My father, dec. 88 yrs old, ret. Col, us army, was super smart. He put my name on the checking, and money market accounts, made me successor trustee as well as his legal signer and caregiver even tho he was not bedridden or wheelchair bound. Then, when he passed, everyone who wanted their checks had to sign away their rights! A waver stating they cannot challenge he will or he trust!! Yay!!
Sounds like an idiot if he was smart, he would’ve enjoyed his money while he was living why give it away so stupid go buy a boat go travel go buy a condo in the Caribbean. If kids want their money they make it themselves.
My dad is also 88 years old next week and retired military. He is so paranoid that his kids might put him in a nursing home one day that he keeps everything a secret. He lives alone but my younger sister goes over to his house to clean and wash his clothes and he pays her for her help. We all have a great relationship with him but he just doesn't care that after he dies his belongings will end up going to the local govt.............
@@viperman8788maybe the younger sister can get him to write out a will. He can stipulate in the will that he does not want to be in a nursing home and write out anyone who places him there.
@@viperman8788he cares about his children so while he may not care about his death I would sit him down together with my siblings and have a talk with him. It's hard for his generation to open up about their feelings but it's a reason he feels this way. Try to get to the bottom of where this is coming from did it happen to his parents or someone close to him? Something happened in his past where he made an agreement with himself that, that situation would never happen to him. Y'all have to address his fears and reassure him that is not the case with you all. Do it before it's too late.
My Dad left me a trust as a retirement fund. The only way he could do it is by putting another relative in charge of it,(who did it for free) or the lawyers would have used up all the money long before I retired. Next problem, I see, the highest tax rate there is. I never made enough money to put me into the tax bracket that my trust was in. I think the >30% tax bracket kicked in at around $10k of income!!.
That is true, estates & trusts hit max rates at around 12k of income. If the trust is allowed to distribute income to you then you could pay tax on it instead of the trust, but if the trust was intended to be a retirement fund then chances are decent that the trust does not allow that.
@@Mico77777 No. First, if the trustee dies they are replaced. It is possible that the court might dissolve the trust instead of appoint another trustee though. Second, If the trust or estate had, say, 100k in taxable income because it emptied the deceased's IRA account then somebody is paying the tax on that 100k in income. If you got the 100k, then you get 100k in taxable income (less some estate deductions). If nobody got distributed the money, then the estate pays the tax and at horrible rates. But that is because IRA distributions are INCOME. If the estate had a 100k in stocks and distributed it to you, then there isn't any taxable income and you just gets stocks with a cost basis of whatever the trust or estate has for cost basis.
@Mico77777 My trust was set up as a retirement account. Not a great fund either. But money that it did make was taxed at a way high rate especially concidering income. In 2023 any income over about $14500 is 37% federal tax. Hard to compound at those rates.
I have a TOD on my rentals. My ex had POD on his accounts. Our two sons went to a scheduled appointment with the bank with his death certificate and walked out with two checks. Easy peasy, no cost and no attorney involved.
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
“Rebecca Nassar Dunne” is who i work with and she is a hot topic even among financial elitist in California. Just browse, you’d find her, thank me later.
Thank you for giving us this advice for FREE!!! Omg years ago you would have to pay a financial advisor to give you this advice and still not as detailed. Thank you! Im 42 and i think about this all the time bc none if my family is going to "handle" anything i worked hard to attain. We all know the vultures in the family 😂.
My dad had a revolkable trust. I was trustee. His wife, not my mom, took me through the court system with it. She didn't think she got enough. Even though trust stated if anyone takes it to court they get nothing. The corrupt courts put a judgement against me. I ended up doing jail time for not honoring the courts. I honored the trust. They still have a judgement against me including many years of interest. Info the trust was finale and stated so in the filed taxes before the judgement came out. How is this even possible??? My dad died in 2004 and the cops and courts continue to attack me. I refuse to consent to anything the broke system wants.
This is exactly why the majority of Trusts are absolute garbage. My grandfather had his 3 properties (vacation condo in SD, commercial property with tenants $10k/month, plus his home of 60yrs) all kept “protected” in Living Revocable Trust. The City of Sac leveraged multiple judgments against him as a person, which was their first fault (and illegal), for asbestos removal done by one of his tenants hired contractors. So for something he never was responsible for, they took this once self made millionaire down to nothing but living on his social security. There is much more to the story, but basically the banks and courts can enter in the back door of these phony trusts and act as the beneficiary to claim judgments. However, with an Irrevocable Trust, there seems to be a more absolute protection of assets. I have a friend who had his entire bank account emptied because of back taxes, even the checking account associated with the Irrev Trust. However, a couple days later the entirety of that account was restored. It is highly illegal for banks or courts to violate an Irrevocable Trust. I’m still learning more and catching up with how the world actually works. Be careful out there with all the scammers!!
Love this guy ... Humor and KNOWLEDGE all in the same video. His private tax service is expensive though. This was one of Mark's BEST Videos... I watch them all. He is True and Honest.
Garn-St Germain Depository Institutions Act of 1982 (12 US Code, Section 1701j-3) is what allows you to put your home into your trust without triggering the due on sale clause, not state or county exemptions. Otherwise, solid info.
You can also do a transfer on death deed for your house, vehicles, and bank accounts to avoid probate. *Even though I am a licensed attorney in Indiana, this is only general information.and does not constitute legal advice. You should consult with a licensed attorney in your state.
Great job clear and concise! I am Thankful for your time Mark. Been watching you for over 5 years at least. It is time to stop suffering from analysis paralysis! I am running for Mayor for the City of Portland, Oregon and I deserve to share this knowledge with all the students in my city as their Mayor to instill the reality of Generational Wealth!
This was so easy to understand and I feel like this is one of the financial road maps I should have been taught in high school. Thanks for sharing this!
I'll be setting up an irrevocable trust soon after setting up an llc through a lawyer then onto a cpa to deposit a bit of money into a secure bank. Don't know much about trusts, cpa's, llc's however I pray I get through the process fully covered and secured.
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market.
I've experimented with a few over the past years, but I've stuck with ‘’Nicole Anastasia Plumlee” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
The irs changed the rules on trusts for taxes… claiming that they weren’t part of the estate tax (on death) so the assets in the trust need to be taxed before it can be claimed by your heirs.. Look into it and use that information to assess what you want to do with your assets
I read a very reputable book that says you should never put your IRAs in a Revocable Living Trust. Keep IRAs separate and ensure you name a Beneficiary (or Beneficiaries) in your IRAs. My understanding is that by keeping the IRAs separate and out of the trust, they can be rolled over to the beneficiary tax free (taxed only until distributions are taken). If you put the IRAs in the trust, they become taxable when they are distributed to the beneficiary (cannot roll-over).
Good Point. When assets and passive revenue belong to an LLC or Trust, any payents to others, family, pay, distributions, etc will be classified as income, or gifts, or distributions depending if members or non-members. Know all the rules when intendeding to help others thru paying them monies.
I have my estate down to very little. My kids are co owners of my money accounts and most of what I own is junk and I got no land. Got a will but only have the two heirs so should not be too hard. Most of what I own is cash and like I said the kids are co owners.
We don’t have a mortgage, husband is now retired and wants to travel. We don’t splurge or anything like that. Inflation has hit hard and we want to relocate while growing his 401k which is minus 2 M atm. I'm cautious than ever with rising costs. What is your opinion? Happy to discuss.
Travel is a small but important part of that overall puzzle. Start with an annual budget for socializing and travel - $10,000 per year is a figure I picked out of the sky - and see how you get on with that over time. Agree to remain open to further conversations about adjusting that figure upwards or downwards.
Roughly how much you have in the 401k combined with a financial advisor’s help can help you not only grow but budget the money for your travel destinations. I and my spouse always delegate our excesses.
If I can chip in know what you are expecting from the 401k. An adviser might be able to help you visualize what role the 401k plays in your overall plan. If your husband isn’t require to take minimum distributions yet, how long will it be until he reaches that required beginning age? These are what an adviser may want to determine in order to help you plan better and what investment strategy best suits you.
