#624 Your Trust Should Own Everything [Lawyers Explain]

1 - > SPEAKER_03: Welcome everyone to the Main Street Business 2 - > Podcast. 3 - > My name is Mark Kohler. 4 - > I'm here with the illustrious Matt Swanson. 5 - > We are here talking about estate planning, one of the topics all 6 - > of you have been dying to talk about.

7 - > What to do about a will and a trust? 8 - > Maybe, maybe not. 9 - > But we've got some important info and it's going to be so 10 - > good. 11 - > SPEAKER_00: I like how you said we're dying.

12 - > Everyone's dying to talk about it. 13 - > No, they're just not wanting to die. 14 - > And they don't want us to be talking about how they're going 15 - > to die. 16 - > But that's what we're doing today.

17 - > Yeah. 18 - > We want you to be safe and protected and really your family 19 - > and loved ones after you pass on, because you're not immortal 20 - > and all of us will die one day. 21 - > But this is important because we want to talk about how 22 - > everything needs to be in your trust. 23 - > Your trust is this one document in your life that needs to be 24 - > comprehensive about what's going to happen when you pass on.

25 - > And your trust should own everything. 26 - > SPEAKER_03: Now, this is what we just said is actually a 27 - > debatable statement because I'm getting lit up on YouTube right 28 - > now, by the way. 29 - > There's my rock star for the bidborne. 30 - > I only get one a day.

31 - > Yes, my doctor, I just need to tell you that. 32 - > But this is something that people do debate. 33 - > What is everything? 34 - > Is it your vehicles?

35 - > Is it your crypto wallet? 36 - > Is it your stock brokerage account? 37 - > SPEAKER_00: I mean, there's a lot of your retirement account, 38 - > you know. 39 - > Yeah.

40 - > SPEAKER_03: What about beneficiary designation? 41 - > And we're going to dig into it. 42 - > Yep, we're going to tell you because uh we've been doing this 43 - > for 20 plus years. 44 - > We've kind of seen front beginning, ending in between 45 - > train wrecks, all at all.

46 - > So we're going to hit it. 47 - > Why don't you give the basics here? 48 - > So everybody's on the same page. 49 - > SPEAKER_00: Let's hit a few things.

50 - > Just we want to get everybody up to speed on this. 51 - > What we're talking about is your revocable living trust. 52 - > We're not talking about some crazy trust or constitutional 53 - > trust or stuff to avoid, you know, the IRS and all that BS. 54 - > We're talking about the basic family revocable living trust.

55 - > We're using this trust to pass on our assets when we die. 56 - > A lot of people think, well, I have a will, Matt. 57 - > Yeah, great. 58 - > You have a will.

59 - > Congratulations. 60 - > When you pass away, your your family, your surviving spouse, 61 - > or your kids that are dealing with the mourning of you being 62 - > gone, are gonna have to take this will to court in every 63 - > state where you own real property, by the way, to get an 64 - > approval from a judge to say, okay, we can pass that will on 65 - > after a contest period. 66 - > Most states have fees for probate. 67 - > You don't want to do that.

68 - > The law in every state says you can just set up a trust and 69 - > bypass that. 70 - > Easy peasy. 71 - > That's why we like this trust. 72 - > We can avoid probate and you can bypass having to go to court 73 - > after you pass on.

74 - > SPEAKER_03: Yeah, and a lot of other people are going to say, 75 - > Well, I have a will. 76 - > Why do I need to worry about this? 77 - > Well, you may have a taxable estate. 78 - > And I'm not just talking about millions of dollars for federal 79 - > estate tax.

80 - > There are seven states that have estate tax that kicks in at a 81 - > million dollars. 82 - > And so now we have methods to get around estate tax, possibly, 83 - > with a trust. 84 - > And we need to make sure we've got a trust that has a plan. 85 - > We're just not dumping money into kids' laps.

86 - > Yeah, the will might say, here's who gets what, but I'd like to 87 - > put in some when and how. 88 - > So this is about that trust. 89 - > And I want to reiterate one last time. 90 - > This is not an asset protection trust.

91 - > Some trust that you're going to hide or lock down assets. 92 - > Whole other topic. 93 - > This is the trust everyone should have. 94 - > I argue everyone now.

95 - > SPEAKER_00: Yeah, everyone should have it. 96 - > At least if you own real property, like you own your 97 - > home, you should have this, or maybe you have more than 250,000 98 - > of other assets. 99 - > You need to be having a trust. 100 - > Oh, but I'm not married.

101 - > You need it even more. 102 - > But I don't have Claire who's gonna get your estate. 103 - > SPEAKER_03: But I don't have kids. 104 - > SPEAKER_00: Also, you need it even more.

105 - > SPEAKER_03: But I'm in my 20s. 106 - > SPEAKER_00: Well, maybe not. 107 - > SPEAKER_03: Well, oh, but I'm kicking ass. 108 - > I got a business, I've got a rental property.

