Goodbye September, Will October be Better? - How to Prepare

1 00:00:07,080 --> 00:00:10,679 Welcome back everybody. This is our last segment. We do appreciate you listening. 2 00:00:11,000 --> 00:00:13,320 Remember, we have to do his costs to get together with us, 3 00:00:13,320 --> 00:00:16,320 and we'll be glad to sit down. Give me a free financial plan, 4 00:00:16,519 --> 00:00:20,839 risk analysis, whatever you need, show you how to mitigate risk. Listen, 5 00:00:21,199 --> 00:00:24,039 we know where we're at. Everything has a risk and everything has a 6 00:00:24,160 --> 00:00:29,519 chance of things happening. So understand those before you before we invest. All 7 00:00:29,600 --> 00:00:34,359 right, we got im stay tourney today. Hey Jonathan, Hey, guys 8 00:00:34,359 --> 00:00:37,000 doing well good? How are you? I'm pretty good, happy Sunday. 9 00:00:37,200 --> 00:00:41,200 Yeah, and beyond the Mike buddy till you can hear you. I'm sorry 10 00:00:41,280 --> 00:00:43,560 if I'm a little low, So I'll get a little bit closer for you 11 00:00:43,640 --> 00:00:47,159 guys. Guy's you know, Jonathan houses with us here. He has his 12 00:00:47,200 --> 00:00:50,880 own stay planning for him. He's an attorney, but he also has a 13 00:00:50,880 --> 00:00:55,479 counting background and that it's very very helpful in what we do. We all 14 00:00:55,479 --> 00:00:59,159 work together, we all help out each other, and he's just part of 15 00:00:59,159 --> 00:01:02,000 our team and we're happy to have them. Well, thank you guys. 16 00:01:02,280 --> 00:01:06,239 Uh. First off, I want to say if anyone that's listening has a 17 00:01:06,280 --> 00:01:07,719 topic that they want me to talk about on the air. Feel free to 18 00:01:07,719 --> 00:01:11,480 reach out to me. Dave walked by my office. What do you got? 19 00:01:11,519 --> 00:01:15,200 What do you have? What do you have? And I basically go 20 00:01:15,319 --> 00:01:19,480 through real life things that I go that I hear each week, and I 21 00:01:19,560 --> 00:01:22,519 explain it to you guys, and hopefully, hopefully it processes. But if 22 00:01:22,519 --> 00:01:26,040 you have something going on, just give me, send me an email and 23 00:01:26,120 --> 00:01:29,040 ask say, hey, can you talk about this? Maybe, and I 24 00:01:29,040 --> 00:01:33,439 won't give you a direct legal advice, but maybe I'll talk about the situation 25 00:01:33,560 --> 00:01:38,000 and uh and hit the wave tops from fifty foot fifty thousand feet. You 26 00:01:38,040 --> 00:01:40,480 know, I got a bit. You've gotten so much better on the radio 27 00:01:40,519 --> 00:01:44,840 too, and much run into family. Yeah. Absolutely. You can email 28 00:01:44,920 --> 00:01:49,760 Dean at Greenberg Financial dot com or or Toddy at Greenberg Financial dot com or 29 00:01:49,799 --> 00:01:53,920 Dylan at Greenberg Financial dot com or call us. We'll contact whatever. Just 30 00:01:53,000 --> 00:01:56,799 get in touch with us. You have any questions for John, get in 31 00:01:56,879 --> 00:02:00,680 touch with us. Yeah, what's our topic today? Well? What I 32 00:02:00,760 --> 00:02:05,079 do? Your story? What's my story? So, actually it was one 33 00:02:05,120 --> 00:02:07,240 of one of the listeners. They may not be here in listening today, 34 00:02:07,240 --> 00:02:12,240 who knows, but so I won't say any names, but they had a 35 00:02:12,280 --> 00:02:15,599 situation where mom's trust mom and dad's trust were prepared back in the nineties, 36 00:02:15,599 --> 00:02:19,759 and Dave, one of the first things we spoke about when we first met 37 00:02:20,000 --> 00:02:23,240 was back then everything was a B trust. Now they have a piece of 38 00:02:23,280 --> 00:02:28,800 property because dad died. And the way an a B trust works is that 39 00:02:28,919 --> 00:02:32,520 after the first bouse passes, the estate splits in two. Half goes into 40 00:02:32,680 --> 00:02:37,360 a survivor's trust, the other half goes into an irrevocable trust where the assets 41 00:02:37,400 --> 00:02:40,360 are you know, basically locked in. And these were very popular back in 42 00:02:40,400 --> 00:02:45,039 the nineties. And if you don't review your trust, you could get caught 43 00:02:45,080 --> 00:02:50,599 into a situation where a client right now their