Wealth from Wisdom

A Legacy of Clarity: Understanding Estate Planning for You and Your Family

September 28, 2019
Wealth from Wisdom
A Legacy of Clarity: Understanding Estate Planning for You and Your Family
Chapters
Wealth from Wisdom
A Legacy of Clarity: Understanding Estate Planning for You and Your Family
Sep 28, 2019
Carson Wealth

Nearly everyone has heard of the pop singer Prince. Purple Rain, When Doves Cry, 1999 – these were songs straight from the Pizza Hut jukebox. 

Prince died suddenly in the spring of 2016 – and he didn’t have an estate plan in place. He was relatively young at 57-years-old and had been quite wealthy for a long time. 

Of his $250 million estate, $100 million of it went to estate taxes. 40% of his fortune gone! The rest of the estate was distributed to the siblings he had relationships with, but also distributed to estranged siblings he probably wouldn’t have included. 

On this episode of Wealth from Wisdom, we’re going to talk through estate planning – how to shape your legacy while you’re still living and take care of those you love the most. 



Show Notes Transcript

Nearly everyone has heard of the pop singer Prince. Purple Rain, When Doves Cry, 1999 – these were songs straight from the Pizza Hut jukebox. 

Prince died suddenly in the spring of 2016 – and he didn’t have an estate plan in place. He was relatively young at 57-years-old and had been quite wealthy for a long time. 

Of his $250 million estate, $100 million of it went to estate taxes. 40% of his fortune gone! The rest of the estate was distributed to the siblings he had relationships with, but also distributed to estranged siblings he probably wouldn’t have included. 

On this episode of Wealth from Wisdom, we’re going to talk through estate planning – how to shape your legacy while you’re still living and take care of those you love the most. 



Speaker 1:
0:00
Okay, and here's the legal mumbo jumbo. The opinions voiced in wealth from wisdom with Ron Carson and for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged and may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CW, an LLC, an sec registered investment advisor.
Speaker 2:
0:30
The stock market hit another all time records $10 billion in social security benefits go unclaimed every single year. The federal reserve announced that they will raise interest rates by 250,000 rocketing cost of healthcare and retirement could now run 350,000 you've worked hard and saved for retirement. That's great, but it's what you do with that money that really matters. Welcome to wealth from wisdom with Carson wealth. Carson wealth is a Barron's hall of fame advisor at recognized by Forbes magazine as one of America's top wealth advisors and they're right here in Omaha. This is where you can count on straightforward and objective advice that can help you make the most out of every dollar you've saved for retirement. Welcome to wealth from wisdom with Carson wealth. He nearly
Speaker 3:
1:15
has heard of the pop singer prints purple rain. When doves cry, 1999 these are songs straight from the jukebox. Remember those gym? I remember those songs well. Yeah, and even maybe some older ones, but much older he prints, but he died suddenly in the spring of 2016 amazing. Three and a half years ago. Then how time flies, but he didn't have an estate plan in place. He lives relatively young, 57 years old and had been quite wealthy for a long time. And of his $250 million state. Yeah, two five zero 100 million of it. That's nine figures. Went to a state tax, a lot of money, a lot, a lot of money. That's a lot of zeros and 40% of his fortune vanished. The rest of his state was distributed to his siblings that he had relationships with, but also to a strange siblings. He probably wouldn't have included if he did that.
Speaker 3:
2:11
Right. Hey, I'm Paul West. I want to welcome everyone to wealth from wisdom. Today. My cohost today is one of our wealth advisors, the Carson group, Jim Caldwell. Jim, welcome to the show, Paul. Yeah, so today we're going to talk through estate planning and while I share the stories of Prince or maybe the success story of George Steinbrenner when he passed away, if you want to call that a success or not, is we're going to talk about real world though. What really impacts people with regards to estate planning. And today we're gonna talk about wills, trusts, and those other important features. Here's a fun fact. What percentage of people do you think do not have a will or estate plan in place? What percentage? I'd say 85% okay, well that's, that's aggressive. But I like where your head is there and thinking gym 55 55 55% of American adults do not have a will or estate plan in place.
Speaker 3:
3:10
So you know what? We do this all the time with the Carson group gym. People want to come in and sit down and meet with us and we get to learn more about their story and they're telling us what they're looking for from a financial planning office. And we often as we go, they always want to jump into investments. I can't give advice on investments though, unless I understand the whole game plan. Exactly what's important to you. When do you want to retire or your cashflow, et cetera, et cetera. But there's always a bullet in a question about your legacy and your plan. And Jim, I know I can tell right away when I say, Hey, well tell me a little bit about your estate plan. Let me tell me about what wills or trusts or health care powers of attorneys do you have if they start to shrink in their chair, I know they're one of those 55% and their face turns a little red.
