Are you leaving your spouse a mess
[music]
and no plan? You're a man, there's a 72%
chance greater [music] you're going to
die before your spouse. Your tax
brackets are shifting dramatically. That
400,000 of income you can have and still
be the 24% bracket is going to go down
to only [music] 200,000 of income. And
once you get over that 24, you're going
to 32. If you screw up, you're going to
be sending way more money to the IRS
[music] than you had to. Differences
here is astronomical.
>> And this affects every one of you
listening.
Welcome everyone to the Main Street
Business Podcast. This is Matt Sorenson
joined by the incredible Mark J. Kohler
and today is a critical podcast and
topic. We're talking about how to avoid
the penalties when you die.
Yeah, and there's there's different
taxes and penalties that affect
everyone. And many people don't know
that. And this is a this is a podcast
we've never held before. A lot of times
we're going to talk about topics that
we've covered years in the
years ago and we want to refresh it,
bring it current. But this is a topic we
really don't talk about a lot and that's
when you die, married or single, what
are the penalties and taxes you could
face if you don't do a just a little bit
of
pre-planning. There's really a lot of
things you can do and we're going to go
through four of them today.
Yeah, and I think everybody jokes about,
you know, what are the two things are
never one, death and taxes. But here's
one of the things people don't talk
about with death and taxes, is it is an
incredible planning opportunity and it
is one that if you screw up, you're
going to be sending way more money to
the IRS than you had to and it's not
just about the estate tax. So many
things around this. The most common
assets you're going to own we're going
to be talking about. Retirement
accounts, brokerage accounts, real
estate, your home. How is this stuff
being held? Have you planned for this?
How is it getting passed down? The
differences here is astronomical in what
your family's going to get to keep
versus what you're going to be sending
to the IRS and possibly your state.
Yeah, and this for for those of you that
are married, are you leaving your spouse
a mess and no plan? And that's what it
really comes down to as well. Because
you think, "Well, I'm going to we you
know, everything I have is going to go
to my spouse anyway. There's no you
know, I can leave unlimited money to my
spouse tax-free." Oh,
we've got some surprises for you today.
And you know what, Matt? I love what you
said. You cannot avoid death and taxes.
Yeah, but you can avoid death, but you
can avoid death taxes.
Huh? Huh? You like that? I like that.
>> Okay.
Yeah. And here looks
All right. Here is Matt, let me just
present the
three of the four because they're
interconnected. So, everybody if you're
hear the me out. This is really
interesting.
One,
if you're married
and you're at retirement age after 59
and a half, 60, 62, 65, everybody's
claiming social security somewhere in
there depending on your situation.
If both of you and you could be thinking
of mom and dad right now, if you're
in middle mid-life and you're helping
support mom and dad and guide them or
planning for the future yourself,
thinking about this. You're getting
you're going to get there.
Yeah, yeah.
If you're
if you're both collecting social
security, when the one spouse dies,
that's going to get cut in half.
Now, the surviving spouse is going to
have choices. They could take the
survivor's benefit of social security or
stick with what social security they
were getting before their spouse died.
They're going to take the higher of the
two. Yeah, you don't get both.
You can't take both. Yeah, yeah. Yeah.
Can't take both. So,
you're going to have
reduced income. Now, what that means,
we're going to come back to this, where
is that surviving spouse going to get
that extra income?
They're going to go to the retirement
accounts. They're going to start pulling
out of an IRA or hopefully a Roth.
And how are they going to deal with
that?
And so the third So, we're going to talk
about what tax bracket are you in
after your spouse dies and in the year
they die.
And then third, how much money do you
have in a Roth position? Because I'll
tell you, when you're going to make up
that Social Security, you're going to
want to go pull it from a tax-free ATM,
not a taxable ATM. So, those are the
three penalties and Matt, I want you to
start unpacking them in the order you
would like, but I want everybody to know
and we got a fourth out here. But, the
first three are Social Security is going
to go down.
Retirement distributions are going to go
up.
And what bracket are you in tax-wise?
They all play together. Yeah, and we
want to talk about your other assets as
well.
