Estate Planning Webinar

Transcript

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:00 – 00:02

This conference will now be recorded.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:03 – 00:16

And the reason that’s important is just so you know that if you do have any questions that you remain to your particular situation, know that this is being recorded, and it’s probably more appropriate, if it’s sensitive to maybe talk to us offline.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:16 – 00:28

So, I will ask that we, for this type of format, we keep questions to the end, so we will have probably ample time, at least 15 minutes or so, to answer any questions you have.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:28 – 00:40

You can certainly do that by Unmuting yourself, or by putting that, the chat box, if you prefer, whichever works, Then we’ll be happy to answer any questions we have.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:40 – 00:46

So, before we get started, I need to give you the disclosure.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:46 – 00:48

I’ve already introduced you to Frank.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:48 – 00:49

Here’s our lovely team.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:49 – 00:51

That’s maybe you gotta, so maybe you haven’t.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:52 – 00:58

Frank is a as another certified financial planner with a lot of experience behind him, so he’s going to be our main speaker.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

00:59 – 01:02

But I’ll be here as well to answer any questions and to chime in.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02 – 01:05

Also be the timekeeper, so we don’t go too long tonight.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06 – 01:09

Our disclosure is, obviously, we’re not attorneys.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09 – 01:10

We’re not accountants.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:10 – 01:17

So, anything that we discuss tonight is really not designed to be tax, legal, or accounting advice.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:17 – 01:20

So we always have to make sure that you’re aware of that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:20 – 01:31

It’s always ironic because everything that we do is financial planner kinda touches those areas, but we have to give you that caveat, and we’ll defer you to your attorney or accountant, depending on the question.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:32 – 01:35

So, without further ado, I think we’ll get started.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:36 – 01:40

Let me just check the chatbox, everybody can hear me OK?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:42 – 01:44

Tom, yes, we’re recording.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:44 – 01:44

I think we’re good.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:45 – 01:49

So, I think from there, we’ll get started, and I will turn this over to Frank.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:50 – 01:51

Ok, thank you, Todd.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:53 – 02:00

People who are determined state planning and a certain element of mystery to it or or confusion.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:01 – 02:09

For others, The fact that it entails considering your own demise can be a little bit of a challenge.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:09 – 02:15

Sloppy, there tends to be a but real emphasis on procrastination when it comes to estate planning.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:15 – 02:22

But hopefully today, we’ll point out some of the elements of it, and it will the greater understanding.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:22 – 02:28

I think maybe everyone will feel a little bit better about the idea of, of planning it, if anything.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:29 – 02:35

Those that, that live on passion for our lives will appreciate it considerably.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:35 – 02:37

If they don’t have messages to clean up.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:37 – 02:47

That’s probably a simple way to, to Kind of emphasize why, you know, if you really, really love your ears, do some estate planning out.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:47 – 02:51

Your slide, as you can see says the State, basically is everything you know.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:51 – 02:58

It’s it’s so the rights titles and interests that a person has a property, So that could include real estate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

02:58 – 03:00

That could include financial assets.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:01 – 03:02

It can include digital assets.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:02 – 03:06

As you knows, technology becomes a greater part of our life.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:06 – 03:09

The value of digital assets needs to be considered as well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:09 – 03:18

And estate planning is basically just the process of planning for your accumulation process, your conservation and distribution of the estate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:18 – 03:20

It’s 6, 6, 2.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:21 – 03:31

Accomplish both types and non tax objectives are A lot of people think that state planning is only for the wealthy, and it really isn’t, because there’s so much involve that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:32 – 03:37

As I said, your ears will appreciate a tremendously if it’s done in advance.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:38 – 03:39

It’s also known as wealth planning.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:39 – 03:46

And, again, the proper planning keeps things together, and the places where money gets …

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:46 – 03:48

From the official will are necessary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:48 – 03:51

Court costs, and legal fees, it could be taxes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

03:53 – 04:06

Again, part of the planning element is is to minimize the effect or control the effect of those taxes, but as as more than anything else, if it’s making sure the thing is in, order what someone else has to handle your affairs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:15 – 04:22

Ok, this is a common common retort about the state planning People feel it’s only for the wealthy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:23 – 04:27

A lot of young people will make the comment, well, I’m not going to worry about that though.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:27 – 04:28

I’m older.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:29 – 04:38

Well, as hopefully we’ll point out some reasons why state planning for even people in their in their twenties can make a lot of sense.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:38 – 04:47

And so, we’re gonna, again, emphasize that it’s not just wealth, tax, planning, but it’s also preparing for other eventualities.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:48 – 04:48

Yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:48 – 04:58

We’re just gonna say right here that I know there are some younger folks on the call, for those of you already have your estate planning, kind of accomplish unfinished, think about your children and grandchildren.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

04:58 – 05:04

So, that’s part of why we’re doing this, to show that we’re offering help for your entire family.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:04 – 05:15

So, you might be OK, but now, if you are passing assets and property on to your children, they may not be OK, and that in turn is going to go against what you wish.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:16 – 05:17

I just want to bring that up.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:18 – 05:26

This slide illustrates there are several goals and several objectives you’d like to keep more of your hard earned money.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:26 – 05:32

As we said, there are places that money will will be siphoned off.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:32 – 05:38

Some of it is unavoidable but in many cases, proper planning can circumvent the drain.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:38 – 05:45

So a greater percentage of your hard earned money goes to those you want to go to protecting your family.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:46 – 05:48

As Todd mentioned, the younger people oftentimes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:49 – 05:52

I think the state plan is only for the elderly in the wealthy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

05:52 – 06:06

Well, one of the things you do with the will is you name guardian for your miner children and in lieu of not doing that, the state decides those type of situations.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:06 – 06:24

So, a very important element even for young families, is the the the possibility that the, you know, the the pouch could be gone and it’s just a decision or whose who’s going to take care of the minor children and I think most of us will want a dictator ourselves.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:26 – 06:28

It also helps you control your assets.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:28 – 06:37

We’ll talk a little about trust later, which can be very powerful tools to control things, and also especially being a good steward of your own property.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:37 – 06:43

Either real estate or financial and most importantly, for you and your family.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:44 – 06:50

There is a certain element of peace of mind knowing that preparations have been made, as opposed to the leaving things up to chance.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:53 – 06:58

We’re, our goal with, with all of our clients, is that none of you fall into this group.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

06:59 – 07:08

Unfortunately, about 70% of them, ’cause I’ve seen this number of areas in the sixties and seventies, A relatively high percentage of Americans will procrastinate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:08 – 07:12

Again, it is psychological, it’s difficult to plan for your own demise.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:12 – 07:17

But I think most of us would agree that it’s probably the responsible thing to do.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:17 – 07:21

And there’s also a tendency to just put it off because it, it takes time.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:21 – 07:25

It takes some effort, but in those cases, it can be related.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:26 – 07:40

And now, if the bottom line says, if you don’t have a will, the state has one for you, and most of us would not always want of, you know, trust the government to do what we think might be our best interest.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:40 – 07:49

So, let’s look at some of the planning options as they relate to keeping your family’s wealth in your family, and in the, in the in the ways that it’s most proficient.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:49 – 07:59

And, again, I can’t emphasize enough that it’s much more than just taxes itself of the probate process or trying to avoid it, among other things.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

07:59 – 08:04

So, I think trying to think very broadly, when you think about about estate planning.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:05 – 08:10

Yeah, I was just going to add that, under current law, most people aren’t going to have an estate tax issue at all.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:10 – 08:20

So a lot of what we’re talking about is really about protecting your family and really, the disposition of your assets, really, than it is about taxation.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:20 – 08:27

That may change in the near future, but for now, taxation is really minor, for most people, OK?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:27 – 08:49

Yeah, in the sense of moving to process the passing of your wish that your property to the next generation or the generation after that, if it’s grandchildren, there are some events that take place in that process, and in many cases, you want to try to necessarily always avoid but avoid or minimize.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:49 – 08:51

One of those is the probate process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:51 – 08:58

We will talk in more detail about probate and, uh, know, you’ll hear in some cases horror stories about probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

08:59 – 09:01

Todd and I read a lot of financial literature.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:02 – 09:15

It’s kind of interesting to see how screwed up things get for people, like print soar, Michael Jackson, or other famous famous athletes or public figures because they didn’t do a very good job or didn’t do any estate planning.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:17 – 09:22

But, but probate is, is something that varies by state.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:22 – 09:27

