The WAY to WOW Shows
All Things Estate & Trust Related - Part 2
May 8, 2023
Automatically generated from YouTube captions; names and wording may contain errors.

[0:00] for some reason that person maybe that person pre-deceased the the person who died so then the court would appoint an administrator okay usually whether it's a man or a woman it's called an administrator these days used to be an administrator or an administratrix right these these terms that you've probably never heard before right a little a little history in in in trusts and probates and that person would then have the responsibility for seeing to it that the wishes of the deceased person according to the will were carried out so they

[0:36] would open a probate uh call well the court action opens the probate and then once all the property was distributed and all the debts were paid and all the matters taken care of they would close the probate and then that would that would end it okay but you can see that there's there's a lot of expense in that so in order to avoid that in in many if not all states there's something called a living trust that can be drawn up it's it's sometimes goes by its Latin name and Inter vivos trust doesn't that's that's right that

[1:12] sounds like it's expensive you know that way you have to drop an inner veto inter vivos trust oh my gosh what's that gonna cost me twenty thousand dollars no no um these these days they don't cost anything like that a few thousand dollars at the most you know what this trust does is it allows the transfer of property without having to go through probate as long as the property has been transferred to the trust so what happens sometimes is somebody

[1:48] will have a trust created and they'll stop and also their bank account will still be in their own name not in the name of the trust so when they die it doesn't do any good that they have the trust because the bank account is still in their name and so now that a probate has to be filed in order to transfer that bank account okay now there are certain things where it doesn't matter like if you have a car here in in California and and you have a spouse so then your spouse can just go to the DMV and transfer the car into their name that's that's true in Alabama

[2:24] by the way um I know because I handle the matter there not long ago um and and and if you have a life insurance policy okay so again there's no probate needed for the beneficiary of that life insurance benefit that death benefit to go to the beneficiary that happens just as a function of the life insurance policy okay so you know you wouldn't want to put your life insurance policy in in in your trust um or you know even worse pull it into

[3:01] probate somehow that's that is ruining the one of the benefits of life insurance which is when the person dies the basically there's a claim filed you you submit a copy of the death certificate to the life insurance company and then the beneficiaries are paid assuming that there doesn't have to be an investigation and for those of you who are old-time radio fans and you listen to Johnny Dollar right Insurance Investigator you see it seems like every single time somebody dies there's an investigation but but I I that's I think that's rarely the case only if there

[3:37] were some unusual circumstances okay and if you by the way just as a very short digression if you want to watch probably the best movie about an insurance a life insurance policy investigation following the death of an insured watch Double Indemnity it's a movie from I believe the early 1950s Fred McMurray Barbara Stanwick and um oh shoot I um uh Edward G Robinson and uh Double Indemnity refers to a clause that some

[4:14] life insurance policies will have where if the person um has an accidental death the benefit is doubled right so if the policy was for a hundred thousand dollars if they you know delicious died of natural causes but then you know they die in a car accident the beneficiary will get two hundred thousand dollars under a double indemnity clause right and and uh so anyway I recommend that movie but in in any event you can see already that this gets pretty complicated by the way

[4:51] when it comes to whether you owe estate taxes or not it doesn't matter whether you your your property is distributed through a will distributed through um a trust life insurance policy benefits the IRS is going to look at all of the assets of your estate to determine whether you're liable for estate taxes okay and um and we're gonna we'll talk in more detail about that and how it works

[5:27] because it can also be affected by previous gifts that you've given to people over the years okay so how gifts taxes work can also impact what happens to your estate from a tax standpoint so all of these things need to be examined comprehensively and that's why if if there's any kind of sizable assets at all that are going to be coming that are in your estate and going to have to be distributed you you

[6:02] want competent professionals handling them by the way if there's a piece of property you know real estate that needs to be sold as a result of of your passing away you're also going to want to make sure that you have uh well you're dead so you're not going to be worried about this but the person who's handling your matters after your deceased is going to want to make sure that they use a real

[6:37] estate agent who is familiar with how properties owned by an estate are sold it's it's it's not as necessarily A straightforward process there may be other things that have to happen in order for that estate in order for that property to be sold and by the way the same is true for property being held by a trust even while the trust stores are still alive okay so um the the the trust may have

[7:15] requirements about whose authorization is needed in order to dispose of I.E cell certain assets and and one type of assets I.E one type of asset I.E real estate may require a different um set of approvals than say um some stocks or bonds okay so again all of these things need to be looked at and professionals who are familiar with and have experience in these kind of

[7:51] transactions are absolutely required in order to make sure that your Affairs are being handled properly and so my so my my message on this first show of trusts and Estates weekly is number one do you need to be thinking for yourself about uh having a trust what is the state of your estate and what plans have you made for that unfortunate time when

[8:26] you're not going to be here and how will that affect your heirs that's number one number two are you in a business where you could where you maybe already deal with trust and estate matters or whether you could expand your business by dealing in trust in a state matters are you in financial planning are you in financial services are you in the insurance business are you in the real estate business real estate lending real estate brokerage Property Management all of these can be extended into the realm

[9:05] of Estates and trusts and because they require a higher a greater amount of knowledge than the typical professional in your field might have so they are potentially more lucrative areas for you to deal with and potentially less competitive because not everybody has the experience to deal in these areas so I invite you to join me each week at 10 A.M Pacific Time 1 p.m eastern time

[9:40] and if you've seen my shows before you know I always do this an hour in for Central and mountain time and we'll be talking about all of these various issues and we'll be talking with Professionals in these areas to get their thoughts and their advice or their General guidance is is probably a better way to think of it their General guidance on how to handle these matters how to be a professional in these areas how to increase your business handling matters relating to trusts and Estates

[10:15] so that's that's our show that's my show for today introducing you and if you haven't seen my other shows so I invite you to tune in tomorrow Tuesday at 11 A.M Pacific 2 p.m uh eastern time for business lessons from the military where right now we're examining Marine Corps War fighting Doctrine for lessons that we can take away to improve the performance of our businesses whether we own them ourselves

[10:50] or whether we work for a business and and and that's a half an hour show as well and then on Wednesdays at 12 30 PM Pacific 3 30 p.m eastern time is people making money and that is my show where we talk with people who have interesting professions that they love and do well in so past guests having have included a wine maker a real estate investment company owner a professor from The

[11:26] Merchant Marine Academy and let's see most recently I forget oh most recently an author um of a book that will that helps people improve their emotional intelligence through something called enneagrams so do check out my channel on YouTube it's the way to wow show just go to at the way to wow show on YouTube and you will find it you can see I think we've got over 150 50 episodes there going back over the last three years or so all of

[12:03] this is all of all of my shows are aimed at helping you improve your professional life make more money build wealth and then make sure that when that time comes may it be far far from now that uh it's that that wealth needs to be passed on to your loved ones and your heirs we don't always love our errors unfortunately that that's all handled in a way that you can lay your head on your pillow each night and and and sleep well with without worry so thank you very much for joining me

[12:39] again I'm Kevin demmel your host and signing off by saying Marie darling you're going to hear it three times a week now you are and will always be my bell thanks so much for watching look forward to seeing you in the next couple of days and next week