Hiring a financial adviser means having someone look at everything from cash flow to investments and risk management to estate planning and legacy. Fixed income and treasuries may work for you while you try to figure out the next entry point for stocks
@@benalfredo The ones I find are young and I feel may not be experienced working with us. They also tend to charge as much as 1% AUM which I am not comfortable
This was my first visit back to your channel in many months, as after feeling lost in deep soul search of concern for this very topic - The clouds finally parted - and at long last I saw a ray of hope & reached a moment of clarity... As I uttered the words... "Mark J. Kohler" ... And as I arrived at your channel, to see this very video pinned to the top of your page, I knew my prayers had been answered... 😢,,,, And as I viewed and the clarity ensued, the floodgates of emotion burst as I heard you say... "special needs"... and a flood of tears purged me of a hundred fears,.. as I now know my son will be okay 💔 Thank you so much for doing what you do! I'll be in touch soon! As soon as the funds arrive! I now have zero doubt that they are on their way...
Had a trust established today (took several months due to delays on my part), but it’s finally done and ready to see what’s next to get the trifecta established.
I just want you to know that the last couple mins in this video made me hit the Subscribe button. That comparison to putting new wine into old wine skins is exactly what our pastor preached on last week, and hearing you say it here was a confirmation that I am on the right track to building my legacy & my wealth. 🙌🏽 Thank you so much for your generous sharing of knowledge... It has been HUGELY helpful and I can't wait to learn more from you & K.D.! God bless 🙏🏽
Adding beneficiaries directly to your investment accounts avoids probate. You don’t need a trust to do this. Also naming a trust as a beneficiary can actually be worse for your loved ones in retirement account since regular people get better tax treatment.
No you are incorrect. Trusts are disregarded entities. They do not have any tax responsibilities. All taxes are paid by the individual once the assets / funds have been distributed. Also, a trust does much more than help avoid probate. You can dictate any direction you want in the trust. You can decide how and when the funds are distributed. As an example, if you want your kids to receive x amount when they turn 18, then x amount more once they graduate college, then x amount to purchase a house, then the balance once they are 35 as long as they don’t have any felonies, etc. You can’t do any of that if you simply name a beneficiary on your retirement/investment account.
Correct. POD ( pay on death) or TOD (Transfer on Death) to named beneficiaries avoids probate. And payment to trusts of pretax IRAs, 401ks, trigger tax on distribution where as transfer to beneficiaries allow " stretch " taxation .
Mark, I'd like to see you address how to save tax in retirement with rental/business losses or other ideas. For example, what if I buy rentals with distributions which on paper may not make money; or start a business; or go into farming. Thanks
I like that idea that every dollar earned allows the trustee to withdraw 1 dollar from the trust. If your funds are not large enough, you could also do this- for every dollar spent on income tax, they can withdrawal a dollar. You essentially set it up so they can work free of governmental restriction until your money dries up. If they earn a dollar, they get a dollar and the gov doesn't get a slice of that pie. I'm definitely a fan of some type of "no free rides" payout that incentivises a positive work ethic.
My late husband and I had a trust-when he died 9 years ago I had to re-do the trust and my will and choose a trustee and a successor trustee. My trustee died in 2018 and the successor trustee was diagnosed with a terminal illness a yer ago. NOW I must find a new trustee and new successor trustee!
One of my coworker's wife's mother had a trust. One of the sons was the backup trustee. After the son missed one filling date, the other rotten son filed to replace the other son as the trustee. Lawsuits abounded, but the bad son's attorney was friends with the judge. It took a couple of years to resolve the lawsuits, with much of the trust assets frittered away on attorney fees. The son who missed a filing date had comingled his mother's assets with his, by building a house on his mother's property. This raised the value of the mother's property, even though the son paid for the house. I'm not saying that a will would have solved these issues, just that a trust is not as bullet-proof as this video implies. Someone needs to watch over the trust, especially if the original trustee starts being less mentally aware. The bad son tried to say he lived with his mother and deserved some of the assets for taking care of her. The other children said he might have done it for at most small amount of time. You might think an appeals court would see through the chummy judge, but they are surprisingly expensive. The replacement trustee was also expensive, with little incentive to end the lawsuits, as their income would then stop. All in all, if you expect trouble, a one and done trust is probably insufficient.
An RLT sound interesting but the most common problem I have seen is with the liquidation and/or distribution of physical assets. With a will, the Executor decides those issues. How it is done with an RLT? So, you have an RLT (that includes your house) that is set to distribute 50/50 to your 2 children and you die. Who is responsible for selling the house?
Overall, good advice. Perhaps a bit overkill if you have a simple estate, but when my mother passes, I'm going to set up a revocable trust to simplify the assets I'll have to manage when I'm gone and completely avoid probate. FYI, in my area, probate is no biggie for small estates, but a trust makes it simpler.
The most important thing to keep in mind about trusts and estates is that if you expect your beneficiaries to devolve into lawsuits, or if the estate/trust is complicated, don't appoint one of them as trustee or executor. That will just make things worse. Get a 3rd party. Could be a bank, a lawyer, a CPA. It will be more expensive than shoving that work off on one of your relatives, but if the lawsuits start flying then having somebody who knows what they are doing from the start is critical. I've seen several big disasters happen because the initial person did some stupid things that are relatively minor, get removed, and this usually adds years to the duration of the estate or trust. I've also seen the trustee/executor just abuse the trust/estate, and while that 3rd party is going to bill you they won't, for a specific real world examples, take the whole assets of the trust and build themselves a million dollar house or completely fail to file required tax returns.
I regularly name a professional fiduciary I know as either the trustee or the backup successor trustee in the estate plans I prepare for my clients, for exactly the reasons you state.
@@bobpadrick7718 How does a professional fiduciary get paid? A flat fee I hope, otherwise the trustee has every incentive to waste the trust's assets by arranging things so the trust doesn't close out, thus enabling ongoing fees. I have similar issues with trustees getting paid a percentage of assets. There is almost zero likelihood that what the trustee is doing merits that kind of compensation.
First, I'm not licensed to practice law in Texas. So any response I give is not intended to be legal advice in the State of Texas. But beyond that, I'm not understanding your question. Generally, a professional fiduciary is someone who holds a license, granted by the state, to act on behalf of others in that state. You can select anyone who holds a professional fiduciary license from the State of Texas and name them as your trustee, as the executor of your will, as your agent with power of attorney or as your health care agent. I would suggest you call them first, to make sure they are accepting new business and to discuss whether there are any conditions to be met before they are willing to act on your behalf.
Maybe I’m missing something - it seems to make sense to hold most assets in the name of the trust, but changing the beneficiary of the IRA to a trust seems to be a bad idea from a tax standpoint given the higher tax rates on trusts. Anyone have any thoughts on this?
That depends on if the trust distributes enough money/assets to cover the IRA withdrawals or not. If the trust can distribute income, and if it does distribute that income in the year of the IRA withdrawl(s), then the beneficiaries should pay tax on it instead of the trust. But if the trust cannot distribute the income for whatever reason, gov docs or just sending checks late, then the trust pays taxes and most of it will be at the max tax rate of 35%. Executors/trustees emptying the IRA account in a single year and then failing to distribute enough money is the most common estate/trust failure I see. I normally suggest that IRA accounts have specific heirs as beneficiaries, but that can potentially be annoying if one dies before you.
How do you hide property that’s in your personal name - primary home or rentals that has to be in your or your spouse’s names unless you get an expensive commercial loan - to obtain privacy under a trust when your name is still on public records as owning the property?
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR you can head to markjkohler.com/tax-advisor-network/ and get connected with one of our amazing Tax Advisors that can help you dive deeper into your questions. Thank you!
LOREN-LENA-WALKER, advanced and experienced lady. I met a team assigned me in North Carolina. You’d be lucky to get Loren's attention, research if you care.
Overall, one of the better videos on trusts. As an estate planning attorney, there are certain points made that I would disagree with. However, a good explanation on the whole. One big point I must comment on is "privacy." You mention the trust _owning_ things. Technically, trusts don't own anything. It is the trustee that owns the property and holds it "in trust." You never mention how privacy is achieved. The trust is not what creates the privacy. It's the type of trustee that accomplishes that. If I am my own trustee, as is rather common, then I think we can all agree that there's is no privacy. As the property would remain in my name. However, if the trustee is a LLC properly established with privacy in mind in jurisdictions like DE, NV, and WY, then yes. Moreover, privacy is misleading as it will shield you from the public record, but not a deposition in aid of executing a judgment against you. In the latter, any beneficial interests you have would need to be disclosed.
@@janchampine1899 Try copying and pasting next time. Clearly, transcribing is not your thing. 😆☺(Reread my that part of my post very, very carefully. Then, compare it to your attempted "quote". You're quote missing two "e"s in a very important part of what I wrote.) 🤣
If you have properties in more than one state you can avoid all probate by putting them in the trust. Also, investments do not need to go into the trust if you assign TOD and have the correct beneficiaries defined.
