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Trust & Will · Money In Motion with Klaas Financial

0:00
Speaker 1: At our phone lines. They are open to you right
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Speaker 1: now if you have questions for our retirement planning professionals
0:06
Speaker 1: from Class Financial. Telpe number to get on the air
0:08
Speaker 1: this morning six oh eight three two one thirteen ten.
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Speaker 1: That's six oh eight three two one thirteen ten gets
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Speaker 1: you on the air with Eric Schwartz and Kyle Kite
0:17
Speaker 1: of Coloss Financial.
0:18
Speaker 2: Don't forget.
0:18
Speaker 1: You can learn more about Class Financial on their website
0:21
Speaker 1: Class financial dot com. That's Closs k l aas Financial
0:25
Speaker 1: dot com. Teleph number for the office right here in Madison,
0:28
Speaker 1: six oh eight four four two five six three seven.
0:31
Speaker 1: Don't forget. No charge for that initial get to know
0:33
Speaker 1: your appointment tech Loss Financial. It will be complimentary to you.
0:36
Speaker 1: And again they're telephone number six oh eight four four
0:38
Speaker 1: two five six three seven as mentioned, joined this morning
0:41
Speaker 1: by Eric Schwartz and Kyle Kite. Eric, how you doing
0:44
Speaker 1: this morning?
0:45
Speaker 3: I am doing great. Sean, how are you doing this week?
0:47
Speaker 1: I'm doing fantastic.
0:48
Speaker 2: Great to talk with you and Kyle. How have you been.
0:50
Speaker 1: It's been a little while.
0:52
Speaker 2: It has been John, Yes, I'm doing well. Good to
0:54
Speaker 2: catch up with you again.
0:55
Speaker 1: I was on the I was at Class Class Financial
0:57
Speaker 1: dot com this morning and I was reading your bio
1:00
Speaker 1: and I noticed you have an interest in cruising Route
1:03
Speaker 1: sixty six on a motorcycle.
1:05
Speaker 2: It is it's one of those bucket list items that
1:07
Speaker 2: I'm going to do eventually.
1:08
Speaker 3: Here.
1:09
Speaker 2: I just bought myself another motorcycle last year, so we'll
1:11
Speaker 2: get it planned one of these days.
1:12
Speaker 1: That's I've taken I forty from Illinois to California, which
1:17
Speaker 1: kind of a lot of it kind of goes over
1:19
Speaker 1: that Root sixty six. But that's yeah, that's gonna be
1:22
Speaker 1: a great It's gonna be a lot of fun. As
1:24
Speaker 1: we talked this morning with Kyle and Eric, we're going
1:27
Speaker 1: to talk speaking of retirement and free time and being
1:30
Speaker 1: able to do those things. We're gonna be talking this
1:32
Speaker 1: week about estate planning and you know, one of those
1:34
Speaker 1: topics that it's a necessary topic for sure, and we're
1:38
Speaker 1: going to get into it. It's gonna be a lot
1:39
Speaker 1: of great information. Had a chance to kind of go
1:40
Speaker 1: over the notes before the show, and it's it's pretty
1:43
Speaker 1: good and important stuff. You want to pay close attention
1:45
Speaker 1: to the program for a couple of reasons. One get
1:47
Speaker 1: some great information, some great conversation. Also coming up a
1:50
Speaker 1: little bit later in the show, we're gonna have your
1:52
Speaker 1: chance to win a great prize from our friends at
1:54
Speaker 1: Class Financial with the class Quiz question of the week.
1:57
Speaker 1: I would give you a little tip listen closely. Oftentimes
1:59
Speaker 1: supposed to quite answer to the class quiz question, leak
2:02
Speaker 1: come up during the program, So again it beys, it's
2:05
Speaker 1: a great benefit to not listen just for the information,
2:07
Speaker 1: but also for an opportunity to win this week's prize,
2:10
Speaker 1: which is a twenty five dollars gift card to Starbucks.
2:13
Speaker 2: So listen closely.
2:14
Speaker 1: And before we get to this week's topic, let's actually
2:16
Speaker 1: rewind to last week's show and talk about the question
2:20
Speaker 1: and answer there.
2:22
Speaker 2: Absolutely so.
2:22
Speaker 3: Our winner last week was Alisha from Verona, and the
2:26
Speaker 3: question was true or false? Traditional defined benefit pension plans
2:30
Speaker 3: have become significantly less common due to their complexity and
2:34
Speaker 3: their cost. And the answer to that, Sean was true.
