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Settle Matters Quickly: Bypass Probate

Finishing Well / Hans Scheil
The Truth Network Radio
August 21, 2021 8:30 am

Settle Matters Quickly: Bypass Probate

Finishing Well / Hans Scheil

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August 21, 2021 8:30 am

Avoid a long-drawn out process and learn how to bypass probate. 

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.  Find us on YouTube: Cardinal Advisors.

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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, but 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 Schild, 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, finishing well is a general discussion and education of the issues facing retirees guide.com are no advisors on trial CFP some insurance this show does not offer investment products or investment advice. So welcome to finishing well with my good friend and financial planner certified financial planner Hans Schild today show is bypassing the probate control in your assets along those lines. This one is pretty self-explanatory, and that Jesus actually said it in Matthew five when his sermon, the Mountie said settle matters quickly with your adversary who is taking you to court deal while you're still together on the way or your adversary may hand you over to the judge and the judge may hand you over the officer and you may be thrown in prison and again that's how you happen over probate. We hope that anybody who's been through this process realizes oh my goodness, how valuable is it when you can bypass probate and interestingly is concentrated in a two and half years ago I started the show. I thought probate was something in all of those purple worms that they use bass fishing methods that were probate. Probate is what happens. Unfortunately when someone passes away and their assets go into well I'll let you describe probate official group meeting of the will court process of distributing assets after death. So when you have a will you approve, it will gets presented by somebody other than nuclear disease presented to the probate court and then that has to be proven or processed. The citizens really his will or will and this is really valid and given a sound mind and this is what they say they want to do with Dan work process that within thereof. Probate is just distributing things according to that will and I also looked up bypass which didn't do that but I just thought important title to shows bypass probate law looked at one of two it says go around or avoid what we are wanting to do here is resetting things to go around this lengthy process when all possible and having been through that process with my father assess the extent almost 18 months before my brothers and sisters got another portion of his assets because there is so much that when Intel that that you had to make sure the taxes were right. You gotta file newspaper things so that anybody has a claim against the state. There's just all sorts of things that are happening in so wow if somebody was in desperate need of some of these assets. In the meantime, if this is a really really really good show. I would recommend that everybody because I have the know that you got a number of things that that you really can I help people with today, you will literally the seven areas that we hold so I'm sitting across the table with and I'm really want to assess with a new client and incoming client like is what's important, not just an estate planning what happened.

Ethylenediamine what's important to them how they want to live how they feel about taxes, how they feel about government programs like Medicare and Social Security how they feel and how they want their spouse to be looking after after they pass away and begin their general thoughts on everything and is specifically around this estate business is a really want to find out how important their estate is and something that's difficult to talk to people about again talking about but I really want to hear. At the deepest level is your desire. In some people when I really get their desires out is not real pretty day, come out with things like I guess whatever and that's that some people and then with a lot of them.

It's not really true what they're saying is, defensive and up and some people are really sincere.

And then there's other people's most important thing in the world. I want my son to have this on my daughter to have this on the grandchildren to do this 100 continue on with this property. I want to provide for this is just and everything in between. And so what were talking about here is been how do I assist them in making this happen and bypassing probate is just like on my mind from the minute I meet. I'm thinking of ways to do and so I got you know when I got six of them listed here so I would think that work and I can make it through all six in the first part of the show.

Let's start integrity, how still so so like I just had a client passed away in the last couple weeks and I was sitting with his widow and beneficiary yesterday so a lot of this is fresh in my mind and really neat guy and he united is his home is really the only asset that's gonna pass through probate and it might not even have to do that because his name is on their his wife's names on and that's how most people hold her out. I just got husband-and-wife if they're married and they got to names on and so if you hold assets jointly with rights of survivorship the way most home titles are set up than that, that your home doesn't have to go through probate images keeps on living there and we just send a copy of the death certificate down to the registrar deeds and we just asked for his name to be removed from there because he sees which they will do and then they just leave her name remaining. There's a lot of people want to do this with their children really want to have their kids out of their house and that is a way to do and you know it has its pluses little avoid probate.

But I was want to caution you is any time you add somebody's name onto an asset just like given and if they were sued or they got divorced when they died before you did there could be people that would make claims against that on their estate so holding assets jointly with rights of survivorship you want to do very carefully and said, but it is a way to avoid probate contact. The next one is hold assets in the trust that you probably hear the just commercials or read about things work.

You're going to a seminar in the ground by the free dinner and you know tell you that put everything you got in a trust and at some level that could be good advice because it's going to avoid probate. And that's usually knew that the demon and the whole thing is success of their crime going after the same goal that I am what I don't like about that is now huge serving of anything at the extreme, is now as good as a lot of people that do that that spent a lot of money on their trust in Dan. They really could do it otherwise. So I'm not necessarily promoting those and simply saying that you could set up a trust you to do that with a piece of real estate just put it in the name of the trust and you still have control over it because it would be a revocable trust, and then when you die, the real estate just gets transferred to wherever you want transferred money in their sucks.

