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KJCE 1370AM>Audio on Demand>>WorthPointe Wealth Watch Podcast 3/23/14

WorthPointe Wealth Watch Podcast 3/23/14

Mar 23, 2014|

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Automatically Generated Transcript (may not be 100% accurate)

And for work quite well watch -- Christopher -- -- Partner and founder of worst point LLC. Tired of the same sales pitches disguised as financial advice -- is a certified financial plan. Real facts about it. This -- my. -- -- This afternoon Austin, Texas this is Christopher fans like. And you are listening to the worth point wealth watch. I'm so glad to be with you today I am joined in studio with. The usual Scott O'Brien from the -- point Austin office good afternoon everybody. As well as Justin Blum off. From the what's your law firms think that's our blue line sharp bloom off sorry it had no -- for now he's a local estate planning attorney. Here in Austin you folks you can find us on Twitter FaceBook and Linkedin. Under -- point and you can also go to work point radio dot com if you look enforce. They way they. The title today show's gonna be basic estate planning and then next week we're gonna do advanced the state -- with the planning with the with Justin. But I'd like to start off with. A little bit of the let's go to Brian special what -- would pick -- -- Scott. Well this isn't necessarily news in the. That's my music is -- June. The investment yeah. So. Again this isn't news. There was out in the public statements news to me sought but since Justin was here did that you know what the longest will ever pro rated how long hours. Have you -- Look that up on that -- yeah. Better recently not that particular question I read it from cover to cover. So you've read -- packing -- and while you can do so it's Frederica. Level and still well cook. Whose estate was only 100000 dollars you can say only. And the last will and testament ran 1066. Pages. 95940. Words and lawyer for a moment. Former eastern 25000. Dollars of course the attorney brings that up yeah. That bad guy. People don't sort of think you know if you're safer than a 100000 -- You can shoot her a 100000 with a lawyer pretty fast right now yeah I mean I mean if you really wanna do things -- apparently she's like to see a change. -- Well it's actually getting cut in in context of war and peace was 14156. Hits -- -- While the what does that say about prevent. I think you try to avoid it can -- -- -- under Justin Kitna talked goes about its -- -- NASA. No seriously. Folks the state planning nobody likes to talk about it it's the last thing anybody wants today hey let's think about dying let's think about becoming disabled -- dark. Hit that potential double talk. Has financial planners we have to deal with a lot and we're just announced the deal that's all that -- -- But actually it's not all bad and it really is and I I find estate planning attorneys one of the few. Specialties where I -- helping professions as attorneys are. Squaring off. Against each other half of throwing bombs and this is a way to actually help people. This area throw on most personal areas off Tom. They're rarely across the table tonight and -- it is not arguing you're just trying to help me sometimes you gotta go before the court and -- -- -- a little bit sometimes there can be a little disagreement and families and hope that yeah I -- -- -- That's another say you could share some of the stories of the family therapy is a prerequisite. State planning ahead I think the financial planning is. Partially. A group psychology absolute individual psychology -- people their money in their -- and then certainly a state share Hampshire. -- come but it just a moment you give us a little bit of your background and where you from how to get into this area of law. And then we'll go from there. Gaga well. Time board certified -- planning attorney. From San Antonio law school laden California's Pepperdine and then both -- and then Malibu you have secret. I remember when I was an honest go look at the brochure for -- you know I hear that a lot of -- -- -- to come on guys going he's added that the -- and that's marketing -- ever -- the ocean they pulled temperature 72 degrees is all these studies to look much trash get out of here -- they got me so hey it worked. Com about route back to Texas -- did to start my my professional career undercutting -- Undergrad here in Austin ET OK -- and then my JD MBA at at Pepperdine. Malibu is made up of very wealthy people and students and I was no longer student and I debt so I got booted out of now -- -- got a -- to stay there after school apparently. And then they declined to Melba yes but don't let that doesn't surprise me -- effect on the -- started Nolan is so that makes sense. An extensive get out there we should go to to -- -- carbon beach. I don't know there's a lot of -- broad beach definitely county line six -- up in county -- Gladstone. We'll tell you the Malibu for you to think yeah. But I don't think it all right so. And then -- even practicing though. Get old eight years now eight years I value our. You're going to be get very precision bad start and good for business I guess a little bit my -- took off when I started to Africa accurately I can rattle off my credentials and board certification I'll have a civil only gray hair only a gray hairs in my head and then now. Yeah I have a few more confession that's the -- That's molecular -- challenge definitely I think for those of you haven't seen and I wash my -- illogical nonsense. -- -- All right were you have to take a break and few minutes accomplished as we can really get really deep and material element didn't think it was up very shortly got a history of the state bode you know. Who were English common law well the tub and watching the tutors there we go way back to Babylonian there if you want to but it's all the the people write down their