vacation home is stuck in this 44 00:02:50,680 --> 00:02:53,039 B trust, okay, and they're trying to get it out. They can't. 45 00:02:54,879 --> 00:02:58,680 This might have been good planning. You're trying to get it out though, 46 00:02:59,240 --> 00:03:01,560 while basically they want it. So there was three beneficiaries, right, 47 00:03:02,080 --> 00:03:07,719 three children. Now the mom, the surviving spouse. She wants to give 48 00:03:07,759 --> 00:03:10,680 the house to the one child and you know, compensate the other children with 49 00:03:10,759 --> 00:03:15,520 cash, but they can't do that according to the terms of the trust because 50 00:03:15,560 --> 00:03:17,560 things were locked in. So it's always good to review your trust. Don't 51 00:03:17,599 --> 00:03:21,960 sit on it for thirty years because we could be in this situation. So 52 00:03:21,960 --> 00:03:23,800 how do you go about it? Are you able to get it out or 53 00:03:23,800 --> 00:03:25,159 is it locked in there forever? Well, I mean, it all depends. 54 00:03:25,960 --> 00:03:32,120 There are some strategies that but they're expensive. You know, if we 55 00:03:32,199 --> 00:03:38,120 have an irrevocable trust, we possibly can do a non judicial family settlement agreement, 56 00:03:38,280 --> 00:03:40,639 but you know that gets more attorneys involved, and that could get very 57 00:03:40,639 --> 00:03:46,759 expensive. There's some decanting things that you can do here in Arizona that's allowed 58 00:03:46,120 --> 00:03:50,960 under certain circumstances, and you know, the rules change, but you might 59 00:03:51,000 --> 00:03:53,879 not be able to pull an asset out with a decanting feature. The big 60 00:03:53,960 --> 00:03:58,560 problem is getting the asset out and getting it to where you want it to 61 00:03:58,599 --> 00:04:03,719 be without tax, right without capital gains tax exactly because this uh, I 62 00:04:03,759 --> 00:04:08,000 think that I know the people you're talking about. The home may have been 63 00:04:08,080 --> 00:04:12,280 purchased for less than one hundred grand. Well, and even then, even 64 00:04:12,439 --> 00:04:15,240 if you do want it to go into the B trust, there's ways ways 65 00:04:15,279 --> 00:04:20,120 that so back that I'm assuming the way the B trust was set up where 66 00:04:20,199 --> 00:04:26,319 after the second spouse passes, there's no second step up in basis you could 67 00:04:26,360 --> 00:04:32,519 review that and really and possibly reward that trust if you catch it in time, 68 00:04:32,639 --> 00:04:38,160 where after the second spouse passes, there'll be another step up in basis, 69 00:04:38,160 --> 00:04:42,240 so the kids will get maximum tax benefit. But it's unusual, isn't 70 00:04:42,279 --> 00:04:45,839 it. Normally you get a step up in basis when the first spouse dies 71 00:04:46,319 --> 00:04:49,399 and then when the second spouse. Now it's not splits into two trusts again 72 00:04:49,439 --> 00:04:53,800 back in the day. I don't see that so much anymore. But uh, 73 00:04:54,199 --> 00:04:57,720 there is no step up in basis for the irrevocable trust. But it 74 00:04:57,800 --> 00:05:01,600 got splipped acause the uh, your amount you got taxed on in your state 75 00:05:01,759 --> 00:05:04,319 was much less. Correct. That's fine, it was six hundred thousand. 76 00:05:04,439 --> 00:05:09,600 That's it now now knocking, I have an A B trust. I probably 77 00:05:09,600 --> 00:05:12,480 need you to take a look at it. Yeah, I know. Our 78 00:05:12,480 --> 00:05:15,720 mind was formed at the same time, being back in the eighties because seconder 79 00:05:15,839 --> 00:05:19,000 thousand was the maximum of state tax exemption, and by doing a living trust 80 00:05:19,040 --> 00:05:21,800 you could bring that to one point two million, one US twelve and a 81 00:05:21,839 --> 00:05:26,199 half millions. And back then we said one point two million would be so 82 00:05:26,240 --> 00:05:29,519 happy to be there, yes, and and well, what's new is that? 83 00:05:29,560 --> 00:05:33,639 Back in Durney Obama administration. They set up the portability and portability basically 84 00:05:33,720 --> 00:05:39,600 allows you to use that exemption without having to create a second trust. Before 85 00:05:40,079 --> 00:05:44,680 you