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Estate Planning for the Brady Bunch

Finishing Well / Hans Scheil
The Truth Network Radio
February 6, 2021 8:30 am

Estate Planning for the Brady Bunch

Finishing Well / Hans Scheil

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February 6, 2021 8:30 am

Hans, Robby, and Tom dive into estate planning for second marriages today, especially for those who are bringing in children from their first marriage. They get into how life insurance can be a saving grace for those who find themselves in this situation! 

 

Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on CardinalGuide.com for free!

 

You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com. 

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money christian bible children finance estate retirement insurance tax divorce proverbs
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This is Rodney from the masculine journey podcast. We explored manhood within Jesus Christ your chosen Truth Network podcast starting in just a few seconds.

Sit back and enjoy it, share it, most of all, thank you for listening and choosing The Truth Podcast Network. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner belonged to child best-selling author and financial planner helping families finish well for over 40 years of finishing well and will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well welcome to finishing well today with our certified manner on island today show very special guest is actually my personal agent that Cardinal Griffith to add his insight, which is really helpful for me because for anybody's ever dealt with Cardinal if you had a chance to work with Tom. I mean, what kind, caring patient, a man he isn't very very helpful. So we got him to help us with that show can today show.

I'm so excited by the title, it is estate planning Brady Bunch style so if you think about the Brady Bunch and all those kids in all of step kids you know I was thinking what would made a great Brady Bunch episode would've been another story of Jacob and Joseph and Efraim and Manas that would be a great Brady Bunch episode epic talk about shenanigans in August. All the brother sister the stuff that was going on there so Ellen right.

The pastor here. The obviously programming on the Truth Network. Many of you know him. He wrote an amazing book. It's called the power to bless and has everything to do with estate planning and when you think about what he wrote in that book was when Jacob adopted Efraim and Manasseh, which he actually adopted Manas and Efraim because Manasseh was older. There was a very unique blessing that he did which is where he switched his right hand over to Efraim to give him a bigger blessing and in doing that what he was doing in spite of I could Joseph try to switch his hands on amigos.

Now I know what I'm doing what he was doing was he was responding to something God was telling he is looking at the larger story. Not necessarily that the kids might get upset about what's fixed to happen right here, but more importantly than what the kids think is what is God think right and we do have the power to bless with our lives and certainly with our states, but like Jacob did. What a neat thing that he he listened to God and as a result, it was brilliant discernment because what he did was he painted a picture of what Jesus himself would do with his life. He was the older brother and he deserved the blessing when he went to the cross, God put took his right hand off of Jesus and he put it on me and you and as a result, we got the blessing of the older son is at row and on right is described that to me and I I've never forgotten it. When you about that story in Genesis. So here in today show.

You know sometimes we we have to consider what is God think about these things as far as widows and orphans and all these over necessarily what the kids may get upset about because at the end of the day we get to bless the way that God wants us to bless and so along those lines, you had an experienced injury. Hans, and I had together bit about real quick comment. Also, certified financial planner as I am, and he accomplished that age 25, and which is perhaps one of the youngest people of all the 75,000 CFP she is you get a three year experience requirement that he had your card. I just wanted to add that he and is that Tom has the same certifications that I and yes we had a client that really just got me focused on this is what estate planning and life insurance which is our topic today.

This client just typifies all the issues that we need to deal with in helping blessing people and what you just shared earlier which this really struck me as we have the power is estate to bless and we do that through sitting down with them and finding out what they want to accomplish.

You know in their state and their life in their retirement plan. Want to get their goals together and then we give them feedback about the possibility and the probability of actually achieving those goals give a strategy to get there and with these particular people there in a second marriage and so you get stepchildren and this this second marriage happened 15 years ago and there in the 60s now late 60s and 60s, late 60s and day coming into their primary focus of coming into is she still working. She's a little older and she planning her retirement he's retired.

