Latest / The Jon Sanchez Show / How To Divide Your Estate Without Dividing Your Family
Transcript
- Jon G. Sanchez: Good Wednesday afternoon to you. Welcome to the John Sanchez show on Newstock 780K Wish pleasure to be with you. Whoo, what a hard stopper we had this morning. I tell you, if you caught my stock updates, I'm in a lot better mood now than I was this morning. It it was a tough go, I tell you. We we you know we were knocking on the door of a 500-point loss on the Dow and NASDAQ was down triple digits and bond yields were surging to 24-year highs. I mean, we had it all thrown at us this morning. But by the time the closing bell rang, you know, things settled down quite a bit. we still finished down for the day, but again, nowhere near where we were earlier in the session, as I said. So I'm gonna give you the details. We had we had a lot of interesting things happen today in regards to the bond market, which then sparked concerns in the stock market and so on and so forth. So I'm gonna give you all those details. But let me tell you what else I have lined up for you today. As you know, it is Wednesday, so that means it's an estate planning Wednesday. And I picked a really interesting topic to to teach you about today. You see, most parents divide their estate equally because they believe in the heart of hearts, their great intentions, that that's going to prevent arguments among their kids once they are gone. But let me throw this question out at you, or multiple questions. What if one of those children provided years of care for you before you passed? What if another one of your children just could never get their financial life in order and you help them out tremendously throughout their adult lifehood, life, life, adult life? Or what happens if you left your home to all three children? And I come across that one a lot, especially that. Well, today what I'm gonna do is I'm going to explain to you how what appears to be an equal inheritance on the surface can sometimes actually be unfair and create significant divide among your children, which is the last thing in the world that any of us want to have happen. Right? You you had great intentions, right? You spent the time and the money, you got a living trust created, and you you thought everything was lined up. And you thought, You know, and again, I see this all the time in the trust that I do. Just leave equal amounts to to the children. And I thought, you know, there's there's some issues that need to be discussed on this because again, we all want to treat our kids equally. Rarely do I see when I create trust, rarely do I see where they will favor one child, like one child gets 60% of the estate, the other child gets 40%. It's either they disinherit one child or Sometimes I had one the other day where they disinherited, I think, two or three kids, if I remember correctly. They had a lot of kids though. but rarely do they do it in an unequal balance. And this is something I always talk to people about again, and and especially if they're older and you know, been around a while and maybe had some health problems or something. It's like, are you sure you want to, you know, just bring this to your attention? You sure you want to leave equal amounts to the kids? Sounds like one of them, you know, again, took care of you, you know, you in in your poor health and And gave up their life across the country and they moved here to take care of you and so on and so forth. So I I've got some really fascinating things to share with you on that topic because again, it's something if you have children, you're gonna have to deal with this. You are absolutely gonna have to deal with this at some point. And you make that determination if you're gonna be like everybody, which Lord knows there's nothing wrong with that, and just have equal dispersion, you know, among your estate to the children, or is it gonna create problems when you're gone? So I'll get to that in just a moment. All right. In the meantime, let's get down to today's stock market performance. All right, you know, yesterday we had a record setting session, right? We had the SP 500 close at a record level, we had the NASDAQ composite close at a record level. The NASDAQ's just been on a tear for the last, you know, three days or so. But today, like I said, it was it was a rough go of it. And there wasn't anything specific. We had your typical day where you had a lot of the NASDAQ, a lot of the semiconductor components, AI-related components, they were trading down quite a bit. And again, there was no news behind it. It was just one of those days that happens. But everybody's attention today was in regards to what was going on in the bond market. And, you know, a couple hours into the stock market trading session, because obviously bond market trades completely different hours, the headlines that were coming across. Read as follows. The 10-year Treasury and the 30-year Treasury, not just one, but two, were trading at 24 year highs. Now, the 10-year Treasury today closed at 5.28%, up four up one basis point, excuse me, for the day. But when it hit that high, that high was five point three six percent. And the concern was an upcoming government bond auction. Later this morning. And as I said on the stock updates, we were going to get the results at 10 a.m. Pacific Standard Time. So the market was just absolutely sloppy leading up to that point. And then again, same thing with the 30-year bond. It was trading at 24-year highs. Well, we got a got a little bit of a break today because the $39 billion bond auction that occurred actually was met with strong demand. You see, the concern was. That demand was not going to be that strong, which seems crazy at the bond yield levels that we're at. But this is how sovereign wealth funds, institutional bond traders, et cetera, this is how they look at it. They go, they they factor in all the components of the economy, all the ingredients, as I like to call it, go, hey, you know what? Like I'll just use that example. 