Latest / The Jon Sanchez Show / The 7 Estate Planning Mistakes That Could Cost Your Family Everything
Transcript
- Jon G. Sanchez: Good Wednesday afternoon to you. Welcome to the John Sanchez show on News Talk seven eighty K, which it's a pleasure to be with you on this hump day. And ⁓ you know if you were here in northern Nevada, it is a hot hump day, as Jack said a moment ago. My goodness. Well, it was lukewarm on Wall Street today. How about that? One indice doing really well, another one not doing so well. So we'll call it a a mixed lukewarm day to day. But you know what? Enough of the Chatter. Let's get down to business, shall we? Got a great show lined up for you this afternoon. know, we find ourselves again each and every Wednesday, I'm trying to bring you an estate planning topic to educate you, right? And today, today's great one. It is. Because what we find ourselves going right now is a really interesting situation and many aspects. This is what I'm finding from talking to many of you after starting our estate planning business, specializetrust.com. There's a lot of misinformation going on out there. not only because this not your area of expertise, like it is mine, but there's so things you hear in the news, or more importantly, you hear from friends or family. I need an estate plan. I don't need an estate plan. I'm not rich. I don't need all these fallacies that you've heard over and over again. Well, today I'm going to break some of those for you. And here's what we're going to be doing: I'm going to be discussing for you after I get through my stock market recap. The seven estate planning mistakes that could literally cost your family thousands of dollars. could cost your family months of frustration and years ⁓ unnecessary stress. And you know the shocking part? Most families don't even discover these mistakes until it's too late. When I say it's too late, that's until a death or incapacity occurs. I don't ever want that to happen to you. So I'm going to uncover the most common estate problems that I see. And then I've got a very special announcement of an upcoming educational webinar I'm going to be hosting next Wednesday for you to help you identify gaps that you may have in your own estate plan. If you even have an estate plan. If you don't, I want to convince you to get one because again, the stories I could share you with you over my 36 year career of families devastated when they thought there was an estate plan, but this wasn't done right. This wasn't done right, all these different problems, or they didn't have one, which makes things even worse. Or in a situation like I dealt with, which was the driving force to me specialized trust, and is a family member that you didn't even know how to trust. And they did one thinking everything was fine, but an attorney dropped the ball and it wasn't fine. And really really missed over family, to say the least. You've heard my story. I won't bore you with it again. So gonna be ⁓ be again a great topic. Seven estate planning mistakes that could cost your family everything will be my topic. That'll be momentarily. Let's get down to the stock market side. ⁓ find ourselves going back to this morning. And it was a day once again where we had tremendous strength, right? I told you yesterday, ⁓ in there. Yesterday was nothing more than a portfolio rebalancing going on, getting ready for the end of the month, end of the quarter. And that's what absolutely it appeared to be. We had pretty good strength, you know, early in the pre-market session, around the five o'clock hour. Dow futures were up almost 180. NASDAQs were up almost 300. SPs up about 43. Then we kind of began to fade as we went into the opening bill at 6 30. And when it was all said and done, the Dow hung in there pretty well, but we did start to see weakness occurring once again in the Nasdaq. All those semiconductor, those memory names like Micron, et cetera, that sold off heavily yesterday. Well, they bought them back this morning. Well, at least for the time being. And then as the day progressed, those big tech names digressed. They began to sell them off, take some profit taking. And I think one of the main reasons that we saw that is because probably one of the most important earnings numbers that the street was looking for for this entire earnings season, which is just about wrapped up, was the aforementioned Micron. You see, Micron now has become a barometer. I I really honestly feel it is more a barometer for the health of the AI, the the memory the chips, et cetera, more so than even Nvidia now. Notice you're not even hearing anybody talk about Nvidia. It's all about Micron. Now this has been an incredible stock, by the way. 52-week range on MU, $103.38, the way up to $1,213.56. Been one heck of a ride, right? Imagine having a few thousand shares of that. Well, it's been under a lot of pressure recently. And again, more so on on a rotation basis. But as I said last night on the show, and I said throughout my stock updates this morning. ⁓ Watch Micron today. Again, it's become a barometer of the tech space because they're going