Wealth from Wisdom

Leaving a Blazed Trail: Estate Planning for You and Your Family

November 23, 2019
Wealth from Wisdom
Leaving a Blazed Trail: Estate Planning for You and Your Family
Chapters
Wealth from Wisdom
Leaving a Blazed Trail: Estate Planning for You and Your Family
Nov 23, 2019
Carson Wealth

Wills, trusts and estate planning are complicated, involving legal issues, relationships and straight-up human personalities. There are entire careers made on the complexities and confusion of estate plans, probate and litigation that follows.

I’m Paul West, and on this episode of Wealth From Wisdom, we’ll look at estate planning. How do wills and trusts work? How can you prepare in a way that will alleviate taxes, complexity and dysfunction for your family in the future? How do you leave a cleared trail as your legacy?

Show Notes Transcript

Wills, trusts and estate planning are complicated, involving legal issues, relationships and straight-up human personalities. There are entire careers made on the complexities and confusion of estate plans, probate and litigation that follows.

I’m Paul West, and on this episode of Wealth From Wisdom, we’ll look at estate planning. How do wills and trusts work? How can you prepare in a way that will alleviate taxes, complexity and dysfunction for your family in the future? How do you leave a cleared trail as your legacy?

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 CWM LLC, an sec registered investment advisor.
Speaker 2:
0:29
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 skyrocketing 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. [inaudible].
Speaker 3:
1:13
Hey, welcome to wealth from wisdom. I'm Paul West, joined today by my cohost Aaron Wood. Aaron's, our vice president of planning here at the Carson group. Hey Aaron, welcome to the show. Thanks for having me again. Yeah, you would talk about planning all the time. Many people think about investment planning or insurance planning or maybe tax planning, trust planning, will planning, estate planning, and it's definitely all those things, right? Yes, it will. It has to be. It's a combination of all those different pieces that when people start talking about legal matters, they start, they start to tune out, right? And because people tend to choose the path of least resistance and so therefore they do nothing. And that's not what we see so many times across this. So in today's show, we're going to educate you about all of those things that matter and those things you actually need to implement with regards to your will, to your trust.
Speaker 3:
2:02
And those other things that you're thinking about because when you talk about what's most important to you, what's the number one thing? People, everybody says their family, right? Where's their family? Yes. You don't want it. Who actually chooses anything other than their family? A few people, but usually their egos is the and is of, or uh, they're probably gonna end up in the wrong place. But we need to make things simple. But you want to talk about not being simple. I want to share a statistic with you. How long do you think the longest will was in terms of pages ever written that went to probate? How long in terms of pages? Pages, how many pages? Let's just say the average will is what? 12 pages long? 15 pages long. Okay. Something like that. Average, I must say the longest is a hundred. You're almost there. Just multiply that by 10. Oh my 1066 pages long. What was positive Tobar of 1919 was when it was, you want know the best part of this? It was handwritten.
Speaker 3:
3:11
Sure. First of all, can you mentioned in today's world, writing out a full page, even though I do, of course I have high school students, so they still do handwritten notes, but you imagine writing out and seeing someone's handwritten Willow to comes in 1066 pages long, what would you do? You'd laugh, right? You think somebody's playing a practical joke on you? You absolutely would. And I'm thinking about this being handwritten and there's so many other complications to this, right? Like being able to read it. The ink is getting smudged, like they mix that coffee stain. My pen is going dry. Like there's a million issues that could be, I would have loved to known how much time that takes. And obviously that's not going to happen in today's world, but hopefully that shows you how things evolve. But the principal doesn't. That was actually a hundred years ago, Aaron.
Speaker 3:
3:58
Crazy plus the principle of having a will has not gone away because it's so important to everybody. So can I add something to this? Because it is a hundred year old. If I said no, well I'm saying it anyway. So I've been telling you that, uh, my husband's grandfather is getting close to a hundred his hundredth birthday is this week. So November of 1919 it was when he was born and he is actually turning a hundred. Wow, that's exciting. It's amazing. Called a centenarian. Not very many of them around, especially ones who have the capacity that he has still lives on his own still mentally all together physically drive. He gave up driving on his own a few years ago. Voluntarily. Yeah. Well that's unusual. Yes it is. I know we see it all the time. Unfortunately, in many of our listeners today, you've had to actually have this conversation with a parent or grandparent and you know, taking their keys out of their pockets and away from them is just part of one of life's things that happen and you get taken care of of your life and you hit this middle zone and I read a story the other day for some reason they picked the age 45 they age is 45 is when you start to have to really experience more of if you have children taking care of them and their problems.
