Estate Planning & Elder Law Hour - 6.30.18

Saturday, June 30th

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”
00:52:18

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds. Are we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds welcome everybody to be safe planning an elder lot hour with me skip Reynolds thanks so much for joining me this Saturday afternoon hopefully having a great day so far. So like I do every time of this show is that talk about why I do you. This show why do the estate planning an older law hour. And the reason that I do it is because I just see so many people come into my office. Making. Unexpected or unintentional mistakes. With their state plans. And or prepping for future occurrences such as long term care needs or other things. And it ends up not working out the way they thought it was going to work out. And that analogy that I use and use this over and over and over so if you heard it before bear with me here but. A lot of time so we do in this happens in all areas of our life we hear things from our friends or neighbors are co workers. We may read something in the newspaper or magazine or here's something on the news. Or whatever it might be and we start to say you know what those are the facts. And we share putting together all of these facts about different. Danes that go on and that happens with the state planning a lot. And so you put together these different factual when you put two part facts together to have facts together that doesn't make a whole fact all the time. And yet we do. And then we make decisions based upon what we believed to be the facts based upon it. Been proven to be true or was someone told us to do were not to do. And what ends up happening is. If you. Only know half of the fact. The other part may be something that you had unintended. Consequences that you didn't even know about. And then you make a decision with your state plan you give something the way you do this you don't do this and all the sudden now we knew can't fix it. It becomes a problem. And the reason I do this show is only give viewed as Paul Harvey used to say when he was on the radio the rest of this story. Because if you have the rest of the story now you understand the positives and negatives. So now you can make a really informed decision. Mean it's kind of like. You know in in my life buying the car. I wanna know about this car wanna know is safety record I wanna know the price what are other similar price is how many miles is to have especially if it's a used car. Already know all the same sign make an educated choice. Well why don't we wanna do that with our state plan why don't we make what. What looks to me sometimes to be a snap decision based upon only a part of the facts. But only look under that rock a little further and that's what I'm trying to give you this what's under the rock the rest of the stories that you can make better. Choices and decisions for you and your family. So that your family can take care of you win you're alive and maybe can't take care of yourself. Or when you're gone said he could take care your family however it may be that you wanna take care of them when you're gone. All right so enough that I wanna start off today's show talking about stuff. Yes everybody in America we have stuff and lots and lots of it. I would argue we have too much stuff in and some of you out there were probably shaking your head in agreement. That we all have too much stuff. I'm not talking about money and our bank accounts on talking about stuff in our houses. In our apartments are condos or whatever it is there where it is that you live we've got stuff we've got paintings on the wall we've got. China though maybe we maybe have a there heir looms who may have jewelry may have baseball cards he may have. Gun collections whatever it might be we may have these things. And typically. We don't spend a whole lot of time. In an estate plan or if we do our own estate plan thinking about. And I hope that the kids don't fight over my stuff. Or hope that my stuff gets dealt with or my kids don't want my stuff. We say all of these scenes or big week US accusing we say hey kids what do you want to go not been I don't want anything. And it's because they're thinking of the couch that you have the TV that you have well they are to have a couch aired have a TV they don't need that stuff. But there are things. That I can guarantee you it really they start going through all of your belongings. They start looking and going you know that's a memory of mom or mom a memory of dad. And now they start to want the saints. And so we really need to take. A little bit more time and be more thoughtful with how to deal with this stuff issue is if you just don't do any king. I'll tell you right now. There is a high high high likelihood. That your children how some sort of conflict. Over your stuff. Something that means. That hasn't zero monetary value. Can mean something to them in you have no idea. Plus all things come out it's more talk about that as well. And no reason I'm talking about this today as I was preparing for the show. I was reading through bunch of different articles that that happened upon this Washington Post article. In titled how to divvy up the inheritance and keep the family together. Because what we see so Hostin is one of the number one things that kids fight about is actually our stuff. It to the money we can deal with. We can do within various different capacities but it's the stuff that kind of flies under the radar it usually isn't a part of of probate if you've done other things to avoid probate but we've got all of these little trinkets and things in. Need to be dealt with and how do we deal with it. So don't wanna give you guys to start with a few examples where. I've heard stories from my clients of scenarios that I can guarantee their parents. Had no idea and hadn't even considered to