109 - > That's what I'm drinking. 110 - > Everybody's got these excuses. 111 - > Come to find out. 112 - > I think 99% of people should have a trust.

113 - > SPEAKER_00: I do too. 114 - > I do too. 115 - > And I and we're doing an estate plan special, by the way, at our 116 - > law firm, KQS Lawyers, right now. 117 - > This is why we wanted to talk about this.

118 - > You can save a couple hundred bucks at least on your estate 119 - > plan to get it done. 120 - > We want to incentivize you to get this across the finish line. 121 - > So hopefully you'll learn something today. 122 - > But even more importantly, hopefully you take action and 123 - > get your estate plan done.

124 - > If you're someone sitting there that's like, I haven't done this 125 - > yet. 126 - > Let's get it done. 127 - > We can get at our law firm done quickly and affordably with 128 - > amazing attorneys that are helping clients across the 129 - > country. 130 - > SPEAKER_03: Yeah, and I want to just add one last thing.

131 - > 50% of Americans don't even have a will. 132 - > And that means 50% of you listening, your dad does not 133 - > have a will. 134 - > And it is Father's Day. 135 - > And I would love if you would give your dad the gift of an 136 - > organized estate.

137 - > And you're actually kind of being passive aggressive because 138 - > it's going to help you. 139 - > Yeah, you're doing it for yourself. 140 - > You really are. 141 - > You really are.

142 - > And so I just think um this is such an important opportunity to 143 - > remind your parents that you can help them get organized. 144 - > No one wants to talk about their mortality, especially grandpa. 145 - > So let's do it for Father's Day at the very least. 146 - > So, okay, let's say you get your trust.

147 - > You're like, all right, Mark, I'm gonna do this trust thing. 148 - > How big of a pain in the butt is this? 149 - > Does it need a tax return? 150 - > Do I need a tax ID number?

151 - > And what do you mean, put everything into it? 152 - > SPEAKER_00: Matt, can you please lay out how easy it is? 153 - > The trust is pretty dang simple. 154 - > It's a document that's gonna have some decisions in it.

155 - > Who gets what? 156 - > You can put restrictions on whether they can get it. 157 - > You're gonna list maybe your kids, your spouse's 158 - > beneficiaries. 159 - > You can put restrictions on maybe they have a drug or 160 - > alcohol condition, they're bad with money, they got judgments 161 - > against them and creditors chasing them.

162 - > You can restrict it so they don't get distributions and the 163 - > trust doesn't get wasted. 164 - > That's the when and how. 165 - > Yeah, that's the when and how. 166 - > So it's this document that says all this stuff.

167 - > Who gets what, under what conditions, and you also appoint 168 - > someone called a trustee who carries out all of your wishes, 169 - > who has the authority without having to go to court or have 170 - > some judge say this is okay to distribute your assets according 171 - > to your wishes in this trust document. 172 - > But the trust, it's not filed with the state, it's not 173 - > recorded in here. 174 - > This is a private document you get to keep. 175 - > Your bank or financial institution, some people may 176 - > want this as you're starting to add assets.

177 - > We'll get to that here in a second. 178 - > But it's simply a document, no tax return, no tax ID. 179 - > Don't stress about that stuff. 180 - > SPEAKER_03: I know, and it's so hard because we would like to 181 - > talk more about uh the functionality of this trust, but 182 - > we the goal here is to tell you what you should put in it and 183 - > what that means.

184 - > Um, I do want to take away this initial concern many people 185 - > have. 186 - > Well, this is expensive. 187 - > I'm not rich enough. 188 - > People, you're gonna spend two to four grand somewhere in 189 - > there, maybe to do it right.

190 - > If someone's quoting you 10,000 or more, get a second opinion. 191 - > Unless you got a very large estate yet, get a second 192 - > opinion. 193 - > Yeah, seriously. 194 - > And this is something that can live with you the rest of your 195 - > life.

196 - > Um, I had the same trust. 197 - > I'm a lawyer, and I had the same trust for 20, 25 years until I 198 - > modified it after a divorce. 199 - > It's really you got some situations of family, you might 200 - > um amend it, but you get to. 201 - > It's a revocable living trust.

202 - > So it's very affordable to implement. 203 - > You can always change it later. 204 - > Yeah, but once you die, it's locked down. 205 - > SPEAKER_00: So I think that point about always being able to 206 - > change it later is important to get people across the finish 207 - > line because a lot of people think, well, I don't know 208 - > everything that I want to happen.

209 - > I don't want to make a mistake. 210 - > Well, just get it done. 211 - > Not knowing everything and doing nothing means you've solved for 212 - > nothing. 213 - > SPEAKER_03: And it's far worse.

214 - > SPEAKER_00: And it's so yeah, just like get it done and get 215 - > the 99% of it figured out. 216 - > And if you change your mind next week or next month you have an 217 - > epiphany, you're like, oh, I meant to do this, add an 218 - > amendment. 219 - > It's simple and easy. 220 - > SPEAKER_03: Okay.