Speaker 3:
3:58
Yeah, embarrassment. Yeah. Or if it's a married couple sitting in there together and the wide get uncomfortable wife looks at the husband like, I, I've asked you to do this, or the husband looks at the wife. I mean, neither one. And so we want to talk about today is what are those key things? If more than 50% of people don't have this in place, then think about our listeners today. That means more than 50% of you. And I hope what we teach you today will not only help you get the best plan in place, but more importantly inspire you to actually get this done. Jim. I mean, it is, I'm on a mission that I want to make sure this happens for people and even if I don't work with you and our firm doesn't work with you as financial planners and trusted professionals, our job on wealth from wisdom is to educate you and inspire you to make action happen.
Speaker 3:
4:50
I know you don't think it's going to, I recently had a family in here and they were coming in to talk about, uh, their estate plan and their wills and those types of things and they fall on this 55% category and they were telling their 20 something year old daughter that they were coming in to meet with us. So, first of all, I'm disturbed that they have kids who are in their 20s and they don't have a will, but second, their, their daughter told them, Oh my gosh, you're going to talk about that. That's morbid morbid. Wow. Yeah. Well, it's not morbid, it's just being smart. No one likes to talk about death or I'd say very few people do, but here are the big reasons why people don't have a will. Number one, they just don't want to think about death. So what do they do? They do the human thing. They avoid the topic altogether. Two huge, huge misconception. People think that only rich people need Will's wrong. Right? Gym. Very wrong. Yeah. Why? I mean, we want to make sure your assets are distributed correctly. I want to make sure you have children, right? Jim? How many children do you have? Three. Three, right? Don't you want to make sure that if you're not on this earth, that your assets are distributed correctly,
Speaker 4:
6:00
correctly, and easily so that people don't get crooked noses and start getting mad at each other?
Speaker 3:
6:05
Yeah. Okay. I don't want, I have three children as well. I don't want them if I'm not on this earth or when I'm not on this earth to be fighting about the distribution of dad's assets because he didn't put a plan together for them. I mean, ours isn't our job as a parent. And I've got kids in high school and it's like our job is to teach them to help get them the next stage in life and teach them what's important and teach them values and all of those things. But if I don't show them by action that I was smart as a parent to take care of them and to take care of myself. What really parental value are we passing on there?
Speaker 4:
6:43
Zero. I mean, you got to lead by example.
Speaker 3:
6:45
Yeah. It was no different than on the athletic field or anywhere else. But it's, so here's what also happens is people tend not to do this is because they think they don't have time. So, uh, you know my least favorite word in the English language, B word, the B word, which is busy, busy. Everybody wants to tell you how busy they are. But if you, if you go back and if we had a chance to look down from above and say, if we were up in heaven and we had a chance to say what we could fix, we'd all probably stop fix worrying about how busy we are in what we're doing. And if we could go look at what's most important in our life and be doing the most important thing, far life at that moment, which absolutely it could be spending time with friends, family, loved ones, golfing, go doing to a Nebraska, Ohio state football game, whatever those things are, we would do it.
Speaker 3:
7:37
And one of those things that, that can gets kicked down the road all the time is saying, I don't have time now. Another thing is people feel like they can't afford a will. And I would challenge you, you can't afford not to, not only from a what it could do to your family in dissension, in those types of things that could happen, but also what it could do to you financially. Now you've gotta run it through probate, right? And now what type of costs are we thinking about, Jim? We're not talking hundreds of dollars. We're talking thousands of dollars and you know something, Paul, that's
Speaker 4:
8:08
everybody's eligible for probate. Does it matter? He goes back to what you said earlier. You think you only have to be rich to have a will. It doesn't matter if you have assets greater than zero. They could be probatable if not properly coded at the right time. Like probate balls. Yeah, it's kinda, it's kinda words. That's not another, at least here go word of mouth.
Speaker 3:
8:29
So let's talk about other reasons is, Hey, my family is just going to figure this out when I'm gone. I don't think so is Jim. We get to see this. So as a financial planner, our job is to make sure people live out life to the fullest and they get to maximize their life. And maximize doesn't mean spending money. It means enjoying life with the financial resources there. I mean, money is just a tool to help everyone. It doesn't mean you have to have more to be happier. There's actually happiness surveys out that there's only a finite amount of money you need actually to truly be happy and to think about it. A roof on your head, something to eat, um, clothing, whatever it may be. So we, we have to help build those things, but when we don't put it together, uh, we're gonna make a mistake.
Speaker 3:
9:18
And a lot of other other mistakes people make is, Oh, you know what, Jim, I'll get my will, I'll get it. I'll just do it right before I die. I don't know about you, but do you have a crystal ball to know when you're going to die? No. No. It could be today. It could be 10 years from now. It could be 50 years from now. We don't know. So why not take care of the president, what we could right now and not worry about it and push it off. So one of the big things is, we think about looking at your will, is when you expedite the legal process, you're actually going to simplify the life for your kids or your grandkids or your spouse or everyone else. But also here's something that's interesting about this is what about funeral arrangements? Have you ever thought about that and putting that information in a will.