be a possibility. But it actually happened. So. During my time practicing in this area of estate planning. I've now had two clients not just one but two clients. They do not. Have a good relationship inane in both circumstances actually do not speak to their sibling anymore. Because they fought over a coffee can't. A coffee can't. But the heck is a copy can that would what does that have to do you mean has zero monetary value right. In an old 1950s copy candidate doesn't say Folgers anymore because it's you know. Worn off. But it was a it in one of the circumstances it was. It was the cookie jar. And that was a good memory for both of the kids because there mom would always make him cookies and they come home after school and they reach in there may grab a cookie out of the cookie jar. It was a memory. They knew that it had new monetary value but it was one fleeting memory of long. And navy both wanted to. And they would go to the end of the earth. In these circumstances. To give it. Now I know that there's pride people out there is say you know my kids who never ever fight over things like a coffee can. I'll tell you right now what you think your kids are gonna do and what they actually do in many circumstances are completely the opposite. Too often do I see in my office in hear stories from clients not meet with hundreds of people every single year. And I hear all these different stories about their parents dying and different things that happened for them in divvying up money debts is state. Ended a lot of times you hear. Hurt feelings or negative feelings towards other children. Because of personal property. So another story that I had somebody have happened in and this and I've heard multiple times as well. Is. Mom or dad died. And the person who was. One of the beneficiaries of their I think in this one particular circumstance I think there are three kids. So one of the kids was. Living in town the other two were not. And mom passed away. And that kid you know promptly left after mom passed away. Went over to the house. Changed the locks on the house. So that only they had the key in. Took what they wanted. And disappeared. Essentially they just took all the good stuff and took off. And left the other two to deal with everything and all the good stuff was gone so they took all of the jury that was worth anything pretty much everything in the house it was worth something was now gone. Now I know that you're seeing home my kids who never do that but I've actually had other families that lock the doors because they think that one of the kids might do that. And they're trying to preclude that from happening because. The kids don't always trust one another. Right there's not talk about it later there are all things it still are lingering. And sometimes the thing that is keeping that from bubbling to the surface is my armored out. And once mom or dad are gone it can bubbled to the surface in become you know a big problem. And then it. The heat rule this this was six Dominic is one of my favorite clients but. She really really wanted just one theme of her mother's. But never told mom that she really really wanted it. And then when it came down time for the fans need to sit down insert distributing out all of the jewelry and other kinds of things. In the way the they did it it wasn't her turn as somebody else took it. So the only thing that she really really wanted she never told the mom because they never had the conversation. Probably because both mom and daughter didn't really wanna talk about their own mortality and all talk about that later too. But. She didn't get the only thing she wanted and now mom's been gone for years and years and she still has hurt feelings about this. And I can guarantee you mom would have never won a dad or at least he could've had an open discussion about it. So that everybody was on the same page mom. The kid that wanted this piece of jewelry and then at any the other kids as well says at least it was discussed before hand. Art so. Sometimes these old feelings come to the surface. After a mom or dad die. And you know why I joke around about this stuff but it's real. And it I don't know if anybody out there listening maybe you had this happen to you in your family when your parents died if there if they passed away and if your parents have been passed away. On May be you can think of OK yes maybe I don't always have the same level of respect for all of my siblings. Specially if you got multiple siblings if he got more than one sibling. There's a pretty good chance said. There's some kind of relationship strained between the kids at some point in their lives. So at some of the things that I hear my office or you're always moms. Avery she always took care you she always gave you more she always PBG she didn't she let me do anything you hear all of these. You know she didn't she didn't sheeting near the favorite. Or you always get your way because you're the youngest are you always keep your way because you're the oldest end and year's the most domineering. Com or I'm the oldest I need to make the decisions mom put me in charge on that personal representative or well most people called the exact year and I get to make these decisions. On and then. About it in this article that the how to divvy up the inheritance. The Stanley did actually eat what I thought was a pretty cool being all talk about that here a minute. How did you listen and his fighting but. And one of the kids was purposely running not the price on another kid because he knew that the other kid wanted that I don't. And wind. There's the kid they really wanted that item snapped back and said you know you're purposely doing this and he's yes. The the other brother said yes I use the younger brother I still get to pick on you. So I mean stupid stuff right. You would think that if your kids are 5060 east you know maybe even older than that. That some of