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

100:00:07,080 --> 00:00:10,679Welcome back everybody. This is ourlast segment. We do appreciate you listening.200:00:11,000 --> 00:00:13,320Remember, we have to do hiscosts to get together with us,300:00:13,320 --> 00:00:16,320and we'll be glad to sit down. Give me a free financial plan,400:00:16,519 --> 00:00:20,839risk analysis, whatever you need,show you how to mitigate risk. Listen,500:00:21,199 --> 00:00:24,039we know where we're at. Everythinghas a risk and everything has a600:00:24,160 --> 00:00:29,519chance of things happening. So understandthose before you before we invest. All700:00:29,600 --> 00:00:34,359right, we got im stay tourneytoday. Hey Jonathan, Hey, guys800:00:34,359 --> 00:00:37,000doing well good? How are you? I'm pretty good, happy Sunday.900:00:37,200 --> 00:00:41,200Yeah, and beyond the Mike buddytill you can hear you. I'm sorry1000:00:41,280 --> 00:00:43,560if I'm a little low, SoI'll get a little bit closer for you1100:00:43,640 --> 00:00:47,159guys. Guy's you know, Jonathanhouses with us here. He has his1200:00:47,200 --> 00:00:50,880own stay planning for him. He'san attorney, but he also has a1300:00:50,880 --> 00:00:55,479counting background and that it's very veryhelpful in what we do. We all1400:00:55,479 --> 00:00:59,159work together, we all help outeach other, and he's just part of1500:00:59,159 --> 00:01:02,000our team and we're happy to havethem. Well, thank you guys.1600:01:02,280 --> 00:01:06,239Uh. First off, I wantto say if anyone that's listening has a1700:01:06,280 --> 00:01:07,719topic that they want me to talkabout on the air. Feel free to1800:01:07,719 --> 00:01:11,480reach out to me. Dave walkedby my office. What do you got?1900:01:11,519 --> 00:01:15,200What do you have? What doyou have? And I basically go2000:01:15,319 --> 00:01:19,480through real life things that I gothat I hear each week, and I2100:01:19,560 --> 00:01:22,519explain it to you guys, andhopefully, hopefully it processes. But if2200:01:22,519 --> 00:01:26,040you have something going on, justgive me, send me an email and2300:01:26,120 --> 00:01:29,040ask say, hey, can youtalk about this? Maybe, and I2400:01:29,040 --> 00:01:33,439won't give you a direct legal advice, but maybe I'll talk about the situation2500:01:33,560 --> 00:01:38,000and uh and hit the wave topsfrom fifty foot fifty thousand feet. You2600:01:38,040 --> 00:01:40,480know, I got a bit.You've gotten so much better on the radio2700:01:40,519 --> 00:01:44,840too, and much run into family. Yeah. Absolutely. You can email2800:01:44,920 --> 00:01:49,760Dean at Greenberg Financial dot com oror Toddy at Greenberg Financial dot com or2900:01:49,799 --> 00:01:53,920Dylan at Greenberg Financial dot com orcall us. We'll contact whatever. Just3000:01:53,000 --> 00:01:56,799get in touch with us. Youhave any questions for John, get in3100:01:56,879 --> 00:02:00,680touch with us. Yeah, what'sour topic today? Well? What I3200:02:00,760 --> 00:02:05,079do? Your story? What's mystory? So, actually it was one3300:02:05,120 --> 00:02:07,240of one of the listeners. Theymay not be here in listening today,3400:02:07,240 --> 00:02:12,240who knows, but so I won'tsay any names, but they had a3500:02:12,280 --> 00:02:15,599situation where mom's trust mom and dad'strust were prepared back in the nineties,3600:02:15,599 --> 00:02:19,759and Dave, one of the firstthings we spoke about when we first met3700:02:20,000 --> 00:02:23,240was back then everything was a Btrust. Now they have a piece of3800:02:23,280 --> 00:02:28,800property because dad died. And theway an a B trust works is that3900:02:28,919 --> 00:02:32,520after the first bouse passes, theestate splits in two. Half goes into4000:02:32,680 --> 00:02:37,360a survivor's trust, the other halfgoes into an irrevocable trust where the assets4100:02:37,400 --> 00:02:40,360are you know, basically locked in. And these were very popular back in4200:02:40,400 --> 00:02:45,039the nineties. And if you don'treview your trust, you could get caught4300:02:45,080 --> 00:02:50,599into a situation where a client rightnow their