to release earnings numbers after the close. And boy, did they release earnings numbers after the close. Proud to say the stock is rebounding sharply. Finish the day down $3.26, just a 0.31% loss, closed at $1,048.51. I'm watching it right now in the after hour session. Stock is up $144.81, $13.81% gain to $1,192. That's just again right now. earnings numbers came in as follows. Revenue $41.46 billion. Estimates $35.84 billion. Earnings per share adjusted $25.11. Estimates $20.78. Revenue increase from $9.3 billion a year ago. Think about that. $9.3 billion for the same period a year ago to now $41.46 billion. For the current quarter, the company said they expect revenue of about fifty billion, up from the eleven point three billion a year earlier. Analysts were looking way off 43.58 billion. Memory prices have skyrocketed in the last couple of years as the AI chips continue to eat up the production capacity of the small crop of vendors. Really, remember there's not many companies out there that make the chips. And then of course we have the data center demand increasing day by day, literally. So prices are rising for memory used in smartphones, laptops, cars, telephones, name it, right? We have chips in everything these days. Their CEO said the following Our customers are recognizing that supply shortages and memory and storage will take considerable time to improve, as we expect industry supply to improve gradually in the year twenty twenty eight. Well again, micron's turned into Wall Street's darling. And so investors are being rewarded. And again, this stock has been under pressure these last couple of days, rebounded a bit. know, within last week, I'll call it. We've had some really big strong days and some really big weak days. This hopefully will calm things down, and then we'll start to see a little bit more confidence coming back into the tech space. That ⁓ that's the That's again how important Micron is to the tech space now. And again, if you you know, if you me you may not know the company, but they're they they have just absolutely become a barometer. ⁓ let me check the futures and boy, is it having an impact. ⁓ my gosh. hope these hold. ⁓ yeah. Futures have started trading 14 minutes 14 minutes ago. NASDAQ futures right now up six hundred and thirty-nine points. My goodness. That's incredible. Dow futures up 204. SPs are up 65. This what I said on the show yesterday. All you need is one positive catalyst. And all the naysayers go, I can't buck this trend. I am not gonna, as we call it, fight the tape. Best piece of advice I was given when I was a young broker by a very seasoned veteran. Don't fight the tape, don't fight the Fed, John. Still remember it like it was yesterday. So here you are, major tech player reporting blowout earnings numbers, and look at what the futures are doing. this is gonna be a great catalyst. Going into ⁓ tomorrow, again, if these gains can hold overnight. It's still very, very early, but man ⁓ man, do we like seeing that? that one of the one of the major issues today. Just a little bit of hesitation going in. Again, never know what these companies are going to report. So, how finish the following. Again, very modest day on the the Dow side of things, and and you know, again, modest losses on the Nasdaq side of things. So we ⁓ finished on the Dow Jones Industrial Average with a very small gain of 182, just 0.35. And the reason I say small, I know it sounds like a lot, but you gotta remember we're touching almost 52,000 on the Dow percentage-wise, that 182 point gain, it's only 0.35%. I gotta continue to remind myself, it's like, man, that's a you know, man, the early days, 182 points, my gosh, you pop the champagne bottles. Now it's just nothing, right? 0.35%. NASDAQ though lost 110, 0.43%, and the SP lost seven points. On the commodity side of things today, this was another very positive catalyst. we had a couple things coming out today early in the pre-market session. Number ⁓ president that ships are sailing through the Strait of Hormuz now. So we immediately saw an impact in oil prices, driving oil down. ⁓ We actually, was hoping that we could hold below 70 to say that on the show today. ⁓ We didn't hit it, but we did hit it a couple times intraday where we broke the 70 mark. We're at 7052, is where we closed that. Think about that for a second. We're up to what, 112 or so? At the height of the ⁓ of the war. So 7052 a barrel down two dollars and eighty-six cents a barrel today. well, you know, if there's no fears of inflation, people are dumping gold. 141.50 loss on gold, $141.50, closed at $4,007 and 40 cents an ounce. And this was the other great positive catalyst. Great action in the bond market today. Tenure yield down nine basis points to a close of 4.4%. So it was like I said, it was strength across the board, but hesitation on the Nasdaq side going into my cron's earnings numbers. So we'll take It was it was a good day. We also had new home sales. Really, that was the only reported we had on the calendar as far as major numbers. Tomorrow's gonna be completely different. I'm gonna be one busy guy tomorrow morning when everything releases, it seems like at 5 30. ⁓ But new home checked in for the month of May this morning at seven o'clock. Down 7.3% month over month. So sparked a little bit of selling pressure in the home builders. let's see, anybody else stand out? Well, Lenard finished the day strong, 6.42% gain. Speaking of the home builders up $5.61, big outperformer in that sector. 