these things would go away this this wanting to pick on your brother your sister like he did when you're ten. Would be gone. But it's not always gone. So. These scenes do you have been I don't know whether it's happened for you in your family or not but. One of the big things that people do is see just pass off this port of their state plan. And they don't give it much thought. And they just say you know my kids who just deviate they told me they don't want any being or maybe you haven't even had the discussion. With the kids. And unfortunately. All of the things that I just talked about happen. Every single day. In households across America all throughout the Denver metro area Colorado etc. And it's because. We just figure it's no big deal. Always did it doesn't mean most of our steps not gonna go through probate. That's really what I'm worried about a more worried about probate and I am my kids getting the long after. I've passed away with all of my stuff. And you need to be specific folks. You need to start having discussions. You need to understand the dynamics between your kids. And I'll tell you right now and and it I give it I hope for myself with my kids. But. I also has seen enough stories in PM wheeze to understand that it's. It is the exception and not the rule that the kids get along. And that they actually do things in an orderly manner. And they do it in a fashion where there are all in agreement and nobody has hurt feelings. Or everybody is able or willing to speak up and you know give their piece as to what they want war how they think things should work. Because if we don't give them directions. Now they're flying blind right. And it's our stuff and we wanna make sure I typically thus parents want to make sure our kids don't fight. I mean that is a typical thing that I see in my office is that people don't want their kids a fight. All right so a wanna take a little break here and there wanna give into you. What can we do to try to mitigate some of this in fighting between our kids but can we do to facilitate things happening. In a more smooth fashion with our stuff. So. If you missed any end of this first segment issue may be cut the last part where it talked about our stuff. You can go to the estate planning an elder a lot our page under cruising 1430 web site. You can find the podcast there wearing go to my website skipped in law dot com that is SK IP. TO and a law dot com. You can find it very click on blogs and they'll drop down and have radio right there with this show and past shows in a quick description of what each show was about. But I also wanna remind everybody out there who maybe hears me up occasionally or. Maybe he's listening for the first time. I do public workshops to try to educate people about estate planning so that they make good decisions for themselves in the for their families. These are asking some themselves a hard questions they may have never ever thought about before. So people like to come to one of those workshops I've got one coming up in July we're trying to add a second one but right now we don't have a date so that one in July. Is at the very very end of July it is on Tuesday July the 31. Is from two to 4 PM ended as it at the lone tree library so it's in lone tree. Above link in an I 25. From two to 4 PM on Tuesday July. The 31 if he'd like to sign up for that he go to my website skipped in law dot com click on workshops and you can sign up for right there. Or if you don't wanna use the computer you can call my office in speak with Stacy she'll be. And my office number is 720. 4402774. Cecile did you sign up and we love to see yet. If you come to the workshop and you wanna sit down with mean review your plan make sure it's the way you want in the you're all set. Or starting new plan because maybe it's been 101520. Years since you've updated it or if you've never done a plan at all. And you wanna sit down with media at the workshop if you sign up to sit down with me you'll get an hour and a half of my time free. And we'll sit down and we'll come up to gather with a plan of action for you get which you want for you and your family. So if you wanna do that sign up for the workshop. And some solutions on how to deal with the in maybe a better manner to stick around. This is the estate planning an elder lauer with skip Reynolds we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds. Welcome back everybody to view Steve planning you know realize our with me skip Reynolds thanks so much for joining me this Saturday afternoon hopefully you're having a great. So this is the second segment of our show. If you are in your car maybe just turn on the radio and you missed the first segment of our show what I started off talking about today went on and it continued talking about now is. How do we deal with our quote unquote stuff we all have it we all have probably too much of it. But how we deal with it in our will in our state plan to try to mitigate. Things it can happen. In fighting between our kids or grandkids are other relatives if we don't have kids how can we try to mitigate some of these problems. They do you will rise. So I want to start by talking about now ways to try to deal with this potential fighting. And and there's no he no panacea there's no one way to do it there's no. I'll wrong way to do it necessarily other than not doing anything at all truthfully. But. Maybe you can mix and match or try to do this and look at your stuff look at your feel bully. And how you might work best for you and what can make this a memorable thing for you or for the kids or for whomever. So. One of the things that you can do it and this would be. The pro active approach in and I would definitely. Encouraged to proactive approach would be to have some sort of a family meeting. Whether it's all the kids sorts one on one with each kid over a period of time. It would be best if it was everybody in the room