Speaker 3:
5:08
But you may most likely are now staking, taking care of your parents and maybe some of their issues or things. Not everyone is in. Many people are still very fortunate like I am, that they're in good health and conditions, but that doesn't necessarily mean that's the way it's going to be for everyone. So let's talk about some of the basics here and maybe we'll build on this foundation. I like building blocks here for everyone because this can get super complicated and our job here and is not to complicate this for everyone, but let's just simply say a will. So the simplest way to describe a will is that's what tells everybody when you die, what they need to do. Yes. I cannot make it any easier than that, but what doesn't work is if I told our producer, Jamie, Hey, if I die, you get my car.
Speaker 3:
5:51
She may make a claim for it, but the reality is if it's not in writing and by the way executed, then we've got a, yeah, those verbal commitments that you make to someone that doesn't hold up very well. Yeah. She can come knocking on our door with our handout, with the keys for the car that I promised her, but it doesn't matter. She doesn't get it. Well, and we've seen this with families, right? You have grandmas, I don't care. China or there is specific heirlooms and a piece of art jewelry often, Oh, jewelry is a big one and one child is expecting they're going to get that and the other child gets to the house first and all of a sudden it's disappeared and it's gone. When it is not written out, those family dynamics can deteriorate very quickly. Yeah, you bring up a good point.
Speaker 3:
6:35
We're going to talk about it later. I mean, this can get so severe ladies and gentlemen that when someone passes away, when there's fear of concern, and we're going to talk later about having a personal representative about having a trustee that actually one of the first things on a trustees checklist is if somebody passes away, is to go change the locks. Yeah. How morbid does that sound? Well, it does until you've seen it from our side. I mean, I saw one not too long ago that the family dynamics were that the siblings were all fighting before anything had happened. They had moved mom to an assisted living facility. They needed to sell some of the things in the house and start downsizing the house. And it literally had come down to if anybody was in the house without someone else, they were second guessing what that person was there and what they were doing.
Speaker 3:
7:24
Yeah. It creates anxiety and family concern. I know it maybe seems to be on the harsh end of the scale, which it is, that it does become a necessity for so many people. Um, so a will simple, you can get a legal representative. Yes. There's do it yourself platforms online that people can look at. Don't forget to actually sign the document. I mean, um, I, I would recommend, I'm a huge believer in outsourcing if I don't know how to do something. Case and point, I don't know how to do auto repair. Can't do it. I don't know how to, so, so here either. So what do you do? You gotta go take your vehicle somewhere? I did not go to law school. I don't know how to draft attorney. Yes. I can maybe try to play one via my Google search, but that does not mean I can actually do it.
Speaker 3:
8:13
I, when I did ours and we've done it multiple times and updated it, but when I did my last iteration, there's just this incredibly good feeling of like, ah, when you're wills done because you know, it's updated and in the right place because I hired a professional here in Omaha to help me complete it. Well, that professional part of it and having things updated over time is something many people miss. I mean, how many times have we seen something that is 20 years old and it had guardianship in it and the kids are all grown and gone. Yeah, I, I'm pretty sure it's time for a new well, it is. And by the way, those of you that have gone through, um, changes with spouses or significant others, uh, again, major miss thing, and we'll talk about that on the show of not updating that.
Speaker 3:
9:00
And you certainly don't want, if you had a, a marital challenge or you had a spousal challenge and, uh, you got separated, divorced, et cetera, and you didn't update your will, uh, you could have made even a big mistake, uh, based on your legacy. So we'll, it's pretty simple. It carries out your wishes. So then you hear a term called trust. And Aaron, I think this is one of the biggest, um, I would say misconceived words we have in the English language when trust is used in terms of estate planning, people think, Oh, well, only rich people need trust. Absolutely not. Yeah, factor fiction fiction is absolute fiction. I always like to explain the trust. The trust gives you a couple things. One, it gives you the privacy to settle your estate outside of the court system or probate system. So it gives you, um, any type of secrecy or umbrella that you would like to keep others from knowing what you have and where it's going.
Speaker 3:
9:53
The other thing it does is allows you to control after your death. And so if there's certain ways that you want those assets distributed, uh, there's someone, maybe you don't like, um, your son in law or your daughter in law or you want to make sure assets continue to go to your, your grandkids, it gives you that ability to control those things when you're no longer around. Yeah, and I think the beauty of it is, is when you think it's Oh, super complicated and lots of zeros, one of the simplest thing is just making sure your money flows to your spouse correctly. I mean that, that's the simplest form often. And I think you made a great point, well you have to realize is trust can help you before your death. It doesn't mean it has to get funded after you die, um, or it can be done many years down the road.