92.96 was the closing level. ⁓ Pulte up Micron for the day was down $4.55. Google, which I had a note, I apologize. If the news broke during the show yesterday and I just ran out of time. ⁓ ⁓ Google going to be replacing Verizon in the Dow Jones Industrial Average. I believe it's gonna be before the on June the twenty-ninth. So coming up here very quickly. That means of course all those indexes, ETFs, et cetera, that track the Dow, they've gotta buy Google. So that's always a good thing. But stock didn't really react today. It moved up in the after hours yesterday when the news broke, but finished the day down a dollar six to a price of three forty five ⁓ two. All right, that's about it. Like I said, it wasn't really a very heavy news day whatsoever. No real major movers, just a lot of anticipation going into Micron's earnings. We got the good news. Now let's see what happens overnight and into tomorrow. right, we come back. I'm gonna get a head start because I got a lot to talk to you about on the seven estate planning mistakes that could cost your family everything. Back to the John Sanchez Show on News Talk 780K, which I hope you had a good Wednesday, good hump day. Seeing a weekend right around the corner, aren't you? Yeah, I know it's gonna be here before we know it. I just cannot believe how fast these weeks are flying by. right, let's get down to today's topic. But first, if you just joined us, again, very quiet mixed session today. Dow Rose NASDAQ lost 110, the SB negative seven. but again, it was all about Micron's earnings numbers, which ⁓ were absolutely amazing after the close today, and futures ⁓ just soaring at this point. Again, early reaction, no telling what's gonna happen overnight or by the time the opening bell rings at six thirty tomorrow. But for the moment, hey, we're gonna enjoy it. right. I made you a promise and I'm gonna stick to it. Each and every Wednesday, I'm bringing you an estate planning topic. Once again, if those of you may not be aware, I launched a new business a few months back called specialized trust.com. Specialized trust and estate plan is the name. And you can find it at specialized trust.com. I did it because again, I was a victim of ⁓ Poor estate planning by an attorney with my father who passed away a little over a year ago. I swore I'd never let this happen again. So we have created a very, very unique estate planning business. We do full-blown estate plans, ⁓ irrevocable living trust, wills, everything that you need. And I did a had a webinar, gosh, I guess it was what, three weeks ago already. So it's time to do another one. And I ⁓ I to I'll you when we to break what this webinar is is going to be about. But I want to get to today's topic first. I've titled today's topic The Seven Estate Planning Mistakes That Could Cost Your Family Everything. And I know that sounds dramatic, but I've seen it, folks. It can cost your family everything. I'll never forget when I when I opened my Reno office. You know, I was raised in Reno, moved away, and then came back and opened the office in gosh, what was it? 2001, 2004, I guess it was. one of the first new clients that I got was this beautiful little old tiny lady. She was about 80 years old. ⁓ She came literally started crying before she even sat down in my chair. And I said, My gosh, what you know, what's wrong? she goes, We're wiped out. I said, What do you what do you mean you're wiped out? And she went on to give me a story that her and her husband were very wealthy, been around Reno for years, multimillionaires, very successful entrepreneurs. And husband got put into assisted living. And what supposed to be a, you know, your typical one, two-year stay, a drug on years and years. And she spent every ⁓ dollar that they to support him. And they were basically destitute. She was literally living out of a hotel. They had nothing. So they didn't plan properly for care, number one, which is obviously something I'm very passionate about. But they didn't have an estate plan. And things just to disappear. And pardon me. And so, know, we talk about estate planning mistakes, again, I'm not being dramatic when I say they literally could cost your family everything. They literally can. I mean, I could give you story after story of families that ⁓ Did everything right, right? They they had a trust or they came close to having a trust. They had everything correct, but then something wasn't right, right? Something didn't get funded, the estate got challenged and and they lost. I mean, there's thousands and countless of stories, millions of stories. So this is reality, folks. This is reality. And once again, I'll break the misnomer right from the beginning here. Estate planning is not just for the