so everybody's on the same page and everybody here's the same thing from Olmert down. But how this can only mean wall momma data are still well. Don't wait until you're eighty and now you've got dementia and you maybe can't remember everything. Or you know you body's feeling your minds failing. Do it earlier doing here in your seventies. And that's sit down and let's talk with the kids and say okay. How to we want to do this what are the things that you kids really want let's have an open discussion. And and don't take or I don't care I don't want anything for an answer. Because I tell you right now when push comes to shove it after you're gone they're gonna want something. That they didn't know they want or they forgot about as they're going through all of this stuff and be all this is a memory of mom or this is a memory of dad. And it will arise so don't let them off the hook by saying why don't care about anything because typically it's still little bitty stuff. It's not the valuable stuff that causes some of the fighting between the kids. So have them say what they want on it in this article that I referenced earlier this Washington Post article about how to divvy up the stuff. This the example that was used in the article was that the family had an auction. So mom and dad where the auctioneers. And the kids sat around and they've given them monopoly money. And they had to auction for. These different pieces you know pain teens or jewelry he or whatever was in their house there at auction for it. And mom was right down in debt was the auctioneer and they kind of made it into kind of like almost a game show type of deal. And you know while they were still some things it happened to come a reference in the first say Navarre reference it again. This news historian as a part of this auction that. The older brother ran up the price on this one item that he knew his younger brother won it. And he did it on Kurt this because he still wanted to pick on him because he was still the older brother picking on the younger brother. And in some things like deck can still happen but. At least we're doing it as a family. And we can make it into something you know fine. Rather than something that's itch or. Or rather than something that is happening after mom and dad have died. And now. You know we're all sad dealing with the death of mom or dad in different ways. May be. Other things are going on in our allies to make this a difficult time. Outside of just mom or dad being gone. So people can be proactive. You can have a little bit of fun with it and you can get a lot of things accomplished. And by the way you can kind of get. Here's some of the dirty laundry potentially or you know come to crips with that you're not gonna get that item that you always wanted. Anything come to grips with that before mom or dad are gone. On. The the other thing is mom or dad can sit down and say these are things that I want each kid to have. So mom can say you know what I want Julie to have. This piece of jewelry but I want Jeanne to have this piece of jewelry and here's why. Because I'll tell you right now in my own life experiences and I don't know whether you agree with Mir not out there. But when we know why I didn't were better able to deal we if the reasoning. And deal with our emotions around it. Because we understand their thought process so when mom or daughter gone and then you just find this fancy list this is. Oh I want this piece of jewelry. Mindy we got no explanation why mom decided it to be that way. Wouldn't have been better if we could have had a family meeting and mom could say this is why have done better this is why dad's giving. You know all of the guns to one G-8. I'll use my own life experience. On this one. My father in law passed away a year ago may. And before he passed away. He gave me. A couple love and family heirloom. Shotguns. And his 22 that he had when he was a kid. And the reason he gave them demean. Is because he knows it the other two Brothers and my brother in law's. Would probably shoot down and he never one of them shot again. I'm not as much of an outdoors person in hunter as they are the live in central Nebraska I mean it's what they do out there and that's fine. But he never want these scenes shot. But what was funny is I understood his reasoning in and he and I had a conversation in he had talked about it with my wife but. He never talked about it within particular my one brother in law who this morning minutes away it is an avid hunter. He'd never talked about it with him and so what's funny is we had to have a conversation and about six months after his death. Sydney Sydney and my brother in law's garage you know as he's clean up some fish that we had gone around cut that day and we're having this discussion inane and he had never hurt us side of the story. And and so we would have been helpful had we may be talked about it a little more now worked out OK you know I don't remember a long list you heard about it. But I do think that it somewhat bothered him. Did it hadn't been discussed. So maybe we should have been a little bit more open with it in my own family right now obviously this is my in laws no mine. My siblings I don't have any siblings but. It could've been something that could have been discussed may be at a time. And and maybe. My father look could have explained it to him and he would have been more willing to accept dinner better accepted her better had his chance to say you know why you make that decision and that's early dumb decision. He could've at least air his grievances. But he didn't have an option. Com. You know while a similar to the option with mom and dad being alive another solution is tat have written out that you wanna have an auction. And that the kids need to use some of the money in their inheritance to buy back. Pieces of personal property from the estate and so they're essentially putting money in the pot. To buy these things. And and that's a fun way to do it I've heard many families have done that it's worked out fairly well for a lot of them. Another way to do it is have you know for lack of better term a draft. Where you've got 234 kids whatever number there might be. Further beneficiaries I guess doesn't have to be kids. We have them have a draft where you will draw straws or do something to figure out who goes first in what the order is going to be. And then you go in that order and they need to snit you do is called the snakes do you go 1234. 