But it’s something that just about across the board, you want to try to minimize the involvement.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:28 – 09:33

One of the drawbacks of a probate process is just, it’s a public process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:33 – 09:34

Your state is open to the public.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:34 – 09:40

So, if you value your privacy, any degree, you want to try to minimize the probate estate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:40 – 09:41

That’s evolved.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:42 – 09:47

The next two bullet points are kinda go hand in hand living probate and conservatorship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:48 – 09:56

That basically is the case where you could be becoming incapacitated or declared incompetent.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

09:56 – 10:19

And if we’re in lieu of doing the proper planning for that potential event, the, the, the, the state, and the, and the courts, will decide for you, and it’s more of an issue for a single individual, But, again, sometimes, you know, it’s possible that people do to become, unable to take care of the rural affairs Simultaneously.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:20 – 10:22

So, that’s, that’s an important issue.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:22 – 10:25

And again, this gets back to people thinking that, well, I don’t have to worry about that poem.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:26 – 10:27

The alarm older?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:27 – 10:32

Well, if you ever have a chance as Google Karen, Quinlan is the name.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:33 – 10:48

She was a 21 year old woman in New Jersey who basically got mixed up with, with alcohol and valium and wound up in a coma for 15 years and had no state documents like this.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

10:48 – 11:00

And it was a legal battle between her parents and the state and the medical profession for over 15 years, and enormous sums of money spent and then legal fees.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:00 – 11:04

And, again, with proper planning, the situation could be mitigated.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:05 – 11:16

So again, even if you’re in your twenties, planning for your incapacitation makes sense, we talk about having no will rely totally on a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:17 – 11:23

We’re, again, hoping that no one in our listening group or our client base will have no planning whatsoever.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:24 – 11:26

Right, Totally on a will have some shortcomings.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:26 – 11:28

We’ll talk about that a little later.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:28 – 11:37

And there are many low cost ways, and some ways the to cost the certificate, such to avoid having to rely totally on a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:37 – 11:40

So we try to use all the tools that are available to us.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:40 – 11:43

Likewise rolling out of joint tenancy arrangement.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:44 – 11:53

Typically, it’s always been a wife, or go doesn’t have to be, That can be an estate planning tool, but it may have some shortcomings that you need the Apostle to be aware of.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

11:53 – 12:01

And then, lastly, as I mentioned earlier, for young families, not appointed a guardian for minor or disabled children could certainly be an issue.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:02 – 12:04

And now, again, we don’t want the state to decide that for us.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:05 – 12:14

So when it comes to transferring assets, say, an abscess at death that it’s going to take place in 1 of 2 ways through a term.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:14 – 12:18

It’s called the will substitute or through the process of probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:18 – 12:19

So let’s talk.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:19 – 12:32

First of all, I will substitute, because if we can utilize, will substitute it so much, it’s generally a much lower cost and more efficient way to transfer assets to our, to our errors.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:36 – 12:38

Ok, so just what is what will substitute?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:38 – 12:47

It might be a term, maybe not everyone’s familiar with, basically, it’s a form of desk time, property transfer, that’s meant to accomplish, the same tasks was a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:47 – 12:50

So, it basically functions the same way as a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:50 – 12:53

But it doesn’t have to go through a probate process like the will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:53 – 12:56

So, the administrative element of it is much, much less.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

12:56 – 13:00

In many cases, the cost is non-existent, or a relatively small.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:00 – 13:07

So it accomplishes the same thing as What will what it does it more cost effectively and more simply from an administrative standpoint?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:09 – 13:15

So here’s here’s a list of some examples of will substitutes the death benefit of a life insurance policy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:16 – 13:17

Do you?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:19 – 13:24

Personally going to always have a named beneficiary on a life insurance policy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:24 – 13:26

It can sometimes be a good a good plan.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:26 – 13:34

Also contingent beneficiaries if, for some reason, that person is no longer no longer here, but basically with a life insurance policy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:35 – 13:41

The death certificates presented to the life insurer and they named beneficiaries identification is, is.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:43 – 13:47

Basically qualified and the money is basically paid out.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:47 – 13:53

No Court proceeding whatsoever, with IRAs, Individual Retirement Accounts or Arrangements, technically.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

13:54 – 14:04

Traditional IRAs and Roth IRAs, both pass through through the Named Beneficiary and I just kind of a point would like to make it more of our emphasis in.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:04 – 14:12

This quarter, a lot of our clients will have a new beneficiaries of the primary but they don’t take the time to to add a contingent beneficiaries.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:13 – 14:22

And, you know, again, a lot of people, you know, husbands or wives travel together, lo and behold, something bad happens to both of them.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:22 – 14:30

If there’s no contingent beneficiary, basically, the contract document itself governs how, how it’s handled.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:30 – 14:39

And, again, just like, you probably don’t want the laws of a test to see to determine how soft the passes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:39 – 14:44

It’s similar with what the contrary, actually, IRAs, out adoption agreement.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:44 – 14:50

And I think Todd and I both were talking last week, we don’t know a single person has ever read the entire adoption agreement.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:50 – 14:56

So, there you want to avoid being that being determined guess I’ll explain what intestines he is.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:56 – 14:58

A test to see is the Situation.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

14:59 – 15:01

You die intestate when you don’t have a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:03 – 15:06

So that’s, that’s what a Tesla Snapshotted defined earlier.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:06 – 15:09

I was just going to chime in real quickly.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:09 – 15:12

Talked about, you know, this quarter being estate planning for us?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:13 – 15:13

No.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:14 – 15:21

Most people’s estate plan is really going to start and end with the proper titling and designations on the account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:21 – 15:34

So that’s why we send letters every year to make sure AA any accounts that we’re managing our behalf are correct, can be any other assets you have elsewhere, or insurance policies, have the right name beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:35 – 15:43

A lot of headaches can be avoided, and you can avoid the probate and the courts altogether if your assets go directly to the beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:43 – 15:46

So I just want to make sure that you understand the importance of it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:46 – 15:53

We joked at this slide where you could probably spend a good half an hour or more on it alone, but that’s the tie.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

15:53 – 16:03

And so have you, if your TD ameritrade accounts have the right beneficiaries, the whole thing with probate and eating and trust and things like that probably are necessary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:03 – 16:08

So, I just wanted to emphasize that, that that point, right?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:08 – 16:21

Again, one of the reasons we try to do a regular basis is as things change in life, people get married, people get divorced, people pass away and you’ll want to make sure that everything is up to date when it comes to the main beneficiaries.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:21 – 16:24

Employer sponsored plans for one case for free before sevens.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:25 – 16:31

Similarly, you have a name beneficiary And again, they will recommend you have a contingent beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:32 – 16:36

Otherwise, the plan document will determine the the disposition.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:36 – 16:38

So you want to make sure it happens the way you want it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:38 – 16:38

To happen.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:38 – 16:40

One, so I’m sorry to interrupt.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:40 – 16:41

The one caveat with that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:41 – 16:44

A lot of folks have some legacy plans kind of lingering.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:45 – 16:54

Generally, people switch jobs, they move on, and they have an old 400 K, 400, 457, so It doesn’t get as much attention.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:54 – 16:56

So, pay close attention to those.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

16:56 – 17:06

There have been many cases out there where somebody was divorced, and their previous spouse was actually the primary beneficiary of their old form K, because they forgot about it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:06 – 17:12

So, um, Think of this as a trigger, and are our letters arrears a trigger to think of all accounts?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:13 – 17:17

Not just the ones that we may see here, for, Yup.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:18 – 17:23

And then, again, a lot of states are, basically, have laws were to try to prevent that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:23 – 17:26

The worst inheritor from happening.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:26 – 17:28

But not all of them, they say, you don’t want to leave up the chance.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:28 – 17:30

That’s really the most important thing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:31 – 17:31

All right?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:31 – 17:32

Joint tenancy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:32 – 17:38

So, basically, Joint tenancies mean there’s more than one person owning the account and G J T W RLS.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:38 – 17:41

Some of you are familiar with as joint tenants with right of survivorship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:42 – 17:50

That’s going to avoid probate because let’s say you have two people that own only account for each own, the account entirely.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:50 – 17:51

The first person passes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:52 – 17:55

The second person inherits it by survivorship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

17:55 – 18:17

And, so, that’s, that’s a way to economically pass, pass the assets to the inherent, or a lot of people who promote trust, who will say, Well, all a joint tenancy does, this postpone the probate because after the second person of the property becomes a whole wholly owned by the second person, that person has to make some stipulations.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:17 – 18:20