Thank you. I look forward to one day being able to afford to work with your company to set up all of my stuff. 😊 I follow and subscribe to your channel, as it helps me to gain knowledge. But i feel more confident having you and your team help me set up my protections when the time is right.
Inheritors miss out on step-up if decedent moves assets to a trust instead of as direct beneficiary. This is a fairly big deal on taxable assets and real estate.
Depends on the type of trust. Revocable grantor trusts, no. For tax purposes they don't exist until you die, and assets in them still go through the estate estate tax (if you have enough money) Irrevocable trusts, probably. I've heard lawyers claim there are ways around it, but I've never seen it actually happen.
plus i believe u can require your kids to successfully complete financial education arranged by trustee thru wealth mgt team prior to any distributions
This is a great video. I already have a trust. I have a friend with a net worth of Millions of dollars. According to him, his lawyer told him that a will is all he needs. He, "just put his daughter's name on his accounts." You did a great job of outlining the proper path, please describe what happens if the will is contested? How do property taxes and utilities get paid? When can a family member move in? When can the house and real property be distributed? I expect a dog fight because of the lack of planning.
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR if you want to get set up with one of our amazing Tax Advisors to dive further into your questions, please head to markjkohler.com/tax-advisor-network/ - thank you!
An account with joint tenancy with right of survivalship bypasses probate. There are dangers if the daughter decides to take all the money before death. Any creditors of the estate can go after the joint tenant for payment of the debt up to the value of the account. The real issue is if there is more than one child, that joint accounts don't work properly, unless there are multiple "equal" accounts for each child, and it's hard to keep those accurate. Stocks will still need to go through the estate. Independent administration should allow using the letters of office to sell shares.
Really is a shame how Attorneys have destroyed the legal system. Used to be word of mouth was fine. Then we had to have a will. Now it's probates, trustee's, power of attorneys, each taking their part of the pie. Hell, death used to desolve contracts but now it's a burden on the grieving family. All of it is sickening.
😂. I’m laughing at how you blame attorneys when it’s family members and strangers coming in to lay claim to assets that destroyed your claims that “word of mouth” was the best thing since sliced bread.
@@ayorkii I'll explain and I'll be sure to use little words so you can understand. While you are right about greedy family members, they aren't the one's responsible for threading needles through all the little loopholes. They aren't the one's who helped create a system so complex you need hired help that can take up to a third of the estate. Family will always be family, attorney's will always be greedy. Oh, final note, families weren't the one's to re-write laws allowing creditors to come after family members for outstanding debts when death used to nullify the contract. As for word of mouth, if you're word is worthless, how much value are you?
@@recgar are you sure your words were “little” enough for me to understand? The legal system has become increasingly complex because people keep outsmarting the system. Then they create another law to block or clarify the issue to ensure the intended results. It’s man’s tendency towards fraud and greed that creates complex laws. And “word of mouth” is nothing. Especially if you’re relying on people’s flawed memories … since you have a propensity for “little” words, I would encourage you to do some research on how easy it is to alter someone’s memory of an event after-the-fact or how every time we “remember” something…it’s slightly different. That said, no creditor should be coming after family members for a deceased person’s debts. However, what we do usually see is creditors coming after the estate prior to distribution. Think about this … you have a $50,000 car you sell to someone because you need that money for your retirement. You sell it to someone who makes a deal with you to pay you monthly for a year. You lose possession of the car. Your customer dies 3 months in. The customer just so happened to have $1,000,000 in their bank account. You have the legal recourse to repossess the car or have the contract paid out based on the $1,000,000 already sitting in the account. You have those choices because of the legal system. Perhaps you were an employee, or you had a contract and did work on his house. You worked … they had the money … you should get paid. It’s sheisters like yourself who just want to “nullify” work done by working class families that are the reasons we have laws to protect against these kinds of scams.
@@recgar 1. Idiotic comments. 2. _re-write laws allowing creditors to come after family members for outstanding debts_ Huh? This is incorrect. 3. So let me get this straight ... you want an elderly person to carry a bunch of debt then when they pass their assets go to their relatives (you in this scenario) and the creditors can go F themselves??? LOL.
@craigscott7315 can you elaborate please? Who needs a trust, who doesn't, and WHY? I am about to undertake the process for our estate and 3 grown children and I'm concerned my parents with a large ($$$M) estate simply have beneficiary statements, a TOD deed for their house and a simple will to deal with household assets. I am the executor of their estate.
@@paulscheuer9455 Sure. No one in America living in abject poverty needs a trust. The title of the video was clickbait, which I I disliked because it's simply not true. Having said that, using a trust in your situation may vey well be wise since you have a estate. A good estate plan is essential for large estates and trusts can be a valuable part of that. Trust law differs from state to state so I (nor can anyone else) cannot offer you legal advice for your particular circumstances. Trusts can be created either intervivos (when the person is living) or intestate (in a will to be effective when a person has passed). When a trust is created, the parties must abide by the terms of the trust t achieve the anticipated benefits of he trust. in other words, you can't say you are creating a trust and then ignore capitalizing the trust, paying taxes as if no trust was created, and abiding by all the laws related to trusts. Trusts are separate legal entities and you can't lawfully commingle trust assets and non-trust assets. All trust assets should be owned in the name of the trust. I have seen people make significant mistakes by not conveying the appropriate assets into the trust and observing trust rules as was originally intended. If the size of the estate doesn't warrant the legal and subsequent accounting costs to administer the trust, it makes no sense to create the trust in the first place.
If you have beneficiary designations for bank accounts and investments accounts, doesn't that bypass probate as well and then you don't have to put them in a trust?
How do you actually put a business in a trust? We have our RLT, and it came with documents to put the businesses in the trust, but those are just documents in the binder. They need to be filed somewhere with some government department, right?
What if you have accounts with beneficiaries already declared, e.g., bank or investment accounts, that contradict what is declared in the Trust? Is there a hierarchy? Same thing if the Will and Trust conflict? And, can one have a separate trust from their spouse?
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We have a neighbor who wants to take part of our residential property. Not all of it -- just a portion of our land. Would having our home and lot under a trust cause them to at least think twice about pursuing an adverse possession claim? They are sneaky and always lurking, and have asked many probing questions about our family size, kids, etc..... We have our home owner name withheld by request on the tax commissioner's website so maybe they are doing asset searches and asking questions to see about who might fight them if they take our land. I dont think the trust offers legal protection but would it at least create a minor bureaucratic headache and perhaps give them another reason not to pursue their adventure of robbing us of our land?
Adverse Possessions require that they Openly use the land and the Owner doesn't contest it for the period of time required by where you live. So, as long as you contest them using it in a documented way that time restarts. You should contact someone about legal prevention methods.
@@nehpets216 Thank you yes that's correct and I moved their underground downspout pipes off my land once I offered to have them installed on their land for free (to be nice abut it but end their possession). As I understand it, this protected me from adverse possession as well. My concern is a fake claim about managing the land which is scrub woods. I'm concerned they'll generate photos and receipts of minor actions they took where i could not see them doing it. I've talked to a few lawyers and they are not eager to get involved because there's not much money in it for them. the typical response is "send them a permission letter." But I offered them one and they did not agree to sign one having agreed to moving their pipes which they never did so I did. They are being sneaky. Sneaky isnt covered under the law but if done well they can pull it off.
I googled "what are downsides of having trust". One of the result is "no protection from creditors". But this doesn't make sense to me. Does will offer protection from creditor?
Dear Mr. Kohler, COULD YOU PLEASE EXPLAIN WHY THEIR IS NOT TAX RETURN ON TRUSTS (SORRY THE CAPS, BUT TO GET YOUR RESPONSE AND THANK YOU!) THIS IS MIND BLOWING! HOW ARE CAPITAL GAINS, DIVIDENDS AND INTEREST PAID? CD'S, MUNI BONDS AND OTHER INCOMES PAID? CRAZY! THANK YOU FOR YOUR TIME!