221 - > Now, before we talk about what goes in your trust, maybe just 222 - > say how. 223 - > Your trust is gonna get a name. 224 - > Let's call it the Green Tree Trust dated July 4th, 2026. 225 - > Okay.

226 - > 250th anniversary of the country. 227 - > You want to remember the date you did your trust? 228 - > Fine. 229 - > You get to choose the date.

230 - > The day you sign it may be a little different than the date 231 - > the trust is dated. 232 - > That's okay. 233 - > Some lawyers are anal about this. 234 - > Well, we got to date it the day you sign it.

235 - > No, you don't. 236 - > You can date it at reasonably close to when you execute it and 237 - > give it a unique name. 238 - > I typically don't like it to be your name. 239 - > Call it something innocuous.

240 - > There might be some privacy benefits in some of these 241 - > assets. 242 - > So you give it a name, you give it a date. 243 - > Moving forward, anytime you buy an asset or open an account, 244 - > we're gonna talk about those types of assets, you're gonna 245 - > say, Oh, I put it in the name of my trust. 246 - > That's it.

247 - > That's how you did it. 248 - > The trust is now funded with that brokerage account, that 249 - > crypto account, whatever it is, piece of real estate, an LLC. 250 - > It's now in the name of the trust moving forward because you 251 - > used the trust's name, not your own name. 252 - > Assets you already own, we've got to transfer in.

253 - > And that could be through a special document, like a stock 254 - > transfer agreement, a membership transfer, a deed, uh calling up 255 - > the brokerage, calling in the insurance company and do a 256 - > change of beneficiary. 257 - > We can get into it, but how you do it, don't stress about. 258 - > Every asset will have a little different procedure. 259 - > But you're gonna have a name for your trust.

260 - > What do you think? 261 - > SPEAKER_00: Yeah, and I thought you were I didn't Green Tree 262 - > Trust. 263 - > I thought we usually like the Treadstone Trust, Blackbriar 264 - > Trust. 265 - > Blackbrier.

266 - > Yeah, that's good. 267 - > SPEAKER_03: Blackbriar. 268 - > Yeah. 269 - > That's sort of all I had.

270 - > SPEAKER_00: You know, if you know, you know it's like. 271 - > But they shut that down. 272 - > They shut down Treadstone or Blackwire. 273 - > I think they're both shut down.

274 - > I think Jason Bourne, you know, he made sure that it was all 275 - > shut down. 276 - > SPEAKER_03: What was the one in Wall Street first? 277 - > Blue, blue. 278 - > Oh, uh Blue Sky?

279 - > No, not Blue Sky. 280 - > Uh we'll get it before Angel, our producer. 281 - > We need to know the name of the company in Wall Street. 282 - > First, which is Charlie Sheen.

283 - > Charlie Sheen. 284 - > Yeah. 285 - > Okay. 286 - > All right.

287 - > Um, okay, so we're going to be able to do that. 288 - > Before we went crazy, how to put these things in, and this is 289 - > probably a good point to make too. 290 - > We have so many podcasts on the different details of getting 291 - > this trust up and going. 292 - > When you do a trust with our company, you're going to meet 293 - > with a real attorney on Zoom, no matter where you're at in the 294 - > country, and get all your questions answered too.

295 - > Don't feel like you have to AI this, learn it all on a podcast. 296 - > You want to trust the process to be handheld with you, with your 297 - > attorney. 298 - > Let your attorney help answer these questions. 299 - > We just want to give you some framework here.

300 - > Yep. 301 - > Okay. 302 - > What aspects do you like to see in the trust? 303 - > SPEAKER_00: I think the very first one is going to be your 304 - > home.

305 - > Okay. 306 - > Your home is likely deeded into your personal name. 307 - > We want the home deeded into the trust. 308 - > But I have a mortgage.

309 - > The mortgage company does not care. 310 - > Okay. 311 - > There's something called the Garn St. 312 - > Germain Act that says you can deed it out of your name, into 313 - > your trust.

314 - > Yeah. 315 - > Senator Garn from the state of Utah. 316 - > Yeah, that's true. 317 - > That's right.

318 - > I forgot that. 319 - > The guy went to the moon. 320 - > He was an astronaut. 321 - > Okay.

322 - > Well, well, there you go. 323 - > I'll do whatever he says. 324 - > You weren't expecting that amount of knowledge there, were 325 - > you? 326 - > SPEAKER_02: Whoa.

327 - > I put up a whole channel whip ass on me. 328 - > Wow. 329 - > SPEAKER_03: Pray tell, go ahead and you have the floor. 330 - > SPEAKER_02: I'm done.

331 - > Stay over there. 332 - > I'm talking. 333 - > Okay. 334 - > Okay.