5.36%. Is it worth me to lend the government my money to earn 5.36%? Or do I want more? Do I maybe think they need to pay me 5.4, 5.45, 5.5? Who knows, whatever number? And that was the concern coming into this $39 billion bond auction today. Was the demand going to be strong enough? And if it wasn't, they would have driven those bond yields up even higher. But luckily, the demand was decent, and therefore we we saw those bond yields come down. And then immediately we saw the stock market do the opposite. It started to go up. But there was, you know, like I said, some pretty good damage that was done. Let me tell you how we finished up, and then you'll understand a little bit better. like I said, our worst level in the pre-market, we're down almost 500 points on the Dow Jones Industrial Average Futures. We finished the day though down 341.66% loss to 51,179. The NASDAQ, which again it was you know, worst level. My first update this morning to 523, we were down 264 points, finished the day down 62.22% loss. So not bad at all. Our close there was 27,538. And the SP 500 finished the day down 17 points, worst level that I was tracking down about 33 in the pre-market. So that was a 0.22% loss on the SP, finished the day at 7,801. Russell 2000, the small caps, that was by far our worst performing indice, down 1.31% for the day, a 37-point loss there. So, like I said, we we made it out pretty good. the other thing that factored us in and the in the weakness in the early session today was oil prices. They were they were rising pretty nicely. gold prices were way down, oil prices were rising, bond yields rising, as I said. So it's just a a combination of a bunch of ugly things coming together today. But we will see. Now let's hit some of the the pressure points of of the Dow Jones Industrial Average today, since it was, you know, a pretty good loss there. So Caterpillar, which remember caterpillar is a very heavily weighted stock in the calculation of the Dow Jones Industrial Average carries a lot of weight. Stock finished down $49.72, 5.76% loss to $813.72. It was among the SP's biggest decliners of the day. The stock facing company-specific pressure after the FTC and the USDA sought public comment on agriculture equipment manufacturing and distribution market practices. That's a mouthful, right? So we'll see what happens there. gold prices for the day were the finished down forty-eight dollars and ten cents, finished at four thousand one forty twenty an ounce. And so we saw the miners not participating on the upside, but on the downside. Newmont just picked that one out, down two dollars and eighty-four cents for the day, two point four four percent loss to one eleven, excuse me, one thirteen fifty-five. And like I said, pretty much all the other mining names were were under pressure today. You know, this stock amazes me. On down days, it seems like it does the opposite almost every time. And that is Apple. Finished the day nice. Up three dollars and four cents, point nine one percent gain to a close of three thirty-six sixty-seven. Memory names, they were okay. Nothing sub spectacular. They came back, they were down. micron up forty-two dollars and forty-four cents, four point zero six percent gain to one thousand eighty-eight dollars a share. Sandisk, a thirty-one dollar and ninety-six cent rise, one point nine two percent to close at sixteen ninety-two forty-two. Amazon also bucked the trend today, three dollars and sixty-three cent gain. Now, interesting situation with SpaceX, right? Stock's been doing pretty nice these last few days, but not today. Gave a little bit back. Nothing major. Down 2.48%, $4.26 loss $167.66. The Financial Times reported that the company is seeking $40 billion in financing to purchase a whole bunch of Nvidia chips, including roughly $10 billion in bank loans and $30 billion in investment grade debt. And my first comment this morning when that story broke, I said, Well, what happened to all the proceeds from the IPO? All that money spent already. I mean, we're already having to go out go out and borrow ten billion dollars from banks and thirty billion dollars in in in bonds. That's gonna be an interesting one to watch. But I'm sure they will fulfill the the capital needs there. Mordana had a nice day today along with a few of the other pharmaceutical type companies. finished today up nine dollars and two cents, four point eight one percent to one ninety-six forty-eight. also had Lilly up thirty-one dollars and eleven cents, two point six nine percent rise to one thousand one hundred and eighty-eight dollars and sixty cents. also about the only major report on the calendar today besides that bond auction was the FOMC minutes from their meeting a couple of weeks ago. market had a really muted response to it, showed that most policymakers see a high likelihood of another rate hike by the end of the year. That view is largely consistent with, of course, market expectations for another quarter percent increase before the end of the year. yeah, we'll see, of course, if indeed that happens. And of course, the the market, like I said, it didn't react to it, had another, you know, other things to worry about. It's Like I said, give us another quarter percent or increase. It doesn't really make any difference. The bond traders are doing all of the dirty work for the Fed. And then finally, I want to mention you know, we we discussed yesterday with Corey and Dwight the president's