Speaker 3:
10:02
And so here we are at Carson wealth. Jim, you've been here for how many years? Again? The three years. January. Okay, so you've seen her participate. We have something what we call an advisory council. Right. And so what's the purpose of an advisory council? Receive feedback, either constructive or, or not so constructive from, from your clients? From our families? Yeah. So one of the things that has been brought up in our advisory councils is create a will and estate planning checklist, but as also create a funeral planning checklist. And again, if you think that's morbid, it's not to everybody, you know, everybody at one point. I mean if you close your eyes right now and pictured, what is your funeral like? Most people would say, Oh, I really like certain songs. Like how great thou art or what other songs that resonate for people. They picture a church full of their family and friends and all of those things.
Speaker 3:
10:57
Well you can have some control over it. You can actually be reaching out from the grave if you plan and put those things together. And if you don't want to, again, that's your choice, but at least verbally communicate those messages. Right. I don't know if you have these with your three children. Um, we, we jokingly do and I know I'm a little bit younger, not picking on you Jim, but it's, I would still rather have the conversation now and be open and, uh, transparent about that. You know, I actually had the conversation with our number two son about two weeks ago and I'm number two favorite or number two [inaudible] number two in line by birth. Okay. And by date of birth. Yeah. We were talking about, uh, my mother in law who's suffering from dementia and Alzheimer's and you know, got into the estate planning conversation.
Speaker 3:
11:39
Then we circled back and I said, Hey, if I ever get like that, can you just drop me off somewhere and leave me? Those are tough conversations. And he looked at me and he says, you're serious. Sorry. I said, yeah. So I said sometimes we have to have these conversations, but I want to go back what you said about planning your funeral, cause I got a pretty good story here, fire away. So I've got a relative who related to me through about four different family trees. They had actually planned out after their funeral, they set aside a six figure chunk of money so that all the kids and their spouses could go to a cruise, go on a cruise and stay at a hotel and then dump their ashes out in the ocean. Wow, that's a date. So you talked about planning your funeral. It's not just, Hey, put me in a box and put me six feet down into the ground. You can do creative things like that. Can you imagine the memories that were made on there? Um, that that's a really neat way to do it in gym. And that's why we put together that funeral planning checklist. If you want that from us, just shoot us a note, uh, info@carsonwealth.com or if please feel free to go to our website, hit connect with us and we're happy to send that information to you. Hey, we'll be back in a moment on wealth from wisdom.
Speaker 2:
12:49
Do you own an annuity? Inflated fees and commissions could be costing you an arm and a leg. Get straightforward and objective advice from Carson wealth by calling (888) 419-8513 are you caring for an aging parent? Are you concerned about the skyrocketing cost of healthcare and longterm care? Or do you have questions about how to best manage an inheritance? We can help call Carson wealth today at (888) 419-8513 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
13:19
Welcome back to wealth from wisdom. Today I'm joined by Jim Caldwell, wealth advisor here at Carson group. Thanks for being on again today, Jim. Thanks Paul. Glad to be here. Yeah. So we're talking about really what I would call the basics, the one-on-ones of estate planning. But most importantly, those simple and thing that you need to do to implement in your life. But I shared in the last segment, I'm going to share it again. 55% of Americans don't have in place. That's more than 50% if I can do the math right there, Jim, that's profound. Yes. Yeah. So if you're in a room, you're having a dinner with four distinct family units, that means at minimum, two of the four of you don't have a plan in place, don't have a, will, don't have a health parent care power of attorney. And that's just bothersome. And so I know I should explain the last thing.
Speaker 3:
14:07
A lot of people don't do it because they think they're only needed for rich people. But you're wrong. And I explained before that you don't have to deal with the probate problem. You don't have to deal with the time, you don't have to deal with the headaches. And so one of the simplest ways to do that is to establish trust. And so, uh, Jim and I are not practicing attorneys. I'm not a JD, but I am in the financial planning field. And having knowledge about this is, is critical to our success in advising our clients. And reminder, we're a fiduciary, so we have a fiduciary responsibility always to give our clients, um, advice that's in their best interest. So we certainly, Jim have to be knowledgeable about trusts. Sure. And, and I, I've, I've seen a number of situations where trusts have been, have been the savior
Speaker 4:
14:52
for people. Um, couple things really how they can be used. So if you have multiple children like you and I both do and all three of them are the same, right? So one of them might be a little left to center or whatever or might have issues or what that happens out there, use of a trust is you could still distribute assets and not leave that person out, but do it in a more defined way that's in the benefit of everyone involved.
Speaker 3:
15:16
Yeah. Well, and I think the word trust just scares people. It isn't there some irony there though. So you teach your kids to trust people, you teach them not to trust strangers, right?