2:37
Speaker 1: And that was a great show speaking of things that
2:40
Speaker 1: are true? Was it a great show? That is a
2:42
Speaker 1: true statement as well? You can listen back at clausfinancial
2:46
Speaker 1: dot com. Of course, subscribe to the podcast sign up
2:48
Speaker 1: as well for the meat weekly Market Pulse newsletter. I
2:52
Speaker 1: was a fantastic show, and this week we got a
2:54
Speaker 1: great show as well. We're going to be tackling a
2:56
Speaker 1: state planning. Of course, the topic, then, let's be honest,
2:59
Speaker 1: is it's a very necessary, very important conversation, but a
3:02
Speaker 1: lot of folks try to kind of avoid that topic.
3:05
Speaker 2: We don't like to think about it.
3:06
Speaker 1: But let's talk about then, why it's so critical in
3:09
Speaker 1: your work when it comes to financial and retirement planning.
3:12
Speaker 2: Kyle, Yeah, great question, Sean. It is. It's not fun
3:15
Speaker 2: obviously to talk about this, but obviously it's very very important,
3:19
Speaker 2: you know, and we see ourselves as your financial quarterback
3:22
Speaker 2: in coach, so we want to help you put the
3:24
Speaker 2: work with a bunch of different professionals to make sure
3:27
Speaker 2: that everything makes sense and that the whole plan works together.
3:29
Speaker 2: And let's be honest to state planning is often one
3:32
Speaker 2: of the weaker links just because if you do set
3:34
Speaker 2: it up, you usually don't check it again for a
3:36
Speaker 2: long time because again, it's not the most fun topic.
3:38
Speaker 2: So but before we get rolling today, just remember that
3:41
Speaker 2: we're not lawyers with them. So all this stuff we're
3:44
Speaker 2: going to talk about today, try and give you some
3:46
Speaker 2: good information, but always be sure to seek out advice
3:48
Speaker 2: from your own attorney. And you know, when it comes
3:50
Speaker 2: to a state planning, you know, life happens, we like
3:53
Speaker 2: to say, and it throws you some curveballs. And estate
3:55
Speaker 2: planning is all about being prepared. So we're going to
3:58
Speaker 2: cover a lot of different things today, but some of
3:59
Speaker 2: the most common ones or your wills, your trusts, powers
4:02
Speaker 2: of attorney, and then healthcare directives. So all of these
4:05
Speaker 2: things that we're going to cover are about making sure
4:07
Speaker 2: that your wishes are on ORed no matter what happens.
4:10
Speaker 2: And you know, like I mentioned before, a lot of people,
4:12
Speaker 2: we hear it so many times. They finally get that
4:14
Speaker 2: will set up when the kids are born, and then
4:16
Speaker 2: they don't touch it for thirty plus years. Right, So
4:18
Speaker 2: that's not a good idea either. So we do believe
4:20
Speaker 2: in regular checkups. Just like your financial plan that you'd
4:23
Speaker 2: work with an advisor on, your state plan needs to
4:26
Speaker 2: evolve with your life. A good advisor helps you keep
4:28
Speaker 2: everything aligned. So we hear this all the time. Like
4:30
Speaker 2: I said, set it up when the kids are born,
4:32
Speaker 2: or you know, they didn't change it when they've had
4:35
Speaker 2: you know, maybe it's grandkids time and they've had a
4:37
Speaker 2: grandkids and all that kind of stuff. So it's definitely
4:39
Speaker 2: something that you want to continue to double check on,
4:42
Speaker 2: so in a reality check. And this is a real
4:44
Speaker 2: recent survey here, So for March twenty twenty four, Survey
4:47
Speaker 2: and Financial Advisor magazine found that only twenty six percent
4:51
Speaker 2: of Americans have estate plans. That number jumps to fifty
4:55
Speaker 2: percent for people with over five hundred thousand dollars in assets.
4:58
Speaker 2: And another surprise, thirty two percent of men have estate plans,
5:02
Speaker 2: but only twenty three percent of women do. So I
5:05
Speaker 2: know that I would not have guessed that men are
5:06
Speaker 2: better at this than women do well, for sure, that's
5:08
Speaker 2: the first it is. Yeah, and obviously this is super
5:12
Speaker 2: timely because we're we're in the midst of the biggest
5:15
Speaker 2: wealth transfer in history. There's eighty four trillion dollars that's
5:19
Speaker 2: moving from the baby boomer generation to the Gen X
5:22
Speaker 2: and millennials. So how much of that goes to your
5:25
Speaker 2: loved ones versus the lawyers and the courts depends on
5:27
Speaker 2: your planning. And without a plan, you could lose you know,
5:31
Speaker 2: three to eight percent just due to unnecessary costs and
5:34
Speaker 2: probate fees and all that, which we'll talk about here.