If you help things in a trust. Trust is going to live beyond you and then you could just put the distribution in their unit for the probate court testing circumstances. Their expensive and many times they don't work out exactly like you thought they work because a lot of these were sold to people in a big seminar is they just give you the boilerplate document trust communities. Put that thing out of a word processor and it hasn't anticipated a lot of things again. Again, I'm not pitching them as a end-all be-all. There are places with clients that I recommend that they open a trust and they start a trial for a specific purpose, so I do use that in my recommendations for some people and if you have things in a trust they will bypass probate one level that I would add since the end of a bad trust right. My dad had one where nobody had take into account that his wife may pass before him switched because she was much younger than him and and then they had never open the trust and so what I went through with all that and there weren't many assets, not trusts, but the stuff that was there all my goodness you have about mass was like man yet you're not talking a big fan of trusts right hip people. I've heard many people use the word will and trust interchangeable. Oh yeah, we opened up a trust. We did a trust and sometimes when I look into it. All he did was right, there will there: a trust and then there are times when there will continue to trust ingrained a provision to write mid so there's a lot of confusion with dad and then what you do spoken others in need to keep up with the trust to 22 could assets in it.

Take assets out of when the beneficiaries die before that grantor of the trust, then you need to go redo it and you need to anticipate those from the beginning so there so much involved with the trust. That's why am just generally I'm not a real fan of people to those from the podium and that everybody signs up dollar asset so so that I'm not selling any of these things.

I'm just telling you that some combination of this we can figure out a way to have most of your money pass to the next generation in order to your spouse or whoever we can avoid probate court testing so next one is if you have an IRA or 401(k). It has a beneficiary designation effective. It doesn't is not a 401(k) or an IRA.

That's part of the deal and whatever you put down last is going to get that money. Right after you die, and has nothing to do with the will and probate knowledge has to and I can tell you that a lot of people when I start asking about all her stuff and taking them information on their money and their assets in we begin the planning drought." I said with a beneficiary in the IRA owner will eat wheat wheat we took care of that in the will of the people just interrupt me to sell it altogether. I interrupt and yes, I got a break, but let me tell you, the beneficiaries under IRA. Oh my goodness that's a great can of worms to open up in the next segment of the meantime, I tell you that the show was fronted by Cardinal died.com and Han's book the complete cardinal guide to planning for living retirement and so many other things are links and all sorts of wonderful resources there cardinal guide.com.

Be right back. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Han's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cardinal guide.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school or civic contact on cardinal guide.com that's cardinal guide.com welcome back to finishing well in today's show is bypassing probate and controlling your assets and when we lift our hero Hans is describing the whole idea between a behind beneficiaries on IRAs and 401(k)s and this is such a critical category and it Hans, well it is my little lecture fissures. Think about every beneficiary is the only one went the last time you checked. I've run into people were. We had ex-wives or ex-spouse and go on the beneficiary and the person died in their exile money can't give up with the estate.

Now you get a beneficiary and they just listed the estate with that and is taking on nonprobate asset and actually putting it in probate so I don't really recommend that you get nobody else to put down you really want the probate court to muck around and figure out who they are to give it to her.

You want your will. Will you could do that but my recommendation is that you update these regularly and any IRA, 401(k), 403 did they all have a beneficiary designation on make sure that their current and then down, contingent beneficiaries so that says that it you like my beneficiary said all my stuff is run and then you know the contingent beneficiaries are my two sons in that way.

Rhonda passes away before me and then when I pass away. I only need change that beneficiary would change it if she passed first, but if I didn't my sons would just as soon as she passed away would step up may be the primary beneficiary so the important thing for the show to understand is that your beneficiary is going to send the money directly to whoever that is on there and it's going to be paid out long before the will get probated or settled or anything else which is really as you tell me that that that transfer happens almost immediately. And that's a beautiful thing but it is so good thing I want you to understand it almost sounds like this in the will and probate and not matter what what what I want to get clear on is the will and the probate process.

The way I view it is a moreover document oral the processes that it's going to catch anything that is not covered in the techniques that we put forth to avoid program and so you may want some of your assets that actually pastor probate know she got a farm to divide out for something and you just want that to go through all the proper processes and you don't want to do a trust will then by all means use, then just know it's going to take them a year or so to have the clerk sort it all out but also know that if we as a beneficiary does not have anything to do with this with the will and the probate or if you have it call if he actually put in your will that I want my IRA to go to Fred and then you know your beneficiary form said. Leavitt said Fred Rodarte. He can have the money by the time the probate court figures out that you put it in your will, and if the beneficiary form said Mary Mary's are you have the money in the probate court in any way to go back and undo that I don't have any authority, annuity beneficiaries, so that benefit to putting some money in the annuity, you have drawn out his income yet just been letting it sit there and accumulate value and when you name a beneficiary. The monies to go straight to the beneficiary dislike only a beneficiary can happen fairly quickly, is not to go through probate thing I want to point out with annuities deferred taxes. A lot of people put money in annuities so they don't have to pay tax on the interest they stimulate currently. So you have to pay tax on that accumulated interest and who it will be your beneficiary. So the principal will come to them tax-free but they're going after taxes on the accumulated interest but still I Cisco you get settled, real quickly. Now brought up his life insurance fissures.