Speaker 4:
15:26
Right. Yet we get Uber's all the time, right? But that doesn't store, that's to me is, is incredible that you know, your teach your kids don't get into a car with a stranger and yet we're dialing up all the time. We
Speaker 3:
15:37
use them but so, but in trust, in terms of financial sense scare people. But really what you're doing is it's just a legal document that is clearly outlining what you want done. That's it. All you're doing is just taking what you verbally said and now putting pen to paper to carry that out. And especially if you're not on this earth anymore, you better have it lined out. So the simplest way a lot of people set up trusts as what's called a living trust. I mean, and there's two ways really to use a living trust. It's either revokable meaning you put assets or cash or property or farms or real estate or whatever inside of there. But if it's Roca revokable, you can put it in and you can pull it out or you can use an irrevocable. Now an irrevocable means exactly what it says.
Speaker 3:
16:26
Once it goes in there, it's in stone [inaudible] it's gone. It is no longer an asset. Um, but you may be able to set up the trust to use it for many different things. And we're not going to get in certainly to those complexities today, but it's one of the best techniques and a lot of people set up living trusts. So that way if, if one, if you're married, if one spouse dies, then they can put money into their living trust. So that way it clearly outlines what the other spouse will and want to do with that. Um, but then you can ultimately figure out where all of your assets flow into. And that's some form of trust as well that can help you disperse your assets. And Jim, you know, I love to draw pictures and explain things. So if you were sitting here in the Carson wealth office with me and I was sitting there, we have a whiteboard in our, in, in all of our conference rooms, but I was like to explain to people when you have a trust and you're both not here, I draw a box and I showed these people that, all right, here's what happens is your money flows into here.
Speaker 3:
17:32
You now have the following decisions. Circle number one. You can just disperse everything if you would like. All right, do you want to do that? Number two, do you not want to do that? And you want to set it up over a period of time. So you do want to distribute it over five years, 10 years, 15 years. Do you want to choose ages? So maybe ages 1920530540 five do you want to do a percentage? Maybe 10% a year over the next 10 years or there's a little provision called HIMS, H. E M. S. hopefully I'm pronouncing that well and not with the stutter. So healthcare, education, maintenance and support. So you could actually set up provisions that money is taken out of the trust to take care of those for your family. And Jim, I bring this up cause I draw it for people because I think it helps them make the decision on what's the best features for them.
Speaker 4:
18:29
No, this is no different. A trust is no different than a game plan. So or, or a business plan, it only, you're doing it for your personal life. That's a great way to frame it. I mean it's not something to be afraid of. It's, it's actually something that will enhance your quality of life. Because I know Paul with the people we work with and you know, they kicked that thing down to curb down that down the road and they don't, they don't get to it once they do this and they go through the process and they put it all in place, peace of mind. It's just written all over their forehead.
Speaker 3:
18:58
Yeah. And, and the thing is, is like, and I tell this to people all the time, Jim, just because your trust is set up one way doesn't mean Paul's trust needs to be set up that way. Or Jamie's trust needs to be set up that way. Or Quinn's trust needs to be set up that way. Everybody's different. It's personalized. Like your fingerprint, it's unique. So even though your neighbor may have done it, it's established it one way doesn't mean it's right for you. So I love to map it out on our whiteboard for our families because it helps them make the decision. And often there are couples who disagree on what to do. Somebody says, you know what? If I'm not here, why do I care? Let my kids have it, let them fight over it, let them, I don't want it. I'm out of here so I don't want to deal with it.
Speaker 3:
19:41
They're just skirting the issue. That's all they're doing. When they say that, well I don't know about that because I look at it as it's kind of like being a Democrat and Republican. You can have different varying opinions. So that's one side. The other side is saying, you know what, I want to control everything so I want to reach through the grave, so I want to set up some provisions in the trust that they only get it over five years or they can't touch it till age 40 or whatever the number is and I'm in different which direction you go. I'm going to, I'm going to be independent on this conversation for them, but my job as a financial planner is to help them get to a decision. It's helped them decide what's important for them and then help them actually paper it and get it signed and then actually get the assets put into there. There's an amazing stat out there that I'm up to 90% of trusts that actually are formed don't actually get funded.
Speaker 4:
20:36
That doesn't surprise me. Why doesn't it surprise you? Well, because it probably surprises you. Well, you're a wealth of knowledge. I'm not surprised for a well, no, just because of the fact that people this off so much
Speaker 3:
20:48
and then they get to the point where they think, okay, I've done everything. I've signed it all, it's in place and then they don't fund it. Yeah, they miss out on the most important step at the end. Exactly. It's kinda like when businesses buy other businesses, everybody loves theM and a part of it. They love buying the business. But actually the integration and implementation phase is actually the most important part because your bankers and everyone else who's helping you buy another restaurant or another clothing business or whatever you're buying, you have assumptions in there. But if you don't carry out and implement your assumptions, then whatever you bought or purchased is really worthless. Right. Or a bad investment for you. So there's, you can always put strings attached in this. So you can do things like, again, like I said, the number of years percentages, you can do bloodline.