wealthy, right? It is not. I don't care how much money you have, everybody needs an estate plan. And especially those of you that are that have children at home or your grandparents and you have grandchildren, you know, there are so many planning strategies that that can be utilized in a solid estate plan to to minimize taxes, to protect assets, to do all the things that you want to do. But if you die in test state, meaning without a will, if you die without a trust, et cetera, you're leaving it up to the courts to make that decision. You've heard that story. I just wanted to kind of start that with that. Well, let's talk about those of you that do have a trust. Okay. You believe, hey, you know what? I signed the trust. I'm done. Unfortunately, that's not true. After reviewing hundreds, if not thousands, of estate plans over my career, I have discovered the following. many families have estate planning problems they don't even know exist. ⁓ like that that that hidden problem that is lurking out there, but they don't even know about it. You see, some have no plan at all. Others plans that are outdated. I mean, I just restated a trust that was. ⁓ 17 years old the other day. I did one a couple days before that. It's about 13 years old. Did one before that that was written in another state that was like 10 years old. Very, very common problem, right? It's not your fault. Again, you were taught and believed that I have an estate plan. I have a trust. I paid it, got it done. That's all I need to do forever until the day I die. But that is not the case anymore. they have a trust, it's outdated, maybe it's incomplete. Remember. Things don't automatically go into your trust. So, as I'll discuss here, you know, momentarily, when you buy a major asset, let's say a rental property another home or something like that, that needs to be put into the trust. Very common problem that I see is someone will you know, maybe they were, you know, I don't know, in their 40s, 50s, whatever, when they got their trust created. And then time goes on and they decide, you know, they're making more money and they want to buy a rental property. Well, they buy the rental. They put it joint tenants' rights to survivorship, even though they had a trust. They forgot to move it into the trust. So guess what? Under that scenario, for those of you that don't know, if they died in that example, that rental property, it's going to probate. Rest of their estate may be fine if they funded it properly, meaning they retitled the the assets, the the the taxable accounts, the checking account, the brokerage account. They moved their home into the trust, so on and so forth. But they left out that rental house. Again, they don't know. But that's what's called An incomplete improperly funded trust. So it doesn't do what they want it to do. But again, they're sleeping well at night thinking everything is fine. But one unique thing about estate planning is this. The unfortunate reality is that most estate planning mistakes are never discovered until someone dies until someone becomes incapacitated or family members forced to step in during a crisis, like happened with me. So when I come back from this break, I'm going to begin discussing the seven estate planning mistakes that could cost your family everything. I'll be talking about having no estate plan at all. Believing old estate plan is still good enough. It's just fine. I had it written. It's all done. to properly fund the trust. Beneficiary designations that don't match the trust. that's a big one. let's see, what else am I going talk about? no durable powers attorney. yeah. Another major problem I see. failing to plan for the blended families. huh. Very common today. And assuming my family will just quote, it out. Yeah, those are the things. I'm gonna be busy when I come back. Welcome back to the John Sanchez Show on New Stock 780K. Happy Wednesday to all of you. Again, we had a mixed session today with a 182 gain on the Dow. NASDAQ lost 110. The SP lower by seven. right. We're just beginning our estate topic again. Each and every Wednesday, I'm going to bring you a new topic to get you so knowledgeable and understanding this world called estate planning. It's fascinating, absolutely fascinating. You know, I a client the other day, we got just a real quick side note, and then we'll get to our topic and tell you what the webinar is going to be about also. Had a client the other day say something ⁓ very flattering, I guess is the word. I reviewed their trust written by a a local estate planning company, and there was a major provision in there that I caught that was wrong. And it would have resulted had I not caught this, in a business to a family member for pennies on the dollar instead of what he really wanted, which Fair market value if he passed away. And we got done, we had about an hour long discussion. And he said, You know, I got something, I got a new tagline for you, John. And said, What's that? He said, You guys build the wealth you protect the wealth. I said, You know what? That is a great tagline. And it's true, right? All of you go to work