vacation home is stuck in this4400:02:50,680 --> 00:02:53,039B trust, okay, and they'retrying to get it out. They can't.4500:02:54,879 --> 00:02:58,680This might have been good planning.You're trying to get it out though,4600:02:59,240 --> 00:03:01,560while basically they want it. Sothere was three beneficiaries, right,4700:03:02,080 --> 00:03:07,719three children. Now the mom,the surviving spouse. She wants to give4800:03:07,759 --> 00:03:10,680the house to the one child andyou know, compensate the other children with4900:03:10,759 --> 00:03:15,520cash, but they can't do thataccording to the terms of the trust because5000:03:15,560 --> 00:03:17,560things were locked in. So it'salways good to review your trust. Don't5100:03:17,599 --> 00:03:21,960sit on it for thirty years becausewe could be in this situation. So5200:03:21,960 --> 00:03:23,800how do you go about it?Are you able to get it out or5300:03:23,800 --> 00:03:25,159is it locked in there forever?Well, I mean, it all depends.5400:03:25,960 --> 00:03:32,120There are some strategies that but they'reexpensive. You know, if we5500:03:32,199 --> 00:03:38,120have an irrevocable trust, we possiblycan do a non judicial family settlement agreement,5600:03:38,280 --> 00:03:40,639but you know that gets more attorneysinvolved, and that could get very5700:03:40,639 --> 00:03:46,759expensive. There's some decanting things thatyou can do here in Arizona that's allowed5800:03:46,120 --> 00:03:50,960under certain circumstances, and you know, the rules change, but you might5900:03:51,000 --> 00:03:53,879not be able to pull an assetout with a decanting feature. The big6000:03:53,960 --> 00:03:58,560problem is getting the asset out andgetting it to where you want it to6100:03:58,599 --> 00:04:03,719be without tax, right without capitalgains tax exactly because this uh, I6200:04:03,759 --> 00:04:08,000think that I know the people you'retalking about. The home may have been6300:04:08,080 --> 00:04:12,280purchased for less than one hundred grand. Well, and even then, even6400:04:12,439 --> 00:04:15,240if you do want it to gointo the B trust, there's ways ways6500:04:15,279 --> 00:04:20,120that so back that I'm assuming theway the B trust was set up where6600:04:20,199 --> 00:04:26,319after the second spouse passes, there'sno second step up in basis you could6700:04:26,360 --> 00:04:32,519review that and really and possibly rewardthat trust if you catch it in time,6800:04:32,639 --> 00:04:38,160where after the second spouse passes,there'll be another step up in basis,6900:04:38,160 --> 00:04:42,240so the kids will get maximum taxbenefit. But it's unusual, isn't7000:04:42,279 --> 00:04:45,839it. Normally you get a stepup in basis when the first spouse dies7100:04:46,319 --> 00:04:49,399and then when the second spouse.Now it's not splits into two trusts again7200:04:49,439 --> 00:04:53,800back in the day. I don'tsee that so much anymore. But uh,7300:04:54,199 --> 00:04:57,720there is no step up in basisfor the irrevocable trust. But it7400:04:57,800 --> 00:05:01,600got splipped acause the uh, youramount you got taxed on in your state7500:05:01,759 --> 00:05:04,319was much less. Correct. That'sfine, it was six hundred thousand.7600:05:04,439 --> 00:05:09,600That's it now now knocking, Ihave an A B trust. I probably7700:05:09,600 --> 00:05:12,480need you to take a look atit. Yeah, I know. Our7800:05:12,480 --> 00:05:15,720mind was formed at the same time, being back in the eighties because seconder7900:05:15,839 --> 00:05:19,000thousand was the maximum of state taxexemption, and by doing a living trust8000:05:19,040 --> 00:05:21,800you could bring that to one pointtwo million, one US twelve and a8100:05:21,839 --> 00:05:26,199half millions. And back then wesaid one point two million would be so8200:05:26,240 --> 00:05:29,519happy to be there, yes,and and well, what's new is that?8300:05:29,560 --> 00:05:33,639Back in Durney Obama administration. Theyset up the portability and portability basically8400:05:33,720 --> 00:05:39,600allows you to use that exemption withouthaving to create a second trust. Before8500:05:40,079 --> 00:05:44,680you could