432112344321. Or something to that effect new. And what it does is it makes says that not always the same person is picking first. And you can come up with a whatever kind. The way you want to make that work so that they get to pick in some kind of an order things they want. And then once it everybody's picked what they want now we can have the estate sale and sell off all of the other things that maybe they really don't want. Or they RD have a couch they don't need yours etc. You can go oldest to youngest in that draft or youngest all this however you want to make that work. We need outline how you would see all of this happen when you're not here. The other stories that I heard is you have your kids come in in a new maybe wanted to timer collectively. You put a piece of masking tape behind that picture in the old and a hallway. Would their name on it. So that they know that they eager you know that they want data items so that. After you're gone you're in their names on making come and take it. I have heard stories of families where you know one kid sees another kid's name on that I don't mean takes decades name often puts their name on. So it's not foolproof. But it is one way to try to deal with it. On the other thing in this is something that my grandmother did. Is she put together boxes she had a box there are boxes four mile local. And boxes for my mother with their names on it she put the things were really important for her to make sure that each kid got. And then after that the kids can do whatever they want it on most of it they probably just got rid of but dollars a week you you know in a way gay. I want these seems to these people. The other thing and and I give this ever see more of my clients in you'd be shocked how many people never ever fill anything out on it. Is something that typically goes with the Willis what's called a memorandum of personal property. And what this memorandum a personal property is designed to designed to do you. Is it is designed to say OK I wanna give Joey my baseball cards I wanna give. Jeanne the China. I in the hutch I all of those kinds of things. But I would venture to say and this is just totally off the cuff. That I would venture to say more than nine DD 95% of my clients never ever write anything on that list. These don't get around to it is not a high priority for them they feel the kids who just sorted out after they're gone. But if you really want things to go to certain people you gotta make sure that we know that and that list is one way to do it. The other thing is that you can do it and this is something that my grandmother did it something that was talked about in this. Washington Post article. Is start giving things to the kids and grandkids. Over time. You know it doesn't have to be all one fell swoop he can be every time you see him you give Obama a little present. You know my grandmother remember. You know this sounds you know old fashioned save it machinery had three kids during the depression. On she kept stuff. And she gave me in the use is something that I played with her when I was a kid she gave me her Jack's. You know that the Jackson the ball she gave those to me before she passed away so I can appreciate it. Another game that we played a lot when I would go and visit her. Was checkers. So I got her chapter set. Give these things away means something sometimes to people. And you get to see them enjoy it potentially you're enjoy that the surprise of what did you get home. Doesn't have to be big stuff. Mean c'mon Jackson knew how much are those jacks really worth probably not a whole lot but it meant something to me. And she saw my face when she gave it to me. But if you wait until last year gone. Now you get to see that face day don't get to see there enjoyment. Depending on what the item miss. And maybe there won't appreciate I don't know. But at least you got to try to deal with it before him. And you can also share stories behind thinks. Noah it's amazing you know my dad's 76 years old and I learned things that I didn't know. No I thought the story was this way will come to find out that it wasn't Dow way. And this is how we got this or this is how we did that. These discussions can be fantastic I remember you know sitting down with my grandfather. Just months before he passed away. We sat there we won I was probably in mind early twenties and we sat there and we watched it baseball game on TV. We had lunch together many told me a story of how he enlisted in the navy. So he'd go fight in World War I but he wasn't old enough and they found out about they lied on his on how old he was an AK can now. Those are stories easy can be great experiences. Even if it's not stuff you're giving. It happened discussions. Don't. The key that I wanted to make clear about all of this discussion. Is. Don't. Avoid. Talking about. This stuff. Don't avoid talking about our own mortality. We all know we're gonna die someday we you know win that day's gonna be. And as we get older especially if you're in your seven knees are older maybe even your sixties who knows depending on your health. You've got to start talking about this stuff with your kids in your other family. Be wanting things to get to you. Because all of us want things to go smooth and be simple. Mean that's almost universal when people come into my workshops are coming