If they don’t, that, that that asset will wind up in probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:20 – 18:27

So, that’s one potential drawback if, if the second person own, it doesn’t act on it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:27 – 18:38

There also also are some legal, potentially, situations with joint tenancies Tenancy by the entirety is not allowed in every State.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:38 – 18:40

Colorado does not allow it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:40 – 18:42

We have some clients from Florida.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:42 – 18:44

Florida does allow it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:44 – 18:48

Both both types of a cashflow do pass through survivorship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:49 – 18:53

Entirely changed my entire, you have a little bit stronger legal protection.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:54 – 18:57

So it would generate a joint tenancy with right of survivorship account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

18:57 – 19:09

If Party A of the account is sued, Party B could lose their their element, their ownership of That if there’s a judgement whereas that cannot happen with finished by the priority.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:09 – 19:17

So, so, we, we have a client who’s a physician down, who happens to live in Florida, and he and his wife own there, a joint account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:18 – 19:30

Why priority because that protects the the amount, because the even a malpractice suit against this particular physician would not jeopardize the a cap that’s held by the entirety.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:31 – 19:34

Some of you may also be familiar with a term called the Tenants in Common.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:35 – 19:36

Terms are common.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:37 – 19:41

There’s not a will substitute …

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:41 – 19:43

Are oftentimes uneven percentages.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:43 – 19:48

You might have, say, three family members who owe each one third of an account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:48 – 19:50

Well, there’s 48 passes away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:51 – 19:55

Part each A, B, and C do not become the owners by survivorship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:55 – 19:59

The party A’s interest goes through their estate and through the will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

19:59 – 20:00

So.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:00 – 20:05

So tenants in common is not a way to avoid the probate process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:05 – 20:09

I was just going to say real quick, it’s pretty complex area.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:09 – 20:11

We can spend a lot of time on that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:11 – 20:23

I think there are tax ramifications and situations Frank’s talking about, so, check with your accountant or an attorney before you title particular account, and we’ll guide you on that if it’s here.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:24 – 20:29

But we see, I see it pretty commonly like a mother father will automatically.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:29 – 20:32

You will just decided to put their child on their bank account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:33 – 20:35

And that’s not necessarily the best way to do it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:35 – 20:36

So you gotta be careful.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:36 – 20:39

Yeah, kinda kinda, project good cheerleader.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:39 – 20:42

For me here, P.l.d.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:42 – 20:48

Is payable on death designation, for bank account, transfer on death is a similar thing for securities account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:49 – 20:57

Oftentimes, maybe an elderly person might decide to put their, you know, put their child on a count as a joint tenant.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

20:57 – 21:04

Well, what you officially done is given, made a gift to that person, and that can have some tax ramifications.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:05 – 21:08

The one not, I’ll probably have more of a preferable way to do that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:08 – 21:16

If you wanted to have your your adult child, maybe writing, paying bills and run a church where you can get convenience account at the bank.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:16 – 21:17

And then the p.l.d.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:17 – 21:21

And TLD basically are what happens when you pass away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:21 – 21:28

So, you know, depending on what, what your objective is with, with that account, you might consider convenience account.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:28 – 21:34

You might consider the payable death or TLD and on say before you do a joint tenancy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:34 – 21:35

You want to make sure you understand the ramifications.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:36 – 21:41

Real estate is kind of an interesting thing when it comes to the state planning process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

21:42 – 22:00

Normally your financial assets, your personal assets they are probated in the where you live your domicile as a legal term is your domicile is is where you basically call that you’re, it’s where your register to vote is where you register your car.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:00 – 22:00

Things like that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:01 – 22:03

You can live in multiple states but you only have one domiciled.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:04 – 22:18

Real estate is probated in the in the county word sits and we’ll talk a little bit later by using a trusts for for certain purposes but if you have a no multiple properties, you want to consider.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:18 – 22:22

Maybe state planning in that regard.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:23 – 22:28

To avoid which those ancillary probate, because you could wind up with probate going on in multiple states.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:28 – 22:30

So, you have to be careful with that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:30 – 22:33

But beneficiary deeds are permitted in some states.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:33 – 22:44

Basically, for real estate, an individual can, can name a narrower, and it has to be a beneficiary deep filed in the courthouse.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:44 – 22:56

There’s, there’s a cost per file, while the deed, but visually, the courthouse knows that once you pass the pass delay, the title transfers without going through probate to the to the beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:56 – 22:59

It stays on, the beneficiary did.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

22:59 – 23:02

Colorado does allow beneficiary dates.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:02 – 23:04

I think I checked the Florida.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:04 – 23:07

I don’t believe they do this without 20 states that do.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:07 – 23:07

So, let’s again.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:08 – 23:09

It’s depending on the state.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:10 – 23:15

Lastly, trusts are a way to avoid, probate or minimize probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:15 – 23:28

And the reason the trust work is that the trust actually old old property, and when when, when the original, person who usually the grid that you know the ones you trust, you typically see with estate planning.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:28 – 23:34

The original creator of the trust, known as the grant, or the Trust store, is the initial trustee.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:34 – 23:38

And basically, when that person passes away, there’s no change of ownership.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:39 – 23:42

The trust owned the property when the first trustee was alive.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:42 – 23:46

The trust continues to own the property when the second person takes over.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:46 – 23:51

So really, there’s a change, a trustee, and you name a successor trustee in the trust document.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:51 – 23:55

But there’s no need for probate because the property never really changed hands.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

23:57 – 24:00

Talk about the process of probate, basically.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:00 – 24:10

It’s, it’s a court process appropriate, it has, it has hundreds of years of case law and legal history, because it dates back into old English law.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:11 – 24:19

It’s a process of validating, the will of passing ownership of your property to heirs and a clear title.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:20 – 24:24

It protects multiple parties, the executor.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:25 – 24:34

As long as they follow the probate process, they will be relieved from any responsibility once they distribute assets to the years.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:34 – 24:41

So, there’s notification processes and lengths of time before assets can be distributed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:41 – 24:47

As long as the executor follows the process, they’re protected if they were to give property to one of the errors, creditor raises.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:48 – 24:54

Their hand later that says, Wherever you can’t give the title that, because the deceased person, they’ll be money.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

24:55 – 25:01

As long as that the process has been fall as followed, that predator has no standing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:02 – 25:13

Ears are protected because they get clear title, the things and creditors get the opportunity to raise their hand and say, Hey, I have a debt that ought to be by the, by the deceased.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:13 – 25:22

And, again, the term of probate comes from provera as Latin to prove this was what the deceased wanted to do at the approval of deaths and responsibilities.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:22 – 25:26

And, again, you will go through probate if you have a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:26 – 25:30

But there’s like, I say, various states, the probate process can be more or less ours.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:31 – 25:32

How much does it cost?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:33 – 25:39

I just ran a Google Search yesterday and just tried to find some numbers, the final office in Fort Collins, Colorado.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:40 – 25:51

They really stressed that it really, if you’re going to write what were expensive, legals roofs and about 10% of the probate estate, another law firm said between 3,505,000.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:51 – 25:56

Number four is the one I probably would have to myself is, you really can’t tell for sure.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

25:56 – 26:08

You know, how complicated your status, but the one thing that you read from every estate planning attorney, is that they all agree that a lack of planning and unnecessary complexity are what drives up the cost.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:08 – 26:09

So, you’ll want to try to avoid that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:11 – 26:21

We look to Colorado because all the majority of our clients are here and there’s really three levels of probate in Colorado in a very simple estate, if the if the person has no real estate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:22 – 26:25

And they have personal assets of wonder, $64,000.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:26 – 26:29

The devices and the errors are basically the same thing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:29 – 26:30

What’s a technical term?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:31 – 26:41

But the basically the wisest mayors who are in the Will can prepare an affidavit for collection of personal property that’s filed with the Court and there’s really, no, they don’t even open a probate proceeding.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:43 – 26:48

So that’s the case, relatively simple, state, state, with no real estate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:48 – 26:51

In the second case, it’s called an informal probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

26:52 – 27:00

If you have a clear will clearly defined will, that’s, that’s judged valid, there’s nobody contesting the will, and the named executor.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:00 – 27:06

Executor in the will is ready to serve and willing to serve an informal probate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:06 – 27:07

It could be petition.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:08 – 27:10

And the court will have some oversight.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:10 – 27:12

But basically, you don’t have all the hearings.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:12 – 27:16

You don’t have all illegal entanglements, basically.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:16 – 27:18

