exposure while accessing liquidity. Interest rates I do think will come down over time on that. Also, neither one of these are a taxable event. No capital gains, just access to cash when you need it. And then lastly, you can invest in crypto through your life insurance policy. We have an insurance dedicated fund which is diversified across multiple assets if you have $3 to $5 million and you wanted to fund that policy in cash. Currently, we don't have a way to be able to do it in kind, but we're working on it. That's another fantastic way to be able to marry two of these options and get access to liquidity. So, if you want to, you can reach out. We'd love to chat with you about it. Just go to aureleacy.com. Pillar number four, transfer restrictions. So what problem is created here? Well, easy liquidity leads to bad decisions. If family members can access cash when and whenever they want, they will. And divorces will force sales. Creditors will seize assets. And one bad decision by one family member can destroy the generational wealth you work so hard to create. The McGill, the Cargill, and McMillan family, they own Cargill, the largest private company in America, $160 billion in annual revenue. They have strict rules around selling shares.

[00:07:24]family members can't just cash out whenever they want since 1865. Over 150 years, all controlled by the family. The Koch family is another one that has done this. So, you know, if you are holding a large amount of equity in a company or corporation, you definitely want to listen further. The way that the billionaires do this, and you probably remember Elon Musk buying Twitter for $44 billion. He didn't sell any of his Tesla stock. He borrowed against it.

[00:07:45]Larry Ellison borrows against Oracle stock to fund his lifestyle. He doesn't sell. The wealthy don't liquidate assets. They leverage them. So, how do you prevent people from making problems here? Well, you need to put some governance around stuff. There are times when somebody genuinely needs liquidity.

[00:07:59]You don't want to make that impossible, but you don't want them to make rash decisions that are going to cause problems later on that they might regret. So, how do you do this with digital assets? Well, you could have a multi-IG wallet inside institutional custody. You could have advisers on there. You could have multiple family members on there that have to approve transactions over certain amounts. No single one person can drain the funds or use them at their own discretion without getting guidance from other people or making sure that they're following the rules that you've put in place. Time lock transfers also prevent impulsive decisions. We have a 24-hour lock up before you can remove assets out of Anchorage. And that makes sure that if anybody's coming after your stuff or it's been hacked or other things, they're able to catch that before there is an issue. You could even go up to 48 hours or 72 hours. It really just depends on your family and the controls that you want to put in place. But you should have some friction there to be able to get access to funds. Another thing that you can put in place if you have a large amount of stock for your family is first right of refusal. So, one of the family members wants to sell their shares, the other families get the first opportunity to buy it before they're liquidating it to somebody else.

[00:08:53]These pillars work whether you have $100,000 to your name or $100 million in your estate, but most people never learn them until it's too late. If you want to work with trusted advisors, you should reach out to digitalfamilyoff.io or digital ascension group and we can break down exactly how to set up these structures for your own family, especially when it comes to digital assets. Pillar number five, short-term thinking destroys long-term wealth.

[00:09:13]Traders pay taxes constantly. Every sale triggers capital gains or income tax.

[00:09:17]Every gain gets taxed, but compounding just gets interrupted over time if you're doing it this way. Holders compound their work. The taxes are paid once and at the end after decades of growth. So, you want to have a pantheon mindset. Basically, thinking for the next hundred years. And that's what family offices do. The frame here is what would you do differently if you knew your grandchildren were going to inherit your portfolio? Well, you'd stop chasing quick gains. You'd stop reacting to every market dip and you'd pick quality assets and just hold them over the duration. Warren Buffett illustrates this really well. He talks about making just 20 investments over your lifetime.

[00:09:47]If that's all you could make, you would be very careful with how you participated, traded, and structured your estate. When trading these digital assets or other investments that you're making, compounding your wealth over time is your biggest asset. A $100,000 investment growing by 10% annually becomes $1.7 million in 30 years. In 50 years, that becomes $1.7 million. And over a hundred years, it becomes $1.4 billion. But only if you don't interrupt it while it's compounding. Every sale, every taxable event, every panic sale, that all resets the clock. So you need to make sure that you're willing to hold these investments a long time. So how does this apply to digital assets? Well, Bitcoin holders that bought back in 2015 and never sold outperform every trader every single time. It's the same principle, and it can apply to XRP and other quality digital assets. Decades is what you need to be focused on, not cycles. The families who benefit the most from crypto are the ones who are going to hold through multiple cycles and let the time do the work. Pillar number six, asset protection. Owning assets personally exposes them to lawsuits, divorces, and creditors. And if you own a rental property in your own name and somebody slips on the stairs, well, they can sue you personally. Your assets are at risk, including the rest of your entire estate. If you go through a divorce, well, personally own assets, again, get divided in that situation.