every single day. You're diligent. You work hard, you save in your 401k, you're building your wealth. That's what you're taught to do. But no one's teaching you other than me to protect that wealth, right? I don't want all these years of hard work just to go by the wayside because you didn't know what to do. So that's my mission to help all of you. It really is. before start on my topic, the Esteban seven estate planning mistakes that could cost your family everything. Let me get this out of the way, this webinar next Wednesday. once again, you know, these are purely educational webinars. Okay. It's going to be at six o'clock next Wednesday. Educational, that's it. And I've titled it, Do You Have an Estate Planning Problem? Because we're going to discuss what I'm going to just barely touch on today due to lack of time, the seven most common estate planning mistakes. going to go into great detail on these. Seven estate planning mistakes that families make. I'm also going to be talking at the webinar about what we do without data trusts, what we do with beneficiary designation errors, funding mistakes, powers of attorney. But remember, we have financial. And called advanced directive, and then we have the medical side of it. And then other issues that I see popping up. Because again, many of you think you have a trust, everything's fine. Hopefully that's the case. But what I'm finding is it's not the case. Because time goes on, time things change. Because I want to make sure you have no unnecessary stress for your family, no delays, no expenses, no probate court, no nothing. if you already have a trust, or you think you need one, I designed this webinar for you. my marketing team just knocked me over the head today because I I literally decided today I wanted to do this. It's just a burning desire I have. so they have not had a chance to create the sign up on our website at specialized trust.com. ⁓ So to send you there. Look and see all the different packages we have, the, the, the articles I've written, so on and so forth. but for now we're gonna do it the old-fashioned way like we did the last webinar. Just send me an email personally, John J O N at specialized trust.com. Just say, sign me up. And I'll turn around and ⁓ or have someone turn around and send you the ⁓ the zoom invite. John J-O-N at specialized trust.com again, next Wednesday, 6 p.m. I'm curious if you guys would do me a favor. I I I I've never done this, but I something, some little feeling I have tells me that I I may want to include this. If it of interest to you guys, because I'm doing this all for you guys. I know the stuff. I'm trying to help you. If it's of interest to you for me to do a Saturday morning webinar, let's say, I don't know, nine o'clock for an hour. Put that in your in your email to me. Say, John, yeah, love to have a Saturday morning webinar. You know, six o'clock, you know, pretty good, right? You usually have dinner, you're home by that time. There's a lot of you, of course, that got the young kids. And man, it's so busy at home in the evening time. That, you what? Maybe we need to do a Saturday morning one. Be more than happy to. That's it's I work seven days a week. So you know, again, if ⁓ if I get enough of you wanting to do that, then maybe our next webinar will ⁓ we'll do a Saturday and a Wednesday one. So John Jowen at specialized trust dot com, just ⁓ say interested in the ⁓ Wednesday webinar, and I will ⁓ I will send you the invite. And again, the title of that webinar, Do you have an estate planning problem? All right. Speaking of problems, let's get down to some of the common problems that I see going on right now. So, you know, as I said when I started the show today, ⁓ know, it really starts with you have an estate plan, you spent the money, you spent the time, you think everything is fine until it's not, right? You discover your family discovers because you may not be here anymore. ⁓ That it's outdated, incomplete, and properly funded, no longer accomplishes what you originally set out to do. Not your fault, but we need to correct it. here's seven mistakes. I'm going to hustle through and again go through great detail on the webinar. You have no estate plan at all. So what happens when someone dies without an a an estate plan? When I say estate plan, I'm talking a revocable trust. It's really simple. You've heard me say this a million times. Your estate's going to probate. Plain and simple. ⁓ No if your spouse is still alive. Not an issue there in in most cases. But it's when there's only, you know, one of you left, and then that final person dies. No estate plan, meaning no revocable trust, your estate's going to probate. Your child or whomever you've named as your executor or successor trustee, they get to have a really fun time. They get to go deal with attorneys. They get to go deal with judges. get to go deal with the court system. They go do all these fun things. And they're cussing you along the way, saying, son a gun, mom, son of a gun, dad. If you had just spent a few thousand bucks and had an estate plan done, wouldn't be down here. I've told