executive order on Monday signing to allow trucking companies to use red diesel in their trucks. And it was funny, I was I was getting ready for dinner and and I try to turn off the news, you know, because I'm absorbed with it for fourteen, fifteen hours a day. But I looked at my phone. And saw a headline on there and it was from the Nevada Trucking Association. And they said along, and then I dug deeper into the story, that many, many, many trucking associations, many large trucking companies, et cetera, are saying do not, do not fall for this trick of a lot the government allowing you to put red diesel into your tanks. Now, if you missed the my explanation yesterday. We use red diesel in farming. It's used in tractors and so on and so forth. and it's used in the marine world and you know, a few other places. It's it's off-highway diesel fuel. And they literally at the refinery they put red dye in it, and that way NHP will stop you if you are a if they have suspicion that you as a trucker are or even in a vehicle, in a truck or a regular passenger truck are running red diesel, they will stop you and they'll do what's called a a dip tank test. They literally put a dipstick in your tank. And if it comes out red, you're in major trouble. Now, the the benefit of the red diesel, why we use it in farming and marine and so on and so forth, is you don't have to pay federal tax on that. It saves you about 24.4 cents per gallon. So again, Trump on Monday said, all right, to bring diesel prices down or to give truckers some help, we're going to omit that. And now, you know, it's funny. This article, the reason I'm bringing this up, because I said on the show yesterday, I said, you can't. Just stop using red diesel. It stains the inside of your tank. It stains your fuel filter. I've never been able to get it out. I, you know, in in old tractors or in tractors and things like that. Once it's in, it's in. And that's what the comment that I made yesterday on the show. And sure enough, in this article, it said the exact same thing. It's like, how in the world are they, you know, if if they cause Trump signed the executive order, I think, through mid-December of this year. It's like, after that, how are you gonna prove it? So if you get your tank dipped. let's say January one and the you know NHP CHP whomever does the the the take test sees red and there and you go hey you know what I was running red diesel when when it was legal to do so how you gonna prove that so I I again I I wish I had better news on that but but I was right when I said that and and again a lot these trucking companies and organizations are saying do not do that so we will see but Lord knows farmers truckers etc everybody that runs diesel We need some help. It is so absolutely painful out there. All right. You're up to date now in the market. When I come back, how to divide your estate without dividing your family is my topic. Welcome back to the John Sanchez show on Newstock 780 KOH. Once again on the market side, we finished down 341 on the Dow, 0.66% loss. NASDAQ gave up 62%, a 0.22% decline. SP lower by 17 or 0.22%. All right. Welcome to Estate Planning Wednesday. And just as a reminder, if we can be of assistance to you in your estate planning needs, please visit my website, specializetrust.com for trust creation, trust review, trust restatement. We do it all. And love to have that free thirty minute discovery meeting with you. Just log on and make an appointment with me. Okay, so very interesting topic. Once again, I'd title today's show How to Divide Your Estate Without Dividing Your Family. You see, nearly every parent who creates an estate plan tells me the same thing. I don't want my children fighting after I'm gone. Absolutely the most common thing that I hear. I don't want my children fighting after I'm gone. So they make what appears to be the safest possible decision they can. And by the way, the easiest. They divide everything equally among their children. They've got three children, each child obviously receives one-third. Four children, each child receives 25% of the estate. That way nobody can accuse mom and dad of playing the favorites because everybody receives the exact same percentage. But the question I want to challenge you with this afternoon is this: But is equal always fair? Here's an example of why I say that. What if one daughter spent, and I've shared this story with you, spent 10 years caring for her parents? While her siblings lived in other states. What if one child received $200,000 during the parent's lifetime to start a business, while the other children receive nothing? When that's becoming very common, you hear it with Dwight each and every day. What if one child receives a bunch of money for a down payment on a house? Or what if mom and dad become a co-signer on the house? What if one son worked on the family ranch, talking near and dear, worked on the family ranch for 20 years, helped build its value, and they want to continue operating it, but the siblings are like, no, I want it sold and I want my inheritance and cash. What if one child's financially responsible? While another's facing, I come across this one a lot, addiction, divorce, creditors, or the inability to manage money. And finally, what happens when parents leave the family home equally to the three children? But one wants to live in it, one wants to rent it, and the third wants it sold immediately. Very, very common there. So on paper, the trust divides everything equally, yet those results can still feel absolutely unfair to your children. And that's why we're discussing this today. This is how an estate plan, again, looks perfectly balanced. Perfectly balanced. You feel good, you sleep well, you did your due