Your home, your investment accounts. How
are you titling and owning those? Cuz
this gets into stepped-up basis and are
you both on title? Is one of you on
title? There's different strategic ways
you want to do that. Do we have one
trust, separate trusts? Are we in a
community property state or not? We're
going to unpack that. So, you know the
direction that will make sense for you
cuz there's some strategic decisions.
>> Yeah, okay. [laughter]
I'm just saying there's more we're going
to hit here. I want to say one thing,
too. We're going to dig into what Mark
the setup there, but
sorry, I want to digress for one moment.
Remember, the estate tax exemption is
You call it the death tax, the estate
tax, whatever you like, is 15 million
single, 30 million for a married couple.
All right? So, we're not hitting that.
That's
>> Yeah. If you're over that,
bless you. You're going to be needing
consults with attorneys, tax lawyers,
estate planning. You should have your
stuff dialed in. We're helping clients
with that every day at our law firm KKOS
Lawyers.
Let's get to the next level below that.
Whether you're you're not even hitting
that level or even at that threshold, we
want to hit some of these other points
that are critical. They'll eat in to the
money you've built up over this time.
And you want to keep as much of it as
possible to have a retirement you're
looking forward to. All right. We're
talking about Joe and Jane Sixpack,
absolutely. All of you are affected by
this. And and let me say this, let me
kick it off with this, Matt, cuz I think
this is the crux.
In the day your spouse dies, now number
four, we're going to talk about titling
assets and are you are we dealing with
grandpa or grandma that are widows or
widowers? We're going to
We're going to come to that, but here's
the big issue. If you're married, the
year you die,
your surviving spouse gets to claim the
same tax bracket as married filing
joint. So, if your spouse dies in March,
even when you file your tax return at
the end of the year, you get to claim
the whole year as married filing joint.
Now,
the tax bracket that is just perfect for
Roth conversions, and this is Matt
Matt's creme de la creme that I'm
setting it up for him here to talk
about, is [snorts] the 24% tax bracket.
That is my favorite tax bracket because
at 24% a married couple can convert Roth
money to Roth up to $400,000.
But the year after your spouse dies,
that's cut in half. Your tax bracket
goes down to 200 grand. So, if you know
that's the case, and remember we got to
make up for Social Security, we want to
go to our those retirement accounts,
wouldn't you rather have more money in
Roth? So, you're in a sweet spot at that
$400,000
tax bracket level, and you either got to
start taking advantage of it now
or when your spouse dies in that year.
And that's
where this all leads. All roads lead to
that Roth. And Matt, you love Roth
world. Yeah, yeah, of course. I know I
love a good Roth conversion. We love
getting that money so it is going to
grow and come out tax-free. I want to
come back to your kids that inheriting
from you. Another kicker and additional
benefit on top of that. But let's just
stay in the year your spouse passes
away. You're going to be dealing with a
lot, all right, obviously.
One of the things you got to start
getting your head around is what am I
doing with my retirement accounts?
There is $50 trillion in US retirement
accounts. It is what many Americans are
planning on living on in retirement. You
may already be living on it or planning
to in your future. So, if you have
traditional accounts,
any of it has traditional accounts, the
year your spouse passes away, you want
to be considering Roth converting those
assets for that primary reason Mark
talked about. Your tax brackets are
shifting dramatically.
That 400,000 of income you can have and
still be in the 24% bracket is going to
go down to only 200,000 of income with
the 24% bracket.
So, and once you get over that 24,
you're going to 32. It's not just 22 to
24, it's 24 to 32.
All right? So, this is an ideal time.
Maybe you are at, let's say, 200 grand.
And and that's what you're going to have
that year in taxable income from
everything else you got going on, you
can convert a whole another 200,000 of
income up to 400,000 that year to Roth,
and you'll have no additional tax.
You'll still be at the 24%, but no
additional tax. You're staying in that
bracket. Next year, your 200 grand of
income, you want to do some Roth
conversions?
Oh, you're in the single bracket now.
Your rate's going higher. Totally. And
what I want to So, now some of you are
going, "Okay, this is a little
information overload. I didn't even know
of that this strategy could benefit me
because you don't have to be rich to do
this. You may have an old 401k laying
around. Your spouse is going to pay tax
on that where at a higher tax bracket.