335 - > SPEAKER_00: All right. 336 - > All right. 337 - > Okay. 338 - > So, but that law was important.

339 - > Because it said, hey, the banks can't call your note due because 340 - > you transferred title out of your name. 341 - > We've put it into your trust. 342 - > And that is the number one asset we want to get in your trust 343 - > name. 344 - > I just bought a new home, actually.

345 - > This is interesting. 346 - > And when I was getting the mortgage, I was talking to the 347 - > bank. 348 - > They assumed I would have a trust on title. 349 - > They're like, what's the trust name that's going to be on 350 - > title?

351 - > I'm like, maybe they know. 352 - > They went directly there. 353 - > They went directly there and they knew me, you know. 354 - > So I was maybe they were like, okay, well, you are a big deal.

355 - > You know, you know, if you want to flex on people, be like, I'm 356 - > doing this in my trust. 357 - > They're like, oh, that must be somebody. 358 - > SPEAKER_03: Yeah. 359 - > SPEAKER_00: So so I so, anyways, but look, you can either buy the 360 - > property directly into the trust if you're buying new property 361 - > and you have your estate plan already in place, or if you've 362 - > already bought something or the mortgage company is being a pain 363 - > in the butt, just close on your personal name and deed it over 364 - > the trust later.

365 - > SPEAKER_03: Love it. 366 - > Home number one. 367 - > I'm gonna actually go broad here too and say I think there's four 368 - > main assets your home and any other real estate that it could 369 - > be a piece of land. 370 - > Yeah, it could be grandpa and grandma, yeah, a cabin, a ranch, 371 - > something you're not renting.

372 - > It's it's personal use, second home, anything like that. 373 - > Um that would be category one, just like real estate, and your 374 - > home is gonna be the primary. 375 - > Uh, number two would be any business entities like an LLC or 376 - > a corporation, LLC that owns rental property. 377 - > Uh even if it's an operational company, the IRS does not carry.

378 - > It's called a see-through trust. 379 - > So you're still gonna report the business operations on your 1040 380 - > or on the business return. 381 - > Don't worry about tax returns, it does not affect any of this. 382 - > Number three would be investment accounts.

383 - > We'll get in more detail there. 384 - > And number four would be life insurance. 385 - > So that's I kind of want to give that roadmap here. 386 - > Those are the big four.

387 - > Personal property is that one we'll debate at the end, like 388 - > cars, RVs, stuff like that. 389 - > But number one, real estate. 390 - > SPEAKER_00: Real estate, and that's just gonna be a deed 391 - > because those are personal in your personal name right now. 392 - > You're gonna deed them from your personal name into the trust.

393 - > Let's hit the business entities care, because you might have the 394 - > rental property, but that rental property is not deeded in your 395 - > name. 396 - > The rental property is in the name of your LLC. 397 - > SPEAKER_03: Which again, mortgage companies do not care. 398 - > SPEAKER_00: Yes, and so don't worry about the title's already 399 - > in the name of the LLC, but what are we gonna change?

400 - > We're gonna change the ownership of the LLC. 401 - > We want to update that so the LLC is not owned by you, it's 402 - > owned by the trust. 403 - > Yeah. 404 - > And that's simply a membership transfer.

405 - > It is not a complicated change to the LLC. 406 - > In most states, it's just an internal document change that 407 - > we're doing with something called a membership transfer. 408 - > Transfer ownership from you or you and your spouse over to you 409 - > uh to your trust. 410 - > SPEAKER_03: Now I have to digress and say this too, 411 - > because if some of you set up your LLC online and called it 412 - > member managed, you now you've got to file an amendment with 413 - > the state to let them know the member changed.

414 - > This is why doing your estate plan can be a great time to get 415 - > better organized. 416 - > Yeah. 417 - > Let's look at your LLCs. 418 - > They should all be manager managed.

419 - > We might clean them up, get the right corporate book, do your 420 - > minutes, get the right ownership done. 421 - > And some of you are like, yeah, that one sheet of paper in the 422 - > drawer probably needs to get looked at anyway. 423 - > And so this estate planning process is really a good time to 424 - > like look at your overall picture. 425 - > And I'll just quote the infamous Kevin Costner if you build it, 426 - > they will come.

427 - > You know, if you're trying to build wealth, you gotta have 428 - > some infrastructure. 429 - > I always thought that line was total BS, you know. 430 - > Well, it is a sci-fi movie. 431 - > You knew it was sci-fi, right?

432 - > Or did you really think the Yankees showed up in the field? 433 - > Yeah, right. 434 - > SPEAKER_01: I was pretty sure that was not, you know, it was 435 - > fiction, right? 436 - > unknown: Yeah, yeah.

437 - > Sorry. 438 - > SPEAKER_02: Sorry about the spoiler alert. 439 - > That was not that was not the non-fiction section. 440 - > Yeah, you're you really thought the 1920s were.