He's younger than her. He had a daughter. She has two sons who are now married and have children and they were very concerned about one of them right after this marriage 15 years ago were to die, and typically her as any she had the most money at the time that her two sons would get the lion share of the money that they would've been getting any. How had she not married and just a big focus on that and then there was also focus on his daughter if he were to die that she doesn't get his money that the daughter would get the money that clearly were the focus was and then they had a trust done in office and dance of the marriage or when the marriage amended right around the time they got married to make sure this is what happens with all the money and it really had a huge emphasis on her two sons getting there sizable share that was brought into the marriage and lacked focus. Taking care of the surviving spouse.

So the trust so is fine. 15 years ago you noted that the situation they were trying to avoid is he dies fairly quickly after marriage. Get started, he gets all the money the kid did not or he dies she gets all his money. The new life and his daughter gets excluded so they were really focused on that and it was real apparent to me and then what they want me to look at it. The alley did and you know I'm looking at the whole thing and I'm just saying to myself, well, I'm really care too much about 15 years ago. What I'm thinking about it right now and what were your really hiring us to do is to plan after your death in your estate planning 1015 2025 30 years so that your Iris to do that. You're also I think your priorities have changed, or I can really tell that priorities need to change to where you're more concerned about your surviving spouse then you are the stepchildren and the children inheriting at the first death so you know there's a mouthful kind of the situation in what's on your heart right now and when they came in and wanted things he knew the letter on the document I pulled it out and read it very clear that when they written the truck that was focused on the children and not each other, which maybe would have been appropriate 10 year, 15 years ago when they first got married in the coming into the second marriage is some kind of question you know the first one that I want out of this one didn't work out.

I mean, I think that easy to see where they might be that mindset. Unfortunately, it worked out there very happy right now but the priority had changed and we even got out of them is that their focus really after is on each other within the document did not reflect really what their wishes are right now to the point where it really could cause a lot of issues if one of them had passed, or if they didn't change it in the future. One of them passes without meat is a good thing they came in for think it's something that we can help them address and get where they really reflect what their wishes are currently by amending it illustrative of Eno what might've been good and I think there's some question whether the enacted back then but you know what was good. Then my not be good now, and it important to review them ongoing thing was troubling in this is a lot of their money is in IRA and 401(k) both and they had named the trust of the beneficiary, so taking the kids. The kids named within the trust and then they had made his beneficiaries in trust and when they do that all that money to get taxed when distributed because the trust is not a person so that all another show that was kind of messed thoughts I wanted to speak real quick what were talking about today. People in their 60s typically better doing retirement planning and trying to plan out their next 20 to 34 years of living either as a couple or as one surviving, and that's where our focus is untrue as many of our listeners right now that are either planning to get married for the second time in the next month or two or three are on the horizon or you just got married a while ago somebody close to you is want to tell you is this type of planning is fairly common when you have a second marriage: on and you get all these families and people involved in children. Everybody's trying to make everybody happy and make him love their new main there to do this in estate planning and there is talk about is appropriate to do that if there's something that's going to past. You don't want this. My new stepmother is going to inherit all the money that I would've inherited and listed.

Think vomitus tell you is life insurance is wonderful. Go ahead and distribute everything at that the kids when you're just right. Get into the second marriage than by life insurance in equal amounts a large amount can be term insurance. If you're in your 40s and 50s at the expense of the could just go 10 or 20 years. Things are going to look a lot different 10 years or 20 years from now inexpensive and just name your spouse as the beneficiary and your spouse can get this big payment tax-free if you were both were to die together suddenly then the kids are going to get it anyhow and they're going to get up payment tax-free. Just a note for people of the life insurance serves a wonderful purpose of, and if you want to go and buy permanent insurance. If you can afford it you can put long-term care in the air. You can find your statement shows all kinds of reasons to buy different types of insurance, recommend for people getting into a second marriage that you do the same time and segment thing that I sign my own life.