wishes that originally. Kate just was a property rights -- transferring from within tribes and and and issues like that -- I don't I'm not. Well versed in that area of trust planning or anything but down. And then eventually made its way to -- to common law and to whom we're lucky here in Texas that we have a system that allows us to really freely. It's based on to your freedom and now allows you did. Do what you want with your state and and give it to him you wanna give it to rather than being mandated and and that's kind of where we are just have to make provisions for your you know if something happens you just to disable you as well listeners mr. don't search you know one of them that -- -- we'll talk about -- today is is that first prong of kind of the three -- of the state plane that would be the detest him in -- Commented incapacity area so that's. That's what we're gonna be right after the break king we're gonna get into the first of three prongs with the Justin Blum officers are you planning attorney. -- The yeah. Wrong. Mom. It boom. Okay. Between ramping government spending in uncertainty about our economic future most Texans are having doubts about their own financial future. Are you ready to take a serious look at your financial goals using the experience the only certified financial planner practitioner is it worth point. Would you like a second opinion on your current advisor who may be selling you investments and insurance for commission's -- worth when he radioed I've come to make an appointment or call 8885447. 760. That's worth point radio dot com 8885447768. Going back to work quite well watch giving you an unbiased people under the hood of wealth management. Investment and financial planning. Once again here's Christopher advanced. -- welcome. Back Austin, Texas you're listening to the war went well watch. Where we give you a peek under the wealth management hood. Today we're talking basic estate planning with local estate planning attorney Justin Blum -- who. Areas and -- go to Brian is. Part of the conversation or injury in his note he does begin he can have some singers for Justin what I'm hoping things can happen dude trend time and a little -- and wait for the magic moments he's gonna counts. It's like Johnny Carson all right so just before the break Justin was mentioning the three pronged. Approached understandings they're planning a what is the first problem. You know this I've kind of made up in my head so I know I can't say that this is across the board but it's to me that first probably year. Testament -- competency planning some -- men are you what happens in my stuff when I die and how does it get to the people wanted to get it -- com and as well was will -- take a bump on the head and his and manage my financial medical affairs that's where I'd put kind of the simple. First -- logical customary what does that word and continued I. Rather like cancer related death that related to death day yet although the live. The powers that durable powers can spring to life before -- that's right that's the competency -- testing their own lump those together or not that's life and death but it is really anywhere what's happening with my assets and is going to be -- who are going to be the people in charge of maintaining my goals and helps forum there what happens if you don't do this accomplishment. Well you know what one thing that gets one thing that I get a lot is that. Clients say you know when I have an estate and I'll come see you. On the reality is that we all have a state of some fashion and and every state needs planning whether -- no matter the size or opposition on our clients and they're gonna do -- state plans are right before they're gonna die death. They spend it all implies that they know -- accident I. But he did nothing. That you do have in the state plan state law comic. It's a little safety net for you but it doesn't necessarily do which he wanted to do and and I think that's one of the misconceptions is. There is a plan in place a bomb for death and there is a plan in place for incompetency that you are you know you're subjecting yourself to said. Mobile laws that the legislation came as well I don't. It's Connelly get a marital law. You know yeah get married and you don't have pre nup well there there is a pre nup there again it is community property all sorts things in Texas if you. Don't have a world this state has a will for you but how does -- -- divide up if you don't. Have you been written how many -- -- lawyer answer ever and so when I probably give the most some answers it depends now on the correct thing. Yeah I knew we didn't want to. You ask a lawyer question -- -- give back is about sixty other questions right. So it depends is a family structure plays a role and in Thomas that separate property vs community property plays heroine it. Real property verses personal property plays -- -- it's all those things drop this crazy web of who gets what it. And then the lawyers left with the the -- making the decision not about who gets what but what process shall we used to get the assets from point a to point B in there are a lot of different process we use some -- More expensive than other summer. More some they've court has more control over what happens yet to get their permission to do things other ones you really take it off the table they're really. Is that to decline their family and and those types of things and these decisions -- can really take off the table by doing proper planning why why you are alive and have to. I'm speaking of expenses you know -- -- spent the early part of my career in California where. Probate which is the process the court uses are you divvy up your assets Wendy -- was both slow and expensive. Sure it I think it was 6% of the gross assets in the estate in California say a tarantula. I can't speak to California anymore I -- and I well I did go to law school Deborah land