Speaker 3:
10:38
Today's show is not about all the different types of trusts. That's not what we're trying to do. And we want to explain to you, but I do want to explain to trustee to everyone. So a trustee actually gets responsibility. So they are really that person or institution that has to carry out the stipulations and rules that were put forth in the trust. I would say too many people take this word lightly O extremely lightly, and you have to find out as you are probably putting yourself in risk because there's different parties to a trust. So of course you have the grant door, that person who gives the money that you have, the trustee who is responsible to carry it out. But the people that maybe have the best legal power are the beneficiaries, those who are going to receive the money because if the trustee doesn't perform like they're supposed to and have any form of self dealings whatsoever, they're just increasing chances of litigation against themselves.
Speaker 3:
11:32
Correct. And it's a lot of risk. That person or corporation is taking to be a trustee. You're taking a lot of responsibility and yes, they can be paid for that and whether it's an individual or a corporate trustee, but there's a lot of individuals who are like, yep, I'm just going to do this for mom or dad. And they have no idea of the responsibility that they're taking on. Yeah. How many people realize that if you take on trustee responsibilities, you have to file a tax return for the trust? Yes. Yeah. Don't do it. Yeah. Yeah. Well that's a whole different story. And maybe show, um, it could be a plenty about fines or jail time if you don't do those types of things. No, no one got into the, Hey, I want to help out mom and dad's estate and to think, Oh, I've gotta also do tax returns.
Speaker 3:
12:15
They did it because they wanted to simplify it, but sometimes using a more intelligent or complex technique of setting up the right type of trust, it can be simple. Don't think it's crazy complicated. But if you want to help understanding how an estate works and what it looks like, you can text us at three, three, four, four, four. So that again is send a text to us with the word estate three, three, four, four, four and we'll send you a simple document. Estate planning simplified, understanding your will and your trust. It's a great way for you to learn more about this topic 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 sky rocketed, 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. Hey, welcome back to wealth
Speaker 3:
13:20
wisdom. I'm Paul Les today joined by Aaron Wood today. Aaron, we're talking about those important things that we tend to avoid. Uh, and today specifically talking about our estate plan, our wills, our trust. And I know you may think, Oh gosh, this is boring, this legal topic. Neither one of us are attorneys. Uh, we're actually more in the business of behavioral coaching, helping our families across the country make the right decisions. And one of the common things we see, and oddly enough, w there's now so many studies out this show, more than 50% of Americans don't even have a simple will. So that, that, that part is scary to me. So that's why we're here today. That's the whole point of wealth from wisdom is we're trying to educate all of the consumers out there what is going to happen. And by the way, you're, if you don't put this plan in place, you're going to make a mistake cause you're not going to get lucky.
Speaker 3:
14:09
The odds of you winning the lottery are pretty slim. The odds of the following happened to you. I want to read you this quick story from BBC news. So there is an eccentric aristocrat in Portugal that he left his entire estate to 70 people. However, there is no commonality about these 70 people besides one fact. They were all in the phone book and he randomly selected all of them and left them to as a state. That's like winning the lottery, right? That is. So what are the odds of something like that happening to you? You don't live in Portugal, first of all it's a small phone, but hopefully you see the small city there and not Elizabeth or anywhere else. So that's just the reality is people hear those stories and they associate, Oh something crazy good's going to have to be. Guess what? There's a reason why there's the word average or median.
Speaker 3:
15:02
That's cause that's what happens to most of us. So our job is if we protect what happens to most of the people and if those strange things happen, and I call him on the bar bell. So those strange, really good things. Yeah, but you can also have something strange on the really bad side. You get injured at a very early time, you lose your capacity, you get, unfortunately I just ran someone the other day. They have early onset Alzheimer's and it's tough. And if they don't plan now, then they have a they challenge. And so there, and from a human bias perspective, we all assume only those good things are going to happen to us and that the bad things are going to happen to someone else. So we all assume that bad things were going to happen to Paul and they get, things are going to happen.
Speaker 3:
15:44
To me, it's natural. But helping someone think through what is reality and what is that average, what is the things that happen to all of us? One of the biggest mistakes I see people making with wills and trust is that so many people have second marriages and blended families. And that's not how beneficiaries work in the beneficiary world. If something happens to me, uh, that goes to my husband. And if something happens to him, it goes to our kids. Well that works in that direction to children. But the other direction is, um, our oldest is not my child legally. And so if something happens to him, all of the assets come to me, something happens to me and they go to our second child and our first child would get nothing. That, that's not what we want. But that happens in a lot of families and no wills in place.