[00:10:58]Creditors, taxes, all of the above. So, what's the best option? Well, a holding company would probably be ideal for these assets or to structure each one of these assets in their own limited liability company here in the US. The holding company sits between you and your assets. You control the company, the company owns the assets, you benefit from the assets without owning them directly. But if a lawsuit hits the company, and you've maintained your corporate veil, they can't come after you, especially if it's structured in the right jurisdiction. All they can do is file a lean against the company.

[00:11:22]Creditors can only reach the company, not your other assets. And that's why structure matters so much. Ownership versus ownership structure is important.

[00:11:29]Ownership is not the problem. Ownership structure is the issue. Control and ownership are two separate things. You can have all the benefits of ownership without the risk of personal losses. So, how does this apply to digital assets?

[00:11:39]Well, you should probably structure a holding company or an LLC that owns your digital assets in custody accounts.

[00:11:44]Personal liability sits separate of your portfolio. And if you get sued personally, your crypto is protected inside of that entity. With the charging order protection, if you've structured it in Wyoming or if you worked with us, we make sure it's done the right way.

[00:11:54]We've set up over 8,000 LLC's at this point and we make sure that our clients are protected in those situations. And the last pillar, next generation training. And this is the part that a lot of people miss and why multiple really again almost all 70 to 90% of all wealth that's created by the first generation is lost by the third generation. Wealth without education creates entitlement and mismanagement.

[00:12:13]Studies show that 60% of family fortunes disappear because of a lack of communication and trust. Only 3% vanish because of poor investment decisions. A lot of people think that they should pay their children for chores. Well, this actually creates a negative association with work. If the only way your child earns money is by taking out the trash or doing dishes, they associate work with menial tasks. A better approach would be to teach your children to create value, not just complete tasks like you do in school. Encourage them to start a business. A lemonade stand.

[00:12:38]Learn how to invest early on when they're 5 6 7 10 years old. You know, give them a little bit money to invest in stocks or crypto or real estate.

[00:12:46]Obviously, real estate's a little bit more, so you know, probably can't do that at an early age, but some of these other ways could be their starting point or jumping off point so that they can learn how to do this the right way. and develop the skills that are needed to create real value in a marketplace instead of just being a trust fund kid that sucks off the tit of the family bank. So, how do you do this correctly though? Well, there's three different components of NextGen training. One is passion. You got to let them explore their interest and keep them engaged in the game. They need to create skills.

[00:13:11]Teach them how money works, how to read a balance sheet, how to evaluate investments, and how to create value in society. And then lastly, they need character. Philanthropy and responsibility are a huge way to be able to do this. When they know that there's something bigger than themselves, they become a better steward of the family's capital. So, how does this apply to digital assets? Again, that's our focus at Digital Ascension Group. Well, teaching your children how crypto works is a big piece of what we help our clients do. How custody works, how to read the blockchain, how to verify transactions. Everything needs to be passed on to the next generation that'll be inheriting these assets. And none of this existed 20 years ago. So, they need to understand them. As the family passes down crypto, they need to pass down knowledge on how to set this up to make sure that the next generation doesn't fail with it. And you need to start early. involve them in discussions, let them see how decisions are made. By the time they inherit it, they should already know how to manage what they're receiving. So, in closing, the Vanderbilts had a hundred billion dollars, but they didn't structure it.

[00:14:00]And 120 descendants later, not one of them is a millionaire. The Rothschilds built their structure 250 years ago, and seven generations later, that structure is still working. You don't need to be wealthy to start building these pillars.

[00:14:11]You just need to start before you need them. If you want to learn how to apply these pillars to your own situation, especially with digital assets and crypto, you should join us in the Beyond Mastermind where we go deep on all of these topics, the link is pinned in the comments below. And if you're ready to get serious about building generational wealth and want professional guidance on structuring your assets, taxes, how to invest them, that's exactly what our team does at Digital Ascension Group.

[00:14:32]You can go to digitalfamilyoff.io and let's talk about your specific situation. Thanks for joining. Please like, subscribe. If you get value from this content, all of that helps the algorithm.