mine and you forgot my street's -- is a little a critical 6% of the estate that. It though and surprised me and it does take a very long California's kind of years that stay we Corliss thought club doubt absolutely and and that's the state we look at say hey this is doesn't the bad situation to get into. We're lucky in Texas that even if -- if you do have a will or even if you don't we can. Expedited the process is a lot easier -- Avoiding probe it's not as big of an issue in Texas some people really make it a priority. And other times it's really not that big a deal it's it's not as this parts of that are still confidential we can streamline it through and in a matter of a couple months. It's not nearly as expensive as ago. Or is there a way to shepherd and a state through probate here and keep it private as one of the other motivation -- in California for using trust's share. Was that it we didn't go through from -- therefore it was private -- -- The our person why that's going to be seen and somebody could pull that we don't have to file our inventory anymore so every gas it's not listed like he used to have to be. Com but at the same time you're wealthy person and you said -- and everything to Jun oh absolutely everyone can pretty much seeded -- has everything you got so it's it's -- climb my client decision that we don't. We don't sweep everybody into the the trust format will sweep everybody into the will form you have to go through that's pride and the decision number one and the decision tree of which direction again. So that's always been my I was just surprised at how many wealthy people I met here -- who didn't have behaved a living trust sure. Then a living trust folks is there's a trust that where you place your assets during your life so that -- when you die or when your disabled it's easier to administer. Come beer assets right terrorists it takes the court process off the table there's still an administration of your stay the trustees to -- to get the assets to than to the beneficiaries but. He really removes the the process where you. Are we gonna we come to that I you can get a leaching into the little -- -- the middle prong is resort starts to get more -- more of and from lack of better word sophisticated. From the year you're gift and estate tax portion. I'm which we can jump into that -- boy acted rattle on customary issue is for for way too long ago we don't want to rattle yeah -- -- Hello ladies don't we're gonna take a break here and when we come back will get into the the other prongs of a state planning according to Justin -- off. Between ramping government spending and uncertainty about our economic future most Texans are having doubts about their own financial future. Are you ready to take a serious look at your financial goals using the experience the only certified financial planner practitioner is it worth point. Would you like a second opinion on your current advisor who may be selling you investments and insurance for -- is -- worth when he radioed I've come to make an appointment or call 8885447760. That's worth point radio dot com 80885447768. Welcome back to worst point wealth watch giving you an unbiased people under the hood of wealth management. Investment and financial planning. Once again here's Christopher advanced life. Welcome back Austin this is Christopher events like we are joined by Justin Blum off. There's an estate planning attorney here in Austin and. I think we just address the metal prongs what would be the the final prong of the two pronged approach to estate planning. A price it'd be asset protection. That's a big is a big piece of the puzzle and if you look at testament area incumbency planet first -- the gift and estate tax -- in the second prior NASA protection be in the third prong. Com and then all the other stuff spread between those three the overlap is that we use the same tools to accomplish all three of those goals that the arsenal -- tool belt is. Do you trust and contracts partnerships LC's all these things we can accomplish. Stanley succession planning. Massive asset protection protect dress even marital planning compare Hilton -- into it absolutely does what do you do Merrill planning thirty worker you do chair so you do preannounce post ups we do you know if your family attorneys a state -- terrorist can both handle that. I think. Brought by children. Sure sure the -- -- -- protection portion really. And we can we start an arena that we're looking at hey protect my assets from my creditors but the tools we use are no different than. Isolating your business. Assets from your personal accidents that matter Purcell and toasters and you're trying to make sure your credit don't come after acids or if it's just making sure somebody doesn't attached to your. Stock of Exxon trying to we're using the same tools accomplished both those goals and by cells are part of business on business -- gonna. -- have a significant overlap of state planning not to mention most of our. Our largest clients. They built their wealth not by being W two employees they built and by starting companies and we have to be well versed in that area. Early cattle against Texas half the income -- -- your checkered shirt that's what I heard what is soon. We share the stories from the illness liberties that. Died in the -- they don't do things correctly and Philip Seymour up on the Oscar winner died I think a couple months ago hurt and and had a will -- did. I think 2004 so was ten years old right and never updated apparently so that's I guess Libby -- -- cardinal mistakes that people don't do they don't review their wills you know. You know state playing this is more of them. Unfortunately it's a process it is it's -- -- organic process and never gets you don't really ever get that part Regis put on your shelf and leave it alone most people doubt. Com and it's a very but unfortunately for me it's a very nice soon