5:36
Speaker 2: In a minute.
5:37
Speaker 1: Really great layout this morning from Kyle Kite, of course,
5:39
Speaker 1: joined by Kyle Kite and Eric Schwartz. They are our
5:42
Speaker 1: retirement planning professionals from Class Financial the website class financial
5:45
Speaker 1: dot com. That's cost klaas Financial dot com. That's open
5:49
Speaker 1: number six So eight four four two, five, six three seven.
5:53
Speaker 1: So Eric, why do you so few people have a will?
5:55
Speaker 1: Why do they skip having that will? And let's talk
5:57
Speaker 1: about the importance of power of attorney documents.
6:00
Speaker 3: Yeah, this is a topic, and I think Kyle would
6:02
Speaker 3: agree that we spend a lot of time talking to
6:04
Speaker 3: our clients about And I always joke with clients that
6:08
Speaker 3: when I tell them, hey, it's time to either get
6:10
Speaker 3: an a state plan in place or review your state plan,
6:14
Speaker 3: it generally is about five years before they actually do it,
6:17
Speaker 3: and you know, it's just me telling them frequently over
6:19
Speaker 3: that time. But I think the reasons here are pretty simple.
6:24
Speaker 3: I mean, death is uncomfortable, nobody likes thinking about it.
6:27
Speaker 3: It's easy to just put it off and procrastinate, say
6:30
Speaker 3: I'll get to it later. I don't know where to start,
6:32
Speaker 3: I don't have enough stuff to worry about, I don't
6:34
Speaker 3: need an estate plan, or I don't know how to
6:37
Speaker 3: do it. I don't know how to make a will.
6:39
Speaker 3: It's too expensive. So these are all really common refrains
6:43
Speaker 3: that we hear from folks.
6:45
Speaker 2: But here's the kicker.
6:45
Speaker 3: Estate planning isn't just about what happens when you're not
6:48
Speaker 3: here anymore, because we often hear people say, well, my
6:52
Speaker 3: kids will have to deal with that. I guess, but
6:54
Speaker 3: it can impact you while you're still here. So power
6:58
Speaker 3: of attorney documents, as you mentioned, they're vital while you're
7:01
Speaker 3: still here. Think of it as choosing someone you trust
7:04
Speaker 3: to make decisions for you. If you can't make decisions.
7:06
Speaker 3: You can have a medical power of attorney which handles
7:09
Speaker 3: your healthcare and you're in decisions around that. And then
7:13
Speaker 3: you also have a financial power of attorney so they
7:16
Speaker 3: handle your money. You can have one person that does
7:19
Speaker 3: both of these things, or you can split it up.
7:22
Speaker 3: I would say that's pretty common to split it up,
7:24
Speaker 3: but you can choose, and remember that beneficiaries only get
7:29
Speaker 3: involved after your death. Okay, so powers of attorney they're
7:34
Speaker 3: handling things while you're still here and typically when you
7:36
Speaker 3: can't make your own decisions. So which is more likely
7:41
Speaker 3: incapacitation or early death right. In either case, you need
7:45
Speaker 3: to have a plan in place.
7:46
Speaker 1: Really and it's pretty eye opening as well. As we
7:49
Speaker 1: talked this morning with Eric Schwartz and Kyle Kite, they
7:53
Speaker 1: are retirement planning professionals from Class Financial. You learn more
7:56
Speaker 1: online Class Financial dot com. That's css k l aa
7:59
Speaker 1: S financial dot com. They're telephon number six oh eight
8:02
Speaker 1: four four two five six three seven again that's six
8:06
Speaker 1: oh eight four four two five six three seven no
8:08
Speaker 1: charge for the financial gets to know your appointment at
8:09
Speaker 1: Class Financial. It will be complementary to you. We're going
8:13
Speaker 1: to continue our conversation with Eric and Kyle. We're going
8:15
Speaker 1: to talk a bit more about about things like probate,
8:19
Speaker 1: what exactly is probate and I some people probably had
8:21
Speaker 1: a little shutter like we'll talk about what it is
8:24
Speaker 1: and UH and what you need to know there. We'll
8:25
Speaker 1: get all the details next as Money in Motion with
8:28
Speaker 1: COSS Financial continues right here on thirteen ten wib I
8:31
Speaker 1: from Class Financial, Eric Schwartz and Kyle Kite. You can
8:34
Speaker 1: learn more about Claus Financial colss financial dot com. That's
8:37
Speaker 1: COSS k l a A S Financial dot com. You
8:40
Speaker 1: can learn more about the team at Coss Financial. You
8:42
Speaker 1: can also learn about their separate divisions, how they can
8:44
Speaker 1: help you or if you're an employer, what they can
8:47
Speaker 1: do for you of course, and also a great opportunity
8:49
Speaker 1: there to sign up for the weekly Market Pulse newsletter.