I'm on SSI my income is $914.00 , I am only getting $70.00 a month in EBT as they made a Mistake They and there is NO Human to talk to I Have an SNT to Keep my benefits and they do not understand what that Means My Home is in a depleting trust . I had in 19 of the 20 Quarters needed so did not qualify for SSDI , Missed it by that Much . I have an SNT a Trust to Supplant that the Corpus is about to be Exhausted from because I had to buy three froths of my food when I am supposed to get the full $200.00 . It takes a minimum of $1800.00 a Month to Live at my House . I became disabled in 07 , Dad passed in 13 leaving me a Duplex and Money for the bills , Well the Property tax increased , So did the Water , The food , etc . I will be forced to Try going back to Work with 50 percent Kidney function and Type 2 Diabetes in about a Year , If I can not get Healthy enough to Work I'll Loose $400.000 in Property , House Lot , Car and my Stuff . I just Dropped my Landline as it was $67.00 a Month . My SSI is $914.00 the Bank takes $2.00 for a Paper Statement each Month . All the Household Bills just went up 45% , My EBT is Only $70.00 when it should be $200.00 but there is No Human caseworker to speak with and even if you get a person they don't Understand What an SNT is and that the House is in there and that is to Protect the benefits . It is frustrating as I only have a year if Corpus left in my SNT , then I will have to somehow Pay to show the Ending of that trust and the Transfer of Deed and Title of the House , Car and all Household bills . I see a future of No Gas . I'll be selling everything I own to pay the bills for however long I can keep the Car or have a Yard Sale and I am too weak to do the sales so I'll have to find a couple of people to help , the whole thing is sad as I should be a few years from retirement and instead I'll be slipping into Homelessness .
Putting retirement accounts, such as 401K, IRA under RLT is a bad idea. You will face immediate distributions upon death. On the other hand, regular beneficiaries will have much more time to enjoy tax deferred benefit.
As the other guy says, you are wrong. Some beneficiaries have more than the current 10 years to empty the account, but not children. You do risk the trust getting stuck with the income if the trustee isn't on the ball though.
Why is a trust that can be subject to intrusion by the public the trust you support... Why isn't a irrevocable trust, where the grantor or judge can not change the trust the trust you support
Make sure you have beneficiaries listed on bank accounts. My dad had mom as bene, but bank or lawyer never mentioned this when he passed Thought we were set, as we did POA when my dad passed to help mom with bills, but there was no bene on mom's account. Oh whoops, sorry in Wis, over $50K in bank account goes to probate if no beneficiaries listed. So lucky lawyer will now get paid $350/hr to go through probate.
You can also probate without a lawyer, but ngl, it's tedious work, but it can be done. I'm doing it now. But I can deal with digging in the weeds, making spreadsheets..and waiting to recoup fees, cause probate costs money. With a lawyer it costs more.
So here's my question - since the IRS changed the rules on revocable trusts, what benefit do they have now. The point of doing a trust was to help move that wealth to your kids, but if you die, the new IRS rules really cause more issues.
@@DustinJJ98 The IRS has quietly changed the rules around taxes on inheritances, putting Americans in danger of being caught out if they try to transfer assets to their children. The agency has curbed the tax break on a trust often used to minimize estate taxes.
That's a misconception. If you own a home, however modest, and people who you want to leave it to, a revocable trust will save them time and money when you pass away. Our TV culture makes trusts and wills and estates seem like rich people stuff. Every one who dies leaves an estate. Estate simply means any property of the deceased. There's personal property ( jewelry cars collectibles clothes Xboxes) and real property (houses rental properties businesses).
I revoked my contract with the collections agency that serves the interest of the United States Corporation, a foreign entity, separate from the Republic of the United States of America. I am not beholden to foreign entities, and informed them of the clerical error made signing that first 1040 form, due to a misunderstanding of the wordage. Idc if they approve or deny it, any further attempts at private property aquisition will be seen as strong armed robbery and responded to as such. I am not a slave and will not live as one for warring criminal banking cartels. Y'all do whatever, I'm a live or die Free. 📜🇺🇸🦅
Hey there, our firm helps clients nationwide and would be more than happy to help you get your trust set up. Please get connected with KKOS here: kkoslawyers.com/schedule-an-appointment/ - thank you!
My dad has a trust and my sister and I are both named in it. 50/50 but it doesn’t detail the distribution just those assets are listed. I never saw were distribution was detailed only 50/50 beneficiaries. So you covered everything in detail except for the cost which you skimmed over and only said not expensive. Then $2,000 is mentioned with maybe paying to much. Does that mean you charge less?
When my father died and left his money in the hands of a corporate trustee… wow how evil they are! They took every opportunity to take from us and when we wanted out it was a long and frustrating process. They created conflicts of interest and made many mistakes in their greed, so they let it go but to get out of it all we had to sign a state,ent that we wouldn’t talk about what happened, or they can sue US. LOL this system is designed to screw people.
Hi as some veteran do not pay for property taxes, nor some plates and tags. would these veteran still about to fall under the no property taxes radar if their house is in a living trust?
Great Video: Question: Do I need both a revocable trust, and an insurance trust, or can a revocable trust suffice if I make it the beneficiary of the insurance?
Hey Robert, to get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR you can head to markjkohler.com/tax-advisor-network/ and get connected with one of our amazing Tax Advisors that can help you dive deeper into your questions. Thank you!
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
My father, dec. 88 yrs old, ret. Col, us army, was super smart. He put my name on the checking, and money market accounts, made me successor trustee as well as his legal signer and caregiver even tho he was not bedridden or wheelchair bound. Then, when he passed, everyone who wanted their checks had to sign away their rights! A waver stating they cannot challenge he will or he trust!! Yay!!
Sounds like an idiot if he was smart, he would’ve enjoyed his money while he was living why give it away so stupid go buy a boat go travel go buy a condo in the Caribbean. If kids want their money they make it themselves.
My dad is also 88 years old next week and retired military. He is so paranoid that his kids might put him in a nursing home one day that he keeps everything a secret. He lives alone but my younger sister goes over to his house to clean and wash his clothes and he pays her for her help. We all have a great relationship with him but he just doesn't care that after he dies his belongings will end up going to the local govt.............
You Are a GOD SEND!!!! THIS IS LIFE CHANGING!!!! THANK YOU FOR THIS VALUABLE INFORMATION!!! HOW CAN YOU BE REACHED??
@@viperman8788maybe the younger sister can get him to write out a will. He can stipulate in the will that he does not want to be in a nursing home and write out anyone who places him there.
@@viperman8788he cares about his children so while he may not care about his death I would sit him down together with my siblings and have a talk with him. It's hard for his generation to open up about their feelings but it's a reason he feels this way. Try to get to the bottom of where this is coming from did it happen to his parents or someone close to him? Something happened in his past where he made an agreement with himself that, that situation would never happen to him. Y'all have to address his fears and reassure him that is not the case with you all. Do it before it's too late.
My Dad left me a trust as a retirement fund. The only way he could do it is by putting another relative in charge of it,(who did it for free) or the lawyers would have used up all the money long before I retired. Next problem, I see, the highest tax rate there is. I never made enough money to put me into the tax bracket that my trust was in. I think the >30% tax bracket kicked in at around $10k of income!!.
I'd say you need to find another tax guy.
That is true, estates & trusts hit max rates at around 12k of income. If the trust is allowed to distribute income to you then you could pay tax on it instead of the trust, but if the trust was intended to be a retirement fund then chances are decent that the trust does not allow that.
I’m not clear what you are trying to say. Doesn’t the money in the will and trust, come to you without a tax burden, upon the death of the trustee?
@@Mico77777 No. First, if the trustee dies they are replaced. It is possible that the court might dissolve the trust instead of appoint another trustee though. Second, If the trust or estate had, say, 100k in taxable income because it emptied the deceased's IRA account then somebody is paying the tax on that 100k in income. If you got the 100k, then you get 100k in taxable income (less some estate deductions). If nobody got distributed the money, then the estate pays the tax and at horrible rates. But that is because IRA distributions are INCOME. If the estate had a 100k in stocks and distributed it to you, then there isn't any taxable income and you just gets stocks with a cost basis of whatever the trust or estate has for cost basis.
@Mico77777 My trust was set up as a retirement account. Not a great fund either. But money that it did make was taxed at a way high rate especially concidering income.
In 2023 any income over about $14500 is 37% federal tax. Hard to compound at those rates.
The best thing about a trust, it makes the lawyer lots of money! POD, TOD, wills and simple trust will do.
I have a TOD on my rentals. My ex had POD on his accounts. Our two sons went to a scheduled appointment with the bank with his death certificate and walked out with two checks. Easy peasy, no cost and no attorney involved.
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
Hello, thanks for replying. I'm thinking of trying out an advisor, how can one reach a decent advisor like the one you use?