It’s the Court kind of supervisor.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:18 – 27:26

You still have to follow the the notification to creditors, that sort of thing, Or the passing of the deceased person.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:26 – 27:30

But, it’s, it’s a simpler, relatively less expensive.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:30 – 27:33

And, from what I can understand, is fairly common in the state of Colorado.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:34 – 27:47

And, again, the worst case is the third choice, The cost will be almost unlimited, and, again, if you, there’s no, there’s no, well, again, now, you have to test the situation, so, you know, the court is going to get involved there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

27:48 – 28:07

If there’s a contest of the world from some of the errors and, and wheels are easier to contest that other planning tools, so that if you’ve got potential errors that perhaps may not get along or could contest what, how they’re being treated, that can can drag things out and create a lot of costs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:07 – 28:14

I mentioned prints, His was, his wills contested in, that does dragged out, saying Michael Jackson, say, Hawaii.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:14 – 28:20

So, famous people there will tend to be to be contested.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:21 – 28:29

Complex estate could be multiple properties, could be a lot of individual accounts that don’t have t.l.d.s or other ways the past.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:29 – 28:33

So, again, you want you want to, do you want to try to avoid option three there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:34 – 28:47

I was going to say, we keep talking about Frank keeps mentioning, celebrities, and I think sometimes it’s hard to relate because we think, well, we’re not going to have the estate of Michael Jackson had a really doesn’t apply to us.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:47 – 28:49

But we see this every day.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:49 – 28:54

I mean, I had a client that has probate will, State, took over six years to finally settle.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:55 – 28:56

Not just happened a year ago.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:56 – 28:58

So it can, It can happen to anybody.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

28:59 – 29:00

So that’s part of why we’re talking about this.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:01 – 29:04

And I think you mentioned, I just wanted to clarify.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:04 – 29:06

Colorado is a pretty easy, probate state.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:07 – 29:10

Other states are not so kind and friendly.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:10 – 29:19

But for the most part, probate in Colorado isn’t something you want to try to avoid at all costs like some attorneys may tell you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:19 – 29:21

So just keep that in mind.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:21 – 29:23

Every state is going to be different.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:23 – 29:34

If you have property in multiple states, Frank mentioned mackie complicated but if everything is in Colorado and you’d have everything titled Properly, Probate really shouldn’t be a huge issue.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:36 – 29:42

Ok again kinda just to summarize criminally advantages, it can take time 12 months is the average.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:42 – 29:53

Here, they’re standing, But, of course, you’ve got these 6 and 7 year, A state cases that the pull out average up, when I read from several other charities, they feel about a year, is what it is a good explanation.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:53 – 29:57

Still, a long time, much longer they will substitutes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

29:57 – 30:05

But, not about 6 to 7 years, the amount of give Arizona complexity, a big issue, again, is privacy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:05 – 30:09

Because, again, anyone can find out about your affairs and appropriate file.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:10 – 30:16

And, again, I’m, I mentioned that there, you know, there’s, you know, hundreds of years, legal history.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:17 – 30:21

Again, probate is, it’s it’s much easier to contest the Will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:21 – 30:32

So there are, there’s, they’re trying to protect all the interested parties, and so the court goes out, which way, I think, to hear the objections of potential errors.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:33 – 30:40

Down at the bottom, it talks about a living trust, We’re not here to sell living trust, but, uh, living trusts have a lot of advantages.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:40 – 30:41

We’ll talk about that very shortly.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:43 – 30:47

Just kind of compare probate versus a will substitute.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:48 – 30:55

So when we’re talking about beneficiary designation so people don’t even think about this, but if a beneficiary so it shows up in our office.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

30:55 – 31:02

It says that the account owner has passed, really they just have to indicate and show that they’re the beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:02 – 31:04

Show a death certificate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:05 – 31:07

Then, we essentially transfer the assets.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:07 – 31:14

That’s quite different than something that doesn’t have the right beneficiary designation or no designation, Then it has to go through the probate process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:15 – 31:21

I have people ask me that frequently, what happens per beneficiary, It’s really seamless.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:21 – 31:29

Pretty easy process as compared to no beneficial to our custodian actually performs it, but we facilitate it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:30 – 31:30

Ok.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:30 – 31:35

I think it would behoove us to spend a few minutes talking about trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:35 – 31:36

People hear that term all the time.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:36 – 31:44

And many people don’t really understand what a trust is unless you’re an attorney But or financial planner, but basically, the trust is a legal entity.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:44 – 31:44

It’s no.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:44 – 31:48

It’s really similar to a partnership or a corporation.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:48 – 31:50

It’s a legal entity that’s separate and distinct.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:51 – 31:56

From the individually created, use, the terms are typically grant or trustworthy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

31:57 – 32:02

Basically, someone wants to use, utilize the features and advantages of a trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:03 – 32:11

Legal document is drafted and they trust or transfers the property into the, you know, into the trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:11 – 32:12

So the ownership changes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:13 – 32:17

Trust, you’re controlled by the trustee, who may or may not be the original grant.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:17 – 32:28

Or, uh, the trust can be revocable are irrevocable what I mentioned, living, trust living, trusts that are typically used for estate planning typically are revocable.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:28 – 32:32

So, you can basically change those irrevocable trust in this, get.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:32 – 32:34

It gets into gifting rules again.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:35 – 32:37

Irrevocable trust cannot be changed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:37 – 32:47

And so, when someone put places property into an irrevocable trust, they are giving it away permanently to the trust and beneficiaries of the trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:48 – 32:50

Just like an individual …

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:50 – 32:50

Property.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:51 – 32:53

And I’ll point out a real example of my own case.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:53 – 32:57

I happened house in Wisconsin.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

32:58 – 33:00

I live in Colorado, and I were to pass them on.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:00 – 33:02

What my wife and I own our houses as.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:02 – 33:03

Joint tenants swipe postulate tomorrow.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:04 – 33:11

She becomes the owner and anything that would take place would take place in El Paso County, Colorado.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:12 – 33:16

However, because the property is in Wisconsin.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:17 – 33:24

That you know, because because the real estate has to be probated in the place where it sits, it would be in Barron County, Wisconsin.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:24 – 33:26

Well, I had created a trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:26 – 33:28

I don’t own the cabin in Wisconsin.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:28 – 33:30

My trust those, the cabinet, Wisconsin.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:30 – 33:33

I’m the trustee of it I can act on it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:33 – 33:46

I can sell it I could do whatever wherever a regular owner would do, but technically, I’m not the elder Trust is I’ve got a good friend who’s my successor trustee happened to be a real estate agent, so type in a bank or mortgage banker.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:46 – 33:51

So when the time comes to, if I were to pass, he becomes a successor trustee.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:51 – 33:57

He can handle everything, and my wife just basically asked to sit back and and deal with everything else.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

33:58 – 34:06

Trusts are really good at a standpoint, for standpoint of creating a great degree of flex flexibility.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:07 – 34:16

When I learned earlier slides talked about controlling your assets, you can put stipulations in trusts to do all sorts of things.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:16 – 34:26

For instance, if you have an app that you’d like to inherit property from financial assets, perhaps, but you’re conservative, there may be too young to mature to be able to handle it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:26 – 34:33

You can put stipulations that the trustee is the distributed at the age, attaining that first obtain the age of 35.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:33 – 34:50

You could if you have maybe potential errors that have substance abuse or alcohol abuse problems, you can put stipulations in their stipulating that the trustee is not the distributor, unless they can justify approve the problems.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:50 – 34:53

Will that solve their substance problems?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

34:54 – 35:01

Likewise, you can now incentives property is distributed when the person obtains a college degree.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:01 – 35:13

So there’s there’s a tremendous amount of flexibility with with trust and that’s, you know, the old saying is you can you can control your assets from your grave in a sense by using a trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:13 – 35:17

Um, there’s other things you can do with those, you can, you know.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:18 – 35:20

I mentioned that wheels are a lot easier to contest.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:21 – 35:27

You can put in no contest clause in a Trust Which basically says that if if one of the beneficiaries contests.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:29 – 35:34

The will of the trust document that they lose their inheritance so that they’re usually slops that right away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:34 – 35:40

So again, as I mentioned earlier with the fact that there is no probate because there’s no ownership change.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:40 – 35:49

You name a successful trustee and when the original upgrade or passes away the successor trustee steps in their shoes, and handles it from that point on.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:50 – 35:53

So far, we’ve talked about a lot of advantages the thrust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:53 – 35:55