in my office. That they want thirsty plan to be simple. But sometimes folks you've got to take a little bit of work to make it more simple in particular with our stuff. Right because we all have so much of that we got storage rooms who got garages and basements and we've got nick necks in the closet you know hidden in boxes. We've got stuff you know decorations all throughout our house some of us even have storage units Manny isn't that agreed investment. You know. As Americans are so good at collecting stuff that we have to go stored somewhere else because we ran out of places in our own house right. Deal with it folks think it had start to do things with it. So that he is more simple that it does run more smooth when you passed away. That's what all this is about right it's about making sure that we take care her PM link. The way we wanted to take care of our the only and then our family doesn't have more fighting then we would want. And yet we don't take simple steps that we can do to avoid some of those fights. Because gosh I don't even wanna think about dying. Mean it's it's the old adage you know don't don't talk about it then it won't happen while the tell you right now. I won't guarantee that you will die. 100% guarantee you'll leaving nothing to go a 100% in this world is that he will die. I don't know win or how. But you will if you wanna do do stuff and make it easy easy as possible you've got to pull your head out of the sand and you've got to deal with it. Now see this. Those you that are probably listening are probably the people that are the thinkers. They're thinking about this stuff that are doing these kinds of things but maybe I gave you new idea a new way of trying to think about it. All right so. Quick reminder before we go to break here if you wanna hear me talk I don't talk so much about stuff like I did that they do a little bit. But if you wanna hear me talk about estate planning in different ways that we can try to take care of our family our tick fee and we can take care of us. So that our plan works out the way we want you wanna hear about some of these things you hear about something that I can. Almost assure you that you haven't heard about. Come to my public workshop I've got one coming up here in July were working on trying to get a second day. But right now the only date on the calendar is Tuesday July the 31. From two to 4 PM. It's at the lone tree library. If you wanna attend that even goes even you sign up to race one ways you can sign up on my website skipped in law dot com that's SK IP. TO and a law dot com. Click on workshops and you can sign up there he don't want to use the Internet to sign up for something you can call my office and speak with Stacy she'll be. It is 7204402774. Also if you missed any of this person segment second segment show where I was talking about our stuff. How to do it in ways to try to mitigate conflict in our family. He goes decrees a 1430 website. You can find it click on shows they go to weekend shows and look for the estate planning an elder law hour. The podcast will be right there. Wearing go to my website skipped in law dot com click on blogs and no drop down and have radioed air for you. You can listen to this show or past shows there's a quick description on what each show is talking a little bit about. All right so when I come back I wanna kind of starting to a new discussion. I've talked enough about stuff but don't want to kind of talk about another article that I read out some surprising estate planning mistakes. On that people make. So when are starting to that and if we don't get through it all carry through and we'll talk about it more next week so when I come back we'll talk about surprising estate planning mistakes stick around. This is the estate planning an elder lauer with skip Reynolds. Are we dive into wills trusts powers of attorney and so much more. Now here's your host skip Reynolds welcome back everybody to view Steve planning you know realize our with me skip Reynolds. The third and final segment at today's show if you missed any of the first two segments. I was talking about how do you deal with our quote unquote stuff we all have it we all have probably too much of it but how can we try to mitigate. Fighting within our family but also make sure that we get to see things in and see how our family enjoys it. Or or make memories of how to divvy it up. And so if you miss any of that you wanna hear you good decrease in 1430 web site. Click on the estate planning an elder a lot our show and you could find the podcast there wearing go to my website skipped in law dot com. Click on blogs and you'll find it bare under the radio ten. So a wanna kind of switch gears in starting into the discussion in and we'll get through what we can today. In the if we need CU will move on in and talk about it in kind of continue into next week's show. But I'll I was reading an article in Kipling or he was talking about ten surprising estate planning mistakes. And the funny thing is is it I see these scenes all the time in my office. Time and it's mistakes that we could have easily avoided but maybe we do need to know that it was potentially a problem. So wanna kind of start into this so that we can kind of talk about it. All right so. The first one is beneficiary blunders. Know what I mean by that so a beneficiary blunder would be. So for example. I actually had this this happening in my office was. Husband and wife. Had been divorced. But. Husband had never taking X would now ex wife's name off of his. Retirement account as the beneficiary. So would end up happening was. He really wanted that money to go somewhere else but he never took her name off of it any passed away unexpectedly. And boom guess who got the money. The wife there ex wife. Who wasn't the intended beneficiary. So it could go to the wrong person. So a beneficiary blunder is you have a life change you