“Rebecca Nassar Dunne” is who i work with and she is a hot topic even among financial elitist in California. Just browse, you’d find her, thank me later.
thank you for this pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a calI session with her.
Thank you for giving us this advice for FREE!!! Omg years ago you would have to pay a financial advisor to give you this advice and still not as detailed. Thank you! Im 42 and i think about this all the time bc none if my family is going to "handle" anything i worked hard to attain. We all know the vultures in the family 😂.
My dad had a revolkable trust. I was trustee. His wife, not my mom, took me through the court system with it. She didn't think she got enough. Even though trust stated if anyone takes it to court they get nothing. The corrupt courts put a judgement against me. I ended up doing jail time for not honoring the courts. I honored the trust. They still have a judgement against me including many years of interest. Info the trust was finale and stated so in the filed taxes before the judgement came out. How is this even possible??? My dad died in 2004 and the cops and courts continue to attack me. I refuse to consent to anything the broke system wants.
I have found all courts are corrupt. So sorry for your experience
Move out of state. Or to Thailand
Go to Brazil
@@ihaveadreamformykids4400 Brazil is a shithole.
This is exactly why the majority of Trusts are absolute garbage. My grandfather had his 3 properties (vacation condo in SD, commercial property with tenants $10k/month, plus his home of 60yrs) all kept “protected” in Living Revocable Trust. The City of Sac leveraged multiple judgments against him as a person, which was their first fault (and illegal), for asbestos removal done by one of his tenants hired contractors. So for something he never was responsible for, they took this once self made millionaire down to nothing but living on his social security. There is much more to the story, but basically the banks and courts can enter in the back door of these phony trusts and act as the beneficiary to claim judgments. However, with an Irrevocable Trust, there seems to be a more absolute protection of assets. I have a friend who had his entire bank account emptied because of back taxes, even the checking account associated with the Irrev Trust. However, a couple days later the entirety of that account was restored. It is highly illegal for banks or courts to violate an Irrevocable Trust. I’m still learning more and catching up with how the world actually works. Be careful out there with all the scammers!!
Love this guy ... Humor and KNOWLEDGE all in the same video. His private tax service is expensive though. This was one of Mark's BEST Videos... I watch them all. He is True and Honest.
Garn-St Germain Depository Institutions Act of 1982 (12 US Code, Section 1701j-3) is what allows you to put your home into your trust without triggering the due on sale clause, not state or county exemptions. Otherwise, solid info.
You can also do a transfer on death deed for your house, vehicles, and bank accounts to avoid probate.
*Even though I am a licensed attorney in Indiana, this is only general information.and does not constitute legal advice. You should consult with a licensed attorney in your state.
Not every state allows transfer on death deed, thank goodness, because that seems ripe for stealing houses.
Great job clear and concise!
I am
Thankful for your time Mark. Been watching you for over 5 years at least. It is time to stop suffering from analysis paralysis! I am running for Mayor for the City of Portland, Oregon and I deserve to share this knowledge with all the students in my city as their Mayor to instill the reality of Generational Wealth!
This was so easy to understand and I feel like this is one of the financial road maps I should have been taught in high school. Thanks for sharing this!
I'll be setting up an irrevocable trust soon after setting up an llc through a lawyer then onto a cpa to deposit a bit of money into a secure bank. Don't know much about trusts, cpa's, llc's however I pray I get through the process fully covered and secured.
Something not mentioned is what’s the average cost to setup and maintain a trust? This information should be in the video
My wife and I did our trust earlier this year with a great attorney in Ogden Utah, cost was $1600, there are no maintenance fees.
My parents did one that was $4,000
The cost can vary considerably depending on each persons requirements.
That's what I want to know, how much to set up and is there a cost for maintaining a revocable living trust. Shady.
There is cost and some inconvenience with a trust. Is there a net worth where you think it becomes more valuable than hassel?
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market.
I've experimented with a few over the past years, but I've stuck with ‘’Nicole Anastasia Plumlee” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
The irs changed the rules on trusts for taxes… claiming that they weren’t part of the estate tax (on death) so the assets in the trust need to be taxed before it can be claimed by your heirs..
Look into it and use that information to assess what you want to do with your assets
Only taxed if it’s above the federal estate tax exemption. Otherwise, it’s passing to heirs estate tax free.
I read a very reputable book that says you should never put your IRAs in a Revocable Living Trust. Keep IRAs separate and ensure you name a Beneficiary (or Beneficiaries) in your IRAs. My understanding is that by keeping the IRAs separate and out of the trust, they can be rolled over to the beneficiary tax free (taxed only until distributions are taken). If you put the IRAs in the trust, they become taxable when they are distributed to the beneficiary (cannot roll-over).
What is the name of the book?
@@gayleneflower398great question. I'm curious as well.
Good Point. When assets and passive revenue belong to an LLC or Trust, any payents to others, family, pay, distributions, etc will be classified as income, or gifts, or distributions depending if members or non-members. Know all the rules when intendeding to help others thru paying them monies.
@gayleneflower398 Estate Planning for dummies by Jordan Simon and Joseph Manshinski
Does that go for mutual fund stocks
I have my estate down to very little. My kids are co owners of my money accounts and most of what I own is junk and I got no land. Got a will but only have the two heirs so should not be too hard. Most of what I own is cash and like I said the kids are co owners.
We don’t have a mortgage, husband is now retired and wants to travel. We don’t splurge or anything like that. Inflation has hit hard and we want to relocate while growing his 401k which is minus 2 M atm. I'm cautious than ever with rising costs. What is your opinion? Happy to discuss.
Travel is a small but important part of that overall puzzle. Start with an annual budget for socializing and travel - $10,000 per year is a figure I picked out of the sky - and see how you get on with that over time. Agree to remain open to further conversations about adjusting that figure upwards or downwards.
Roughly how much you have in the 401k combined with a financial advisor’s help can help you not only grow but budget the money for your travel destinations. I and my spouse always delegate our excesses.
If I can chip in know what you are expecting from the 401k. An adviser might be able to help you visualize what role the 401k plays in your overall plan. If your husband isn’t require to take minimum distributions yet, how long will it be until he reaches that required beginning age? These are what an adviser may want to determine in order to help you plan better and what investment strategy best suits you.
Hiring a financial adviser means having someone look at everything from cash flow to investments and risk management to estate planning and legacy. Fixed income and treasuries may work for you while you try to figure out the next entry point for stocks
@@benalfredo The ones I find are young and I feel may not be experienced working with us. They also tend to charge as much as 1% AUM which I am not comfortable
This was my first visit back to your channel in many months, as after feeling lost in deep soul search of concern for this very topic - The clouds finally parted - and at long last I saw a ray of hope & reached a moment of clarity... As I uttered the words... "Mark J. Kohler" ... And as I arrived at your channel, to see this very video pinned to the top of your page, I knew my prayers had been answered... 😢,,,, And as I viewed and the clarity ensued, the floodgates of emotion burst as I heard you say... "special needs"... and a flood of tears purged me of a hundred fears,.. as I now know my son will be okay 💔
Thank you so much for doing what you do!
I'll be in touch soon! As soon as the funds arrive!
I now have zero doubt that they are on their way...
Had a trust established today (took several months due to delays on my part), but it’s finally done and ready to see what’s next to get the trifecta established.
I just want you to know that the last couple mins in this video made me hit the Subscribe button. That comparison to putting new wine into old wine skins is exactly what our pastor preached on last week, and hearing you say it here was a confirmation that I am on the right track to building my legacy & my wealth. 🙌🏽 Thank you so much for your generous sharing of knowledge... It has been HUGELY helpful and I can't wait to learn more from you & K.D.! God bless 🙏🏽
Adding beneficiaries directly to your investment accounts avoids probate. You don’t need a trust to do this. Also naming a trust as a beneficiary can actually be worse for your loved ones in retirement account since regular people get better tax treatment.
No you are incorrect. Trusts are disregarded entities. They do not have any tax responsibilities. All taxes are paid by the individual once the assets / funds have been distributed. Also, a trust does much more than help avoid probate. You can dictate any direction you want in the trust. You can decide how and when the funds are distributed. As an example, if you want your kids to receive x amount when they turn 18, then x amount more once they graduate college, then x amount to purchase a house, then the balance once they are 35 as long as they don’t have any felonies, etc. You can’t do any of that if you simply name a beneficiary on your retirement/investment account.
@@sincityguns3460 how am I incorrect?