8:52
Speaker 1: It's a weekly news letter that you get in your
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Speaker 1: email inbox. Got a snapshot of the most recent market
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Speaker 1: news as well as a link to the most recent
9:00
Speaker 1: podcasting and that available to you at cossfinancial dot com.
9:03
Speaker 1: This week, we are talking about estate planning and I
9:06
Speaker 1: mentioned that word probate. Does everyone need a will? And
9:10
Speaker 1: what is this probate thing that we often hear about?
9:13
Speaker 2: Yeah, great question, Sean, Yeah, in a you know, in
9:16
Speaker 2: the real world here, pretty much everybody needs a will.
9:19
Speaker 2: And I say pretty much, but I really mean everyone,
9:21
Speaker 2: because if you don't have a will and estate plan
9:24
Speaker 2: set up, the state that you pass away in definitely
9:26
Speaker 2: has one for you, and it might not be what
9:29
Speaker 2: you would what you would want with your assets here.
9:32
Speaker 2: So and people think that this is that a state
9:34
Speaker 2: planning and all these things that we're talking about are
9:36
Speaker 2: only for the super rich or only about wills and trusts,
9:40
Speaker 2: and that's that's a myth. So almost everybody has something
9:43
Speaker 2: of value, right You've got maybe a jewelry collection, or
9:46
Speaker 2: you've got an airloom, piece of furniture, cars, all this
9:49
Speaker 2: kind of stuff. So wills and trust kind of deal
9:51
Speaker 2: with all of these different assets that people. And because
9:54
Speaker 2: everybody has something of value, you need a plan for
9:57
Speaker 2: how it's distributed. And as I mentioned, if you don't,
10:00
Speaker 2: I don't have a play in the state does and
10:01
Speaker 2: it's probably not what you want. So let's talk a
10:04
Speaker 2: little bit about will versus a trust because we're going
10:06
Speaker 2: over a lot of different topics here today. So will's
10:09
Speaker 2: kick in after death, which means, you know, while you're living,
10:12
Speaker 2: obviously you control everything. Will's just kicking after death. But
10:16
Speaker 2: trust can kick in as soon as they're created, so
10:18
Speaker 2: you can have a trust actually own assets like bank
10:21
Speaker 2: accounts or homes that kind of stuff. And trust can
10:25
Speaker 2: also help you avoid probate. And we're going to dig
10:27
Speaker 2: into trust a lot deeper here in a couple of minutes,
10:30
Speaker 2: but probate itself proving your will and settling your estate,
10:34
Speaker 2: and it can be costly and time consuming. So the
10:38
Speaker 2: number one thing, and this is why anytime we're talking
10:40
Speaker 2: about you know, we talk a lot about four one
10:42
Speaker 2: ks and investments is that you name beneficiaries on those
10:45
Speaker 2: accounts on your bank accounts. Naming beneficiaries on accounts will
10:50
Speaker 2: bypass probate. Having a trust can also bypass probate as well.
10:54
Speaker 2: And why do we want to avoid probate Because it's
10:56
Speaker 2: a costly, time consuming process. So it can take months
11:00
Speaker 2: or even years to go through their probate process, and
11:04
Speaker 2: attorney fees obviously come into play with this. And then
11:07
Speaker 2: in Wisconsin aspect, four to five percent of your issues
11:10
Speaker 2: for probate and about half of that it's going to
11:13
Speaker 2: the attorney fees. So this is why beneficiary designations are
11:17
Speaker 2: so important. And beneficiary designations on your investment accounts often
11:22
Speaker 2: override your will or trust, so double check to make
11:25
Speaker 2: sure they line up with the directions that you wish
11:27
Speaker 2: to have happened with your assets. So this is an
11:30
Speaker 2: extreme example, but we've heard about it before. We've probably
11:32
Speaker 2: been mentioned it on this this call, before this radio show.