So, maybe we rip the band-aid off now
and get rid of some of that tax at a
much much lower bracket because you know
of this change in the security and and
the other income you're going to have to
take. And this is where estate planning
now matters.
We We When we meet with the client to
talk about their trust, a plain old
joint revocable living trust, we're
going to ask, "What are your assets?
What real estate do you have? What
businesses do you have? How much is in
retirement accounts? What is it going to
look like when you pass away?" And we've
got to fund this trust. We've got to
make sure that owns the property and all
the retirement accounts and insurance
and everything goes to the right spot.
And so,
some of you half of America does not
have even a will or a trust. So, this is
a good wake-up call to say, "You know
what? I got to get my estate plan done.
And when I have that meeting, I'm going
to talk about this."
Cuz the more pre-planning you can do,
the
thousands, if not millions in long-term
income you can save.
Yeah, and I think this is just one of
multiple moves we want to talk about to
be thinking of when your spouse passes
away. Now, if you're the surviving
spouse,
there's other considerations here. We'll
We'll hit on some of those, but when
you're the second to die from a married
couple, other considerations here. But,
that first one, the change from being a
married to filing
married filing joint to single bracket,
prime opportunity, as Mark said, in the
year of death, you get the married
bracket for the whole year. So, it gives
you some opportunity to do some of this
planning. Think of Roth conversions,
getting those traditional accounts to
come over to Roth. Think about this
another way.
Let's say
that I convert that Let's just take that
example of 200 grand to Roth.
Let's say I can get a 8% return on that.
What that means is in 9 years, that
200,000 account doubles and is 400
grand.
Now, when I'm pulling that 400 grand
out, that's totally tax-free.
But, if I didn't do that, that would and
I left that state traditional and still
grow to the 200,000 or 400,000 account.
I'm paying taxes on that traditional
rates and that's going to be painful
later on when you would have had this
opportunity maybe convert at a lower
rate.
Another sneaky strategy that we talk
about when we do estate planning is
people will say, we'll ask them, do you
want to give money to a charity when you
pass away?
And you may say, yeah, we got this life
insurance over here. We've got this
asset or whatever. And if either one of
us dies,
yeah, we've thought about giving a
little bit money to an endowment or a
charity or our school or alma mater,
whatever. Is it alma or alma mater? Alma
alma mater? You know, tomato, tomato,
you know.
>> Tomato, tomato. So, you want to give
money to charity. So, in your estate
plan, think about this.
The first spouse passes away in that
year when you're in a lower tax bracket
before going single,
if you gave more money to charity out of
the estate, that surviving surviving
spouse gets the tax deduction for that.
Now, we're offsetting more Roth
conversion. So, in the year where you
have cuz it's true, when your spouse
passes away, there's going to be a
little bit of windfall of income and
assets that have to be dealt with. Well,
you want to jump on that and say, okay,
we're going to pre-plan to give money to
charity. We're going to convert that old
401k to Roth, take advantage of the
lower bracket and offset some of the tax
with Roth with the charity so we can
convert more to Roth because we know
that Roth is going to take care of mom.
And if you're
a man, there's a 72% chance greater
you're going to die before your spouse.
So, you can need to be thinking, what am
I going to leave my spouse? A mess or a
plan?
Yeah.
Love that. Great additional points
there.
Um let me hit one other point and sorry,
Mark and I can volley on this forever.
But, before you get to the next thing, I
just want to hit one on the retirement
accounts.
I I know we're all always thinking about
optimizing for ourselves and obviously
our spouse if you have one, right? We're
thinking of these assets that we've had
that we've built over time
and
we talked about that little strategy of
getting the Roth conversion.
The number one asset you can leave to
your kids
is a Roth IRA.
There is no more powerful asset your
kids can get. I know they can inherit
like some real estate and get a step-up
in basis or a stock portfolio. Yeah,
when they get that, any future
appreciation of that asset, the stock in
a brokerage account, the real estate,
the business that got passed on, any
future appreciation that they have in
that asset, they're paying taxes on. But
the Roth IRA,
they inherit that, that money can come
out tax-free whenever they want, but
they can also invest it for another 10
years.