diligence, you did your job as a parent. That is on paper, because you don't realize that this can actually fracture a family. Remember, an inheritance dispute rarely focuses about money. I told you about a family member, I've shared the story a million times, where she and her sister really never got the relationship back together because their grandfather, who left it had a trust, left everything, everything was detailed all the way down to the suit he wanted to be buried in. But he left out one thing: this family painting that again, you couldn't have sold it for five dollars at a garage sale, but it had sentimental value to the two sisters. And they fought over it literally hours after his death, after they buried him, and they never never rekindled the relationship. Then one of the sisters ended up dying. So it's rarely about money. It's usually money mixed with grief, childhood memories, as I just related to, sibling rivalries, right? That's a big common problem. another very common one, perceived favoritism, right? Mom and dad always loved you more than they love me. You're the baby of the family, on and on and on. And then, of course, the baggage that every family carries, the unresolved family history. So the old argument about who mom loved the most suddenly becomes an argument about the house, the jewelry, the firearms, the family photos, the family paintings. Or another common problem is who mom and dad chose to serve as the trustee, the one that's in charge of everything. And where parents leave no explanation to their children, guess what? The children are going to create their own explanation. She received more because mom loved her more. He was named the trustee of the estate because dad trusted him more. Dad always thought he was smarter. He could handle money better than I could. I did everything for our parents and they treated me exactly like the children who never showed up for anything. Sound familiar? The reading of trust should not be the first time that a child discovers how their parents viewed the family. That is not the place to do it. So when we come back from the break, we're going to discuss the difference between equal and equitable, how to plan for a caregiver child, what to do with a family home or business, how to select the right trustee, and why sentimental possessions like that pain I just mentioned can create larger fights than the financial assets. And time permitting, we're also going to discuss one the most important pieces of estate planning. Communicating the plan while the family can still ask questions. All right, get ready. Back to the John Sanchez show on News Talk 780K again, a bit of a challenging session today, but nothing too major. 341 loss on the Dow, NASDAQ declined 62, the SP down 17. All right, we're just getting warmed up. How to divide your estate without dividing your family? So I gave you some examples earlier where once again, the the thesis of today's show is very simple. On paper, we say we want to leave equal shares to all of our children. But again, in reality, is that really the right thing to do? And for many of you, it probably is, right? you you got great kids, everyone's kind of been equal in in your their lives, you know, or yeah, in their lives towards you. I mean, everything is fine. But then there's a lot of you where that's not the case. And so what I want to do now is I want to give some examples of you know, some issues to think about where maybe you don't want to leave equal shares to everybody. Right? You for various circumstances, one child maybe should get a little bit more of your estate than the others. So, you know, I like to do hypothetical families. I think that's the easiest way for everybody to understand. So here's my first hypothetical family. This is our caregiver child. Okay. So let's say mom has three adult children and a $1.2 million estate. Her daughter Lisa lives nearby, provides care or has provided care for mom for eight years. Lisa attends all of mom's medical appointments, takes her there, matter of fact, buys all of mom's groceries. Pays her bills, handles all the emergencies. And when she decided to do this eight years ago, she reduced her work schedule, has significant loss of income, doesn't get to spend all of her time with her family, not contributing to Social Security, not contributing to a 401k. She's put her life on hold for mom. Her siblings, the other two, they live out of state. They call mom on Sundays, say, Mom, how you doing? That type of thing, but they have no involvement in mom's life. But in your trust, mom said, you know what? I'm gonna divide everything equally, four hundred thousand dollars to each child. Here's the problem. Emotions. Lisa may believe that her sacrifice meant absolutely nothing when mom passes away when she sees the trust for the first time. Her siblings may believe equal shares are exactly what mom intended. In your mind, which one was fair? Should Lisa have received more? Again, that's a decision you have to make. Common sense says yes. And like I said, I've seen this, I can't tell you how many times with clients over the years. And it's painful to get that phone call from a client, and they're like, you know what? I got treated equally, just like my siblings. And that's that's why I wrote this hypothetical family. This is what I've lived through with many clients over the years. So here's some questions that you as the parents should consider. Was the caregiving that Lisa did intended as a gift of love? Or Was she looking for some monetary reward when mom passed away? Did Lisa lose her wages or career opportunities in this scenario? Absolutely. Did mom promise any type of compensation? Right? We it very common when we write trust, we'll