could only do it when you split the estate. So portability election is 86 00:05:45,040 --> 00:05:46,560 you know, right now, we have twelve point nine million dollars an exemption 87 00:05:46,680 --> 00:05:50,920 per person. But if you don't elect portability, you lose it or back 88 00:05:50,959 --> 00:05:59,160 then if whatever that amount was portability portability. Okay, So with an exemption, 89 00:05:59,439 --> 00:06:01,360 every person gets twelve point nine million dollars, all right, and when 90 00:06:01,360 --> 00:06:06,439 the first when somebody passes away, when the first bouse passes, uh, 91 00:06:06,600 --> 00:06:13,759 that twelve point nine is lost unless you elect portability on your seven h six 92 00:06:15,319 --> 00:06:23,240 and by doing that can utilize seven six. Excuse me. Okay, the 93 00:06:23,680 --> 00:06:30,000 seven H six is the deceased tax returns, so the estate tax returns I 94 00:06:30,120 --> 00:06:31,920 R S Form seven h six. Excuse me. Sometimes I feel like I'm 95 00:06:31,920 --> 00:06:35,000 talking to my colleagues when I forget that, you know, I'm talking to 96 00:06:35,000 --> 00:06:40,839 people who it's the problem. You guys have written all these laws, so 97 00:06:41,079 --> 00:06:44,120 guys like us I don't even know what's going on and have to come to 98 00:06:44,160 --> 00:06:46,800 you. Well, that might, but that's the thing that's what an initial 99 00:06:46,800 --> 00:06:49,639 consultation is. That's what a free consultation is. You come in and I 100 00:06:49,639 --> 00:06:53,639 can explain it a little bit better. I you know, I'm not on 101 00:06:54,160 --> 00:06:57,160 a limited you know, five ten minutes. Here, we can sit down 102 00:06:57,240 --> 00:07:00,759 for thirty minutes to an hour and I can explain everything in more detail, 103 00:07:00,000 --> 00:07:04,920 and something that's a little bit may come down to more of a layman's term 104 00:07:05,279 --> 00:07:10,240 good. And we find when you go through the financial planning process with Dylan 105 00:07:10,319 --> 00:07:15,279 and Todd, often that leads to a visit with Jonathan. And like with 106 00:07:15,519 --> 00:07:18,920 Todd and Dylan, the consultation is free. There is no charge to get 107 00:07:18,959 --> 00:07:24,120 a financial plan from Todd and Dylon. We must be crazy. We give 108 00:07:24,160 --> 00:07:30,399 away the financial plan, which leads into the free estate plan and well consultation, 109 00:07:30,439 --> 00:07:33,120 I should say, And then we hope that they do business with us. 110 00:07:33,519 --> 00:07:36,240 Yeah, somehow we're doing pretty well though, I guess we're doing. 111 00:07:36,240 --> 00:07:41,160 It's all about building a relationship, not necessarily just selling something well put well 112 00:07:41,199 --> 00:07:45,600 put, yeah, well put and John and being right here in the office. 113 00:07:45,839 --> 00:07:50,519 There are things that happened throughout the day in our business that have we 114 00:07:50,560 --> 00:07:55,600 bring John in right right there, and there's things that happen in John's business 115 00:07:55,759 --> 00:07:59,759 where he brings us in right there because you're you're physically here in the office. 116 00:07:59,800 --> 00:08:05,920 But that combination of Dylan and Todd and John is a great combination. 117 00:08:05,040 --> 00:08:09,480 I mean, they're they're really and when you get done with that, then 118 00:08:09,519 --> 00:08:11,560 you get Dean and I you know, I mean it was not the like, 119 00:08:11,879 --> 00:08:16,120 righte Dean was not the like. No, it's a team appro I 120 00:08:16,120 --> 00:08:18,879 got a letter the other day too from one of our cliance talking about how 121 00:08:20,439 --> 00:08:24,199 like a team approach that how much they love it, and and they and 122 00:08:24,680 --> 00:08:28,839 the referrals that they've given us have enjoyed it because it's a family atmosphere, 123 00:08:30,079 --> 00:08:33,919 true family atmosphere, they said, with the ability to be a team approached 124 00:08:33,399 --> 00:08:39,159 and not a sterile financial institution. That's so many places off. Someone asked 125 00:08:39,200 --> 00:08:41,000 me the other took the time to write me a letter and thank us. 126 00:08:41,399 --> 00:08:46,039 Someone