People make assumptions as they going to that planning thing like my dad assumed he would be the first to go since he was 25 years older than his been my stepmother you know he had all this. My goodness he had trust all sorts of layers and layers and layers of what needed to happen based on that assumption. The challenge was that she died in for five years ahead of him from brain cancer and everything I like.

Everything was backwards and he was so distraught by that that he and he never went and figured out how to redo his estate so you know, as executor of his estate.

As it turned out to be, you know, we had her hands full. So it there this. It's a wonderful thing to have some he liked Tom some electrons to work with you to give you some of the things that they seem. Because if you going to visa some assumptions like we talked about you know it can, it can be quite something to unravel. But I appreciate y'all is that we got so much more coming up on this Brady Bunch special of estate planning and don't forget, this is brought to my car the guy you are Cardinal guy.com and get Hans's book, the complete guide to planning for living with family have so much more coming up state to Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security data care and long-term care.

Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic contact on Cardinal guy.com that's Cardinal guide.com welcome back to finishing well with certified financial planner Hans Schild and today show is the Brady Bunch estate planning. You know what you do when you've got step kids in all sorts of other things are just basic estate planning and how you're going to class and so Hans there were some really neat solutions. You guys came up with for all this. Yeah, a little bit about priority is what we do people.

We got the priority right where it needs to be there there now, which is the surviving spouse, and you know I do that because pretty easy with a husband and wife because neither one of the note which one is going to be a surviving spouse so they could play both roles as spouse you and then you are going to be the survivor and then vice versa.

So, for starters that needs to be a priority because when the first one dies, the second one is gonna have a hard time making you know with the money because a lot of things happen and really needed really, look at how that person is to live out their life to be a number of years so priority there and then we need to go back to the priority of how much you want to leave you get one simple solution is nothing of the first death because we gotta keep it all focus on the surviving spouse which is a lot of people and then we need to make sure they get properly distributed with laughter that after the second one and some people are just fine as they let Armani is there to take care of.

We just finally what's left of the kids. Other people are like very specific, they won't leave money to their kids at the first death and it really is and play with the stepchildren business and people don't really think about that some people do nobody's big deal so that in any case there. The second priority in the work and we have to do some re-prioritization and then we also do some ways, possibly using a trust which we were looking at these people just make sure that that principle in the estate after the second death gets distributed.

The way these people want with enjoyment one now. One way to take care of the children at the first death is life. So were recommending for these folks to when ran a $300,000 policy whole life is whole life with almost no cash value or little or no cash value in the later years, but, for the rest of their life.

300 on each of and I got them to agree to leave the same amount to all three kids stepchildren biological children don't matter. You know hundred thousand each, after each death or life is to be the beneficiaries of life insurance people really don't need it because I got enough money to be just fine under all circumstances other than long-term care. They maybe don't have enough money and live a good life. But nonetheless, the kids are going to be the beneficiaries of life insurance people and thousand tax-free. Each of the children. So when they come and gather the family exams. Check prior that significantly less than her sons were going to get done tomorrow or something to this thing and significantly more than she did of the estate or he's going to get the survivor so that it can be a win and very easy to sell. The other thing we added on the $300,000 life insurance is returned into a long-term care policy so we got product through nationwide is a company we do a lot of this we got some other choices and nationwide it $300,000 policy will pay them $6000 a month or 50 months will essentially use up all the life insurance if they have long-term care they need long-term.

Her home or in a facility and get that $300,000 were now the downside of that is there spending the kids inherent money on their long-term care being paid for by the insurance company and I doubt the children to be too upset about that after mom or dad is just spent three years or four years in a facility or at home getting home healthcare and then passes away and be protecting the estate and insurance of the panther long-term care on the principal which is to get that money. So it's really beautiful thing and were able to do that. These people mid 60s between 500 and $600 a month each pretty significant premium thousand a month that is pay her 12,000 year 13 or 14, but you know what with his company $300,000 to somebody in each of $600,000 to some long-term care life insurance just makes sense. These folks can afford it and you know it's pretty cool when we can set up something like that and then the kids are going to get from the beneficiary on the life insurance and then the spouses are going to be able to get the beneficiaries of the 401(k) and really were. That is very helpful as the fear there's a lot of people is that the family starts fighting over money.