put in there, of course, that the successor trustee, the big dog, the one that's responsible for handling the affairs after you pass away, they get compensated a quote, reasonable amount. But how often in a situation like this in your estate planning documents did you say, you know what? Lisa needs some type of compensation. You know, whatever, three grand a month, five grand a month, ten grand, whatever it is. Should compensation occur during mom's life or afterwards through inheritance? Right? We're starting to see this a lot now where people are giving inheritances, which they're no longer called an inheritance, during their life. I've used that example many times where parents are helping out their adult children with down payments and so on and so forth. They're like, hey, you know what? I'd rather give it to them now and I can see, you know, how they're using the money and enjoying it and putting a roof over the head of my grandchildren, on and on and on. Would a larger inheritance create resentment among the other siblings? Potentially. And most importantly, I can't emphasize this enough, and you're gonna hear me say this a lot today. Has the family discussed the arrangement? Right? It's so much easier when mom is alive, in this example, to have this discussion with all three children. They don't have to be in the same room. We have this great thing called video conferencing we can do now. They can be anywhere they want in the world. But it's mom's obligation, in my opinion, to have this discussion while she's alive. Why should Lisa be the one to be the one that bears, you know, the resentment from her siblings? When mom, which no one's gonna argue with, will say, Look at, you know, Johnny and Sally, Lisa is gonna get X amount of dollars because she has taken care of me for all these years. And I've seen this work out so beautifully with clients over the years because they had communication when mom was alive. I've seen it be a disaster when mom didn't communicate, and it's a complete shock. Because if you don't think for a moment, you are all extremely smart, I know this, but if you think for a moment that your children, I don't care how young or how old they are, are not thinking about the inheritance when you're gone, if they have any idea, any clue what your net worth is. You're being very naive if you think that they're not thinking about the money. Again, they may have all they want, but it's human nature. The common sorry to laugh on this one, but it just flashed into my head. The common thing that I hear among clients is this. You know, we'll go through the retirement planning, financial planning process, cash flow, and all that stuff when we're when we're planning for retirement. And and then they'll they'll say, like on their balance sheet, they'll say, by the way. I didn't put this down on my balance sheet because I'm not, quote, counting on this, but I'm going to get a $3 million inheritance. Hmm. I'm the only child. There's no one else the money's going to go to. But I'm, quote, not counting on this. Yes, you are. Be realistic. You are counting on it's human nature. Any of us would. Okay, so the bottom line on on the caregiver child is this: the child who sacrifices years caring for you should not have to prove that sacrifice to the siblings after the parent is gone. Have the discussion while you are alive with your children. It'll make things so much easier. All right, the next one: inheriting some real estate. And I'm gonna lump in three different categories because it all works the same: the family ranch. The home, the business. So here's a hypothetical. Family ranch. Let's say it's worth one and a half million. You've got, you know, about 300,000 in cash and various investments. You got three kids. One child has worked at ranch for 20 years through negative 20 degree weather, 110 degree days, getting bucked off of a horse, getting run over by a tractor, getting their hands greasy, working 15, 20 hours a day for probably very little compensation. Isn't ranching great? But then you die. The two children say, I want my cash. I have no desire. I'm I'm a city boy or I'm a city girl. I am not going to that ranch. I had great memories growing up there, but I don't want anything to do with it. Well, if you split it equally, one third, one third, one third, obviously each child gets 600,000. But here's the problem. Most of the estate is trapped inside that one indivisible. It's not like you can take that ranch and split it into thirds. You know, say you take a third, you take a third. It doesn't work that way. So the ranch child cannot receive the ranch unless the other children are what? Bought out. If sufficient cash does not exist, the family may be forced to what? Sell the ranch, borrow against the ranch, establish installment payments, which I've seen a lot, become unwilling co-owners, or ultimately litigate over it. None of those are great options. And probably none of those are options that you want. Right? That child's proved to you they want that ranch. They've worked it. They've they've, again, sacrificed their life for it. Keep it in the family, as the saying goes. The other two that All they want is their money out of it. And again, same example, whether it's a an investment property, a business, whatever the case is. Now, there's a lot of legal things that people can do. You got to get attorneys involved. You can do what's called a defined right of first refusal. You can look at an an independent appraisal formula, a specific buyout period. Matter of fact, you can even do a life insurance policy, right? We can do what's called an islet, an irrevocable life insurance trust. Because again, if you're talking a large ranch, right, this is the