11:35
Speaker 2: Before is that you know, we've had that worst case
11:38
Speaker 2: scenario where you know, you go through a divorce but
11:40
Speaker 2: you never change your beneficiary of your four O one
11:43
Speaker 2: K at work from your ex spouse and one of
11:45
Speaker 2: your passes away and that xpouse ends up getting that
11:47
Speaker 2: money because it doesn't matter what your will, it's going
11:49
Speaker 2: to go based on that beneficiary designation.
11:52
Speaker 1: So really important conversation to have and a really important
11:56
Speaker 1: reminder to keep things updated. As we talked this morning
11:59
Speaker 1: with Eric Schwartz Kyle Kite, our retirement planning professionals from
12:02
Speaker 1: Class FINANCEEL So, Eric, you know, how often should we
12:06
Speaker 1: then be updating our estate plans?
12:10
Speaker 3: Great question, and I think you can imagine if it's
12:12
Speaker 3: hard enough to get people to do their initial estate plan,
12:15
Speaker 3: it's not very easy to get them to go back
12:17
Speaker 3: and update it. But the same reasons that that people
12:21
Speaker 3: put off putting a state plan together in the first
12:23
Speaker 3: place tend to be this the same reasons people don't
12:27
Speaker 3: update them regularly. So most most attorneys that I work
12:32
Speaker 3: with here locally, and I've I've asked this question of
12:36
Speaker 3: they'll say, you know, you should review your state plan
12:39
Speaker 3: at least every five years or after major life events,
12:43
Speaker 3: right birth of a child, death of a family member, divorced,
12:47
Speaker 3: as Kyle was saying, any kind of health changes. Right,
12:51
Speaker 3: these are these are generally red flags for all Right,
12:54
Speaker 3: I better, I better go back and make sure that
12:57
Speaker 3: that my wishes are still being carried out as I
12:59
Speaker 3: intended that too, And don't forget to check how your
13:02
Speaker 3: assets are titled. Okay, So getting the documents put in
13:06
Speaker 3: place is and drawn up that is one step. But
13:10
Speaker 3: actually implementing those so retitling your home or your investment
13:14
Speaker 3: account or updating your beneficiaries, they need to match your
13:18
Speaker 3: wishes as well. You can't just put the documents together.
13:21
Speaker 1: That's important, important nuance there for sure. From Eric Schwartz
13:24
Speaker 1: of course, joined this morning by Eric Schwartz and Kyle
13:27
Speaker 1: Kite from Class Financial. So Kyle, how often then excuse
13:31
Speaker 1: me until I touched on that. We got to talk
13:33
Speaker 1: though about the wills and trucks trust and kind of
13:36
Speaker 1: get a little deeper on that. So why should somebody
13:38
Speaker 1: consider a trust as part of their estate plan? And
13:41
Speaker 1: you think about you know, that being an option. Sometimes
13:44
Speaker 1: it's not always the best option. Let's talk about some
13:46
Speaker 1: of the nuances there, Kyle.
13:49
Speaker 2: And you know, this is a really really good question
13:51
Speaker 2: because in all honesty, like we say, in a perfect world,
13:54
Speaker 2: everybody would have a trust just because it gives you
13:56
Speaker 2: the most control over how you want your stuff distributed.
13:59
Speaker 2: If something order to happen to you, but realistically not
14:02
Speaker 2: everybody needs one. So the first thing that you would
14:06
Speaker 2: need to trust for is to avoid probate. So as
14:09
Speaker 2: we mentioned, trust can often bypass the probate process. This
14:12
Speaker 2: saves time, money, and can keep your state private. Probate
14:16
Speaker 2: to public process, and trusts are generally outside of the
14:19
Speaker 2: court system, meaning if you just have a will, it's
14:22
Speaker 2: actually public records, so somebody can go in there and
14:24
Speaker 2: look in and see how your stuff got divvied up. In
14:26
Speaker 2: that kind of stuff. This is especially full of different
14:32
Speaker 2: situations where I say a trust is basically a non
14:34
Speaker 2: negotiable that everybody should have one. If you have homes
14:37
Speaker 2: in multiple states or property in multiple states, you should
14:40
Speaker 2: definitely probably have a trust set up just because you
14:42
Speaker 2: would go through probate in multiple states because you own
14:45
Speaker 2: property in multiple states if this isn't one of them,
14:49
Speaker 2: and then control over asset distribution. So trust allow you
14:53
Speaker 2: to specify exactly how and when your assets are distributed
14:56
Speaker 2: to your beneficiaries. You can set conditions such as you know,
14:59
Speaker 2: distributing at certain ages or for specific purposes like cars
15:03
Speaker 2: or education, that kind of stuff. And it's especially useful
15:06
Speaker 2: for beneficiary to be responsible or if you want to
15:10
Speaker 2: protect assets for future generation. So think of this as
15:13
Speaker 2: anytime that money is going to do more harm than
15:16
Speaker 2: good to the people receiving it, you probably want to
15:19
Speaker 2: put a trust in place so that you can again
15:21
Speaker 2: have it distributed out to them on in a reasonable manner.