lose a beneficiary you get a divorce etc. you need to go through all of your accounts. An update those beneficiaries to make it jive with whatever you're thinking is at that time and he got a review these scenes periodically. Any got to make sure that there are all taking Kara and that's the way that you want. This happens all the time and it also is a big cause for litigation. In estate planning is because. Beneficiaries who woke up he told me that I was supposed to get that or he really want immediate get that he didn't want the ex wife from fifteen years go to get it. Well he didn't take this time to update is planning an integrated and maintain it. It blew up in his face is an unintended your surprising estate planning mistake. Another one in this only happens. All the time or people don't even know. Is people come into my office and I'll say it they'll be going through all their accounts to say OK who's the primary beneficiary on this account this hiring. Who are the contingent beneficiaries. Oh you know I don't know whether we have kids there or not. Is what I hear all the time. I know and I've got my spouse because they made me put my spouse there I'm not sure whether the kids are on there or not. If you do not have the contingent beneficiary on your retirement money. If you're married. And you and your spouse die or your spouse dies before you mean you don't update these things to add the kids to the beneficiary designation. They will not. Have the opportunity to stretch out the IRA. But I mean by that is when we leave our retirement money to our non spouse beneficiaries kids grandkids. Nieces nephews anybody other than our spouse. They had different ways that they can take down money in one of those ways is to use an IRS table. Of life expectancy for them where they have to take out at least a minimum distribution based on that life expectancy table. If you don't have a designated contingent beneficiary inning goes through you work the state. Amnesty does not have a life expectancy therefore this option is no longer available. No longer available. All because I didn't have my kids is that contingent beneficiary if that's what you wanted or that's the way you wanted your state plan to flow. So now your kids are pigeonholed into a different way of having to take down money. And literally it could be significantly more taxing upon them. Mean they could have more tax. That they will have to pay in the form of income tax because of the way that money's gonna have to come out is gonna have to come out faster. And they have no control over that part of what estate planning is this trying to control things or protect things. If you don't have contingent beneficiaries use controlling you can't protect you from the taxation. Another one that I see all the time is selling. Our house for a dollar. Or ten dollars or a hundred dollars to our kids. Effectively what we're trying to do is we're trying to give it away. And we're trying to give it away so that we avoid probate or maybe it's not taken by the nursing home or Medicaid in the event that we have a long term care event. Problem with that is and have talked about this in past shows that I'll bring it up again if you. Sell it for one dollar but you bought it for let's say you buy your house 35 years ago for 50000 dollars now it's worth 350000. He cell tier kids for a dollar. The IRS looks at doubt ask. That's a Sheehan transaction. And so they're gonna say is eating really so tier Q and he gave it to your kid. And we're gonna assume that their cost basis or whether they bought it for is the same as yours. So they get it for 50000. When you die it's worth 350 they don't wanna live in it so they sell it and guess what they get. Big fat capital gain of fifteen or 20%. So it 300000 let's say got two kids so each of them get a 150000. Dollars. And then they've got to pay. 20% capital gain on. Yikes. What was the cost of that one dollar transaction now. Could we have done any different way and avoided that estate planning mistake and avoided this taxation no lessening of the amount of the state that you actually gave to your kids can we have done it differently in the answer is absolutely not gonna go into the solutions but the answer is yes. Or. Medicaid. Missing need to go on Medicaid. They're going to consider that one dollar a sham transaction and they're gonna consider all of value that you essentially gave you your kids as a gift. So for the next five years from the time that you gave this gift. They're gonna consider that against your eligibility for Medicaid and they're gonna penalize you for it. Well depending on what you've done with your other assets if you're all downloads dollar zero. How we can do with this gift or the kid's gonna be able or willing. Keyword there willing to give it back to you try to deal with this scenario if you get sick. And if they are willing now and we are you down our knees and begging for forgiveness for the Medicaid. Office hoping that they'd buy it hoping they give this Medicaid just 'cause. So we can have unintended consequences. Another one is and I seen this all the time too is naming specific investment senior well. The U want you know this you know Exxon's stock gor Google stock to go to this grand kids. Well maybe when you bought that Google stock or Exxon's stock is worth ten dollars a share but now it's worth 250 this year did you really mean to give. That amount of money to that one individual. Or did you really want them to just share in the overall a Stater did you want now that to be. Going into the overall state so can be shared however you've divvied it up between all of the beneficiaries. I don't know legal look at that stuff because over time. Sometimes these scenes increase in value or may be deep creases in value right may be heard now in retirement and now you're starting to spin down these assets. But you said that you want this one specific