The last one is the disadvantage.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

35:55 – 36:02

It does add a considerable, can be considerable, but not always a degree of trust, for cost.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:02 – 36:04

And that’s some complexity.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:04 – 36:10

The states have done a lot to try to minimize the necessary costs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:10 – 36:22

You might be familiar with uniform trust, with uniform gift, a minor acts, those are basically pre-packaged trusts for miners that have property because the miner can not own it, and the custodian basically takes care of it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:22 – 36:25

So that’s a form of a more simplified form of trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:25 – 36:29

But when it comes to estate planning, the trust can get rather elaborate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:30 – 36:34

A good living trust does avoid probate again because the property never changes hands.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:35 – 36:49

It does protect your privacy, it is replicable in most of the Living trust that we deal with for or state plan or there are some irrevocable ones typically with life insurance for people who are very wealthy.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

36:50 – 37:00

There are protections in terms of lawsuits, as I mentioned earlier, a joint tenancy, where survivorship, both with one party gets sued, the other one could wind up losing assets as well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:00 – 37:04

Whereas, with the trust, they can shoot individual, but the trust is the one that owns the property.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:04 – 37:14

And so it does give you some protection in that regard, and because of the potential for non contest stability clauses in a trust, they’re much more difficult to challenge that a will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:15 – 37:22

So here’s kind of a quick schematic the points up, some of the advantages versus disadvantages, wasn’t where you’ve got some time involved.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:22 – 37:27

You got the courts involved, depending on how complex the status and the state you live in.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:28 – 37:37

Public to stop the public disclosure, and can create some negative for a family of facts if you don’t have the proper documents executed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:37 – 37:42

That could be court guardians and servers appointed, potentially, fees.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:42 – 37:48

And that could be a good test, versus the trust, which, again, I don’t mention the cost here as a disadvantage.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:48 – 37:51

But, there is no core control, no probate involvement.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

37:51 – 38:02

It moves relatively quickly, and as long as the successor trustee has escaped willing and capable of, that, they follow the rules of the trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:02 – 38:05

Then they have a fiduciary responsibility to do that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:06 – 38:07

Things go pretty smoothly.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:07 – 38:11

So, again, trusts have the advantages, but the downside again is the complexity and cost.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:13 – 38:15

We can attack the carbon rather slow.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:15 – 38:18

It’s a whole presentation on this one.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:18 – 38:24

This one slide, if we wanted to, at least thought, but our, I’m gonna hit some high points, once your tax advice.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:26 – 38:27

So, let’s fix that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:27 – 38:33

So, thanks to think about capital gains tax and come into play with, with the states and gifting.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:34 – 38:47

When you think about passing substances next generation, you can give it to them while you’re alive or you can pass it to them through after your death through, through probate or through wool substitutes, with capital gains.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

38:48 – 39:05

If, if, if you were to purchase an asset, say, for $10000, and now it’s worth $50,000 if you give, gave that asset to a child or grandchild solder whenever somebody else, they would get your same cost basis and your same holding period.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:06 – 39:11

So you would pass the tax liability onto that person and it would be no way to avoid it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:11 – 39:18

If they had a heritage, however, under current law, the basis would step up to the data depth value.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:18 – 39:27

So that the difference between 10000 hours and $50,000 would disappear, because they could sell it the day after you passed, and their cost basis.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:28 – 39:40

The 50,000, which was the date, the date of death value, Uh, President Biden has talked about lots of things and proposals for increasing the federal revenues you just talked about doing away with the stepped up basis.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:40 – 39:42

Um, we’ll see what happens there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:42 – 39:43

We don’t we really don’t know.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:44 – 39:52

Federal state tax, as Todd mentioned earlier, right now, only about 1% of states have an issue with that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

39:53 – 40:14

Right now, the, what’s called Unified Credit allows 11 million, what are the nine million, $800,000 to pass, without any involvement with the state tax to, spouses could double That, basically, and even the second spouse can now use the unused portion of the first spouses.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

40:15 – 40:35

Um, beautified credit, however, that, the current setup an 11.8 went into effect in 20 17 and is was, if there’s no legislative changes, whatsoever that will expire in 20 25 and it’s going to revert back to the five million.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

40:35 – 40:41

So you know, it’s, there’s, there’s changes in the bill if nothing is done legislatively.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

40:42 – 40:44

There’s also been talk about changing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

40:45 – 40:53

Luckily, the legislative changes will state that, the state taxes political football, and so it’s it’s always being bad around in Washington.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

40:53 – 40:59

So it’s kind of thing you’ll want to pay attention to, because at some point, it may affect the states are much less.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:01 – 41:04

So that’s the estate tax and the gift tax cut to connected together.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:04 – 41:12

We’ll talk about that second, but that’s a tax on transferring the assets to the next generation.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:12 – 41:15

Inheritance tax is a tax that’s assessed by some states.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:16 – 41:21

Colorado does not have one, but many states, through New Jersey, Illinois, Marilynne, Connecticut.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:23 – 41:31

Some states have fairly steep ones that’s assessed on the inherit tours, and that they basically just taxes the right to inherit property.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:31 – 41:37

So again, planning for that, can have some, some, some beneficial, tax savings.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:38 – 41:40

Gift tax, again, is used.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:41 – 41:43

Terms will beautified, it’s unified with your state tax.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:44 – 41:50

And the reason they’ve done this is the thing to think about a wealthy person on their deathbed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

41:51 – 42:00

The thinking was, Jay will just give everything away three days before we die, and now all of a sudden, the state tax was going away because I died with no assets.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:02 – 42:04

Wow, Go to school smarter than that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:05 – 42:09

And so what they’ve created is a, is a set of rules for giving.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:09 – 42:12

Giving things away, time periods.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:13 – 42:14

In some cases, there’s look back periods.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:14 – 42:17

When you give something away, what is terms of the gifting rules?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:17 – 42:35

Any individual is allowed to gift $15,000 to any other individual, but in any number of individuals, so 1 1 person to give $15,000 every year, with no estate tax, or gift tax ramifications to an unlimited number of people.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:36 – 42:41

If they’re married, they can accept what’s known as gifts splitting and them, and if you give $30,000 away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:42 – 42:47

However, if you exceed those limits, that’s where a gift tax comes into play.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:47 – 42:48

And the typically wouldn’t call it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:48 – 42:50

You’d have to file a gift tax return.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

42:50 – 43:01

It may not cost you any money at that time, But basically, what that does, is it uses up some of the unified credit that applies on the estate tax when you actually pass away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:02 – 43:05

So, they’re, they’re kind of linked together if someone’s interested in gifting.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:06 – 43:10

You might call also, we can explain the rules on that, because I can’t get a little complicated.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:11 – 43:14

Last one are the internal respect of a decedent.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:15 – 43:18

What that basically is saying, see, the …

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:18 – 43:28

Does seem, if the person passes, let’s say, say, you were a owner of a business, or a sole proprietor, and you had accounts receivable.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:30 – 43:34

That is income that didn’t have the privilege of receiving.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:35 – 43:40

So that’s going to be taxed as income in respect of the desolate, shaped them with commissions of your salesperson.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:40 – 43:45

Where it comes into play, mostly, for us, is with IRAs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:46 – 43:49

That was, you know, it says most of IRAs are pre-tax.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:50 – 43:52

And the earnings have never been taxed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

43:52 – 44:02

As we’re pulling money out of the IRAs ourselves, the government is is recovering someone’s taxes on that amount because that was income that we postponed, if you will, during lifetime.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

44:03 – 44:16

When unlike a, an asset that’s old and a taxable account, when you pass an IRA to the beneficiary, It is that the taxes do not go away like they do with the capital gains on the current law.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

44:17 – 44:32

So, that could become an issue, especially now, since the Secure Act of 2017, change the treatment of Orient these, if you will, actually get away with all of these for a non special beneficiary.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

44:33 – 44:48

Well, that’s a whole nother topic first situation, but if you, if you’re concerned, if you have a relatively healthy IRA and you’re concerned about not spousal beneficiary, maybe, of detention beneficiary, or if you’re not married, passing it to a child or some other individual.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

44:49 – 44:55

There could be a big tax bill passed along with it, because the rules have changed, or they don’t have to consume that account 10 years.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

44:56 – 45:00

So, that’s something that you might want to discuss with, also, with it, with The CPA.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:02 – 45:02

Yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:02 – 45:03

This is pretty technical.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:03 – 45:05