15:26
Speaker 2: Another one is managing assets during incapacity. So if you
15:29
Speaker 2: become incapacitated, a trust allows your trustee to manage those
15:33
Speaker 2: assets without court intervention. And this is a big advantage
15:36
Speaker 2: over a will, which only comes into effect after death.
15:39
Speaker 2: So again think of this as also like the power
15:41
Speaker 2: of attorney would do something similar, but this allows a
15:44
Speaker 2: trust see to step in and not just a power
15:46
Speaker 2: of attorney. And then tax planning, so certain types of
15:49
Speaker 2: trust can help minimize the state taxes. This is particularly
15:53
Speaker 2: relevant for those with larger estates or maybe really complex
15:57
Speaker 2: estates and things like that. And then another big one
16:00
Speaker 2: is protecting assets from creditors. So in some cases trust
16:03
Speaker 2: can provide a layer of protection against creditors, shielding assets
16:06
Speaker 2: from potential law. So this works for you, know, if
16:11
Speaker 2: you were to leave your money to your kids, and
16:13
Speaker 2: your kids inherit this money and they put it in
16:16
Speaker 2: like a joint account with their spouse, and then their
16:19
Speaker 2: spouse says, oh, but we just got a big dump
16:20
Speaker 2: of money in our checking account. Now I want a divorce. Well,
16:23
Speaker 2: if that money is co mingled, that can be a
16:25
Speaker 2: marital asset, which that spouse could obviously, you know, take
16:29
Speaker 2: half and run or something like that. So it protects
16:31
Speaker 2: from future x spouses as well as creditors. And the
16:34
Speaker 2: final one in this one is another big one too,
16:36
Speaker 2: is special needs planning. So a special needs trust can
16:39
Speaker 2: provide for a beneficiary with disabilities without jeopardizing the eligibility
16:43
Speaker 2: for government benefits. So again that's another situation where if
16:48
Speaker 2: you have a child with special needs or a grandchild
16:50
Speaker 2: with special needs, a trust is going to be something
16:52
Speaker 2: that you absolutely want to get set up for that situation.
16:55
Speaker 1: You know, it's interestings. We talk on this show, you know,
16:58
Speaker 1: each week, and sometimes you think, you know, it's it's
17:02
Speaker 1: very this stuff is very specific. And as as Kyle,
17:05
Speaker 1: as you're kind of working through some of these, some
17:07
Speaker 1: of these bullet points, you're thinking, yeah, those are all
17:10
Speaker 1: very very unique situations, things that can interact with other
17:14
Speaker 1: assets and other facets of your life. It's really important
17:16
Speaker 1: to have this conversation and to be doing this kind
17:19
Speaker 1: of work again, it's really really an important conversation, which
17:23
Speaker 1: is of course talking about a state planning as we
17:25
Speaker 1: chat with our retirement planning professionals, Eric Schwartz and Kyle Kite.
17:28
Speaker 1: Of course, Eric and Kyle, they come to us from
17:29
Speaker 1: Class Financial their website Closs financial dot com. That's Coss
17:33
Speaker 1: k l aasfinancial dot com. To tell forh number six
17:37
Speaker 1: oh eight four four two five six three seven. No
17:40
Speaker 1: charge for that initial get to know you appointment tech
17:42
Speaker 1: Loss Financial. It will be complementary to you again their
17:45
Speaker 1: number six oh eight four four two five six three seven.