only do it when yousplit the estate. So portability election is8600:05:45,040 --> 00:05:46,560you know, right now, wehave twelve point nine million dollars an exemption8700:05:46,680 --> 00:05:50,920per person. But if you don'telect portability, you lose it or back8800:05:50,959 --> 00:05:59,160then if whatever that amount was portabilityportability. Okay, So with an exemption,8900:05:59,439 --> 00:06:01,360every person gets twelve point nine milliondollars, all right, and when9000:06:01,360 --> 00:06:06,439the first when somebody passes away,when the first bouse passes, uh,9100:06:06,600 --> 00:06:13,759that twelve point nine is lost unlessyou elect portability on your seven h six9200:06:15,319 --> 00:06:23,240and by doing that can utilize sevensix. Excuse me. Okay, the9300:06:23,680 --> 00:06:30,000seven H six is the deceased taxreturns, so the estate tax returns I9400:06:30,120 --> 00:06:31,920R S Form seven h six.Excuse me. Sometimes I feel like I'm9500:06:31,920 --> 00:06:35,000talking to my colleagues when I forgetthat, you know, I'm talking to9600:06:35,000 --> 00:06:40,839people who it's the problem. Youguys have written all these laws, so9700:06:41,079 --> 00:06:44,120guys like us I don't even knowwhat's going on and have to come to9800:06:44,160 --> 00:06:46,800you. Well, that might,but that's the thing that's what an initial9900:06:46,800 --> 00:06:49,639consultation is. That's what a freeconsultation is. You come in and I10000:06:49,639 --> 00:06:53,639can explain it a little bit better. I you know, I'm not on10100:06:54,160 --> 00:06:57,160a limited you know, five tenminutes. Here, we can sit down10200:06:57,240 --> 00:07:00,759for thirty minutes to an hour andI can explain everything in more detail,10300:07:00,000 --> 00:07:04,920and something that's a little bit maycome down to more of a layman's term10400:07:05,279 --> 00:07:10,240good. And we find when yougo through the financial planning process with Dylan10500:07:10,319 --> 00:07:15,279and Todd, often that leads toa visit with Jonathan. And like with10600:07:15,519 --> 00:07:18,920Todd and Dylan, the consultation isfree. There is no charge to get10700:07:18,959 --> 00:07:24,120a financial plan from Todd and Dylon. We must be crazy. We give10800:07:24,160 --> 00:07:30,399away the financial plan, which leadsinto the free estate plan and well consultation,10900:07:30,439 --> 00:07:33,120I should say, And then wehope that they do business with us.11000:07:33,519 --> 00:07:36,240Yeah, somehow we're doing pretty wellthough, I guess we're doing.11100:07:36,240 --> 00:07:41,160It's all about building a relationship,not necessarily just selling something well put well11200:07:41,199 --> 00:07:45,600put, yeah, well put andJohn and being right here in the office.11300:07:45,839 --> 00:07:50,519There are things that happened throughout theday in our business that have we11400:07:50,560 --> 00:07:55,600bring John in right right there,and there's things that happen in John's business11500:07:55,759 --> 00:07:59,759where he brings us in right therebecause you're you're physically here in the office.11600:07:59,800 --> 00:08:05,920But that combination of Dylan and Toddand John is a great combination.11700:08:05,040 --> 00:08:09,480I mean, they're they're really andwhen you get done with that, then11800:08:09,519 --> 00:08:11,560you get Dean and I you know, I mean it was not the like,11900:08:11,879 --> 00:08:16,120righte Dean was not the like.No, it's a team appro I12000:08:16,120 --> 00:08:18,879got a letter the other day toofrom one of our cliance talking about how12100:08:20,439 --> 00:08:24,199like a team approach that how muchthey love it, and and they and12200:08:24,680 --> 00:08:28,839the referrals that they've given us haveenjoyed it because it's a family atmosphere,12300:08:30,079 --> 00:08:33,919true family atmosphere, they said,with the ability to be a team approached12400:08:33,399 --> 00:08:39,159and not a sterile financial institution.That's so many places off. Someone asked12500:08:39,200 --> 00:08:41,000me the other took the time towrite me a letter and thank us.12600:08:41,399 --> 00:08:46,039Someone