That Roth IRA, which can be inherited to
them as an inherited Roth IRA, they can
invest it for another 10 years. Again,
go back to that 8% annual return, they
can double that account entirely
tax-free benefiting them and their
future retirement. So, it that not only
is that Roth conversion help you in your
tax planning as you're drawing that
money out, what you leave in it that
your kids inherit is the most valuable
asset that you could leave them, period.
Yep. Okay, now I want to summarize our
three penalties that we've talked about
in a different way and then present
number four cuz Matt's comment is a
great transition. Number one,
a surviving spouse is going to have less
income from social security. There's no
way around it. They will. One of those
social security checks goes away.
Number which means number two, they're
going to rely more on retirement income
from a retirement account, which brings
into the play IRD, income in respect of
a decedent. So, when you collect that
retirement account on behalf of your
deceased spouse, you're paying tax on it
unless you take advantage of a Roth
conversion, which brings us to the third
issue.
In the year they pass away, you've got a
favorable tax bracket you want to take
advantage of and convert more as you as
much as you can to Roth, keeping it in
that 24% bracket, because the year after
they passed away pass away, you're going
to be in a single tax bracket, cut all
of that in half. So, those are the three
problems. We got that lower tax that
higher tax bracket, income in respect of
a decedent, and lower social security,
but we can take advantage but but we can
deal with it if we talk about it. And we
get that done when you do your estate
plan, cuz then we have that charitable
contribution that can help get you over
the hump. Last thing I want to say, cuz
I know some can get tripped up on this,
cuz you hear about inherited IRA
accounts.
When your when your spouse passes away
and you're the surviving spouse, you're
not doing an inherited IRA. You're doing
a spousal rollover. Again, when we're
going over your estate, we take
inventory of what you've got. You got
retirement accounts like most people?
Okay. List your spouse as beneficiary on
that to receive those. We'll list your
trust second, or you can list your
trust, but your trust is primarily say
your surviving spouse gets your assets.
What that allows for is your spouse
inherits that account and it becomes an
IRA for them, or a Roth IRA for them,
which is important, cuz that means they
can still do a Roth conversion. That
strategy we were just talking about
requires this what's called the spousal
rollover, which every IRA custodian
does. We do it at ours every day.
By sincerity, all the time. So, um but
when your kids get it, it's an inherited
IRA. Okay.
>> Yeah. Matt, I'm so glad you got that
last point in, because so many people
are confused between a spousal rollover
and an inherited retirement account.
They're two different things. So, it's
such a good point. Okay, now number
four, and this affects every one of you
listening here.
It is called my three favorite words,
stepped-up up
Now, you can either roll have a huge win
with this
or a huge
disaster.
Example, let's say mom and dad
you you and your spouse own a rental
property
and it's worth a half a mil or a mil. It
could be a commercial property, could be
a single family home, it could be an
Airbnb, but a lot of
successful people who listen to our show
have rental property. So, you've got
this rental property and it's got a
basis of let's say 400 grand and you've
been collecting cash flow off the rent
for years, maybe even took some
depreciation and that thing is worth a
million. Or it's there your basis is 200
grand and it's worth 800 grand. The
bottom line is you've got this big
built-in gain.
Now, you own it in your joint revocable
living trust through an LLC. Makes
sense. That's what I do.
Patty and I have several rental
properties in LLCs owned by our joint
revocable living trust.
Then, of course, averages are especially
with me with my high blood pressure, I'm
going to die first. Sorry, Patty, if
you're listening. Don't listen. Okay, so
I die first.
Well,
we only get a stepped-up basis on half
the property. So, if it's worth a
million
then only half of it goes up to 500
grand. The other half inherits half of
the basis. So, if the basis was 400
grand, now Patty's got a $200,000 basis
on a $500,000 piece of it. So, she's got
a built-in gain of 300 grand. And you
would think, well, she inherited the
rental property, she should get a full
stepped-up basis. No, no, no, no. She
only gets it on half the property. So,
she goes to sell it,
she's got a tax of with Fed and state
could be as high as 30 35% so she's
paying tax of a hundred grand
after I die.