one to go to one specific individual well. You know let's say that that's all you're gonna get them. But that's the account that you spend down when you're spending for a long term care costs. Now you can give them less than you intended to give them all because you needed using during your lifetime. There's two different ways a look at that right you you you used it because you needed it. Arm or you really wanted to make sure that X amount went to that person. The other thing is. If you have beneficiary designations on your accounts. I don't care what you will earn your trust us. So what I mean by that so let's say that that same stock that you wanted to go to the grand kids. You wrote that in your will but then over time you moved it around in you've changed financial advisors but guess what now that stock account. As a beneficiary designation that name somebody different. Tell you right now that the beneficiary designation will bypass whatever you have in your will or your trust. You go directly to the individual named on that beneficiary designation it's a contract. Between you and the company holding those monies that this is who they're gonna pay to. So you can unintentionally. Have that asset avoid your will and avoiding big gift that you're trying to give by putting it in your whale. They have a go to somebody different. On accident. Or maybe on purpose I don't know. But I'll tell you right now kids get upset about that when a bypasses them. And it was supposed to be there's at least in that what the will says it's so many people. Believe that there Willis is overruling document that will just swallow up all of our assets and take care of it according to those terms and conditions. But if you've got beneficiary designations on accounts. I don't care what you will says it's going to bypass that. If the beneficiary designations are. Done correctly yet and there's no other challenges to them. You know I think is. In order for them to get to somebody if you have a just senior well I've got to take you through probate and maybe you were trying to avoid probate. And having all these provisions just senior will is actually causing the new expense that maybe. You would've preferred to avoid it soon there might be alternate ways to make this happen for. You went for your family. So I wanna kinda stopped there. I got through three and got seven more than a meaning guillotine next week. In talking about no surprising mistakes that people make with their state plants will start next week's show. Talking about these ST planning mistakes so go back briefly through these first three did I just went through. But the point is is that you've got to be thoughtful. My whole showed today talking the first two segments about our stuff. All of our belongings in our house you need to be thoughtful how you want these seems to be passed down to your children. Grandchildren nieces and nephews whoever it may be. And you need to be proactive. Because everybody wants it to be simple but sometimes we don't take steps to make it more simple. Tim to mitigate some of the conflict that does happen every single day. Especially surrounding our stuff because our stuff often comes with memories. It's it's a memory of how this was used or walking by in the hallway or whatever it might be. For you were for your kids or whatever we need to be proactive you need to talk about these scenes with your family. One last reminder if you missed any of the show today you can find it on the cruise in 1430 web site. Click on shows then weekend shows that he can go to DC planning an elder a lot power. And you can find this podcasts there or you go to my website skipped in law dot com. Click on. Blogs no dropped down and go to radio and you'll find it there as well. Also one last reminder. I do public workshops talking about all forms of the state planning we talk about Medicaid crisis planning and pre planning. And how what are trust what are wills what are powers of attorney which ones do I need wire the importance. Bringing up important questions you need to ask yourself. If you like to come to one of those free workshops have got one coming up here in July. We're working on a second day but right now we only have the one it is Tuesday the 31 of July. From two to four. At the lone tree library in lonetree. He's like sign up being go to my website skipped in law dot com click on workshops she can sign up there wearing call my office at 720. 4402774. And you can sign up right there very sign up with Stacy as well. Tony thank everybody for listening this week hopefully got something from the show BB new idea of how to deal with your personal items for your family. But I also wanted to fit pat Tilley to have a great rest years Saturday. Have a great rest of your weekend and a fantastic week and I can't wait to talk team next week. And after next week we'll go onto the fourth of July so everybody have a great fourth of July and talked you know we'll take care. Thanks for listening to the estate planning an elder lauer would skip Reynolds. Tune in next week where we talk about some great new topics this is the estate planning an elder lauer with skip Reynolds that's every Saturday from two to three on cruise in 1430. You can Reynolds is a licensed attorney in Colorado all of the stories and content of this state planning and overlook our are not intended to be direct legal advice they are for illustrative purposes only additionally no attorney client privilege has been performed with the law offices have been Reynolds LLC source you can Reynolds -- -- legal counsel before making any estate planning or elder Watson did all of the views of the guests of the show are their own and are not views of the law officers have been Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices of have been Reynolds LLC were skipping Reynolds Esquire.
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