17:48
Speaker 1: We'll talk about when a trust may not be the
17:50
Speaker 1: best option. Whilst our Closs Quiz question of the week
17:53
Speaker 1: that so much more. Next as Money in Motion with
17:55
Speaker 1: Coss Financial continues right here on thirteen ten WIBI This
18:00
Speaker 1: Morning with Eric Schwartz and Kyle Kite, both of them
18:02
Speaker 1: they are our retirement planning professionals from Class Financial. Don't
18:06
Speaker 1: forget if you missed any part of today's program. You
18:08
Speaker 1: want to listen back to the show, you want to
18:10
Speaker 1: share the show or get caught up on previous programs.
18:12
Speaker 1: You can, of course subscribe to the podcast right online
18:15
Speaker 1: Cossfinancial dot com. That's Coss k l aa S financial
18:19
Speaker 1: dot com. You can also learn more about the staff
18:21
Speaker 1: and the team at COSS Financial. I can learn about
18:24
Speaker 1: separate divisions at COSS Financial, as well as sign up
18:26
Speaker 1: for the weekly Market Pulse newsletter. That all available to
18:29
Speaker 1: you at cossfinancial dot com. That's Coss k l aa
18:33
Speaker 1: S Financial dot com. Delphy number six oh eight four
18:35
Speaker 1: four two five, six three seven. No charge for that
18:38
Speaker 1: initial get to know you appointment at COSS Financial. It
18:40
Speaker 1: will be complimentary to you again in the office right
18:43
Speaker 1: here in Madison six oh eight four four two five
18:46
Speaker 1: six three seven. Talking this week about estate planning, and
18:49
Speaker 1: we've left off talking about why a trust may be
18:52
Speaker 1: something that you should be using. There's also some situations
18:56
Speaker 1: where a trust might not be the best options. Tell
18:59
Speaker 1: us about that, Eric Hoop, do we have Eric?
19:02
Speaker 3: Oh?
19:02
Speaker 1: There we go, Eric, Sorry about that.
19:03
Speaker 2: We miss part of you here.
19:05
Speaker 1: Yep, you're back.
19:05
Speaker 3: Welcome to the show, all right, Guy, glad to be here. Yeah,
19:10
Speaker 3: So there's definitely some reasons you might want to think
19:12
Speaker 3: about not going the trust route. You know, it's not
19:14
Speaker 3: not the right fit for absolutely everybody. One reason is
19:19
Speaker 3: is just simply the cost. So setting up a trust
19:22
Speaker 3: is generally more expensive, and it's it's more complex too
19:26
Speaker 3: than just creating a general will, and there's there can
19:29
Speaker 3: be ongoing administrative costs associated with maintaining the trust. So
19:33
Speaker 3: that would be one one kind of roadblock to going
19:36
Speaker 3: going this route. And if you have a simpler estate
19:39
Speaker 3: your state, maybe it's relatively small and straightforward, you may
19:43
Speaker 3: be you may be just fine with the will. So
19:46
Speaker 3: if all your assets have beneficiary designations, I think like
19:49
Speaker 3: life insurance for one k's I RAS, those those beneficiary
19:54
Speaker 3: designations are are going to be sufficient to actually transition
19:58
Speaker 3: your your assets. And you may not need to have
20:00
Speaker 3: an additional trust over the top of the will asset titling.
20:06
Speaker 3: So to fully benefit from a trust, you need to
20:09
Speaker 3: retitle your assets into the trust's name. This can be
20:12
Speaker 3: a time consuming process and sometimes gets overlooked. I was
20:16
Speaker 3: kind of alluding to this earlier. You'd be surprised how
20:20
Speaker 3: many times folks will will say, hey, I finally did
20:22
Speaker 3: my estate plan after all these years, and they come in,
20:25
Speaker 3: I said, great, how do you retitle the house? Well, no,
20:28
Speaker 3: do you update the beneficiaries not yet like Okay, we're
20:31
Speaker 3: way there, We're have way there. The ongoing administration. So trusts,
20:37
Speaker 3: depending on what type they are, they can require ongoing
20:40
Speaker 3: administration like filing tax returns, maintaining accurate records. The flexibility.