And when it could have been planned for
in the estate plan. Now Matt, you've got
the first I love you I learned this from
Matt before the show started. Tell me
the first escape hatch on this for a lot
of people.
The first escape hatch which a lot of us
get the benefit of is community property
states.
Okay, if you live in a community
property state, you get the double step
up in basis.
If you're a married couple and you're
the surviving spouse. So that same
example Mark went through.
Mark passes away first.
Patty's surviving spouse. She inherits
let's say one of their Airbnb's in
Arizona that is in a community property
state. She gets 100% stepped up in
basis. So that property's now worth a
million bucks and they bought it for
500k.
And even they've depreciated the heck
out of it.
She gets a new basis reset of a million
dollars. Okay, that's Arizona which is a
community property state, California,
there's a number of them we can rattle
them off here.
>> Here's I'll read them off. Here's the
nine states and here's what's
interesting folks.
Oh, I'm going to give you a big reveal
here too. Arizona, California,
Idaho, Louisiana,
Nevada, New Mexico, Texas, Washington,
Wisconsin.
Now here here's an an interesting point.
Patty and I our residency is Arizona.
But a lot of our property is in Utah.
Well, Utah is not a community property
state.
But you say, "Well Mark, it you get
stepped up basis
where? Utah or Arizona?"
Community property rules that Matt just
talked about where you get double
stepped up basis,
it comes into play based on where your
residency is at date of death. So if I'm
an Arizona resident, but I've got
property in Utah or New York or Florida,
I get double stepped up basis on all my
property around the country if
my domicile and residency is a community
property state.
But you say, "Well, I I live in Utah,
but I have property in Arizona, so I get
stepped up basis double on Arizona." No,
no, no. Because the property may be in
Arizona, but you're a resident and
domicile of Utah when you die. So, you
got to think of where your So, when we
do your estate plan People are like,
"This is why every one of you should be
rushing to make an appointment with our
lawyers and say, 'I got to get my estate
plan done. I got to get my trust done,
and we got to talk about this crap.'"
Because that's just the married stepped
up basis issue. What if your kids get
involved? Now, Yeah. What are your
thoughts on that? There's so much to
unpack. Yeah, what I would say then is
so if you're thinking, "Man, I'm in
let's say Utah." We've thrown that state
out. Whatever. But you just Okay, let's
just stick to that. I'm in Utah, a
non-community property state, and that's
where I'm a resident of.
What do I do, Mark and Matt? We don't I
won't How do I get the step up in basis?
We've got some assets that are highly
appreciated. I don't just want a 50%
when I pass away. I want my surviving
spouse to get a 100% step in base. What
can I do?
This is where we get You want to get a
little more strategic. You actually
might want two trusts.
There's a number of instances where
we'll do two trusts for clients you have
yours, mine, and our assets. Or maybe
you've got some very highly appreciated
assets or or even just, you know,
hundreds of thousands. That doesn't We
don't have to be millions, okay?
But you got some appreciated assets
where it's like, "Hmm,
which one of us" And this you might not
know this in your 40s or 50s, but maybe
in your 60s or 70s this might become a
little more apparent that we want to put
some more highly appreciated assets in
the spouse's trust that is more likely
to pass away first. Yep. And let's do an
example. So, I love this. So, let's
stick with, again,
me and Patty. I just We're the I'm the
I'm the guy dying today, I guess. I'm
[laughter] glad you I'm glad you chose
that role. I fell right into that one.
>> [laughter]
>> All right. So, I'm the guy dying. I'm
I'm coming to grips with this, you know.
All right. So, let's say
the Everybody needs to know, we're not
talking about splitting up your estate,
which could screw up kids, inheritance,
his, hers, and ours, and all that. We're
not splitting up value, we're splitting
up basis. So, what that means is
let's say Patty and I have um
a big retirement account, a Roth account
worth a million dollars.
And then we've got this property over
here worth a million dollars, but with a
really low basis.
Well,
right now, it's joint 50/50 on both of
them.