He said RMD, which is required Minimum Distributions.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:05 – 45:21

If you’re not aware that when you’re 72, uh, know, in the year that you obtain the age 72, you have to start taking money the IRA, your individual retirement account, but also if somebody inherits your individual retirement account, they also have to take required minimum distributions.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:21 – 45:24

Just wanted to clarify for those who don’t know it in R&D.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:26 – 45:35

Ok, let’s talk quickly about well away from the financial topics that we’ll talk about, the, uh, situation of not being mentally competent, OK?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:35 – 45:38

Living probate occurs when you become incapacitated.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:38 – 45:40

You can’t make decisions for yourself.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:41 – 45:45

Once you’ve been declared a competent by a court, anyone could be appointed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:45 – 45:50

And that’s something that I think all of us would want to avoid happening.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

45:51 – 46:04

We, know, once again, it’s, it’s, it’s challenging and difficult to think about becoming a company yourself, but it does happen, and I think we all would want to control who the person who, who can take care of our property, and our health at that point is.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:05 – 46:07

So that’s where the right documents can make a big difference.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:09 – 46:11

Alright, so how do you guard against a living probate?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:12 – 46:23

You make the first, you’ve got to make a conscious decision, let’s take care of this and get the necessary forms executed while you are competent, stablish the powers of attorney and a conservator.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:23 – 46:29

And again, the key is that you are able to decide while you are competent, as opposed to, it’s too late when you’re incompetent.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:31 – 46:35

Alright, so the necessary documents, there’s two powers of attorney.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:35 – 46:38

And one of the financial power of attorney was the medical power of attorney.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:38 – 46:42

The third one is living, will, also known as advanced medical directive.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:43 – 46:46

A couple of key terms, I will return to them.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:48 – 46:53

The power of Attorney, basically, you’re naming someone to become your agent, in fact.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

46:53 – 47:05

And somebody, if you ever had to sell real estate, and you could maybe be transferred for a job to another state, and you have the had to move to the job, and you sold your property at your previous.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:06 – 47:07

A State that you lived in.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:07 – 47:20

And you could, you know, rather than having to come back to the closing, that was going to take place three, or four weeks, or four weeks later, Whatever you may have named the real estate agent with a power of attorney, it was very limited power.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:20 – 47:25

Drury would only allow them to do one thing, which basically represent you at the closing sign, the papers for you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:25 – 47:34

Um, the Powers of Attorney are very common, but many cases there, you’re designating someone else to add for you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:34 – 47:46

When it comes to this type of thing with the state planning, it’s very important that the Power of Attorney be classified as a durable power of attorney and the State plan they furnish it though.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:46 – 47:48

They should know this but never hurts to remind them.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:48 – 47:54

There’s, there needs to be language in the document that names your power and your power of attorney.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

47:54 – 48:12

That when you become an competent, it’s basically the language says this, this power of attorney will then remain in effect, once I’m declared incompetent or something to that effect, because was the traditional or typical power of attorney, it would, it would no longer be effective when you became a competent?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:12 – 48:17

So the term durable guarantees that, where it’s needed, it’ll be effective.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:18 – 48:22

The person or persons you designate could be the same person.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:22 – 48:23

It could be two different people.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:23 – 48:30

You may have a situation where, you know, maybe a family member understands and you communicate your family member.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:30 – 48:35

What’s your, what your wishes are for for medical treatment, if you’re unable to decide.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:35 – 48:37

But that person may have no clue about finances.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:37 – 48:41

So you may assign someone else to be your financial power of attorney.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:41 – 48:43

Yeah, It could be the same person Could be two different people.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:43 – 48:58

It’s worth thinking about the characteristics of the people you’re selecting, but more importantly than anything else, this has to be done while you’re competent, Because once you’re at the point where you’re where you’re, you know, or mentally competent, it’s too late.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

48:58 – 49:12

Quick comment there, we’ve had situations where we’ve had power of attorneys on the account, with TD Ameritrade and they thought that they had the ability to act on the account, but they were not durable power of attorneys.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:12 – 49:17

Therefore, if that particular client was incapacitated, even dies, that power of attorney goes away.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:17 – 49:25

So I’ve had situations where we’ve had to tell our attorneys that we wouldn’t be able to help them under those circumstances.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:25 – 49:26

That’s a good point.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:28 – 49:36

I mentioned the living well, another term, advanced medical directive, basically, With that, you’re expressing your preferences on life sustaining procedures.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:36 – 49:40

So artificial nutrition and hydration.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:40 – 49:45

You know you’re in a column or they keep you alive with the machinery.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:45 – 49:59

And with the artificial food and hydration, various treatments whatnot you can express your wishes in the medical directive that you do not want to be, and you can specify periods of time.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

49:59 – 50:03

You can also donate organs and tissues with that document.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:03 – 50:14

We do want to point out, though, is some states have no physician assisted, you know, death with the death with dignity statutes, that is a totally different document.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:14 – 50:26

So if you’re pre-disposed to want to have your physician, you know, when you’re terminally ill and to assist with with medication to the cause, your life to end, that needs to be executed separately.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:26 – 50:28

So don’t, don’t, don’t believe that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:28 – 50:34

The medical directive a coverage as a separate document that lists your preferences in that regard.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:34 – 50:42

In front, I think he, I think he laughed, but he also, as a medical professional, that had some experience in this area.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:42 – 50:52

He suggested a book, a really good book, as well as a couple of websites I’ll send out to everybody as a resource in that particular area, OK, so kinda summarize.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:52 – 50:55

When it comes to passionate, influenced the loved ones, you can do several ways.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

50:56 – 51:09

We’re hoping that none of our clients for the group, number one, that basically is rely on the state law and it may not be what you want, it’s going to be more expensive and more of a headache for your heirs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:10 – 51:11

You can do it yourself.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:11 – 51:15

I mean, there are websites, no dot com, a legal zoom.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:16 – 51:23

One of the challenges with that is, you gotta realize, they don’t know what state you’re in, and they may be able to customize it to some degree with Search states.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:23 – 51:35

But, as we’ve seen, property law and a probate estate law can get kind of complicated, it can be, you could be inadvertently doing some things that may have some negative ramifications.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:35 – 51:38

So, I’ll, I say this may be a cost effective way to do it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:39 – 51:48

If you’re assuming some risks in that regards, unless you’re to throw yourself, you can work with an attorney, which again, will give you the greatest degree of customization.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:49 – 51:51

Unfortunately, the costs are going to go with it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

51:51 – 52:03

But, you’re, you know, that that person is professionally liable to basically follow your recommendations and desires as alternative may be between number two and number three.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:04 – 52:25

Level five has acquired a service that basically, we’re Again, we’re not the attorneys were not drafting documents, we can act as the facilitator collector of information, and these documents are prepared by attorneys, are reviewed by attorneys just incorporating information that we would provide to them.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:26 – 52:37

So, this could be an alternative slide mentioned earlier, many, many people may already have had there, their state documents that their children have, this could be a relatively low cost and easy way.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:38 – 52:39

We’ll have to take care of that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:39 – 52:44

Yeah, and like what I’ve told people, we’re agnostic to really 2, 3, and four.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:44 – 52:50

We may talk you out of two, but, for the most part, we just want to make sure people have it taken care of.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:50 – 52:58

Then, if you remember in one of the beginning slides, anywhere between 65 and 75% of households haven’t done this.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

52:58 – 53:13

So, if we can help remove the barriers, whether it’s procrastination, cost, or ease of doing it, that’s why we’re having these this presentation and offering kind of an in-between service to help you get it done.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:13 – 53:16

I think a lot of times, having a relationship with an attorney is good.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:16 – 53:17

And it’s important.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:17 – 53:20

You have that, that ongoing relationship.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:21 – 53:30

Other times, the complexity, your state complexity may dictate that you don’t need an attorney and the extra costs associated may not be worth it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:30 – 53:32

So we can help you make that decision as well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:32 – 53:35

Yeah, just to kinda charter with what I just said.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:36 – 53:43

In terms of complexity, I mean, my personal experience, my mother-in-law, she, she had, she didn’t own a house.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:43 – 53:46

She was living with with one of our daughters and a relatively small state.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:48 – 53:56

We’re taking care of her accounts, making sure that they were beneficiary specifications, and t.l.d.s transform death.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

53:56 – 54:03

So, basically, a probate estate state was, was, would, have only been a close and personal use.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:03 – 54:09

But somebody told her, she needed a trust that, What probate and she spent thousands of dollars drafting and whatnot.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:09 – 54:12