Speaker 3:
21:34
So if you're worried that a family member maybe is going to go through a divorce or you don't want, um, assets divvied up to non bloodline members, you can, you can structure that in your agreement. You can be creative. There's pet trusts, so you can give money to a pet if you're no longer here. There's a lot of different things you can do. But what happens is, is you do have to designate a trustee. Well, this is good. Yeah. Well, I mean it's, it's necessary, right? So most people pick as a trustee, um, spouses often pick each other, right? Because that's where their highest level of trust. Then they pick usually a family, close friend or a relative. Um, now if it's, if you're purely gonna disperse your trust, you could probably go down that route. But if you add in provisions that extend the trust over a period of years or percentages, I highly recommend that you utilize a corporate trustee type service.
Speaker 3:
22:32
Because I'll say this, and I say all the time, Jim, and you know where I'm going with my favorite question is, so you have three children and you have to pick a corporate trustee. Let's just say you and Debbie decided, Hey, we want, after we're on this earth, um, our remaining assets to be Devi Devi did the kids and charities over the next five years. All right. So then I'm gonna look at you and say, all right, who's going to be the corporate trustee for this trust? And you're going to be like, ah, what? I don't know. I'm not sure. I'm gonna say, okay, we'll pick your least favorite child. At least Fay. Well that's easy then number three. Okay, well I hope a, they're listing on this show for that for you. So well-played thank you. Yeah. Well you didn't say number three in birth order.
Speaker 3:
23:12
You just said number three in terms of, alright, I'm glad they have names. Is that official on their birth certificate number one, two and three. Exactly. So I, I people look at me like a mean, but I'm trying to ask them this question is pick your least favorite child for the following reason. Being a corporate trustee is not easy, is not, you have to deal with family dynamics. You gotta deal with you. So you have three children. I have three. So if I, if I'm the corporate trustee, I got an out communicate to the other two. What if they want the money faster or what if they want a certain part of asset or a state where they want to talk about things and they don't like your decision or they think they deserve more than they're supposed to get? Yeah. Do they do they have experience and finally trust tax returns.
Speaker 3:
23:58
It gets complicated. And I will tell you, I mentioned our prior segment, I talked about, we have advisory councils. So one of the things the advisory councils have told us is they use Carson their entire life for financial planning and investment services. And then they go deal with a, what I would say a bank for example, who's the trustee when they're not here on this earth, but at the bank, their file number, 14,273 they don't know anything about Paul and Courtney. You're our family or you're Jim and Debbie and your family. So one of the things we did is we actually actually establish our own trust department. And the reason why is, is so we can help families as a fiduciary, help them think through all of those different pieces. So it's seamless. They understand that, Hey, this is what's important to Jim. This is what's important to Paul. If you want to learn more about that or how it helps, you can just shoot us a note. Info I NFO I know I had to spell it right@carsoncarsonwealth.com here's simple a lot of people just like to Google and go to our website. Easy spot on the top part of our website, connect with us, submit your question. We're always get back to you quickly and help
Speaker 2:
25:12
answer that. You're listening to wealth from wisdom. Any major decision in life is worth getting a second opinion and financial planning is no exception. Let's talk about how you could make your money go further in retirement than you ever thought possible. Call Carson wealth to schedule your free initial analysis now at (888) 419-8513 do you have a lot of assets but are short on cash? Learn how you could leverage your assets to free up cash with Carson wealth by calling (888) 419-8513 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
25:48
Hey, welcome back to wealth from wisdom. This is Paul West today I'm joined by my cohost, Jim Caldwell, a wealth advisor here at Carson. Jim, appreciate your being on the show. Thanks Paul. Yeah, we're talking about a topic today that people tend to avoid. That's why 55% of Americans do not have a will or plan in place. Here's an interesting fact for you. Famous comedian Robin Williams. Oh, he's great. Yeah, I mean, of course for me like Goodwill hunting was, what's your all time? What's your favorite Robin Williams movie? I just said it. Goodwill hunting. So yeah. What's yours, mrs Doubtfire? Mrs Doubtfire is so good. I just had a feeling that was just, I can hear that song in my head. So yeah, so, but he had set up a trust fund for all three of his children. So you've talked about you have three. I have three and the trust document stated that each child would receive a third at age 21 half of what was there at 25 and then their full share at age 30 but it wasn't dependent on Robin's death.
Speaker 3:
26:41
So here's an example of what somebody did. That doesn't mean it's right for Jim Caldwell or Paul West who are all of our listeners here today. What it's sharing is, is there's a lot of different ways to approach it and I know we've been telling you today on the show that you know, a wheel is the simplest form of thing you can do. It's the most important thing that you can do. And then setting up a trust. And I know you think trust is needed for the rich, but it's not, is simple. Living trust is a great way for you to do this, helps protect your assets and a lot of other things. Uh, you can name your beneficiaries, you can, you know, name heirlooms, all of that fun stuff that goes along with it. But on today's show, and this is really the point of welfarism job job.
Speaker 3:
27:23
Our job here is to educate people. But also I want you to take action, Jim. It pains me when I'm sitting in our conference room here at Carson wealth and I asked somebody about their will and they don't have it. And by the way, this isn't just, you know, people who you would think, Oh, aren't wealthy. There's the people have a lot of money or people who don't and they just kicked this stupid can down the road. I want you to take action. You're sitting there this weekend, you have a busy schedule, which I hate the word busy, or maybe right now you're commuting down to Lincoln, Nebraska, you know, many of your listeners know and online, no, we're based in Omaha. There's a minor football game going on this evening between Omaha, not Omaha, Nebraska, and uh, some, some, some college in Ohio. So we'll see what happens with that.