you million many times, I've literally had clients who have had to quit their job, budding careers, to focus on settling the estate of mom and dad. Because it's it it it sometimes, depending upon the size of the estate, it literally is a full-time job and it can drag on definitely for months, sometimes years, I've seen. So that's what happens. ⁓ It's choice. You have an estate plan, no probate. Don't have an estate plan, your estate's going to probate. Probate court, of course, besides it being costly, timely, they're going to determine who gets your money. I don't think any of us want that. The cost, the delays. I want to remind you again, the loss of privacy. you ⁓ when your estate goes to to probate, anybody and their uncle can come in, knock on the door, sit down in the courtroom, and learn everything about all your assets. Family disputes, that's really the big one, of course. Family fighting. No, dad promised me this. No, mom promised me that. yeah, it's a disaster. And then again, for you those of you with young children, it's the guardianship issue. When you go to bed tonight, if you're wondering if you should have an estate plan, think about this. If you have children, do you want the court deciding who is going to raise your children? If you don't have a problem with that, then the next question you need to ask yourself is this How in the heck is that person that you want the judge to decide to ⁓ raise your children, how are they gonna pay for it? Costs nearly $300,000 to raise a child these days from birth to a 18 years old. How are they going to pay for it? Those are the things our blended family estate plan covers. So guardianship issues for minor children. as you see, I haven't really talked about it at all about money because estate planning isn't about wealth. It's about protecting the people you love. Let's go to mistake number two. You your old estate plan is good enough. As I said at the beginning of the show, hey, no problem. You know what? Got the estate plan done years ago. Everything's fine. Trust created 10, 15, 20 years ago. I'm seeing it. Every day I'm seeing it. Well, guess what? Maybe those kids. We were just talking about they were minors when you wrote the trust or had the trust written. They're adults now. Trust isn't accurate. Or how about the person you named as your successor trustee? They passed away. Maybe you don't like them anymore. I had one the other day. They don't like that person anymore. It's like, ⁓ my God, I can't believe when I reviewed the trust and did the restatement, they're like, I can't believe I had that person named. I haven't talked to them in 20 years. Get them out of there. Marriage, divorce, births and deaths, meaning life changes. Changes in assets. Once again, I just had a discussion with an attorney ⁓ right before the show today. You know, people all the time, they have a trust, they it was written years ago, they forget they're supposed to put any major assets into the trust an ⁓ you know, ⁓ it to the trust, and they forget in the story I gave you at the beginning of the show. You decide to maybe buy a rental or a second vacation home or something, you don't put it in the trust, guess what? It's going to probate. ⁓ of your state may be fine, but that's going to probate. And then most importantly, changes in laws. You can't believe how many things, especially after the Secure 2.0 Act changed. ⁓ or was implemented a few years ago after COVID. many things in estate planning have changed. So again, when you wrote the trust, probably was very accurate at the time being. It reflected your life then, but does it really reflect your life today? ⁓ Welcome back to the John Sanchez Show on News Talk 780KOH. All we're going to get back to our topic once again, seven estate planning mistakes. could cost your family everything. But again, a quick reminder of my upcoming webinar. Do you have an estate planning problem? Next Wednesday, 6 p.m., just send me an email at John J-O N at specialized trust.com. I'll turn around and send you the Zoom invite and forward to seeing you again. This is for those of you that have existing trusts and those that are thinking about it. ⁓ In meantime, don't forget you can always look all of our information at specialized trust.com. Specializedrust.com. right. I don't think I'm going to get through my seven, but let me go to ⁓ number three as far as the seven mistakes costing families lots of money. Mistake number three. I touched on this briefly. Failing to properly fund the trust. I get a lot of questions. People are like, you talk about funding. What does that really mean? So funding is an estate planning term. That just means you take your taxable asset, your home, your bank accounts, your taxable brokerage accounts, not retirement accounts, and you transfer the name. Transfer the account into the name of the new living trust. That's called funding your trust. if you don't do that, if it's not listed in there, guess what? It's unfunded, meaning that asset is going to probate. I used the example before we went to break. If you had a rental property or a vacation home, got