441 - > Based on a true story. 442 - > I know. 443 - > Based on a true story? 444 - > No.

445 - > No. 446 - > Uh yeah. 447 - > So yeah. 448 - > SPEAKER_03: But but no, this is a great time.

449 - > Get organized. 450 - > People, you want to be more successful and build what this 451 - > is what rich people do. 452 - > You want to be rich? 453 - > Do what rich people do.

454 - > And it's not that expensive to get organized. 455 - > SPEAKER_00: All right, okay. 456 - > Let's get to investment accounts. 457 - > Investment accounts.

458 - > And let's break these investment accounts up into two different 459 - > categories. 460 - > I think category A is brokerage accounts, basically 461 - > non-retirement accounts. 462 - > You might have an annuity you personally own. 463 - > These are investment assets, typically with a brokerage 464 - > company or an investment company.

465 - > And this is throughout an account. 466 - > Let's say it's a TD Ameritrade, all right, or Charles Schwab. 467 - > And the name on the account is actually you. 468 - > It's your name.

469 - > It's on the account. 470 - > You log in, it's your name on it, but you'll have something 471 - > called a beneficiary on it. 472 - > And this could be a bank account too. 473 - > We should have CDs, your regular crypto account, savings account, 474 - > money market account.

475 - > It could be crypto.com, crypto. 476 - > Well, let's come to crypto separately. 477 - > Uh yeah, we should because key keys and wallets can be weird.

478 - > So now if you have a crypto account at like Coinbase or an 479 - > institution, Gemini, places like that, I'd kind of bump it in 480 - > this category. 481 - > But basically, all of those institutions will have something 482 - > called a payable on death or beneficiary designation that 483 - > basically says whoever is listed as the beneficiary on this form 484 - > is going to inherit this account. 485 - > We don't care what's in a will or what's in a trust. 486 - > We're distributing this asset that you are holding with us 487 - > based on what's on the beneficiary designation.

488 - > And it's the same for your IRA or 401k. 489 - > What's on this, sometimes called POD, not POS, payable on death, 490 - > beneficiary designation. 491 - > That's a different thing. 492 - > Yeah, that's right.

493 - > SPEAKER_03: Some may call it a POS, but it's really a POS. 494 - > SPEAKER_00: That was our cars in college. 495 - > Yeah. 496 - > So um, but these payable on death forms that you're putting 497 - > on your account, and many times it's something when you set up 498 - > the account, it was on the application, who gets the 499 - > account when you die.

500 - > If you're like unclear on that, this is a great opportunity 501 - > again to look in on this. 502 - > But the point here is this is where you list your trust. 503 - > You can be the owner during your lifetime, but the best way to 504 - > just manage this when you pass on is list the trust as the 505 - > beneficiary upon your death. 506 - > SPEAKER_03: Yeah.

507 - > And you may say, Well, I referred to it in the trust or 508 - > referred to it in the will. 509 - > And Matt kind of alluded to that. 510 - > That well, I wrote it down over here. 511 - > Obviously, the family will honor that.

512 - > Uh yeah. 513 - > Well, your son and daughter they're still hate each other 514 - > and are fighting. 515 - > They're not gonna deal with that properly. 516 - > You need to designate on this form so Merrill Lynch knows.

517 - > Oh, it goes to the trust. 518 - > You can't say it in the trust, you have to say it on the 519 - > account so that Merrill Lynch knows you while you were alive 520 - > and well, signed here and said that's where I want it to go. 521 - > You can't just wish it show wish it so on a napkin and put it in 522 - > the drawer, and Merrill Lynch is going to honor that. 523 - > That's what probate's for, which you're trying to avoid.

524 - > So, okay. 525 - > All right. 526 - > So number one, again, that's for you, real estate in any way, 527 - > shape, or form. 528 - > Two, are those uh business entities, LLCs, corporations, 529 - > number three of these investment accounts in any way, shape, or 530 - > form, and uh retirement accounts are kind of like like that, kind 531 - > of all lumped in there.

532 - > Now, life insurance. 533 - > This is one that gets debated because people are like, well, 534 - > life insurance avoids probate. 535 - > I can designate my kids on my life insurance application that 536 - > they're the beneficiary. 537 - > Yeah, you can, but that was 10 years ago or five years ago.

538 - > How's your kids doing? 539 - > Are they able to receive this money and handle it properly? 540 - > Wouldn't you like to have some strings, some guidelines? 541 - > Yeah, sure, it could avoid probate, but is that in their 542 - > best interest?

543 - > And I think even dropping half a million or a million, because 544 - > life insurance comes in chunks of half a million or a million 545 - > or more. 546 - > Do you really want to dump that on your kids' life at age 30 547 - > when they're in a bad marriage or going through a difficult 548 - > time, or maybe you have an addiction they're dealing with? 549 - > Dropping money in their lap could be the worst thing for 550 - > them. 551 - > SPEAKER_00: Or maybe you have minor children.