thereafter right there yeah there you can then continued on with illegal if it happened. Unfortunately for me it's a very advisor driven area of the law -- some clients don't call me up on the phone and say well gosh we've got to do -- grass and assailed the defect -- just that that doesn't happen right I had to lean on financial -- -- issue spotting and recognize these issues and bring their clients to me and say hey we really -- addressed these issues. Professional athletes. Actors they're no different and the injustice or war snag you know they they if they're surrounded by managers and agents that have certain goals that. The state planes not really part of that goal. It'd I tend to notice that the surrounded by him yes people -- church -- church basically people try to bleed him dry eyes and right until the gravy train is over -- Food to kind of make them -- that's -- aren't you know as a fiduciary advisor is someone who actually cares about people it's very hard for us to work we do have some. Athletes and entertainers as clients. We generally -- never meet them we we deal through their gate agents and so forth it's very common I would love to get from them and say hey you know that is. People care about. And in their way behind and -- way behind me they're well on the eight ball when it comes to starting these processes you know there's a lot of the -- off that particular -- -- are beyond mid twenties with an estimated twenty million dollars in. He's just getting them off the ground until just. Basic basic planning is is this point to tell you I have which -- -- celebrities but I had. I can think of two doctors say I had excellent as clients and I could not get them to do save -- You can get them to do that some protection pretty darn easily. They come in asking for same limited partnerships before they even have a -- I will I have a doctor and lawyer. Couple this clients who have a very large -- who have no statement. It so it's not for lack of I you know our inability to understand and or anything like that has nothing to do it's it's just say well why don't people do this. -- -- going lawyers are now. Yeah -- -- -- -- -- -- in general you're right they don't but is it a state. Planners sharply in the personality type -- they're likable people you know and it's easy to talk to most estate planners 'cause that's why they go into that write the law. I thought I don't think that's it now I I made a lot of in deductions declines to people like you who have a -- four. I think it's a bit overwhelming. To think about. Not only just speaking about death that word or start with this concept of leading assets to my family. And controlling from the grave verses. Assets that are controlled by beneficiary designation verses is a real -- It's overwhelming and what most clients -- realizes when she get in there and start getting it down systematically and get extended the actual dig into the process. You're gonna go well a lot of items be taken care of by the attorney on the legal side. But would they don't understand is that they're gonna start diving down a lot of rules -- interest in worm holes how do you want -- families this money. -- what goals are we accomplishing with the with this property. And you'll start to find that we start leaving the IRS -- and the state statutes and we start getting into the soft side of planning that declines totaling. Ultimately again this is about your family -- ultimately it's about people churn or the institutions that. Matter to you mean that's I've never you know I've seen the the state tax. Limits go up and down and up and down over my career and I've never made this about that because I don't wanna give the government more than we have to do. But to me them. The more important thing is. How little Johnny and Susie it's gonna do -- Johnny and Susie he's grandchildren. And how's my spouse gonna do right after I'm gone those of the people I love that I've never made this about the estate tax yeah I think the I think to clients think it's by a state tax a lot of times tonight I think -- -- colors like 4300. Family's estate tax unless it's not a big deal. And it is to them but I mean in terms of numbers also partially is not a big deal because guys like just and do. It's a really good planting I guess that's the best that that you what you wonder about the 4300 -- -- And if -- actually seen an attorney who knew what they are doing they could they could have got a new mood around those I'd be more concerned about how my. And we did it after I was gone right then then I would about the estate pay. They personally clients get are shocked by how engaged they get in the conversation they really. For the most part think they're coming in to draft -- will that for the most part they think there's an attempt it -- and Crennel to negative process absolutely. And the next thing you know here and and the meetings that was supposed to be thirty minutes is two hours long and they're really engaged in very excited about how this plan is gonna unfold. So you know I'd always had people almost everyone I'm always I'm glad that's -- about. You know distraught and I'm glad I'm glad we did think it'd chair and I we're gonna have Justin back. For next week's show are actually two weeks from now shows they were gonna do. Advance the state planning folks you can go to worst point radio dot com and we will have this shows wells all of our other shows hosted there. We'll also have a link to Justin's firm's website if you'd like to contact him. Or listen to different parts of the show so I wanna welcome welcome you back. Next week when we're actually going to be discussing. Property and casualty insurance -- John -- Another great area -- save money if you know what you're doing hand this guy will save you money and hopefully some -- down the line and turn it. See you next week. I always -- Ten.

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