Speaker 3:
16:29
Um, that's, that's a big issue. Yeah, it's huge. And so th the, the point is, is you have to think about this at different phases in your life. So what about those people who first get married? Should they get a well or not? Yes. Yeah, absolutely. You're like, Oh, I don't need it. Well, most people think as they searched up, well, if we have children then I need a will. Well that could be too late at that point. Especially if either one of you brought in more assets than the other person, the nuance, some form of thing. And have you known someone who passed away early in their marriage? Children. Me too. And it's a very sad thing to see. Um, but I, I've seen it more than once. Yeah. And if they don't have those things in place, then so most people think I only need a will or trust when I'm getting into retirement or when I'm even older than that.
Speaker 3:
17:16
The reality is, is if you don't have it before and you're actually probably taking a bigger risk because if you have younger children or family members, they're the ones that need the most protection. Because you may remember this, you don't have a will. It now goes to what? Probate. Yup. And then it goes to the state. If you have children who actually gets custody of your children, the state actually assigned someone control over the money. Think about that right now. Right now, someone else that you've never met that works for a state is in charge of your life. Yeah, I mean most people are like, you're probably cringing thinking about that, but that's the rowdy, that's the type of risk you're taking. I joke this like you're going down the freeway and you're going 120 miles per hour and the speed limit is 45 and there's traffic is at some point you're gonna, you're gonna make a mistake or an accident is going to happen, but when you have a will, then you can slow down.
Speaker 3:
18:13
You can do things correctly. You don't have to worry about getting to that destination. And so there's just so many things you should be doing or should be thinking about. Um, so will is one, and then another is this healthcare power of attorney. Oh, that was a big one. Yeah. Because Hey, people fall on one of two camps. I'll tell you which one I fall in cause we're, he's transparent here. Uh, well for wisdom is, Hey, if I don't want to be in a condition, and this sounds bad, but where I'm a vegetable because something happened to me either medically or in an accident, I don't want my family to have to be at the hospital every day and hope there's life and then, and then the day is going to cost them a lot of money. I'm not worried about the money part. I don't want them to spend it.
Speaker 3:
18:59
I don't want them to go through the emotional pain. And not that the emotional pain of death isn't equally as challenging. It is. But if I can help simplify that decision for them, cause I think it's people struggle with the decision is the following. What would mom and dad want me to do? Yup. Well and from the perspective of this healthcare power of attorney one, you're, you're giving someone the ability to make those decisions. But two, you're having those conversations with the people. About what you actually want. And I think that is extremely important, but when you're choosing that person, you also have to know that you're choosing the person who has the emotional ability to actually do what you want them to do. Yeah, certainly the cognitive ability that goes with it. Hey, I already know that some of us get teased that we already have selective listening to begin with and those of you listening can point at your spouse and decide who has more selective listening or not.
Speaker 3:
19:55
Uh, this is a good way to prevent selective listening, becoming true, inability to listen, comprehend, understand cause don't think about it. Um, I look at Maura's like this as longevity in terms of I want a healthcare power of attorney. Again, maybe I'm not plugged into machines, but maybe my brain is not firing on all cylinders anymore. So I mean, of course common terms, we hear all timers and dementia and those types of terrible diseases. But since we're living longer and our bodies are healthier, our physical bodies, it doesn't mean our mental bodies. I hope they do continue to evolve. But I want a plan in place that if they're not, I can help protect other people from me or vice versa, them from whoever and I think you're going to feel better about it. I mean there's just no doubt about it. Um, because when I'm in that scenario, there's nothing else you can do at that standpoint.
Speaker 3:
20:53
And one side of that that we don't think about very frequently is when our children go off to college and they are now the age of majority, uh, we don't as parents have the ability to make those decisions for them anymore. So if something happens to them at school and they're in a car wreck or you know, who knows what could happen, let, let's pray. Nothing happens to any of them. But if something does, as a parent, you need that healthcare power of attorney to then be able to make decisions on your children. Yeah. Well was speaking of kids, by the way, here's one of the most little known facts, and I'm not far away from experience this Aaron, is, I have two juniors in high school currently. I have a third child who's not quite yet in high school. So when they go off to college and reach the legal age of majority.
Speaker 3:
21:36
All right, so they're at school, they're wherever they are, Lincoln or wherever they go. They get injured, they get hurt, they go to the hospital and they need some form of medical attention. They're above the legal age of majority. I'm assuming they're in the hospital at the urgency room or wherever. And decision needs to be given or information. Yeah. What happens? You already alluded to it. Yeah. You're getting nothing. Yeah, so you need to put together, it's called a limited power of attorney and it's one of the interesting things we did here at Carson wealth is we sent this notification out to a lot of our clients who had younger children and it resonates, right? We'll be slow on our own will or trust, but if something impacts me helping my kid get her on it, you're on it, right? Mama bears come out out and they're ready to make sure their kids are protected.