So, if we died and we're Utah residents,
maybe we move out to the ranch, and I
die first, she only gets stepped up
basis on half of the property. But, the
retirement account doesn't matter cuz
it's a Roth and it's a retirement
account. So, stepped up basis doesn't
matter. We're back to IRD. So,
whoa, this is interesting. Well, what
can we move in the trust into
my trust, so I get a stepped up Patty
gets a stepped up basis. So, we may move
the property into my trust, we do
separate trusts,
and then the retirement account goes
into her trust. Now, we're going to
split up everything equally with the
kids, however we're going to do it
anyway, but if I die first, which
chances are,
she gets stepped up basis to a million,
zero tax. She just saved a hundred grand
and didn't even know it.
That's what the planning is all about.
Yeah, and and we never know who's going
to die first, obviously. Like you're
you're you're making bets here, so to
speak, but you have an opportunity to be
far more strategic about it. And
sometimes you I hate to say it. I mean,
this is how life happens. You start
seeing which of you is deteriorating
more quickly, which of you might have a
terminal medical or illness.
That might be the time to start doing
some shifting of assets in the
non-community property states, where we
may want to take advantage of the
step-up in basis, because spouses,
husband and wife, you can transfer
assets between each other as much as you
want. There's no gift tax or penalties
between spouses or your trust. You can
move assets around whenever you want.
You get the carryover basis, no
resetting of all the rules. And so, you
can get a little more strategic about
that. So, you might be thinking, "Man, I
don't know. I'm 40 or 50. We don't know
who's going to outlast." It just Think
about this. This could be something
later on. Uh maybe you're thinking about
this for your parents, where it's pretty
apparent which one's got
This can be so
Just play the odds. You should know
that.
You got to play odds. So, I was at the
casino last week watching my uh sons
play poker, and they were and they'd
split a hand. I'd be like, "Why did you
split that hand?" Well, you got better
odds if you split. So, when you have two
aces or two eights,
you always split your hand, cuz you're
going to play the odds. So, Patty needs
to play the odds that I'm going to die
before her. So, in our estate planning,
we're just going to do that. And I got
to come to grips with that. So, It's
just You got to play the numbers.
>> I mean, it's statistics. Yeah, play the
odds.
>> the statistics earlier, so All right.
Now, let me give you another crazy one,
folks.
Let's say you're single, or we've got
grandma or grandpa.
And they've got this big asset.
There's a farm. There's a stock
brokerage account. There's a second
home.
Uh maybe it's the primary residence, and
it's worth a couple million. Nowadays,
it's not unheard of to have a home worth
a couple million, especially in our
coastal states, right? You can figure
the California 401k. Man, you can't even
get a condo for under 1.5, right? So,
you So, you've got this big asset.
California 401k, I love [laughter] that.
Is that the condo for 1.5 million? Yeah.
[clears throat]
So, let's say
>> [cough]
>> Mom
or Grandpa hates lawyers.
It hurts. It hurts cuz Matt and I, we
try to save the world and make it a
better place, but they may hate just the
thought of working with the lawyer and
doing an estate plan. And they heard
from their friend Marge that said, "Hey,
just put your kid on title with you.
Just go down to Merrill Lynch or
Edward Jones and put your kid on the
account with you
with sur- the
rights of survivorship, so that when you
die, they inherit the property.
You don't have to do a trust, you don't
have to do any will or planning.
And we see this all the time. Grandma or
Grandpa goes and puts their oldest child
on title with them
on the the big asset,
brokerage account, whatever the hell it
is,
and then they die.
So, now,
example,
$5 million property,
they die,
that child gets stepped-up basis on how
much, everyone? Half. And that's even on
community property, cuz that's a child.
That's not a spouse. So, community
property doesn't even matter. So, in all
50 states,
that child only gets stepped-up basis on
half of that $5 million asset.
Now, they're paying tax on whatever that
built-in gain is on the other half,
when they didn't have to if they would
have done a freaking trust. And that's
only half the battle. I mean, Matt, what
are your thoughts before we before we
even move on to the second problem?
Yeah, I mean, this is this is the most
classic mistake that we see, and it is
people trying to avoid doing a trust.