552 - > Yeah, maybe you're in your 30s or 40s or 50s, even. 553 - > You got you got minor children. 554 - > I guess you can be in your 60s. 555 - > Why am I qualifying that?

556 - > But you have minor kids. 557 - > Have you been to Vegas lately? 558 - > SPEAKER_03: There's yeah, there's so many grandpas there 559 - > with their daughters. 560 - > I just love I see them.

561 - > Yeah, they're adorable. 562 - > SPEAKER_02: Scottsdale, too. 563 - > SPEAKER_03: Yeah, they're there too. 564 - > Like, man, these old guys with their young daughters out there 565 - > having dinner, they're so nice.

566 - > SPEAKER_01: They're so great. 567 - > SPEAKER_03: And they get all dressed up for it. 568 - > Daddy daughter dying, yeah. 569 - > They the yeah, it's it's it's so special.

570 - > But anyway, no, you can have minor children that do not need 571 - > to receive money at age 18. 572 - > So I prefer name your spouse primary beneficiary if you're 573 - > married, fine. 574 - > But contingent beneficiary on that life insurance application, 575 - > put the trust. 576 - > And if you already have life insurance, it's called a COB, 577 - > change of beneficiary form.

578 - > You just call Mutual of Omaha, whatever. 579 - > Is Mutual of Omaha store around? 580 - > It's a thing. 581 - > SPEAKER_01: I think a thing.

582 - > SPEAKER_03: I love that show in the 80s. 583 - > It was so good watching the lion eat the antelope, you know. 584 - > The commercial for it? 585 - > No, the wild kingdom.

586 - > Did you ever watch Mutual of Omaha's Wild Kingdom? 587 - > I don't remember. 588 - > You're too young. 589 - > Oh my gosh, I'm embarrassed.

590 - > Someone else. 591 - > Okay. 592 - > Anyway, you call the life insurance company, whoever, and 593 - > you say, I want to change the beneficiary to my trust. 594 - > And they're like, Okay, sign here.

595 - > Done. 596 - > Are you alive? 597 - > Yes. 598 - > Okay, you can sign this.

599 - > So I think life insurance um is important to go to the trust. 600 - > Okay. 601 - > SPEAKER_00: Let's hit your personal assets. 602 - > Ooh, this is gonna be a fight.

603 - > Yeah, well, this is a tricky one. 604 - > I think there's some of these personal assets that are, let's 605 - > say, personal property, are assets for the most part that 606 - > don't have a title. 607 - > Now you might have the boat or the car or the RV that has an 608 - > actual piece of title that you could update and put it into the 609 - > name of the trust, and we can debate that. 610 - > I would not put them in the name of the trust.

611 - > Let's just take, let's just take our stand now. 612 - > SPEAKER_03: Okay, I would put it in the trust. 613 - > May I give an example? 614 - > SPEAKER_00: Go for it.

615 - > SPEAKER_03: Okay. 616 - > You've got a kick-ass Malibu ski boat. 617 - > Now, back to the 80s again, you could get a ski boat for 50 618 - > grand, something like that. 619 - > SPEAKER_02: Have you been to the boat stores lately?

620 - > SPEAKER_00: What I do know, what I do know is that you could go 621 - > in a pontoon bait, pontoon boat with your dad, or you can ride 622 - > and suck my wake with Uncle Roman. 623 - > Which one do you want to do? 624 - > That's right, that's right. 625 - > SPEAKER_02: Oh my gosh.

626 - > SPEAKER_03: Well, I just, if you haven't been out shopping for a 627 - > boat. 628 - > Suck my wake. 629 - > Sorry, Dad. 630 - > Oh my gosh.

631 - > If you haven't been out boat shopping lately, they are more 632 - > expensive than a house. 633 - > I mean, these ski boats with the racks and the wave this, and you 634 - > know, you're gonna surf behind it, whatever. 635 - > You gotta have all these wake adjustments and blah, blah, 636 - > blah. 637 - > You can spend a half a million dollars on these ski boats.

638 - > So you buy the ski boat, and of course, you put it in your own 639 - > name. 640 - > Maybe there's a loan, maybe there's not, and you're lucky 641 - > enough to have one of these cool ski boats that you put on the 642 - > matching truck. 643 - > Have you seen these on going down the freeway on a Saturday 644 - > morning? 645 - > Unbelievable.

646 - > There's probably like 750 grand driving down the road with this 647 - > F 350. 648 - > SPEAKER_01: But anyway, am I gonna see you pulling a boat 649 - > here soon? 650 - > You're buying a boat. 651 - > This is not a prediction.

652 - > You're buying a boat. 653 - > I can hear it. 654 - > Not a prediction. 655 - > I can just see Patty.

656 - > She's like, it's you're getting the boat. 657 - > SPEAKER_03: She's already got a boat, but it's not one of these. 658 - > Okay. 659 - > Okay, keep going.