This is no wonder people are generally familiar with.

Usually the life insurance beneficiaries are filled out by the insurance agent life insurance agent that cellular policy so you know where as opposed to an IRA beneficiary. That's usually something in filling out yourself, life insurance, usually on the application. Many times we find life insurance with our own client. Seven. Update stuff again. You can get the same lecture to call your beneficiaries every few years and I'll be glad to help you do it.

Just make sure that you got the right person that you want and that the still living in there to get the money and the thing about life insurance is most of the time. Life insurance benefit has to beneficiaries tax-free words, if you put money in a life insurance policy and then it's accrued value and that it's now paying out of the death benefit which is way more than you put in there I can be like the annuities you beneficiary just to get a check and be tax-free and completely avoiding probate now 61 that I have listed more than these, but I just wanted 61 I think it's helpful to remarketing on the window that you just saw yesterday right. I mean this is one of the situations where that was the whole reason are one of the reasons that you are going to see her was that he had bought life insurance at an older age.

What he did many I met him in church was talking to a group of his church and what he told me you came up to me after things like that about $25,000 saved on my military pension and I'm saving that because my wife doesn't have any survivor benefits, military pension plans for disability and I I'm just worried that phenomena die before she does and that she can have development now spent and so I want you to tell me what to investor since she can have a lot of money when I die. Well you 77 years old.

You need to be looking at life insurance stuck in a growing list that much money and rapid risk and he looked at me just that I am too old and too sick. Now I sit in my salon.

The guy was in the life insurance business.

So how about if I be the one making that decision now and I said yes they turn it into a question. Can I get any help. Long story short, we got him a policy. It was expensive as he had a pacemaker and he had type II diabetes, but then killed himself in very good shape is very active we got them insured, and yesterday I was just filling out paperwork to get her the hundred thousand dollar life insurance policy that is: seven years ago and very slow minutes tax-free and told him at this time is that we may pay off the house. We may not pay off the first was none of money to pay off now but you got other life insurance so we could but what were gonna do is register and make the payments on the house on and just can't keep control that money but all of that is bypassing program which is the topic of the show. Not to mention his wishes that works like wow his wife does not grant all that she won't be able to make payments on the house based on the planning that they did seven years ago sure that you tell me about something that will. She gets the house and that she can sell it under these conditions, which is supposed to leave the house to the kid's kids and her kids in all this business and I just looked at her and I said you know you can do anything you want with that house you're married him in your body together and his name is on there were good to do the probate court so I think it'll be fine and good for you to carry out whatever he put in there. The way you understand but you don't have to explain it to me here. The probate court or nobody just go do that and she was so happy about all that is just so overwhelming to her just passed away a week ago and that I'm thinking that we might not even have to probate as will a gun attorney that helps with the correct thing we might not just as everything is passing by beneficiary or non-stance on their there is a six salon that I want to put on here and this is probably the most overlooked on any bank account. Any brokerage account stock brokerage account.

Any already went over IRA, but they have this thing called TOD transfer on death so it's very similar to a beneficiary. Well I guess it is called something different and I can't tell you the number of people where they have nothing put in there and I think that a lot of these forms are filled out by the person that the bank or the stockbroker or somebody they skip over this is just a heads detail that they got a mess.

If you go to your account and you make a designation of a transfer on death and disinherit your bank accounts.

I can go through probate or your stock brokerage account does not insist you make it designation is to go to who they say goes to their net notice. Remove errors in payment and there we can set out most people and set up a plan with their money. That most of the staff other than the real estate is going to pass out really it's a way to help your errors essentially access resources that you really want them to have the only one of the white men of two years in order to get it sure him in the biggest thing on her money and the funeral director.

I mean the bit old $14,500 and she knows exactly and I was you know you just got some money you know in in in her account more than that and so I'm saying that the bill we need to pay and you can pay and the other I stop his Social Security check in all age issues in the middle of all that stuff very worried. I saw his life insurance money and they were in a deposit on the bank then were going to sit down and put together a plan from there.

But just to have all this done quickly as it is a real blast. So again this all these are covered in Hans's book the complete cargo guide to planning for and living in retirement site Garrett Cardinal guy.com and then these YouTube videos are really a resource and Hans tells our folks. How to find them is if you go to Cardinal advisors to certain YouTube or RS advised award Cardinal advised award and I believe if you just type my name into the YouTube search.

Hans Gile is CH EIL. Either way it's going to come up and there's a whole series. Very simple radio shows will run video with a whiteboard and were just walking through all these topics calls from all over the country songs, thanks again Hans. Another great show again it's Cardinal guide.com if you finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com Cardinal advisors and Hans Schild, CFP some insurance this show does not offer investment products or investment advice.

We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare and 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 what again Hans will go to Cardinal guy.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

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