problem with another problem with ranchers and farmers. On paper, they they may be cash poor, but on paper, their net worth is through the roof. And many times they will exceed the unified credit of $15 million that each of us can have. Couple, obviously, 30 million. It's pretty easy to exceed that. And if you, you know, if you've got thousands and thousands of acres and farm equipment and everything else. That's why so many ranches get in trouble when it comes to inheritance and and death and so on and so forth. And the kids end up having to sell the ranch. That's why I'm bringing this up. So you can do what's called an island, an irrevocable life insurance trust, where a life insurance policy is bought on on your life, but it is held through estate planning techniques outside of your normal estate. So let's say you anticipate that the buyout is whatever, a couple million dollars to each of your kids, get a four million dollar life insurance policy. It is outside of the estate. When you die, that money sits outside in the island in the irrevocable life insurance trust, pays everybody off, the 20 year old ranch kid or the the kid that's ran the ranch for twenty years can continue on. Again. There's no selling the ranch, no borrowing against it. I mean, the list goes on and on. So there are many estate planning strategies that can overcome this challenge. The John Sanchez Show on Newstalk 780K, which again, if we can help you with your estate planning needs, whether it's creating a new trust, discussing it, restating existing trusts, so on and so forth, please visit my website at specialized trust.com and set an appointment with me. No cost to do that, no obligation. Let's talk about your situation. Specialized trust.com. All right, back to our topic: how to divide your estate without dividing your family. All right, I got to squeeze a lot of things in here. So here I go. The lifetime gifts and prior help. This is a major consideration you need to think about as you create your trust trust documents. Suppose you helped one child with, as I said earlier, down payment on a home. Maybe you were in a financial position where you paid for their college or graduate school, or I've seen medical school. I've seen this one a lot. You bailed them out in a struggling business, or you gave them the initial funds to start the business. Maybe they had a bunch of unusual medical expenses or repeated financial emergencies. Now, should those gifts of those issues be completely re forgotten? Should that loan be repaid? Did you tell them when you gave them that money that it was an advancement against their inheritance? So this estate plan must state your intentions. Otherwise, one of the children may view the assistance as a gift while the siblings treat it as an unpaid debt to the estate. This can be major problems. So how do we avoid this? Record keeping. If you are giving this to them, well, I there's so many different things you can do here, but use your common sense. If it's a loan, make sure you document it. if it's a gift, make sure you document it. Also, if it's a gift, especially of any substantial size, make sure you let your accountant know so they can file a gift tax return. Not that there's any taxes due, but large gifts. And when I say large, it's kind of the eyes of the beholder. 10,015,000 and above, let the accountant know. So it, because what it'll do is it will reduce your lifetime gifting credit. So long whole other show on that one. But bottom line, document it. Just no matter how you do it, document it. That way there's no questions. Now, I'm going to squeeze in this next one. This is a real important one. I need to do an entire show on this one. And that is choosing the right trustee. You talk about a way to blow up a family, choose the wrong trustee. And here's what I typically see. Parents will choose the oldest child. That's not a fiduciary qualification. Remember, when you are chosen to be the successor trustee, that is a fiduciary responsibility. It is a major responsibility. It is a time consuming. It is a stressful. It is a position that you don't take lightly. So just because one of your children are the oldest one does not necessarily mean they are the right one to choose. What are the qualifications, characteristics, et cetera, of a good trustee? Number one and foremost, honesty, organization. They have good financial judgment. They're emotionally stable. They're available. Like I said, depending upon the size of the estate, this could be a full-time job for years. They have great communication skills to deal with professionals. They have the willingness, meaning the guts, to enforce the trust, especially against siblings that may not agree with it. They have that ability to remain neutral and they have the ability to withstand pressures. From those beneficiaries. Because let me tell you, they may get along great while you're alive, but it may be a whole different scenario once you are gone. And that's why choosing that trustee is so very important. If there's nobody in the family you want to do it, don't forget you can hire professionals to do this. Gonna cost you a little bit, but what's peace of mind in your family? What's it really worth? anyways, you get the idea. Very important topic. I'm glad I was able to share with you. So just think about it as you create your estate planning documents or restate them, so on and so forth. Just think about what happens when you're gone, right? The kids getting the money. How do you want to do it? All the issues that we discussed today. Again, if we can answer any of your questions, please give us a call, 260-3875 at specialized trust.com. God bless, have a great afternoon. We'll see you tomorrow on the John Sanchez Show.