Correct, accounts with beneficiaries don't need to be in a trust... unless you don't want that money to go to them in one lump sum
Correct. POD ( pay on death) or TOD (Transfer on Death) to named beneficiaries avoids probate. And payment to trusts of pretax IRAs, 401ks, trigger tax on distribution where as transfer to beneficiaries allow " stretch " taxation .
Mark, I'd like to see you address how to save tax in retirement with rental/business losses or other ideas. For example, what if I buy rentals with distributions which on paper may not make money; or start a business; or go into farming. Thanks
I like that idea that every dollar earned allows the trustee to withdraw 1 dollar from the trust. If your funds are not large enough, you could also do this- for every dollar spent on income tax, they can withdrawal a dollar. You essentially set it up so they can work free of governmental restriction until your money dries up. If they earn a dollar, they get a dollar and the gov doesn't get a slice of that pie.
I'm definitely a fan of some type of "no free rides" payout that incentivises a positive work ethic.
My late husband and I had a trust-when he died 9 years ago I had to re-do the trust and my will and choose a trustee and a successor trustee. My trustee died in 2018 and the successor trustee was diagnosed with a terminal illness a yer ago. NOW I must find a new trustee and new successor trustee!
Pick me ;)
Maybe get your name on a wing of the hospital?
❤
Try the Bank
I'm in kind of same boat of who do I use as trustee.
Thanks!
One of my coworker's wife's mother had a trust. One of the sons was the backup trustee. After the son missed one filling date, the other rotten son filed to replace the other son as the trustee. Lawsuits abounded, but the bad son's attorney was friends with the judge. It took a couple of years to resolve the lawsuits, with much of the trust assets frittered away on attorney fees. The son who missed a filing date had comingled his mother's assets with his, by building a house on his mother's property. This raised the value of the mother's property, even though the son paid for the house.
I'm not saying that a will would have solved these issues, just that a trust is not as bullet-proof as this video implies. Someone needs to watch over the trust, especially if the original trustee starts being less mentally aware. The bad son tried to say he lived with his mother and deserved some of the assets for taking care of her. The other children said he might have done it for at most small amount of time. You might think an appeals court would see through the chummy judge, but they are surprisingly expensive. The replacement trustee was also expensive, with little incentive to end the lawsuits, as their income would then stop. All in all, if you expect trouble, a one and done trust is probably insufficient.
An RLT sound interesting but the most common problem I have seen is with the liquidation and/or distribution of physical assets. With a will, the Executor decides those issues. How it is done with an RLT? So, you have an RLT (that includes your house) that is set to distribute 50/50 to your 2 children and you die. Who is responsible for selling the house?
Overall, good advice. Perhaps a bit overkill if you have a simple estate, but when my mother passes, I'm going to set up a revocable trust to simplify the assets I'll have to manage when I'm gone and completely avoid probate. FYI, in my area, probate is no biggie for small estates, but a trust makes it simpler.
set it up before she passes. To many issues if you wait till after.
I am most interested in the asset protection
This guy is such a great speaker. Not only knowledgeable. Very eloquent. Subbed
The most important thing to keep in mind about trusts and estates is that if you expect your beneficiaries to devolve into lawsuits, or if the estate/trust is complicated, don't appoint one of them as trustee or executor. That will just make things worse. Get a 3rd party. Could be a bank, a lawyer, a CPA. It will be more expensive than shoving that work off on one of your relatives, but if the lawsuits start flying then having somebody who knows what they are doing from the start is critical. I've seen several big disasters happen because the initial person did some stupid things that are relatively minor, get removed, and this usually adds years to the duration of the estate or trust. I've also seen the trustee/executor just abuse the trust/estate, and while that 3rd party is going to bill you they won't, for a specific real world examples, take the whole assets of the trust and build themselves a million dollar house or completely fail to file required tax returns.
You hope they won't.
I regularly name a professional fiduciary I know as either the trustee or the backup successor trustee in the estate plans I prepare for my clients, for exactly the reasons you state.
@@bobpadrick7718 How does a professional fiduciary get paid? A flat fee I hope, otherwise the trustee has every incentive to waste the trust's assets by arranging things so the trust doesn't close out, thus enabling ongoing fees. I have similar issues with trustees getting paid a percentage of assets. There is almost zero likelihood that what the trustee is doing merits that kind of compensation.
@@bobpadrick7718 can you share who will be professional fiduciary in texas ? thank you
First, I'm not licensed to practice law in Texas. So any response I give is not intended to be legal advice in the State of Texas. But beyond that, I'm not understanding your question. Generally, a professional fiduciary is someone who holds a license, granted by the state, to act on behalf of others in that state. You can select anyone who holds a professional fiduciary license from the State of Texas and name them as your trustee, as the executor of your will, as your agent with power of attorney or as your health care agent. I would suggest you call them first, to make sure they are accepting new business and to discuss whether there are any conditions to be met before they are willing to act on your behalf.
This doesn't protect against the Medicaid liquidation of assets. Can you convert the revocable to irrevocable?
Maybe I’m missing something - it seems to make sense to hold most assets in the name of the trust, but changing the beneficiary of the IRA to a trust seems to be a bad idea from a tax standpoint given the higher tax rates on trusts. Anyone have any thoughts on this?
That depends on if the trust distributes enough money/assets to cover the IRA withdrawals or not. If the trust can distribute income, and if it does distribute that income in the year of the IRA withdrawl(s), then the beneficiaries should pay tax on it instead of the trust. But if the trust cannot distribute the income for whatever reason, gov docs or just sending checks late, then the trust pays taxes and most of it will be at the max tax rate of 35%. Executors/trustees emptying the IRA account in a single year and then failing to distribute enough money is the most common estate/trust failure I see. I normally suggest that IRA accounts have specific heirs as beneficiaries, but that can potentially be annoying if one dies before you.
Mark - your videos are amazing and your passion contagious. Thank you for taking the time to share your expertise!
How do you hide property that’s in your personal name - primary home or rentals that has to be in your or your spouse’s names unless you get an expensive commercial loan - to obtain privacy under a trust when your name is still on public records as owning the property?
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR you can head to markjkohler.com/tax-advisor-network/ and get connected with one of our amazing Tax Advisors that can help you dive deeper into your questions. Thank you!
Did not say that are the cost to do this and yearly cost !!!
Can you recommend how to open a revocable living trust please?
LOREN-LENA-WALKER, advanced and experienced lady. I met a team assigned me in North Carolina. You’d be lucky to get Loren's attention, research if you care.
This video, my now new friend, is great. I learned so much. Thanks
Many states are not making it so that even trusts can be taken leaving the family with nothing. Do keep up with the new laws.
Your Transparency is gold
Overall, one of the better videos on trusts. As an estate planning attorney, there are certain points made that I would disagree with. However, a good explanation on the whole. One big point I must comment on is "privacy." You mention the trust _owning_ things. Technically, trusts don't own anything. It is the trustee that owns the property and holds it "in trust." You never mention how privacy is achieved. The trust is not what creates the privacy. It's the type of trustee that accomplishes that. If I am my own trustee, as is rather common, then I think we can all agree that there's is no privacy. As the property would remain in my name. However, if the trustee is a LLC properly established with privacy in mind in jurisdictions like DE, NV, and WY, then yes. Moreover, privacy is misleading as it will shield you from the public record, but not a deposition in aid of executing a judgment against you. In the latter, any beneficial interests you have would need to be disclosed.
Huh????
QUOTE....
"Technically, trusts don't own anything. It is the trust that owns the property and holds it "in trust".
🤦♀️🤦♀️
@@janchampine1899 Try copying and pasting next time. Clearly, transcribing is not your thing. 😆☺(Reread my that part of my post very, very carefully. Then, compare it to your attempted "quote". You're quote missing two "e"s in a very important part of what I wrote.) 🤣
@@janchampine1899 Wow. Have to wonder what else you've been confused about your entire life, simply because you can't read.
@@tomasgonzalez4819women 😏😉
One privacy point certainly was distribution of estate held in trust is not public in contrast to wills which go to probate and become public.
If you have properties in more than one state you can avoid all probate by putting them in the trust. Also, investments do not need to go into the trust if you assign TOD and have the correct beneficiaries defined.
What about if assigned POD?
Thank you. I look forward to one day being able to afford to work with your company to set up all of my stuff. 😊 I follow and subscribe to your channel, as it helps me to gain knowledge. But i feel more confident having you and your team help me set up my protections when the time is right.