After the death of one of the spouses in the you know when you have a second marriage even amplified because the you have, you know she dives her signs don't really have any connection other to the husband. Other than that, their stepdad, which she married him after they were adults hurting out late teenagers and so you know it.

There is a situation where can really get very messy from a family standpoint and having the money so when their parent dies either situation it makes it go a lot a lot more smoothly. I we we deal a lot of times on the back in a separate family coming in and read it has been something we help set up were trying to you now managed, if you will, of the family dynamic and that after the death and is much easier do that before their dad and afterwards for me.

It reminded me as we were taught on the subject that I have an older stepson is I guess in his late 40s. At this point in time.

I just thought about in my own estate plan. I I don't have him know with anything and I thought wow, that would really leave him out and one of the meek opportunity really to to just buy a smaller life insurance policy that's directly for him and you know I got the power to bless and to say only I was my dad's, you know. Think about Ravi wheat we have several beneficiaries of life insurance so you have three children one stepson figure 4 children. You could pick an amount like $5000 you would like to leave you to eat your natural children in your step child is $20,000 and then you could buy a $50,000 policy and leave early to your wife, and 5000 each of them and that might be settled out before the estate is filed or house.

Now I live by that much insurance you could make it out now. Now would be 8000 and you could buy $25,000 policy only 17,000, your wife is still a lot of difference between 2000 and not after a person passes away now. I mean, that's unclearly that you know as life goes on.

Things continue to change. We talk about it all the time in the sense that you know who is your beneficiary on your IRA. Who is the beneficiary on the life insurance policy and wow are we accounting for everybody that we really, I just don't think about my own death all the time enough to think about, you know, this is another place that we serve people. We have a lot of our clients, and people in their 60.

The late 50s early 70s. Their parents are dying or have died and then they got colectomy like a lot of them don't even know that you do that directly with the insurance.

I think you take this thing to the lawyer and the lawyer sorts it all out to the Wellington work that way.

So we help people all the time and I help you when you were dealing with beneficiaries of the life insurance for your file and so you just went by the way, to a trust that is never minimal rhymes and all my goodness it was a nightmare and and again because my father was so distraught over.

He thought that for sure she would go before him, and he never thought wow I need to redo all this stuff again, it's not empty amount. So grateful for everything he did.

Don't get me wrong, this but wow I mean it was.

Had I not had you and and some other really nice people to tell me what to do. A lot of the stuff I do know it was it was complicated about what this week back and and again, thank goodness you know we had talked to my dad about figuring out the beneficiaries on those IRAs and all that stuff you know coming up short because it really would've been a nightmare that what we are all just like the Lord's. But you know when you run into the regard don't feel like your help in you.

You were here. What would we do this stuff all the time will will date behind that you want me talking to an insurance company or an investment of trying to keep money from people I'm helping where the beneficiaries that's when I really got working time really does work sometimes actually better at it make if he doesn't go away, distract me, doesn't go away status. One of the fantasists, and it seemed really you know you don't you don't have time to work with all the time.

But then you know I have constitute so is the beauty of how God puts us in communities because everybody has different Jessen and they use them again for the kingdom here. I hate were the time already for this wonderful episode of the Brady Bunch estate planning was a Experience firsthand.

So thank you guys had a wonderful time.

Thank you, thank you. And by all means go to Cardinal guide.com and pick upon his book the complete cargo guide to planning for and living in retirement. We will get you next week.

Thanks.

We hope you enjoyed finishing well brought you by Cardinal guide.com visit Cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows to get Hans book go to Cardinal guide.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guide.com Cardinal guide.com this is the Truth Network. One of our generous sponsors here.

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