Speaker 3:
22:25
So make sure you do that. If you have haven't, this isn't a, by the way a lot of money to do, you may think it won't happen, but spend whatever it is, couple hundred, $500 to make this change. The peace of mind that you're going to get, the comfort level you're going to have from knowing if someone asks for my kid, I can protect them. He'll do in a heartbeat. And by the way, I just put it in. I help people associate, this is just a cost of going to sending your kids to college. No different than getting books and tuition and room and board and beer. I'm sorry. Or anything else. Don't make about even when you go on vacation. My husband and I both travels overseas quite a bit and the kids don't always go with us. If something happens to our children, why we're not here.
Speaker 3:
23:05
Uh, my parents usually are the ones that I have the kids. They need to be able to take them to the doctor. They need to be able to act in that capacity. And so, uh, you know, there are plenty of reasons to make sure that that limited, um, healthcare power of attorney is in place. Well, I don't know about you Aaron, but I certainly don't see a HIPAA and other laws getting any easier or consumer friendly as we're all trying to prevent and protect our data and privacy, which I think is a good thing for all of us. Uh, so that's going just going to create a continued need for these type of, uh, legal items to want to go back to your, your wheels for a second. And these healthcare power of attorneys by not making a change, you're making a huge mistake as we just shared.
Speaker 3:
23:47
But a great story here, well not great, depends on who you are. So remember James Brown, the godfather of soul. Yes. Yeah. Do you want to sing any James Brown for us today? Maybe we'll have some lead in music on the next segment for you and we'll see what happens there. But he had this famous and probably embarrassing family dispute over his, his estate since he passed away in 2006 is the dispute evolves whether his fourth marriage to his wife was legitimate or not and whether his last child was actually his. So most likely the legal battles continue to go on and on and on. And so I'm not sure I can help with the last child one, but I can help with the uh, was the fourth marriage legitimate or nah, it's pretty simple. Document, document, document your wills, your trust, who gets what, update them.
Speaker 3:
24:37
Hey, we get it. Divorce happens, death happens, life happens. You still have to make a change. If you want information on how to do this or to learn more about it, you can email us@infoatcarsonwealth.com or if you just want an appointment to talk to us and get some questions answered, just text the word appointments to us@threethreefourfortyfouroremailusatinfoatcarsonwealth.com we'll be able to help talk through this. And hopefully in a language you hear, it's simple. We want you to understand what we're talking about. That's what we do here on wealth from wisdom. Hey, we'll be back in a moment to continue talking about all these important items.
Speaker 2:
25:14
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. Just schedule your free initial analysis now at eight, eight eight four one nine 85, 13. 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 eight eight eight four one nine 85, 13 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
25:47
Hey Aaron, let's keep talking about, uh, some famous people here that have something in common. And I'm not going to say it's very positive. So I talked about the godfather of soul. Hmm. Let's think about some other music people. Michael Jackson. Yeah, that was a big one. Yeah. Everybody's probably read about it or seen about the complications of his will or trust or estate Prince. Of course, we talk about how to meet major issue. Their legal battle on that one is the siblings of who actually gets the royalties. Yeah. Um, let's talk artists. Pablo Picasso. Oh, good one. I didn't know that one. Yeah. Well, we often think about, uh, most people are used to visualizing, um, artists, singer. So Kurt Cobain of course comes Tupac Shakur. Picasa that, that one is a good example of people who when they died, they didn't necessarily have that revenue after they had passed.
Speaker 3:
26:44
So people who write books have that frequently artists, they might not have had the wealth. And then as they passed, became very famous and now, uh, not having that document in place really hurt where the money was going to go. Howard Hughes was another one. So there's a famous billionaire that just made this catastrophic mistake. The one that blows my mind, um, that it's never really talked about Abraham Lincoln. Hmm. Think about that. He was an attorney, if you remember. And he might've been a president. I might might've, yeah, I didn't like that. So what happened? He had the minor thing going on again called the civil war of one of the most obviously major important things in the history of this country. He was the president of United States. Aaron, we talking about this all the time in our roles as being a fiduciary financial planner, people are always first concerned about taking care of their family and then if they're business owners and or take care of their business or their job.
Speaker 3:
27:42
And then third, they take care of their personal matters. And here's just a great example of a, an unbelievable leader. How many books are written on it? I've read many about him that didn't spend enough time on themselves. Correct. Yeah. And it's unfortunate. I mean we've, we've talked about this before, the, in those situations when you are not making a plan or you're not putting this into place, um, that ultimately you, you made a decision and you made a plan. And so by doing nothing, he, he made a bad plan. Yeah, he did. And so that was his generation. But we have a bunch of new generations. Let's talk a little bit about younger people and their opinions or the millennial generation or the Venmo generation or whatever you want to call it here. But some people get married and they just assume a, I have no children.
