Finance lessons part 39

Why refuse to own it? Billionaires sometimes refuse to own the companies they built. Control isn't ownership. Because the wealthiest people know that controlling something and legally owning it aren't always the same thing. Here's the reason. Let's say Josh builds a company in the US worth $1 billion US dollars. Most people think this is smart. Most people think the smartest thing to do is own every share himself. Simple. But Josh doesn't. He moves shares into a trust. Instead, he gradually places some of those shares into a trust. Not every share stays with Josh. Because instead of Josh personally owning every share, the trust owns some of them. Josh and his family still benefit. Not all in his personal name. Why do this? Personal ownership ties it to you. Because if Josh personally owns every share, those shares are directly tied to him. Now imagine a lawsuit. Or a costly divorce. Personal shares could be taken. Trust-owned shares are different. Because shares that are owned by a properly structured trust aren't held in Josh's personal name. That creates extra security. That creates extra security between Josh and those assets. Here's the crazy part. The family still benefits. The trust is the legal owner of the shares. Josh (beneficiary). Even though the trust is the legal owner of the shares. That's why the world's wealthiest families don't just think about making money. They think about protecting it. Long before anything goes wrong. Because building a fortune can take a lifetime. Losing part of it can happen much faster if you never plan ahead.