And I, even, if there was ever an overkill, I thought that was it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:12 – 54:26

And that’s what we’re, you know, we’re saying, if your situation was as simple as hers, which many of our clients may not be, but if it is, you know, you may not data trust, but the trusts are, as we said earlier, very, very useful, very valuable in the right circumstances.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:30 – 54:31

So, I guess that’s it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:31 – 54:37

The four P’s of Estate Planning, right, really I think you can see these were trying to protect everyone involved.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:37 – 54:40

We’re trying to minimize or avoid as much probe as we can.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:41 – 54:44

If privacy is important, that’s another benefit then.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:44 – 54:45

More than anything else.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:45 – 54:57

The peace of mind and the ease of execution Stepdaughters just recently settled or dad’s state, and she it was a mess for because she didn’t know where things rat.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

54:58 – 55:08

He lived in Illinois, she lives in Colorado, traveling back and forth, was a real headache, working with the, The attorney, even though even the only attorney that, the graph, that is what we did have a Will.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:09 – 55:10

But, he wasn’t much help.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:10 – 55:18

So, again, you can make things a lot easier, just kinda putting a plugin, right now, for the Money Fault.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:18 – 55:27

If you’re familiar, if you’ve got an emotional financial, or personal financial website, you can scan and save documents on there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:27 – 55:31

You give the password to your, your person that you’re going to, you know, basically take care of your affairs.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:33 – 55:40

It’s, it’s great when they can find everything, otherwise, they’re searching for documents that they find things after the fact.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:40 – 55:46

It’s a much easier way to keep everything in one place, so we would encourage you to use it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:46 – 55:47

Yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:47 – 55:54

So, two ways that we’re trying to help people, everyone, every client, should have received a beneficiary package in the mail.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

55:54 – 56:15

That is, A, to make sure that your beneficiary designations on the accounts are correct, B U is to add a trusted contact to all accounts, so that’s a little bit different, that those particular designees do not have access to the account, but if there’s a problem, we can contact them on your behalf, or if we can’t reach you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:15 – 56:21

And then thirdly, it was kind of a checklist of have you taken care of these estate planning documents?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:22 – 56:25

So, if you haven’t return those, please do so.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:25 – 56:30

We didn’t receive them for whatever reason, Give us a call, Tracy will get a new one out to you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:30 – 56:45

Um, but I can tell we talk about procrastination, We, I can’t tell you how many packages we’ve sent out, versus versus how many, we’ve gotten back, and I see somebody smiling as first name starts with a G, our Treasury OR.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:45 – 56:53

So, it’s, aren’t, you know, as your advocate, we’re just trying to facilitate this to avoid the procrastination, showing it as a friendly chat.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

56:55 – 57:03

So, you know, give us a call, this is a lot of information today, it can be a very complex thing, but I also don’t want you to feel overwhelmed by it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:04 – 57:09

And that’s why we’ve offered kinda that in-between service, where we can make it painless.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:09 – 57:17

So if it’s, if it’s daunting to, if it’s, you think it’s too time consuming, you know, we can, we can help facilitate.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:17 – 57:22

But if we think you really need an attorney, we’re going to send you in that direction as well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:22 – 57:27

So we’re almost at the hour, I want to open up this open up for questions.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:27 – 57:33

If anybody has any, go ahead and put it in the chat box or go ahead and unmute yourself.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:36 – 57:40

If you don’t have any questions, I’m going to start calling on you Ginny, now.

laird johnson

57:45 – 57:50

I have a question, can you give me some examples of digital assets?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:51 – 57:52

Sure.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:52 – 57:53

Are you on Facebook?

laird johnson

57:55 – 57:55

Yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

57:56 – 57:59

Nowadays you on asset do download music anywhere.

laird johnson

58:01 – 58:01

Now.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:02 – 58:07

You have no digital assets and any online would be a digital asset.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:07 – 58:07

Essentially.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:09 – 58:12

Business has a website that that’s an Asset visualizer.

laird johnson

58:13 – 58:13

Ok, well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:13 – 58:25

People don’t even think that for those that are maybe a little bit more active on social media or do a lot of online stuff, just passwords, that can be a nightmare for surviving spouse or family members.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:26 – 58:31

Anything that you think you do in the virtual world, you’d want to at least have a list.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:31 – 58:34

So we talked about the personal financial website.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:34 – 58:36

I provide the tree of church all clients.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

58:38 – 59:01

In the vaults you can store passwords and things like you’ve heard me probably talking about this before Frank coined it, the doomsday book that he gives his wife while the personal financial website that we provide is similar except it’s online and secure, um, so we encourage people to anything that you would think that your family member need access to.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:01 – 59:02

You could put in there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:02 – 59:02

Yes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:02 – 59:03

So that would be a digital asset.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:03 – 59:12

But for a lot of people, as music, social media, if you have a business, it would be, like my websites that I have and things like that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:13 – 59:14

Am I doing the work?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:14 – 59:19

That’s it, It’s like how to do whatever you gotta find everything, here’s what you gotta do.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:20 – 59:22

Well, it’s kind of a follow step by step process for her.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:23 – 59:26

Again, it’s all about making it easier.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:27 – 59:32

And I always say if you know your heirs don’t know me, you know, we should be in there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:32 – 59:35

You know, it’s it’s always better if you can make an introduction now.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:36 – 59:45

Just so they know who they are or who I am and have a relationship rather than waiting to that event and they’re scrambling and who do I call, or do I contact that sort of thing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:46 – 59:46

So that’s one way.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:46 – 59:47

So I offer that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:47 – 59:51

You know, if you want to introduce me to anybody, you’re welcome to do so.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

59:53 – 59:54

I’d help guinea.

laird johnson

59:56 – 59:57

Yes, it does.

laird johnson

59:58 – 59:59

Thank you.

Jamie

59:59 – 01:00:00

Sure.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:00:01 – 01:00:02

Anybody else.

Jamie

01:00:02 – 01:00:02

Have any.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:00:02 – 01:00:03

Questions?

Jamie

01:00:04 – 01:00:06

Called out my name, gave me a question.

Jamie

01:00:08 – 01:00:13

When you are talking of trust and stuff, you know?

Jamie

01:00:15 – 01:00:33

Fred came out and said that, you know, I had spent thousands of dollars on a trust and stuff, but just for kind of a ballpark, if you’re looking at, you know, maybe household items, single piece of real estate car, that type of stuff to set up the trust on map-r.

Jamie

01:00:34 – 01:00:37

Ballpark figure we’ll be talking about.

Jamie

01:00:37 – 01:00:42

I mean, would it be thousands of dollars are a couple thousand dollars or what?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:00:42 – 01:00:48

So typically in any type of service that you’re looking at, you’re looking at two general packages.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:00:48 – 01:00:56

One is the will and the power of attorney type package, so it’s a Will package does not include a trust and then the other one includes the same but also the Trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:00:57 – 01:01:08

So it really depends, so for a basic package, on average, for attorneys, I’ve seen no under one thousand dollars at the low end, upwards of 1500.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:08 – 01:01:14

Once you throw the trust on, I’ve seen ever anything from kind of 1500, all the way up to 3 or 4000.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:16 – 01:01:34

It just depends on the State and attorney, the in-between service and we’re talking about that we’re, we’re saying that might help people, those two packages instead are usually around 400 for the first package and around 7 or 800 for the second package.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:34 – 01:01:38

So those are the general ranger’s that I’ve seen.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:39 – 01:01:44

Sometimes there’s some costs above and beyond the trust principles of your terrestrial real estate into the trust.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:45 – 01:01:49

You’re having a deed record and there’s, you know, it’s not the authorities crossed.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:49 – 01:01:53

It’s the, it’s the courthouse, Georgia, for that, the recording process.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:54 – 01:01:56

So, sometimes, there’s some costs that are Yeah, yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:56 – 01:01:57

That’s a good point.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:01:57 – 01:02:00

They had a client I was talking about the different options.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:00 – 01:02:05

And for this particular client, I was saying, you know, an attorney might be better for you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:06 – 01:02:13

However, if we were to shepherd you through this more streamline process, if you will, this is where it will look like and this is what the cost would be.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:13 – 01:02:18

And I told them that that particular platform, it’s $250 for a D.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:18 – 01:02:23

Then he said, well, I have 24 different eats and that would be $6000.