Speaker 3:
28:12
There could be an upset or surprise could be, but let's talk about what happens next. So you've got your, will, you have your trust. So the next piece of the puzzle here is a power of attorney and you're like, Oh, here again, I'm never gonna need that. Something bad isn't ever going to happen to me. Well Jim, we see the numbers all the time is people's at some point in their life are likely to become disabled at some point and unfortunately what's really going to happen is mental incapacity and not just physical but mental. Of course the two most common ones are dementia and Alzheimer's that most people are aware of, but at some point we're, and you're going to need help. Whether it's physical, I've got limbs issues or it's going to be mental and a lot of families need to prepare for it.
Speaker 3:
28:58
And I'm Jim, I operate in the bucket that I want to be part of the group that's prepared for it. I want to give guidance to my family. I want to give guidance to my three children on what I want to do because I respect them, I care for them and I don't want them stuck making a decision they don't want to make or feeling uncomfortable. What would dad want me to do? What would mom want me to do? And now they're debating it and they're stressed. They're not sleeping, they're not eating, they're drinking more. All of those things that go with it. And we need to help out. So Jim, I know you're personally dealing with this now in your life and so I mean just walk us through, I mean, what's the wave of emotions you go through when thinking power of attorneys and parents and family members that have some form of diff diminished capacity.
Speaker 3:
29:47
So part of it is the financial part where somebody has to take control and be able to pay the bills and do the banking and all that. So everything runs accordingly. And then you've got those, you know, people trying to take money out of accounts and you've got to step in and prevent that. Then you've got the healthcare part. I mean, I think the biggest concern is going to be, you know, when do you put them in a home? What does that look like? If they need that, how are you going to finance that? But then you get down to the finish line and you know, when do you pull the plug? Yeah. How do you pull the plug wood, wood, wood. And in this case wood, my wife's dad won her to pull the plug on her mom. That's going to be a tough deal at some point.
Speaker 3:
30:29
Talk about a deep decision in one to wrestle with. And um, thanks for sharing Jim. I mean it's hard. It's, yeah, cause even see the emotion come on your face here as we're talking about this bit, you're not the only one. There's a lot of people and it just the benefit of us of we're living in a time where medicine and things are helping out here. So I think we're going to continue to see, um, more resolve in this, but we're also, we live longer. So these types of things are gonna continue to happen. And are you putting the right type of health care or the right type of power of attorneys in place? So let's talk about just educating our listeners here. There's a lot of different types of power of attorney. So there's one, just a general, just an overall two as adorable.
Speaker 3:
31:11
Three is financial, so can somebody help me make financial decisions? I'm telling you, Jim, I'm seeing these more and more for is just special when there's unique circumstances, whether it's education, whether it's certain types of illnesses, those types of things. But probably the most common one that people think about is number five, healthcare. Healthcare is what you just said. What do I do? When do I pull the plug? When, when is enough enough? When is ventilators included? When are they not? What should I do? Do I want my organs donated? All of those things. Again, I think they're super important. They, they help you define your life. They help you explain to things, and I don't want, if I'm in the hospital and something's wrong with me, whether physically or mentally, I don't want Courtney to go through that decision tree of, okay, would Paul really want me to pull the plug or would Paul really want to be sustained or would Paul be mad at me because I did pull the plug and he would have wanted a fight longer.
Speaker 3:
32:06
You know what Paul's uh, capacity is, he can't remember a darn thing right now or he's super forgetful. I need to put them in a facility. Okay. So now I put them a facility eight and I'm not even gonna worry about can I afford it or not. And there's a lot of techniques and we've covered that on other shows, but I'd rather just outline it while I do have my mental ducks in a row. Right. I'd rather spend the time now and share that with people. And in gym, I think you see this, I mean, I mean what, what percentage of people do you think are dealing with this? Just that come, that come and meet with you and talk to you? I that I would say him or them or a family member has been impacted.
Speaker 4:
32:43
I would say almost in every meeting. Either one or the other has either had experience with that in the past or is dealing with it right now in the present. This is the real, this is real world stuff right now. Yeah. And Jim, that people don't,
Speaker 3:
32:59
don't execute on it. And I don't mean XQ is probably a bad word. Don't implement it. Don't actually put a plan in place. And the time isn't, you know, once mom or dad or spouse or brother or sister have to go into, uh, an assisted living facility or a memory care facility, it's probably too late to go paper something because you, you're already now at it, not probably it is too late. It's not like you can go get mom and dad to go sign over all their accounts to you. One, you have some legal challenges in place, but to, um, based on, um, protection in elder abuse. And I hate to use that phrase, but elder abuse does happen. That's why we actually have laws protecting our elders is because they do lose capacity. Meaning you don't want bad actors to take advantage of them.