I was thinking the same thing. How much does it cost to structure my assets in this fashion with Mark Kohler's company?
@@jeremyrocks9025 probably 3000 and up
@@kimdagnillo8246 how much if using Mark Kohler's company as the Trustee?
Inheritors miss out on step-up if decedent moves assets to a trust instead of as direct beneficiary. This is a fairly big deal on taxable assets and real estate.
Depends on the type of trust. Revocable grantor trusts, no. For tax purposes they don't exist until you die, and assets in them still go through the estate estate tax (if you have enough money) Irrevocable trusts, probably. I've heard lawyers claim there are ways around it, but I've never seen it actually happen.
Are TOD and POD treated the same in this case?
plus i believe u can require your kids to successfully complete financial education arranged by trustee thru wealth mgt team prior to any distributions
Great video. Is there a video about the difference between Revocable vs Irrevocable - pros and cons? Thank in Advance.
Govt telling the 87,000 new irs we are going after trusts but must change law first
How much would it cost for a simple rlt and maybe tax filing/trifecta set up for llc 2022 net 40k?
How much can they charge you before you scream? 5k ?
Very Instructive, Bravo !
Man what a great freaking video. Mark you found yourself another subscriber.
This is a great video. I already have a trust. I have a friend with a net worth of Millions of dollars. According to him, his lawyer told him that a will is all he needs. He, "just put his daughter's name on his accounts." You did a great job of outlining the proper path, please describe what happens if the will is contested? How do property taxes and utilities get paid? When can a family member move in? When can the house and real property be distributed? I expect a dog fight because of the lack of planning.
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR if you want to get set up with one of our amazing Tax Advisors to dive further into your questions, please head to markjkohler.com/tax-advisor-network/ - thank you!
An account with joint tenancy with right of survivalship bypasses probate. There are dangers if the daughter decides to take all the money before death. Any creditors of the estate can go after the joint tenant for payment of the debt up to the value of the account. The real issue is if there is more than one child, that joint accounts don't work properly, unless there are multiple "equal" accounts for each child, and it's hard to keep those accurate. Stocks will still need to go through the estate. Independent administration should allow using the letters of office to sell shares.
@@johnhaller5851 Nice. thank you.
Is it not true that all assets in a trust needs to be deemed disposed of periodocally, which negates any tax savings/deferals?
Fantastic video! Thank you for making this info understandable 👍🏼
An asset with a beneficiary or a Transfer on Death deed does not need to go thru probate.
Really is a shame how Attorneys have destroyed the legal system. Used to be word of mouth was fine. Then we had to have a will. Now it's probates, trustee's, power of attorneys, each taking their part of the pie. Hell, death used to desolve contracts but now it's a burden on the grieving family. All of it is sickening.
😂. I’m laughing at how you blame attorneys when it’s family members and strangers coming in to lay claim to assets that destroyed your claims that “word of mouth” was the best thing since sliced bread.
@@ayorkii I'll explain and I'll be sure to use little words so you can understand. While you are right about greedy family members, they aren't the one's responsible for threading needles through all the little loopholes. They aren't the one's who helped create a system so complex you need hired help that can take up to a third of the estate. Family will always be family, attorney's will always be greedy. Oh, final note, families weren't the one's to re-write laws allowing creditors to come after family members for outstanding debts when death used to nullify the contract.
As for word of mouth, if you're word is worthless, how much value are you?
@@recgar are you sure your words were “little” enough for me to understand? The legal system has become increasingly complex because people keep outsmarting the system. Then they create another law to block or clarify the issue to ensure the intended results. It’s man’s tendency towards fraud and greed that creates complex laws. And “word of mouth” is nothing. Especially if you’re relying on people’s flawed memories … since you have a propensity for “little” words, I would encourage you to do some research on how easy it is to alter someone’s memory of an event after-the-fact or how every time we “remember” something…it’s slightly different.
That said, no creditor should be coming after family members for a deceased person’s debts. However, what we do usually see is creditors coming after the estate prior to distribution.
Think about this … you have a $50,000 car you sell to someone because you need that money for your retirement. You sell it to someone who makes a deal with you to pay you monthly for a year. You lose possession of the car. Your customer dies 3 months in. The customer just so happened to have $1,000,000 in their bank account. You have the legal recourse to repossess the car or have the contract paid out based on the $1,000,000 already sitting in the account. You have those choices because of the legal system. Perhaps you were an employee, or you had a contract and did work on his house. You worked … they had the money … you should get paid. It’s sheisters like yourself who just want to “nullify” work done by working class families that are the reasons we have laws to protect against these kinds of scams.
thanks to all the Lawyers that get voted into Elected positions. They are usually socio paths who prey on the vulnerable.
@@recgar
1. Idiotic comments.
2. _re-write laws allowing creditors to come after family members for outstanding debts_ Huh? This is incorrect.
3. So let me get this straight ... you want an elderly person to carry a bunch of debt then when they pass their assets go to their relatives (you in this scenario) and the creditors can go F themselves??? LOL.
I have also been a lawyer and CPA (for 50 years) and I absolutely do not agree that every American needs or should have a trust.
@craigscott7315 can you elaborate please? Who needs a trust, who doesn't, and WHY? I am about to undertake the process for our estate and 3 grown children and I'm concerned my parents with a large ($$$M) estate simply have beneficiary statements, a TOD deed for their house and a simple will to deal with household assets. I am the executor of their estate.
@@paulscheuer9455 Sure. No one in America living in abject poverty needs a trust. The title of the video was clickbait, which I I disliked because it's simply not true.
Having said that, using a trust in your situation may vey well be wise since you have a estate. A good estate plan is essential for large estates and trusts can be a valuable part of that. Trust law differs from state to state so I (nor can anyone else) cannot offer you legal advice for your particular circumstances.
Trusts can be created either intervivos (when the person is living) or intestate (in a will to be effective when a person has passed). When a trust is created, the parties must abide by the terms of the trust t achieve the anticipated benefits of he trust. in other words, you can't say you are creating a trust and then ignore capitalizing the trust, paying taxes as if no trust was created, and abiding by all the laws related to trusts. Trusts are separate legal entities and you can't lawfully commingle trust assets and non-trust assets. All trust assets should be owned in the name of the trust. I have seen people make significant mistakes by not conveying the appropriate assets into the trust and observing trust rules as was originally intended.
If the size of the estate doesn't warrant the legal and subsequent accounting costs to administer the trust, it makes no sense to create the trust in the first place.
Thanks and Lord’s Blessings!
Seth
If you have beneficiary designations for bank accounts and investments accounts, doesn't that bypass probate as well and then you don't have to put them in a trust?
How do you actually put a business in a trust? We have our RLT, and it came with documents to put the businesses in the trust, but those are just documents in the binder. They need to be filed somewhere with some government department, right?
Maybe the Secretary of State?
UCC
nobody knows
What if you have accounts with beneficiaries already declared, e.g., bank or investment accounts, that contradict what is declared in the Trust? Is there a hierarchy? Same thing if the Will and Trust conflict? And, can one have a separate trust from their spouse?
It's time to start this process.
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 17k in last month 2024.
Wow that's huge, how do you make that
much monthly?
Honestly speaking, I will continue to trade and stick to Kathie russell daily analysis and guides as long as it works well for me..
Woah for real? I'm super excited. kathie russell strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started
Though i started with $15,000 CAD because it actually my first time, it was huge success and massive all i can say is that her confident in day trading is top notch.
please educate me, i am willing to make consultation to improve my situation.
.
Mark explains RLT, a complex topic in easily understandable language.
Depends on scenario relative to children, existing businesses and investments, etc. Consult with a lawyer.
Would you not use a 1041 instead as opposed to a 1040?
We have a neighbor who wants to take part of our residential property. Not all of it -- just a portion of our land. Would having our home and lot under a trust cause them to at least think twice about pursuing an adverse possession claim? They are sneaky and always lurking, and have asked many probing questions about our family size, kids, etc..... We have our home owner name withheld by request on the tax commissioner's website so maybe they are doing asset searches and asking questions to see about who might fight them if they take our land. I dont think the trust offers legal protection but would it at least create a minor bureaucratic headache and perhaps give them another reason not to pursue their adventure of robbing us of our land?
Adverse Possessions require that they Openly use the land and the Owner doesn't contest it for the period of time required by where you live. So, as long as you contest them using it in a documented way that time restarts. You should contact someone about legal prevention methods.