Speaker 3:
28:31
I'm just, if something happens to me, it's all gonna go to my spouse. So why do I need a will or trust? Do I even need any of that stuff? Well, yes they do. And depending on the state you're in, that does not mean your state rules always go that way either. And so you do have to understand what your state says is where the assets go. But one of the biggest things for me is everything goes through probate when you follow that. And so by going through probate, you typically will have to pay probate taxes. Uh, you frequently will have some type of, uh, maybe a city tax or a County tax and estate tax that are associated with the County you live in. But now everything's public record. And I don't know that I want all my information being public record. We were talking about people anyways, right?
Speaker 3:
29:15
So we don't, so now you can see everything. Uh, and it's even a simple probate process. Usually the minimum duration. It takes us six months or even six months to get these things sorted out. And now you're trying to figure out where everything is and how do you actually do this. When you leave everything to one spouse, now the spouse is responsible for figuring out where all the documents are at, where all the accounts at, how is everything titled. They're going into the locations, silly things that seem unimportant. Like cars are the cars titled in one person's name or both people. And now having to go in and not only put all that through the court system, but it seems like, Oh well of course I'm just going to change the title on the car. Nope. It all needs to go through probate. Yeah, it has to.
Speaker 3:
30:01
And even things like you may not think about. So we've, we've talked about digital assets on the show before and no, I don't mean Bitcoin here. I mean, what if you have a spouse who travels a lot? So they got a lot of fun, frequent flyer miles or hotel points. You now have to, how do you get those right probate, right? You're gonna have to go through the process, list them as an asset, no. Earlier. Yeah, their Venmo account. Great one. That's a perfect example of, and I don't know if you saw the video, so I had made a video of it said millennials passing the same $20 round on Venmo and they had these bottles and they were just sending them. Yes, it is true. I mean that money is just going very quickly from one hand to another. Uh, but if you have PayPal, Venmo, any of those, uh, royalty or you know, online things where you're accumulating points that that's all digital assets.
Speaker 3:
30:50
Yeah, it is. And it's, you have to be careful, you know, you're talking about passing things around and I talk about this a lot. I like to talk about, uh, philanthropy. You know, we should do a show on philanthropy soon. We should, yeah, I like that. Our next one. All right, I'll do it. We'll commit. You got it, Jamie. All right, good. So we'll do our next show on philanthropy, but we talk about this all the time. I love to give back and I'll talk about it again. But I love to help people but sometimes it's hard. I get asked by a lot of people for donations and help and I want to help out as much as I can. I almost feel like as soon as I asked someone what happens, they asked me back, Oh of course, yes we, we almost kid is like the Tupperware party of things.
Speaker 3:
31:26
Just keep moving around and you'd keep passing it. No different than probably Venmo would buy him lunch and dinner. Um, w w what's interesting and all getting more detail. Philanthropy is a huge part of your state plans. I'd really like to focus just on that topic, but I mean, here's a fascinating number. Getting back to the probate thing, those sharing, I mean, so this is crazy. I mean listen to this, so almost, I mean $2 billion a year is spent in the probate process every single year. Just as part of the process that wasn't paid out. What's cost actually have the process is generally between one and 3% is what goes into your probate cost. Yeah. And then how much of that goes to the attorneys, although not all, there's some filing fees and other things, but a lot of it. So now you're just, Hey attorneys, I'm not just County this here, I'm just saying this is the reality is of what happened.
Speaker 3:
32:17
So by putting things into a trust and keeping them out of public record in a will, helping yourself avoid probate not only helps you, but it helps your family. It also, here's something interesting. So we have this, um, item called an advisory council here at Carson. So what we try to do is, Hey, I may think I know the direction we want. Go for the vision of our company. You may also for what you do for us, Aaron, isn't it just smarter to ask existing clients what they think and is this a good idea? Oh yeah, yeah. Getting what the clients want from us allows us to be much more proactive on the direction we're going and making the service as applicable to them. Yeah. So here's one I wasn't expecting, but we got from our advisory council, they asked us for, it'll be really cool.
Speaker 3:
33:02
Carson does a lot of great things here, you know, from obviously your investments, your financial planning, your trust, planning, your tax planning, insurance planning. Can you help us with funeral planning? Oh, so I was like, really? They're like, well we've, you teach us how to live a good life. You teach us what we'd call wealth design life defined. So if we're gonna live a good life and if you're having us visualize someone reading our eulogy and we did a good life, Kelly's plan out my funeral to know what I want there. So highly enough, we created a funeral checklist to show people and teach them what's there and Hey, if you're planning your own wedding and birth of children, all those things, why can't you have plan your own party? I did not know that. That's where that checklist came from. It did. Yeah. That was the idea of, all right, I'm glad I can inform you with good information here on the show today and learn something new.