20:46
Speaker 3: While while trusts offer a lot of control, they can
20:49
Speaker 3: be less flexible than a will, And once a trust
20:52
Speaker 3: is established, it can be more difficult to actually make
20:55
Speaker 3: changes and more expensive. And finally, because laws trust laws
21:01
Speaker 3: vary from state to state, it's really crucial that you
21:04
Speaker 3: work with an attorney who is familiar with your state laws,
21:07
Speaker 3: so that can you know that can introduce some additional
21:11
Speaker 3: costs and ongoing maintenance as well, So those would be
21:14
Speaker 3: maybe some of the roadblocks to establishing a trust and
21:18
Speaker 3: using it in your state plan. But the last piece
21:21
Speaker 3: I want to cover here is if you do go
21:23
Speaker 3: to the trust route, it's important to understand the difference
21:26
Speaker 3: between a revocable and an irrevocable trust. So a revocable
21:31
Speaker 3: trust can be changed or as its name suggests, revoked
21:36
Speaker 3: anytime during your lifetime. On the other hand, an irrevocable
21:41
Speaker 3: trust cannot. It's it's much less flexible. Each type has
21:44
Speaker 3: its own advantages and disadvantages. Revocable trusts are very common
21:49
Speaker 3: and are used to avoid probate. They also allow for
21:52
Speaker 3: management of assets if you're incapacitated. On the other hand,
21:55
Speaker 3: irrevocable trusts are often used for tax planning or asset
21:59
Speaker 3: protection purposes, like protecting your assets from nursing home costs.
22:05
Speaker 2: For example.
22:06
Speaker 3: So there's a lot of a lot of complexity here,
22:09
Speaker 3: and like Kyle said earlier, we are we are not attorneys.
22:11
Speaker 3: We just happen to work with them a lot. So
22:15
Speaker 3: it's it's essential to work with an experience the state
22:17
Speaker 3: planning attorney to determine whether a trust is the right
22:20
Speaker 3: fit for you in your situation and is sure that
22:23
Speaker 3: you're actually putting that together correctly.
22:26
Speaker 1: Really impactful stuff this week as we talk with our
22:28
Speaker 1: retirement planning professionals, of course, Eric Schwartz and Kyle Kite.
22:31
Speaker 1: They come to us from Class Financial the website COSS
22:34
Speaker 1: that's Colssfinancial dot com, k l aa S Financial dot com.
22:38
Speaker 1: Great website. To learn more about the teams set up
22:40
Speaker 1: for the weekly Market Pulse newsletter. Listen back to this
22:43
Speaker 1: previous shows podcast. There's just so much stuff at Cossfinancial
22:46
Speaker 1: dot com. You definitely want to check them out online again,
22:48
Speaker 1: it's Coss Financial dot com Delphy number six oh eight
22:51
Speaker 1: four four two five six three seven. No charge for
22:54
Speaker 1: that initial get you to know you appointment at Coss Financial.
22:56
Speaker 1: It will be complimentary to you again their number six
22:59
Speaker 1: oh eight four four two five six three seven. You
23:02
Speaker 1: want to hold on to that telephone number now as well,
23:04
Speaker 1: because it's time for the Coss Quiz Question of the Week.
23:07
Speaker 2: It works like this.
23:07
Speaker 1: In just a moment, I'll ask you the Class Quiz
23:09
Speaker 1: question of the week. We'll then have thirty minutes from
23:11
Speaker 1: the end today's program to call the Class Financial office
23:13
Speaker 1: right here in Madison at six oh eight four four
23:15
Speaker 1: two five six three seven. If you are the first
23:18
Speaker 1: car correct answer, you win this week's prize, which is
23:20
Speaker 1: a twenty five dollars gift card to Starbucks. This week's
23:23
Speaker 1: Coss Quiz question the week Is this true or false?
23:27
Speaker 1: Your beneficiary designations on your investment accounts will often over
23:32
Speaker 1: ride your will or trust. Is that true or is
23:35
Speaker 1: that false? Telephone number six oh eight four four two
23:38
Speaker 1: five six three seven, first Corot correct answer when that's
23:41
Speaker 1: twenty five dollars gift card Starbucks and again that's COSS
23:43
Speaker 1: Financials office right here in Madison. That number six oh
23:46
Speaker 1: eight four four two five six three seven. Eric Kyle,
23:50
Speaker 1: It's always great chatting with you, always very informative. You guys,
23:53
Speaker 1: enjoy this beautiful Dan and we'll talk real soon. Yeah,
23:55
Speaker 1: thanks Sean, see you guys. Doctor Marty Greer, she joins us.
23:59
Speaker 1: Next talk about what kind of we're going to look
24:01
Speaker 1: behind the scenes of what goes on in a vet clinic,
24:03
Speaker 1: what it takes to become a veterinarian or a vet
24:05
Speaker 1: tech or work in a veterinary clinic. We're to talk
24:08
Speaker 1: with doctor Grew about that next. Right here on thirteen ten,
24:10
Speaker 1: Wiba