660 - > So all right. 661 - > She does. 662 - > Way too much information on the boat. 663 - > SPEAKER_02: Yeah, you're like, sounds like a little personal.

664 - > We gotta move this along. 665 - > Yeah, yeah. 666 - > Okay, so you have this boat. 667 - > We got it.

668 - > Okay, Eric. 669 - > And you die. 670 - > You die. 671 - > Sorry.

672 - > SPEAKER_03: You just this new boat. 673 - > You don't get to enjoy it. 674 - > Sorry, you can watch from heaven and see the family, you know, go 675 - > out on the lake on Saturday. 676 - > But you're a goner.

677 - > Boom. 678 - > Out of the way. 679 - > Okay. 680 - > Now, you're there's a point here that's very important.

681 - > Your son loves this boat. 682 - > And he and ironically, so does your other son or your other 683 - > daughter. 684 - > You got kids that are like, oh my gosh, if mom or dad were to 685 - > Die, I want that boat. 686 - > Now it's a race to the DMV.

687 - > unknown: Okay. 688 - > SPEAKER_03: Because whoever gets to the DMV first with that death 689 - > certificate, they're gonna title that boat into your name. 690 - > Because the DMV is like, oh, they died? 691 - > Show me a death certificate.

692 - > And you're next akin. 693 - > Great. 694 - > Guess who title just transferred to? 695 - > $32.

19. 696 - > Whatever. 697 - > This boat now transfers to the next akin and outside the trust. 698 - > Maybe it wouldn't hurt to have the trust own it and say, Hey, 699 - > when it comes to this boat, I want to put that cool boat in an 700 - > LLC.

701 - > I want the kids to share it. 702 - > Everybody gets three weeks out of the year, they can sign up 703 - > for it. 704 - > The manager's gonna rotate, and you have a game plan for the use 705 - > of this boat, and it stays in the family with proper rules of 706 - > use. 707 - > And no one's gonna rush over and steal it out of the estate by 708 - > getting to the DMV first.

709 - > This is a big deal. 710 - > We're not talking about a$250, you know, e-bike. 711 - > We're talking about cars that could be collectibles, these 712 - > expensive cars or boats. 713 - > I think they need to go into the trust.

714 - > SPEAKER_00: Yeah. 715 - > Now, this is this is one of these things where is the juice 716 - > worth the squeeze? 717 - > Okay. 718 - > So is the hassle of going to the DMV a place known for 719 - > convenience and doing things very easily?

720 - > Is this do you really want to spend your time updating the 721 - > title? 722 - > That hurts. 723 - > That's a little low blow. 724 - > SPEAKER_01: Do you want to be out on the lake actually 725 - > enjoying it?

726 - > unknown: Okay. 727 - > All right. 728 - > SPEAKER_02: You're gonna be dead anyway. 729 - > Who cares?

730 - > Exactly. 731 - > Let them fight over it. 732 - > SPEAKER_00: So for most assets, obviously, like we've just 733 - > talked about the main four categories. 734 - > Let's get them in the name of the trust.

735 - > I think it's debatable on this. 736 - > I probably wouldn't do it. 737 - > I haven't done it for my own, even cars and stuff like that. 738 - > Because as Mark said, next of kin, surviving spouse or kids 739 - > can go to the DMV, MVA, whatever in your state, show a death 740 - > certificate, and say I'm next of kin.

741 - > Sometimes they check ID and they kind of look into it, and 742 - > they're going to transfer title into your name. 743 - > I will acquiesce. 744 - > Yeah, okay. 745 - > And I will say per asset decision.

746 - > Per asset decision. 747 - > Yeah. 748 - > Now you would say, though, in your trust, there's a section 749 - > and you have a declaration of personal property where you say, 750 - > My daughter gets the boat, my son gets the guns, so-and-so 751 - > gets the piano or the musical instruments or the jewelry or 752 - > whatever. 753 - > You can specify that.

754 - > It's not that the trust needs to transfer title or anything, or 755 - > the title needs to be in the trust. 756 - > The trust still controls. 757 - > And so if you with personal property. 758 - > With personal property, if you were listed as the one that gets 759 - > the boat in the trust, even though the the boat was still in 760 - > your name, you're going to have a legal uh and the trustee is 761 - > going to be obligated to say, uh, we got to get the trust 762 - > over, or we got to get the boat over to you.

763 - > SPEAKER_03: Yeah. 764 - > And now I want to address something that's I've got to, 765 - > and we're going to wrap it up on this point. 766 - > But I am doing a post today on YouTube because I've got some 767 - > haters that are saying, whoa, whoa, whoa. 768 - > Mark, you don't want to put the boat, staying with that example, 769 - > in the trust name, because you just made the trust um, you 770 - > know, if anything goes wrong with the boat, all the assets in 771 - > the trust are now at risk.