asked me the other day do we do we really get along? Like 127 00:08:46,120 --> 00:08:48,360 it sounds like we get along. It's not. It sounds like you're all 128 00:08:48,399 --> 00:08:52,240 buddies. You'd really get along that well? Work, Well, let's see, 129 00:08:52,240 --> 00:08:54,480 one is my son, the other I coached you. Yeah, we 130 00:08:54,559 --> 00:08:58,200 never get invited to your house so that that works out. So the answer 131 00:08:58,240 --> 00:09:03,039 is no, we're not friends. We don't get along. We really hate 132 00:09:03,120 --> 00:09:07,360 We do have some fun company outings though we we do get along with the 133 00:09:07,480 --> 00:09:11,519 great work environment. Everybody is part of the team. Nobody's trying to one 134 00:09:11,639 --> 00:09:16,519 up anybody else. And uh, I like it. And John, you've 135 00:09:16,519 --> 00:09:22,879 been a great addition with the But back to the trust. Uh. There 136 00:09:22,919 --> 00:09:28,559 are a lot of moving parts in a trust, sure, and you've trust 137 00:09:28,639 --> 00:09:31,519 is one of those things that I set mine up in eighty three. You 138 00:09:31,720 --> 00:09:35,600 put it up, You get the binder right from the attorney, and you 139 00:09:35,720 --> 00:09:39,039 put the binder in your office and go, Okay, I've done what I 140 00:09:39,120 --> 00:09:41,200 need to do. And then you look at it ten years later and you 141 00:09:41,240 --> 00:09:46,200 go what it was I thinking? You know, and people you put as 142 00:09:46,240 --> 00:09:50,480 successor trustees are dead or you don't talk to them. And somebody that was 143 00:09:50,720 --> 00:09:54,840 put in charge of Janie, your kids or my child, you know, 144 00:09:54,960 --> 00:09:58,120 they're they're not my child's now almost forty. Uh. You know, I 145 00:09:58,159 --> 00:10:03,240 don't need him to be monitoring her assets anymore. All of those things need 146 00:10:03,279 --> 00:10:05,960 to be looked at, along with beneficiaries on retirement accounts, things like that 147 00:10:05,799 --> 00:10:09,480 that we've We've talked about a lot on the show, but I think the 148 00:10:09,559 --> 00:10:15,320 living trust is probably one of those things that's ignored more than almost anything, 149 00:10:15,759 --> 00:10:20,120 right, Yeah, and it's it's great because of the capacity purposes. I 150 00:10:20,159 --> 00:10:24,360 have another client that is actually a listener here that well, we haven't engaged 151 00:10:24,440 --> 00:10:30,679 yet, however, we were considering doing a beneficiary deed. However, he 152 00:10:30,919 --> 00:10:35,720 is looking to give extended family members some assets, and I think the best 153 00:10:35,720 --> 00:10:39,720 way to do it is not through a beneficiary deed but through a trust because 154 00:10:39,759 --> 00:10:45,120 it's a lot easier and it will spot it basically will hold the trustees feet 155 00:10:45,159 --> 00:10:48,679 to the fire. There are so many things you can do when it comes 156 00:10:48,720 --> 00:10:54,080 down to gifting things and people inheriting things. And you have to be so 157 00:10:54,120 --> 00:10:56,960 careful about capital gains. And we've talked about this before. You can't give 158 00:10:58,000 --> 00:11:01,639 your kid your house now when you're ninety years old, because you know you 159 00:11:01,759 --> 00:11:07,240 got this giant capital gain. It's gonna disappear in a relatively short period of 160 00:11:07,279 --> 00:11:13,919 time. No, appreciate any last things you want to say. Uh No, 161 00:11:13,200 --> 00:11:16,960 Happy Sunday everybody, and I'll see you next Sunday. All right, 162 00:11:18,279 --> 00:11:22,799 listen, another great show. Thanks you everybody for coming, listening and being 163 00:11:22,840 --> 00:11:26,039 part of what we do. We appreciate it. This is why we'd like 164 00:11:26,080 --> 00:11:28,000 to give back to you. You need some more help, call us. 165 00:11:28,159 --> 00:11:31,519 You got to stay planning, financial planning, money management, you name it 166 00:11:31,559 --> 00:11:35,960 will help you with it. We'll be back next week. We're your money 167 00:11:35,000 --> 00:11:46,320 matters. Be happy, be healthy, and let's all be profitable. Don't 168 00:11:46,480 --> 00:11:48,960 say it's all a name