Speaker 4:
33:50
And it happens all the time. I mean, that's why you have elder care attorneys that specialize just in that area. That's all they do because of the number of cases that are occurring out there.
Speaker 3:
34:00
I mean I watch, uh, some local news and sometimes they have, uh, investigations into, uh, scams or things. And it pains me and maybe they do it for TV purposes gym, but they're always putting on an elderly person who lost money because somebody called them, somebody sent something in the mail that looked too good to be true. And what do they do? They buy, they buy, they buy and they lost money and they made a mistake. And it's not their fault, it's just they had a lack of mental or the same amount of faculties or capacity. And that's why you have to put these things in place. But also you want to make sure you have HIPAA authorization help. Case in point, Jim, I got three teenagers. I got two juniors in high school right now. Good ones too. Well thank you. They appreciate that. I think they're pretty darn good too. Uh, but they're going to be going to college in two years, a little less than two years now. So here's one of the things we teach people here at Carson is did you know that once your child reaches legal age, majority, if they are in college and they get injured and you go to the hospital and you don't have a healthcare power of attorney, you cannot give advice.
Speaker 4:
35:08
I, I've learned that the hard way that that happened in real life with uh, um, Jay, our second son, he got admitted to the hospital on a Friday night, um, actually had a heart issue. He was studying for finals, just too much caffeine and uh, they wouldn't tell us a thing. So, so try being five hours away from your son. He's in the hospital. Nobody's gonna tell you anything.
Speaker 3:
35:32
I mean, I can imagine the emotional, I probably rage that you move into. You can't believe it cause you're standing over them. That's my son. That's my son. I need it. I need to help him buy anything. Yeah. I mean I can only imagine what you're going through. Hey, we want to give you the steps on how to fix that, but we're going to be back in a moment and tell you how to fix that on wealth from wisdom. Have you ever wondered how do other people get away with paying fewer taxes than ever else?
Speaker 2:
35:55
Learn how you can save thousands of dollars in taxes by calling Carson wealth and [inaudible]
Speaker 3:
36:00
(888) 419-8513
Speaker 2:
36:05
social security risk, taxes and healthcare. This is where you can count on straightforward and objective advice on the biggest challenges with investing for retirement and now back to wealth from wisdom with Carson wealth. Hey, welcome back, back to
Speaker 3:
36:20
wealth and wisdom. This is Paul West. Today my coast is Jim Caldwell. Hey, we're talking about how to help protect you and your family. Again, when you think of a financial planner, what do most people think about investments, right? How are you going to manage my money? What stocks, ETFs, bonds? Are you gonna pick? Listen to everybody. That's table stakes, computers, the do it yourself generation. All of those things can happen. Jim, I was actually read an article earlier this week. Um, Vanguard came out with a really interesting study and it talked about how emotional coaching is one of the most important things where value is offered in providing an advice. And I think about what we do here at Carson and I talk about our value stack and how we offer it to our clients. And I talk about it, it's almost like Maslow's hierarchy of needs, right?
Speaker 3:
37:11
Right. Where the baseline is, you know, making sure people are covered in insurance, in their investments, in their taxes and their cashflow, those types of things. Then are they fulfilling their goals, their, you know, retirement goals, their health care goals, their charitable goals? Well then what does that do? It keeps moving up the hierarchy of needs and then they're worrying less. They're freeing up time, but ultimately it gets to the top. It gets to self-fulfillment. So part of self fulfillment is making sure you have all things covered in a good financial planner. You know, they got the investments they can, they can outsource that, they can figure that out anywhere, but they're emotionally coaching you. And so on today's show of been trying to coach you on what's also important in life, and we've talked about wills, we've talked about some truss, we've talked about powers of attorney, and just to continue on with Jim and I were just sharing, one of the mistakes, especially people don't realize is your kid goes to college, you're happy for them, you're sad because they're leaving your house and now you have a little uh, syndrome, right, called emptiness syndrome.
Speaker 3:
38:16
But Jim just shared a story and let's get into this here. So your child gets admitted to the hospital, you go there, you want to help, give advice to the medical staff and what happened? They tell me to go pound sand. Yeah, tell me a thing. And so you wanna probably pound them back. Wasn't real happy that night. Yeah. But there's nothing you could do. The hospital is under guidelines. There is nothing they can do unless you can prove, because they are now an adult. You may not think they're adult. They're your kid for height. Yeah. But they, in the eyes of the state, they're an adult. So we actually recommend that you set up this healthcare power of attorney that you can help provide guidance to them. And it's something that I will tell you, it's been so rewarding for me to see clients of ours at the firm go and do this for the children.