772 - > You know, you just exposed all the assets of the trust because 773 - > now you've got this boat in the trust. 774 - > And so, oh, all the liability of all the assets in the trust are 775 - > now at risk. 776 - > People, this trust does not give you any asset protection anyway. 777 - > Whether it's in the trust or not, and the boat freaking runs 778 - > over someone that was water skiing to hold up the little 779 - > orange flag, you've got to hold up the little orange flag if 780 - > you're not.

781 - > Patty's a rich, she's strict on that. 782 - > Oh my gosh, you gotta have that flag up. 783 - > Because you don't want some guy with his big old boat, you know, 784 - > in Rodney Dangerfield coming by. 785 - > It's scary, it's dangerous.

786 - > So you don't want that liability, but if it were to 787 - > happen, you're gonna get sued anyway, whether it's in the 788 - > trust or not. 789 - > A trust is not for asset protection. 790 - > Did you guys hear that? 791 - > This is for avoiding probate, planning for your assets for the 792 - > next generation, business and asset continuation plans, 793 - > keeping life simple, getting organized, maybe some privacy, 794 - > no asset protection.

795 - > Putting it in the trust doesn't keep matter. 796 - > Keeping it out of the trust, doesn't matter. 797 - > You get sued, doesn't matter. 798 - > SPEAKER_00: Yeah.

799 - > Yeah, and yeah, the trust is something that's the legal 800 - > purpose of it is it's passing on. 801 - > It's passing your assets down once you pass away. 802 - > During your life, the IRS, a court, they act like the trust 803 - > isn't there. 804 - > It's just you.

805 - > Okay, there is no legal function of it really. 806 - > It really triggers in and takes effect and is built for when you 807 - > pass on to get your assets to your loved ones with the proper 808 - > restrictions. 809 - > So we want to make sure your trust owns everything, or I'd 810 - > say mostly everything. 811 - > And if it doesn't directly own it, we had a plan for it in the 812 - > trust at least.

813 - > SPEAKER_03: Okay. 814 - > Now here I'm gonna give my best shout-out a call to action. 815 - > All right. 816 - > Then you can take it to the clean it up.

817 - > Clean it up, yeah. 818 - > SPEAKER_01: Okay. 819 - > SPEAKER_03: People. 820 - > And I I'll bear the I'll break the bad news.

821 - > I appreciate that. 822 - > You're all going to die someday. 823 - > unknown: Sorry. 824 - > SPEAKER_03: But you're going to heaven.

825 - > I'm good. 826 - > Cop. 827 - > Oh, okay. 828 - > Everybody goes to heaven.

829 - > Okay, wow. 830 - > SPEAKER_02: In your little world, everybody goes to heaven. 831 - > All of our listeners. 832 - > You're watching other people's stuff.

833 - > There you go. 834 - > I don't know. 835 - > You heard it first here on the Main Street Business Podcast. 836 - > SPEAKER_00: If you listen to this podcast or and you're on 837 - > this channel, you're going to hell.

838 - > SPEAKER_03: You're probably going to hell. 839 - > You're welcome. 840 - > Yeah. 841 - > Yeah.

842 - > Yeah. 843 - > You're welcome. 844 - > Send yourself, send a self-addressed envelope too uh 845 - > with your thank you card and some cash. 846 - > Um so you're all going to die someday.

847 - > And if you don't have a plan, a lot of the assets, seriously, 848 - > that you've worked so hard for are going to be subject to uh 849 - > waste, taxes, family bickering. 850 - > It the list goes on and on. 851 - > And if you do you really want some of those assets ended up in 852 - > some lawyer's bank account or the government's bank account? 853 - > No, you do not.

854 - > Please get your estate plan done. 855 - > You can always change it, modify it, improve on it. 856 - > And having nothing is worse than something that maybe needs a 857 - > little update once in a while. 858 - > It's okay.

859 - > Call our office. 860 - > We got a killer discount once a year between Memorial Day and 861 - > Father's Day. 862 - > This is it. 863 - > You call up quick, you can grab it, you're off to the races, 864 - > then you can enjoy your lake time on Father's Day and not 865 - > worry about this stuff.

866 - > SPEAKER_00: And Mark's gonna have a lot of time. 867 - > SPEAKER_03: We brought that all together. 868 - > SPEAKER_02: I brought that all together. 869 - > And I like how you used a killer discount just in time because 870 - > you have an escape plan now.

871 - > Yeah. 872 - > If not, you'd be worried this weekend lightning, you know, 873 - > gonna happen. 874 - > SPEAKER_00: Bam! All right.

875 - > Well thanks to everyone for being on here. 876 - > Make sure you're subscribed, giving two thumbs up, kudos, 877 - > whatever, sharing it, and let us be of service to you if we can. 878 - > Uh enjoy Father's Day. 879 - > For all the fathers out there, thank you for all that you do 880 - > for your families, and we'll see you next time on the Main Street 881 - > Business Podcast.