The number one thing most wealthy people
have, a freaking family trust, revocable
living trust that says who gets your
assets. And I know you're like, I want
this to pass on. I don't want my kids to
go to probate court and all this and
have to deal with all the lawyers and
I get that. The trust does that. You
talk to a lawyer now, you do a little
bit of planning, you get it done, and
then your trust owns that property. And
you've got your plan set, your kids
going to get it when you die,
and they're going to get the
step-up-in-basis that we've talked
about, 100% when you pass away.
>> 100%.
>> They can sell that $5 million asset you
bought for 500 grand and pay zero tax.
But shocker, you tried to avoid the
lawyers, so you just put them on title
because
you got it done at a deed with the title
company, and now when you they go to
sell that property now for 5 million,
they get a 50% step-up-in-basis to
you know, where they got I guess they
get 2.25
or now they get they get about 2 million
bucks. So, paying 20%
on an on another two and a half
approximately here, just hang with me.
That's That's like
uh
50 grand in taxes at a long-term rate.
>> [laughter]
>> The 500 grand, sorry, you got to add an
extra zero. Yeah, add another zero.
Geez, 500 50 grand.
You just saved half a million in tax.
And that's just one asset we're talking
about here. So, we see that mistake all
the time. Yep. And we have to unwind it.
And the second problem
is the child then has to gift
that asset to the other siblings and use
up some of their gift lifetime exemption
or pay gift tax. Where with a trust, it
would have just passed without gift tax,
without some sort of disclaimer which
may or may not work, and it just going
to court, probate, all that crap if they
just would have done the trust. Now, I
want to throw this out.
We You You may be catching this podcast
5 months from now,
5 weeks from now, it's a year from now,
whatever.
But, for those that are catching our
podcast on a regular basis,
we have just given you the perfect
Father's Day gift.
From Memorial Day to Father's Day,
we do a special every year. This is our
11th year. Because once you go to some
visit someone's grave on Memorial Day,
or you're thinking of the perfect
Father's Day gift, we thought let's give
you a gift and do a discount on our
annual estate planning special only one
time a year for 3 weeks, we do this
discount. Now, if you're here catching
this later,
who cares about the discount? You
already see the problem. You don't want
Let's see, [snorts] pay 500 grand in tax
or do an estate plan for 3 or 4 grand?
It's pretty easy. But, if you're looking
for the perfect Father's Day gift,
give them an estate plan. Because guess
who's going to benefit? It is the
perfect passive-aggressive gift of the
year.
You give them
>> [laughter]
>> the estate plan and then totally benefit
from them.
And so, let me just say,
you're welcome.
Yeah, I can't think of a better Father's
Day gift.
Um it's right around the corner. You
missed Mother's Day. You could have set
this up, you know, for Mom, but you can
save it with the Father's Day gift. And
um whether you use us or not, and now we
have
an incredible team here helping clients
across the country get their estate
plans done. Think of these things, be
strategic about it, and leave as much of
their wealth in the exact way they want
to. There's so much more to it. It is
not complicated. We do this every day.
We can simplify you, guide you down the
path so you can get it done and across
the finish line. But, get it done.
Whether you're using us or not,
hopefully you will be able to keep more
of these hard-earned assets for yourself
and your families. And hopefully this
podcast helps you get one step further
to that. Yeah.
Thanks everybody for listening. We're
trying to get creative here and point
out a lot of thing again back to the
beginning of the show.
This is stuff we normally don't talk
about, but we see it all the time and we
just had to bring it together all in one
show. So, four things that are going to
affect everybody, no matter your income
level, married or single,
these are penalties or taxes that you
can truly avoid. So, bring these up. We
will bring them up with you when we do
an estate plan with you a very
affordably. And whether we have a
special or not, this is a there's no
time better than the present to deal
with this because I hate to tell you you
will die and you don't know when. So, if
you've got some secret crystal ball that
will help me out, I would love to
[music] see it. So,
thanks everybody. We will see you next
week for another show of the Main Street
Business [music] Podcast. Please share
this with your friends and family
members. Give us a
five-star, two thumbs up, 10 out of 10.
So grateful to be here with you.
>> [music]
>> We love you. We love the American dream
and we'll see you next week.
>> [music]