Speaker 3:
33:51
I like it. So, I mean, as estate planning is complicated, but I mean if we think about it, what's happening is the baby boomers are actually now, now, my kids just called me the other day, I'm not quite in the baby boomer generation yet. I'm not in the generation, but the current age. So my kids are calling me little boomer now. When I say a dad joke, they find extremely funny, which you obviously do too now, but so using that over your kids over the baby boomers are going to transfer 68 billion plus dollars in. Most of it's going to be done via legal terms like trusts that help that. So if you think about it, if we had 1 trillion trillion with a T $1 bills and we covered 4,000 square miles, that would cover just larger than the state of Texas. It's a lot. That's a lot.
Speaker 3:
34:45
But if you think about it in context, I didn't say the entire United States, yes, Texas is large and yes, people from Texas love to tell you how big Texas is, but that just tells you how big of issue this is for our entire country. But what you have to do is personalize it is just for you. You have your own fingerprint, right? For a reason. You're your own person. That's how you're identified. That's why you need a will or trust, and this just needs to be simplified. If you want a document, we're actually a really cool one, Aaron. We call it planning, simplified it really looking at understanding your wills and your trust. If you want a copy of this text, the word estate. Do I need to spell a state? Yes. Okay. Yes. T a T E or E state. How about that? All one word, three three, four, four, four. By the way, I love having tech technology for our listeners, except if you're driving, please do not text us right now, but text is state. When you stop 33 four, four, four we'll send you out this document. It help make really easy words by the way, pictures as well, cause we all associate learning with pictures more about your life and making planning simplified here on wealth from wisdom.
Speaker 2:
35:50
Have you ever wondered how do other people get away with paying fewer taxes than everyone else? Learn how you could save thousands of dollars in taxes by calling Carson wealth at (888) 419-8513 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.
Speaker 3:
36:17
Welcome back to wealth or wisdom. I'm Paul Wes cohost, today's Aaron Wood. Aaron, we're talking about helping people make the right decisions here today, helping educate everyone on what's important. And so we've spent some time talking about wills and trusts. I've talked about Abraham Lincoln not actually having one. Crazy to think about. Of course we've talked about some famous people like Prince Michael Jackson. Another one I didn't share was Jimmy Hendrix. So lots of famous people have made a terrible mistakes and I hope we can learn from them because fortunately or unfortunately a lot of us live vicariously through famous people. So athletes is certainly one, people live vicariously through, um, actors, actresses is another one. Um, of course music artists is another and I hope we can learn from mistakes they make, right? Because we all think, I want to say we idolize them, but because they're easy to see whether on television, social media or whatever location they come from.
Speaker 3:
37:20
You know, we do hear the stories of the ones who have done a really good job of planning. I mean, you hear things like, um, bill Gates who made his foundation and he put the money in it. And I know we've already said we're going talking about charity and another show. Um, but they've done a really good job of saying, here's where I want my assets to go and here's what I want that distribution to look like, or here's how, you know, what's going to my kids and what's going to these other areas. And all of us can look to them as that good example and follow suit. Yeah, there are plenty of good ones out there. And I think, uh, so Aaron would come into phrase I heard from her is what'd you say? Don't compare my CFP with your Google search on a show.
Speaker 3:
38:02
I also want to say the same amazing to so many people. As soon as you hear something on this show where somebody told you you get on your phone and your iPad and you Google it, it's amazing though. Uh, you, you should do the following is setting up a will expensive, setting up a wheel cheap, you're going to get a whole different set of articles. So how you change one word in your Google search can absolutely change your perception. And by the way, what I or hate is you're then making an opinion based on your Google search phrase and then which article you clicked on. And then most likely the opinion of the writer of that very specific article. You have to remember what is on Google and therefore what's on the internet doesn't necessarily mean it's right. No. And it doesn't mean it's right for you. There's the fingerprint example. It doesn't at all. So be careful because I call it, it's a self fulfilling prophecy. And those of you that have unfortunately caught a very serious illness and you've gotten cancer, you've got a lesion or something, you have some form of medical issue. Once you start Googling an MD in yourself, what do you do as a human being? You assume the worst of course,
Speaker 4:
39:24
I don't, I don't, uh, think any of us go in with that attitude that, Oh, I'm going to Google this and I'm only going to focus on the negative. But again, it's that behavioral bias of we look at it and we're looking for something specific and we're gravitating towards that, that really negative, um, part of the conversation where there are people that all of us know how, who have done a great job of planning their funeral, having their wills. Uh, as much as, uh, I, you know, said early in the show, happy a hundred birthday to my husband's grandfather. Uh, he has everything laid out on the show. I don't think so. I'm not sure that he knows how to use the podcast. I would have to send him a device with it already preloaded. So son needs to train him. Yes. Uh, so he has everything figured out and you know, the people who have went through that to say, here's exactly where all my paperwork is. Here's all my accounts, here's where my wills are. They're really looking at their family and say, you know, I love you and I want you to have the easiest path on this possible. Most of us are not going into this saying, I dislike my children, I dislike my spouse and I'm going to make this really difficult on them. But when we don't plan that, that's what we're doing.