Jamie

01:02:23 – 01:02:24

Wow.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:24 – 01:02:31

And I had to explain to them that whether he does it through an attorney, or it goes anywhere else, that’s going to cost the same essentially.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:31 – 01:02:37

Um our partnership, I offered to cut it in half for them now.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:37 – 01:02:43

So it’s going to be 3000, but still that’s a significant cost that’s a good point that doesn’t really change, and that’s it.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:44 – 01:02:46

Know your municipality.

Jamie

01:02:46 – 01:02:47

Right?

Jamie

01:02:48 – 01:02:49

Ok.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:02:49 – 01:02:49

It.

Jamie

01:02:49 – 01:02:57

Did touched me off the ledge of thinking you know 10 $20,000 to thinking you know three or less?

Jamie

01:02:58 – 01:03:01

I mean that that says, OK, now We can continue to talk.

Jamie

01:03:01 – 01:03:03

But if we were talking you know, 10 to 20.

Jamie

01:03:03 – 01:03:04

I was like procrastinate?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:09 – 01:03:18

And without giving too much information, but knowing your situation, I can see you No, no on the lower end of what I offered.

Jamie

01:03:19 – 01:03:20

Yeah.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:20 – 01:03:29

And They give you found somebody in Florida, You know, If you wanted to trust package, so to speak, You know, you’re probably looking at 23,000, maybe.

Jamie

01:03:32 – 01:03:33

Ok, Thank you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:39 – 01:03:40

Anybody else have any questions?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:44 – 01:03:46

Ok, well, this is going to be recorded.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:46 – 01:03:48

I will send out a recording to everybody.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:48 – 01:03:50

It will be on our YouTube channel as well.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:50 – 01:03:52

That would be a digital asset of mine, Jane.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:53 – 01:03:55

It’s a good example I just sediments.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:03:56 – 01:04:01

So they’ll be coming out probably tomorrow or the next day Look for future events.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:01 – 01:04:07

So if you don’t go to our website very often at level five, financial dot com, we do have an events page.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:07 – 01:04:10

So you’ll see more and more happening there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:10 – 01:04:11

So, we’re already getting to April.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:12 – 01:04:17

We’ll be having our monthly coffee chat coming up as well as our happy hour.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:18 – 01:04:19

That’s so on Tuesdays and Thursdays.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:20 – 01:04:21

Respectively.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:21 – 01:04:29

Looking at my wall calendar here, I believe that it will probably be the six and the eighth of April.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:30 – 01:04:32

But look for e-mail invites on that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:32 – 01:04:36

We’re also, as I mentioned, getting into next quarter, so we’re switching theme.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:36 – 01:04:46

So, for those of you who have been to many of these events, you probably over the estate planning team, understandably, we’re moving into kind of the tax planning theme.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:46 – 01:04:51

So, we know the tax preparation deadline has been extended a month, this year.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:52 – 01:04:55

So you’re still probably some of you are still working through that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:55 – 01:04:58

But we’re encourage everybody again, to get your tax returns to us.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:04:59 – 01:05:02

We’re going to be a second set of eyes on everybody’s tax return.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:03 – 01:05:06

That’s part of our review process that we do every year.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:07 – 01:05:11

And then we’ll probably have another woman at a webinar in this format.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:12 – 01:05:17

Either in April or May on tax planning as a general topic.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:19 – 01:05:22

One more call for questions before we close down.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:23 – 01:05:24

Double-check Laird.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:24 – 01:05:25

Go ahead.

laird johnson

01:05:27 – 01:05:28

Yeah.

laird johnson

01:05:28 – 01:05:32

You just talked about the extension for the taxes.

laird johnson

01:05:32 – 01:05:53

Does that include everybody, Ameen, if we’ve already turned our stuff over to her, nor accountants, do they then wait for the next thing, I I saw an e-mail about it, and to be honest, I didn’t understand everything they were talking about.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:54 – 01:05:55

Yeah, Good question.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:05:55 – 01:06:08

So typically, it’s April 15th, They extended a month, so that simply just gives everybody more time to file everything in terms of your accountant and tax preparer.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:09 – 01:06:11

It’s really going to be their protocol.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:11 – 01:06:18

My, my understanding is, most of them are not going to wait another month, unless they have to extend people beyond that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:18 – 01:06:23

So, if they’re happier stuff, they’re probably gonna get it is done on schedule.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:24 – 01:06:29

But they do have that added flexibility of having another month without having formerly extended somebody.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:30 – 01:06:32

Zach answer.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:06:32 – 01:06:33

Go ahead.

laird johnson

01:06:33 – 01:06:34

Yeah, OK.

laird johnson

01:06:34 – 01:06:35

That was that.

laird johnson

01:06:35 – 01:06:35

Yeah.

laird johnson

01:06:35 – 01:06:37

And that’s the first part of it.

laird johnson

01:06:37 – 01:06:50

Then the second part of it was, they said there might have to be amendments because all of the rules and regulations from the IRS haven’t been totally.

laird johnson

01:06:51 – 01:06:55

I guess, whatever hammered in the stone or whatever.

laird johnson

01:06:55 – 01:07:00

So does that mean even if they filed no before?

laird johnson

01:07:01 – 01:07:03

Would we maybe have to do an amendment?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:04 – 01:07:05

Yes.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:05 – 01:07:10

So remove the Amendment Option away from the deadline extension.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:10 – 01:07:16

They’re kinda two different things or they may be somewhat related because legislate or things can happen within that timeframe.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:17 – 01:07:33

But generally, what they’re saying is, ever since Koven, especially, they launched new and new rules, and new different loan programs, and things, is kinda been on the fly, and a lot of accounting firms, we’re not made aware of this, so, they’ve been playing catch up.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:34 – 01:07:38

No fear, so they’re just making you aware, I’d have to see the e-mail.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:39 – 01:07:50

Maybe I’ve seen if it came from yours, but they’re just making you aware if something changes in the interim, even though they file you, there may be a reason to amend because of that.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:51 – 01:07:54

Just a caveat that everything is so fluid right now.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:07:55 – 01:07:58

An influx, now it’s subject to change.

laird johnson

01:07:59 – 01:07:59

Ok?

laird johnson

01:08:01 – 01:08:05

Yeah, and I kinda meant to follow up with them, but we’ll, yeah, I will.

laird johnson

01:08:05 – 01:08:07

So anyway, thank you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:09 – 01:08:10

You’re welcome there.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:10 – 01:08:11

I’ll just give them a call.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:12 – 01:08:23

Like I said, a lot of them, you know, I work with a lot of accounting firms, know, that they’ve thrown a lot at them, that they’ve never had to deal with before, or continuing.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:23 – 01:08:29

So literally, people, you know, Kevin’s would be up at night, like, oh, wow, they just launch these new rules.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:29 – 01:08:30

I have to learn this before tomorrow.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:32 – 01:08:34

And that’s been typical all through the pandemic.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:38 – 01:08:38

Good question.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:39 – 01:08:42

But it’s every accounting firm to dealing with it differently.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:42 – 01:08:49

Some, some accounting firms automatically extend people if it’s too close to the deadline, because it’s a volume game.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:49 – 01:08:53

You know, they have thousand tax returns to do in the six week period.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:54 – 01:08:58

So, they tend to extend, have cut off dates.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:08:58 – 01:09:03

But, if you have your stuff in and they have another month, I can’t imagine, they’re going to extend new and less.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:04 – 01:09:06

You know, there are some extenuating circumstance.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:07 – 01:09:08

Anyway.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:10 – 01:09:11

Any other questions?

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:12 – 01:09:17

I see somebody is, has their microphone on, but maybe not.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:19 – 01:09:22

Ok, but like I said, the recording will go out.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:22 – 01:09:25

There’ll be posted, if you have questions, certainly.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:25 – 01:09:27

Send us an e-mail or give us a call.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:27 – 01:09:29

I thank you all for your time.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:29 – 01:09:30

Right.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:30 – 01:09:30

Good job.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:30 – 01:09:37

We appreciate it, and, yeah, we’ll see you at coffee talk or happier next time.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:37 – 01:09:38

They’ll be safer.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:38 – 01:09:39

Everybody have a great night.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:39 – 01:09:39

Thank you.

laird johnson

01:09:40 – 01:09:40

Thank you.

Todd Smith, CFP®, ChFC®,CLTC®,CTM®

01:09:42 – 01:09:42

Aye.

laird johnson

01:09:43 – 01:09:43

Hi.

laird johnson

01:09:44 – 01:09:47

So, honey, seats.

Estate Planning Webinar

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