Speaker 3:
39:09
And no one actually hopes that you have to implement it by any means. But a shirt gives what I call that comfort level, that sleep at night factor that you have those things done and carried out. If you want to know how to do this, you can shoot us a note info@carsonwealth.com or just go to our website and connect, connect with, excuse me, click connect with us. If I could say all of that. Yeah, I promise I haven't been drinking. Jim, can you promise the same? Yeah, I'm good today. All right. So what are the things that we want to talk about next is how do you actually transfer money to your kids or to your heirs? H. E. I. R. S. um, and do they share your vision? I mean, I think one of the biggest things we want to communicate with is how do we transfer our values.
Speaker 3:
39:59
That's probably one of the most important we things we want to do is families. Again, not worrying about the zeroes that are in your financial statement. Some families actually have a family mission statement talking about what's important to them, what's important to their family, what's important for all their, their values, but others don't. And that's okay. You don't have to, but your advisor can work with you on this. So beneficiaries are often miners. So now the next thing you have to figure out is who, who are the potential guardian if you're not on the earth. And again, what most people pick a family member or a truly, truly trusted friend. Um, one of the things we're seeing more and more, um, and unfortunately as we see autism and other childhood, um, diseases, um, and challenges relate is we create things that are called special needs trusts.
Speaker 3:
40:51
So it was a really cool thing we do. Um, I'm not going to get into all the details cause each one of them is personalized. But if you have a child or a grandchild that has autism, there's actually creative ways you can, uh, help use your funds and use vehicles like a special needs trust, uh, to help them. But also I want to share with you again, part of wealth from wisdom is little known things that people aren't taken advantage of and one is able. So what does [inaudible] able stand for? Do you know? Gym, um, achieving a better life experience. You got it. You nailed it. So this was passed in 2014 and the port part of our this is actually helps you establish tax free accounts to fund disability related expenses. And this actually helps supplement Medicaid, social security, your loved one receives without actually affecting their eligibility.
Speaker 3:
41:41
So these are ways that you can establish them. I know we have somebody internally on our team. Uh, Joanna, she's an expert in this, so she sits down with our families and helps walk through how do they help do this? How do they help achieve, I love the name of it. Achieving a better life experience. You're abling someone to do it. Um, and if you have someone in that situation, you can again just shoot us a note online. We're happy to cover that for you. But there's some fun facts I want to share here with our audience today. So one, we actually think as money's transferring, so money is going from the boomer generation to the gen X and millennial generation to the tune of $30 trillion. Big number and 70% of that money is gone by the end of the second generation, 90% Jim, he had nine zero is gone by the end of the third, but they have to use some form of legal mechanism to transfer that.
Speaker 3:
42:40
And on the show today we've been talking about some of those transfer techniques, wills, trust, healthcare, power of attorneys, um, and you know, able accounts or special needs trust, all those things that can help them. And estate planning helps people no matter where you are in the wealth journey. What did I say at the beginning? What percentage of people don't even have a simple will and estate plan in place? 5% 55%. So over half of our listeners and viewers today don't have it in place. I want you to take action. I want you to think about it and how you're impacting your family. I want you to think about, I share this on this show before. I'm going to do it again. Close your eyes unless you're driving and going to do that right now. But think about what's the first money memory you've ever had in your life. Think back to when you were a kid. Was it finding a quarter on the street?
Speaker 4:
43:34
For me, it would have been cutting grass, delivering newspapers. Okay. So cutting grass, you got someone's grass, then they paid you money. Cash right there. How did that feel? Awesome. It felt great. I couldn't wait to get a smile on. You couldn't wait to get to the next yard and cut another one. Yeah.
Speaker 3:
43:48
But it created a memory in your mind. Um, those memories shape ourselves. But what happened? How, how did you get that first lawn? How did you know to go cut that lawn?
Speaker 4:
43:59
We went door to door and as we, my brother and I and we, uh, who gave you and your brother that idea? My dad. Okay. So dad, it was really cool. We had that old country Squire station wagon and I can remember putting those lawn boy lawn mowers in the back and dad would make sure the gas mixed well with the oil and it was kinda like a family thing, but he was teaching us some work ethic and accountability and really a little bit of finance.
Speaker 3:
44:23
Yeah. Family memory taught you your first experience with finance and then that probably set it for your three children as you said, one number two, number three is their names. Uh, but he created a legacy for you. Unbeknownst that wasn't legal, but he, he taught you something. He taught you the value of the Caldwell family and what he wanted to instill. But I would say, and I would challenge all of our listeners today, have you done the same thing for your children? Have you done the same thing for your grandchildren? But have you memorialized it in a way to put your wills, your trusts, you healthcare, power of attorney, and action. If you have, great. I congratulate you. The numbers tell me you haven't, so we actually have a document. If you want a free document from us, it's called estate planning simplified. You can go online, Carson, wealth.com forward slash estate or just click connect and we'll send it to you. Hey Jim, I really want appreciate your transparency, helping share your stories here with me and I hope all of our listeners have enjoyed wealth from wisdom
Speaker 5:
45:21
risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of fame advisor Ron Carson.
Speaker 1:
45:34
Okay, and here's the legal mumbo jumbo. The opinions voiced in wealth from wisdom with Ron Carson are for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged. I may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CWM LLC, an sec registered investment advisor.
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