Speaker 3:
40:38
Yeah. So what's one of the biggest forms of mistake people have in any relationship? Whether business, personal, family, spiritual is the seaward of communication, right? So communication is one of the biggest challenges people have. Obviously it's in spousal relationships. It's a huge one. You know, financial can be an issue, but so can communication. And sometimes you have to have hard conversations. It's easy to avoid tough ones, but setting up your will or trust or making changes to it. A Aaron, you want to go out and get a glass of wine this weekend, that's not what you want to sit down and talk about, right? No. You want to talk about positive things. You want to talk about dreams, goals, aspirations. The end of the day is you, you have children. You ha, you had to have a hard conversation with your spouse about okay. Who watches them if we die. Yup.
Speaker 4:
41:30
And we are actually in the process of getting ready to update all this, uh, as your children get older and things change. Obviously those decisions you made five years ago and the decisions you make today, uh, evolve. And, you know, sitting down and having that glass of wine is sometimes a good thing. People thinking, let's plan it. Let's put it on the calendar. Yeah. Uh, I have found for us, it's the bypass conversation. You know, we're both in the bathroom brushing our teeth and one's going in and one's going out and it's on your mind and just say it. Uh, and that's literally what happened a couple of weeks ago. I was sitting there putting my makeup on. I said, you know, I've been thinking about this. Maybe it's time we make a change. And it was not a long conversation. And sometimes you do need to say, you know, this is, this was more than a 32nd. Uh, and we should, we should schedule the time and sit down and talk about it in this situation. I brought it up, my husband said, you know, it, I was thinking the same thing. Uh, and we were both on the same path already. And so now we just need to make the appointment and, and go get it up.
Speaker 3:
42:30
So you did that a couple of weeks ago. So a couple weeks go by and you haven't made the appointment and now you're going to be my accountability partner. Yeah. You guessed correctly. How'd you do that? So now you get to do mine. Yup. Everybody, we all need this. By the way. Accountability partners are good is other families by the way, are experiencing this. You all have friends. So those friends are going to go out and have a glass of wine with. It's okay to bring it up to them and help each other out. You don't have to go through specifics. Um, but other things that you need to bring up. So let's go on the boomer generation, not the little boomer, but the boomer generation. So they're going to start figuring out how do they divvy up assets. I know I've shared this story before, but when you're talking with the family earlier this year and one of the biggest stressors is their mother passed away and the siblings can't decide who gets what piece of jewelry because they don't want to be selfish and take a piece from the other ones.
Speaker 3:
43:26
Interesting. Right. And if they would have had this conversation during mom's lifetime or if mom would have made the decision for them, guess what? There wouldn't be anxiety. So there's the good one. There's a, Hey, nobody wants to take it because they don't want to offend the other person. And we shared with you earlier, there's stories that you got to lock the doors cause you're worried about one of your siblings going to take it. So if you divvy these things up ahead of time, your children actually be thankful. So if you're listening, if you can write down who gets what. Shoot, we joke about this over Thanksgiving sometimes, and by the way, it's almost Thanksgiving. So happy Thanksgiving to everyone out there. Uh, we joke about it at the family dinner table, Hey, who wants what? And it's done jovial. But it's also done with the intent. Like, Hey, the conversation started and we've been thinking about it. Even things like who wants the house, he wants the cars, all of those things. That's just a lot to consider, right? If you think about it, there's we many variables to go through depending
Speaker 4:
44:25
on the family, how much they have that they've passed down from generation to generation. This can get really, you know, there's usually a family where it's mom's wedding ring or it's just a few pieces of information and sometimes you have one daughter and one son. So the daughter's getting all the jewelry and the son's getting all of the tools and tractors and who knows what and they've divvied it that way. But there's other times where you have things that have been passed down from two, three, four generations and now that really gets complicated of who's getting what. It is complicated. If you want help, just shoot us an email info email if I can say that. Info at Carson, wealth.com C a R S O N wealth.com will help answer your questions. We've tried to educate you today. Take action. Aaron. You're going to do what? I'm going to. All right, she's going to take action. We'll hold you accountable. Hey, you've been listening to wealth from wisdom
Speaker 2:
45:19
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:
45:32
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 of 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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