a living trust, but you have that, and didn't fund it, meaning you didn't move it into the trust, it's going to probate. So you fail to fund the trust. Assets never real estate still owned individually or joint tenants. Bank accounts remain outside the trust. LLC interest never assigned to the trust, all those things mean you've got a major estate planning problem. great example or a great analogy, I should say, is I saw this the other day. Creating trust without funding it is like buying a safe and leaving the door open. Think about that. Let's go to number four mistake. Beneficiary designations match. Here's a little quiz for you. Did you know that the Beneficiaries that you have listed on your retirement accounts. Let's say your 401k, your IRAs, et cetera, your life insurance. The quiz is this: What overrides the beneficiary you named on the aforementioned forms or the beneficiaries you've named on your living trust or in your living trust? The answer is those that you named on those documents. That overrides the beneficiaries that you've listed in your trust. A lot of people don't know that. And there's a major problem, right? They'll especially you get into blended families and things, divorces. People will say, Yeah, I named you know Sally as my beneficiary. Sally was my wife, and Inver is my beneficiary on my 401k. Well, Sally was your ex-wife. Nancy's your new wife. Sally needs to come off. Nancy needs to come on. And if you address that in the trust, guess what? Whoever you have on that forum, as I said, that's where the money's gonna go. There is a major, major case I was reading about the other day. Back East a a very, very ⁓ wealthy doctor, I'm talking an estate worth like thirteen million dollars, had an account with TIA Cref did estate planning, did everything, thought everything was fine. He dies, and the that story is exactly what happened. He had different d beneficiaries, meaning his grandchildren listed on his TIA Creft retirement account account. He was a teacher or was a teacher, completely different than the instructions in the trust. They ended up going, I think it went all the way up to the Supreme Court and the estate lost. And TIA creft held held their ground and said, look at we have to follow the recomm the the the ⁓ beneficiaries that are listed on the forum, not what's in the trust. So that was a major, major case. Again, that wasn't too long ago. ⁓ we'll discuss at the webinar. So 401k's life insurance and nudities, et cetera. Beneficiary designation dish always overrides the trust provision. Now, I want to give one little exception to this. We now have the ability to create what's called an IRA trust. And this is where we can write a trust. It's an additional trust outside the scope of your revocable trust that allows you to list your your IRA trust as primary or contingent beneficiary. Now, what's so big deal about that? Well, in past, I always recommended against that, right? Simply because if you die. And you have a your normal trust listed as beneficiary, that money has to be out of the account somewhere between five to 10 years, depending upon a number of circumstances. With the IRA trust, that does not hold. Not only can you extend out that time period that it's paid out, but what the clients really love is you get to determine that beneficiary or beneficiaries receive their money. So, for example, let's say you've got a 25-year-old kid. I just had this happen with a with a client the other day. ⁓ Got a 25-year-old kid. Kid's not mature enough to handle pretty good inheritance when when the time comes. or you have a child with special needs, whatever it is. Don't you want to control when and how they get that money? Well, you can if you have an IRA trust. And I'll go into more details. I'll do a whole show on that or a whole webinar on it. It's absolutely fascinating, but I just want to throw that out there. mistake number five, no durable power of attorney. What do mean? Well, that's better known as your financial power of attorney. It deals with planning. What happens if you're laying there in bed? You can't make a decision. You're not with it. You're semi conscious or unconscious. No one can make those decisions for you. And I say investment, that's last thing in the world. I'm talking having access to your checking account to pay the bills. Who's to handle your financial management during the ⁓ during your illness? Guess what? How about court appointed conservatorships? ⁓ we don't want that. And the family? Yeah, they can't have access to it unless you have a durable power of attorney. So again, estate plan is not about death. It's also about the disability and incapacity. the ones I'm gonna leave off, the failing to plan for the blinda family and assuming, quote, my family will figure it out. Again, I'll go through all these in much, much more detail, plus many other areas next 6 p.m. at our webinar. Do you have an estate planning problem? Just send me an email, John at specialized trust.com, and ⁓ I'll around and get you that invite. ⁓ God have a great afternoon. We'll see you tomorrow on the John Sanchez Show.