@@nehpets216 Thank you yes that's correct and I moved their underground downspout pipes off my land once I offered to have them installed on their land for free (to be nice abut it but end their possession). As I understand it, this protected me from adverse possession as well. My concern is a fake claim about managing the land which is scrub woods. I'm concerned they'll generate photos and receipts of minor actions they took where i could not see them doing it. I've talked to a few lawyers and they are not eager to get involved because there's not much money in it for them. the typical response is "send them a permission letter." But I offered them one and they did not agree to sign one having agreed to moving their pipes which they never did so I did. They are being sneaky. Sneaky isnt covered under the law but if done well they can pull it off.
Generational wealth for your family is important!
I googled "what are downsides of having trust". One of the result is "no protection from creditors". But this doesn't make sense to me. Does will offer protection from creditor?
Great seeing you at the Limitless conference Mark! Thank you for all that you do!
Dear Mr. Kohler, COULD YOU PLEASE EXPLAIN WHY THEIR IS NOT TAX RETURN ON TRUSTS (SORRY THE CAPS, BUT TO GET YOUR RESPONSE AND THANK YOU!) THIS IS MIND BLOWING!
HOW ARE CAPITAL GAINS, DIVIDENDS AND INTEREST PAID? CD'S, MUNI BONDS AND OTHER INCOMES PAID? CRAZY! THANK YOU FOR YOUR TIME!
I'm on SSI my income is $914.00 , I am only getting $70.00 a month in EBT as they made a Mistake They and there is NO Human to talk to I Have an SNT to Keep my benefits and they do not understand what that Means My Home is in a depleting trust . I had in 19 of the 20 Quarters needed so did not qualify for SSDI , Missed it by that Much . I have an SNT a Trust to Supplant that the Corpus is about to be Exhausted from because I had to buy three froths of my food when I am supposed to get the full $200.00 . It takes a minimum of $1800.00 a Month to Live at my House .
I became disabled in 07 , Dad passed in 13 leaving me a Duplex and Money for the bills , Well the Property tax increased , So did the Water , The food , etc . I will be forced to Try going back to Work with 50 percent Kidney function and Type 2 Diabetes in about a Year , If I can not get Healthy enough to Work I'll Loose $400.000 in Property , House Lot , Car and my Stuff .
I just Dropped my Landline as it was $67.00 a Month . My SSI is $914.00 the Bank takes $2.00 for a Paper Statement each Month . All the Household Bills just went up 45% , My EBT is Only $70.00 when it should be $200.00 but there is No Human caseworker to speak with and even if you get a person they don't Understand What an SNT is and that the House is in there and that is to Protect the benefits . It is frustrating as I only have a year if Corpus left in my SNT , then I will have to somehow Pay to show the Ending of that trust and the Transfer of Deed and Title of the House , Car and all Household bills . I see a future of No Gas . I'll be selling everything I own to pay the bills for however long I can keep the Car or have a Yard Sale and I am too weak to do the sales so I'll have to find a couple of people to help , the whole thing is sad as I should be a few years from retirement and instead I'll be slipping into Homelessness .
Great work Mark! Scooby snacks for you.
My allegiance is to Liberty, the Repubic and Democracy.
I am retired. Can I put the money from my traditional IRA into my Roth as soon as I take it out and pay tax?
Yes, but where do you find these trustees outside of your family and how expensive is that?
Putting retirement accounts, such as 401K, IRA under RLT is a bad idea. You will face immediate distributions upon death. On the other hand, regular beneficiaries will have much more time to enjoy tax deferred benefit.
Yep, just list them in the beneficiary section of the IRA.
Well you are so wrong. The trust has 10 years to distribute out of the tax deferred account, same time period as the kids.
As the other guy says, you are wrong. Some beneficiaries have more than the current 10 years to empty the account, but not children. You do risk the trust getting stuck with the income if the trustee isn't on the ball though.
Why is a trust that can be subject to intrusion by the public the trust you support... Why isn't a irrevocable trust, where the grantor or judge can not change the trust the trust you support
Make sure you have beneficiaries listed on bank accounts. My dad had mom as bene,
but bank or lawyer never mentioned this when he passed Thought we were set,
as we did POA when my dad passed to help mom with bills, but there was no bene on mom's account. Oh whoops, sorry in Wis, over $50K in bank account goes to probate if
no beneficiaries listed. So lucky lawyer will now get paid $350/hr to go through probate.
POA ends when the person dies. POA allows access to said person's assets while that person is alive. That's a commonly misunderstood fact.
You can also probate without a lawyer, but ngl, it's tedious work, but it can be done. I'm doing it now. But I can deal with digging in the weeds, making spreadsheets..and waiting to recoup fees, cause probate costs money. With a lawyer it costs more.
So here's my question - since the IRS changed the rules on revocable trusts, what benefit do they have now. The point of doing a trust was to help move that wealth to your kids, but if you die, the new IRS rules really cause more issues.
Can you explain? Also, what rule?
@@DustinJJ98 The IRS has quietly changed the rules around taxes on inheritances, putting Americans in danger of being caught out if they try to transfer assets to their children. The agency has curbed the tax break on a trust often used to minimize estate taxes.
@@EL.JEFE1231post the code you are referring to, or at least the dollar amount @ which it applies to.
This sounds like something for people that already have either alot of money, or are currently making alot of money.
That's a misconception. If you own a home, however modest, and people who you want to leave it to, a revocable trust will save them time and money when you pass away.
Our TV culture makes trusts and wills and estates seem like rich people stuff. Every one who dies leaves an estate. Estate simply means any property of the deceased. There's personal property ( jewelry cars collectibles clothes Xboxes) and real property (houses rental properties businesses).
Could you do another video on how this applies to a standard millennial with W-2 income, the basic retirement accounts, and no property?
Or people working as contractors with 1099 income with basically a home and vehicle but no investments.
Wow, what a fabulous explanation to what and what not to do. 👏👏👏
A TRUST is a must. Especially if your sister is theif.
In Malaysia,Trust is a new thing.Hope you can teach me how to open their mind to Get into Trust.Thanks Sir.
I revoked my contract with the collections agency that serves the interest of the United States Corporation, a foreign entity, separate from the Republic of the United States of America. I am not beholden to foreign entities, and informed them of the clerical error made signing that first 1040 form, due to a misunderstanding of the wordage. Idc if they approve or deny it, any further attempts at private property aquisition will be seen as strong armed robbery and responded to as such. I am not a slave and will not live as one for warring criminal banking cartels. Y'all do whatever, I'm a live or die Free.
📜🇺🇸🦅
I trust myself everyday, thank you.
Ever heard about the Howard Hughes will?
They were looking in airplane wings for something stuffed away. I think they ended splitting it next of kin.
fantastic content - basically what i paid my CPA thousands a year to teach me!
I live in California, do you accept clients from here? How much would you charge for setting up a trust?
Hey there, our firm helps clients nationwide and would be more than happy to help you get your trust set up. Please get connected with KKOS here: kkoslawyers.com/schedule-an-appointment/ - thank you!
My dad has a trust and my sister and I are both named in it. 50/50 but it doesn’t detail the distribution just those assets are listed. I never saw were distribution was detailed only 50/50 beneficiaries. So you covered everything in detail except for the cost which you skimmed over and only said not expensive. Then $2,000 is mentioned with maybe paying to much. Does that mean you charge less?
When my father died and left his money in the hands of a corporate trustee… wow how evil they are! They took every opportunity to take from us and when we wanted out it was a long and frustrating process. They created conflicts of interest and made many mistakes in their greed, so they let it go but to get out of it all we had to sign a state,ent that we wouldn’t talk about what happened, or they can sue US. LOL this system is designed to screw people.
What bank is this trust money being held in? FDIC
Can you do a video or link me to one that explains how to make an irrevocable trust into a revocable trust?
In your trifecta, you didn't mention any non-monetary assets. What about them?
Hi as some veteran do not pay for property taxes, nor some plates and tags. would these veteran still about to fall under the no property taxes radar if their house is in a living trust?
Excellent Content 👍
Thank you Mark. I'm doing this. Do you have offices in Southern California?
Great Video: Question: Do I need both a revocable trust, and an insurance trust, or can a revocable trust suffice if I make it the beneficiary of the insurance?
Hey Robert, to get your question answered, please submit it to podcast.mainstreetbusiness.com/ OR you can head to markjkohler.com/tax-advisor-network/ and get connected with one of our amazing Tax Advisors that can help you dive deeper into your questions. Thank you!
Thank you!!