asked me the other day dowe do we really get along? Like12700:08:46,120 --> 00:08:48,360it sounds like we get along.It's not. It sounds like you're all12800:08:48,399 --> 00:08:52,240buddies. You'd really get along thatwell? Work, Well, let's see,12900:08:52,240 --> 00:08:54,480one is my son, the otherI coached you. Yeah, we13000:08:54,559 --> 00:08:58,200never get invited to your house sothat that works out. So the answer13100:08:58,240 --> 00:09:03,039is no, we're not friends.We don't get along. We really hate13200:09:03,120 --> 00:09:07,360We do have some fun company outingsthough we we do get along with the13300:09:07,480 --> 00:09:11,519great work environment. Everybody is partof the team. Nobody's trying to one13400:09:11,639 --> 00:09:16,519up anybody else. And uh,I like it. And John, you've13500:09:16,519 --> 00:09:22,879been a great addition with the Butback to the trust. Uh. There13600:09:22,919 --> 00:09:28,559are a lot of moving parts ina trust, sure, and you've trust13700:09:28,639 --> 00:09:31,519is one of those things that Iset mine up in eighty three. You13800:09:31,720 --> 00:09:35,600put it up, You get thebinder right from the attorney, and you13900:09:35,720 --> 00:09:39,039put the binder in your office andgo, Okay, I've done what I14000:09:39,120 --> 00:09:41,200need to do. And then youlook at it ten years later and you14100:09:41,240 --> 00:09:46,200go what it was I thinking?You know, and people you put as14200:09:46,240 --> 00:09:50,480successor trustees are dead or you don'ttalk to them. And somebody that was14300:09:50,720 --> 00:09:54,840put in charge of Janie, yourkids or my child, you know,14400:09:54,960 --> 00:09:58,120they're they're not my child's now almostforty. Uh. You know, I14500:09:58,159 --> 00:10:03,240don't need him to be monitoring herassets anymore. All of those things need14600:10:03,279 --> 00:10:05,960to be looked at, along withbeneficiaries on retirement accounts, things like that14700:10:05,799 --> 00:10:09,480that we've We've talked about a loton the show, but I think the14800:10:09,559 --> 00:10:15,320living trust is probably one of thosethings that's ignored more than almost anything,14900:10:15,759 --> 00:10:20,120right, Yeah, and it's it'sgreat because of the capacity purposes. I15000:10:20,159 --> 00:10:24,360have another client that is actually alistener here that well, we haven't engaged15100:10:24,440 --> 00:10:30,679yet, however, we were consideringdoing a beneficiary deed. However, he15200:10:30,919 --> 00:10:35,720is looking to give extended family memberssome assets, and I think the best15300:10:35,720 --> 00:10:39,720way to do it is not througha beneficiary deed but through a trust because15400:10:39,759 --> 00:10:45,120it's a lot easier and it willspot it basically will hold the trustees feet15500:10:45,159 --> 00:10:48,679to the fire. There are somany things you can do when it comes15600:10:48,720 --> 00:10:54,080down to gifting things and people inheritingthings. And you have to be so15700:10:54,120 --> 00:10:56,960careful about capital gains. And we'vetalked about this before. You can't give15800:10:58,000 --> 00:11:01,639your kid your house now when you'reninety years old, because you know you15900:11:01,759 --> 00:11:07,240got this giant capital gain. It'sgonna disappear in a relatively short period of16000:11:07,279 --> 00:11:13,919time. No, appreciate any lastthings you want to say. Uh No,16100:11:13,200 --> 00:11:16,960Happy Sunday everybody, and I'll seeyou next Sunday. All right,16200:11:18,279 --> 00:11:22,799listen, another great show. Thanksyou everybody for coming, listening and being16300:11:22,840 --> 00:11:26,039part of what we do. Weappreciate it. This is why we'd like16400:11:26,080 --> 00:11:28,000to give back to you. Youneed some more help, call us.16500:11:28,159 --> 00:11:31,519You got to stay planning, financialplanning, money management, you name it16600:11:31,559 --> 00:11:35,960will help you with it. We'llbe back next week. We're your money16700:11:35,000 --> 00:11:46,320matters. Be happy, be healthy, and let's all be profitable. Don't16800:11:46,480 --> 00:11:48,960say it's all a name