The BoomX Show: Laws of Money

In this episode of The Boom(X) Show: Laws of Money, we explore the myths and realities surrounding one of the most hyped estate planning tools—the living trust. Our guest, a thought leader in planning and the creator of the Planning Profile Builder, shares insights on how many professionals oversell living trusts, particularly for asset protection, and why this approach could be flawed.

Join us as we flip the script on traditional estate planning strategies. Discover the difference between the Money Models—Estate Transfer, Asset Protection, and Family Wealth Building—and learn why a one-size-fits-all solution, like the living trust, might not protect your assets as much as you've been led to believe.

Key highlights include:

• How the Planning Profile Builder helps you create customized solutions across different Money Models.
• Why traditional estate planning often misses the mark on real asset protection.
• Practical ways to approach family wealth building with a broader perspective.

Listen in and challenge your current assumptions about estate planning!

In this episode of the BoomX Academy podcast, asset protection attorney Darol Tuttle joins Family Leaders to discuss the challenges faced by families with members who struggle with various issues such as addiction, disability, disease, ADHD, bipolar disorder, and autism. These individuals often face unemployment or underemployment, leading to unmet shelter and basic needs without familial support. The conversation highlights a critical concern: the long-term impact on these vulnerable family members after the primary caregiver is no longer around.

The episode delves into the lack of consideration for the future well-being of these individuals once their parents or primary caregivers pass away. Darol Tuttle introduces the concept of a Family Protection Trust as a potential solution. Unlike traditional special needs trusts, this trust encompasses comprehensive provisions that not only address the immediate financial and caregiving needs but also provide robust asset protection and a financial framework designed to ensure long-term success and stability for the beneficiaries.

Listeners gain insights into the importance of proactive estate planning and the necessity of incorporating both financial and legal strategies to safeguard the future of vulnerable family members. The discussion emphasizes the need for a holistic approach to estate planning, ensuring that all potential challenges are addressed to provide a secure and supportive environment for those who rely on continued assistance.

In this insightful episode of the BoomX Show Laws of Money Podcast, host Darol Tuttle and special guest Mayra Perez, a licensed sales agent specializing in Medicare Advantage plans with SelectQuote, delve into the intricacies of social security and Medicare retirement benefits.

Key Topics Covered:

• Social Security Claiming Strategies:
• Mayra clarifies the various options for claiming social security benefits, explaining the impact of claiming as early as age 62 versus waiting until full retirement age or beyond.
• She emphasizes the potential benefits of delaying claims up to age 70 to maximize monthly payments.
• Medicare Enrollment Process:
• Understanding the crucial '3-1-3 rule' for timely Medicare enrollment to avoid penalties.
• Importance of adhering to the timeline: three months before the 65th birthday, the month of the birthday, and three months after.
• Medicare Advantage Plans:
• How these plans work, offered by private insurance companies approved by Medicare.
• Addressing concerns about potential conflicts of interest and the wish for a simpler system to better assist clients.
• Client Hesitancy and Personalized Service:
• Tackling client hesitancy and the importance of personalized service in assisting individuals with their healthcare plans.
• Recognizing that each client's situation is unique and requires tailored advice.
• Varying Benefits of Medicare Advantage Plans:
• Explanation of the varying additional benefits between different insurance carriers, including vision, dental, hearing, and wellness programs.
• Importance of carefully examining the benefits summary of each plan to ensure it meets the client's needs.

Darol also shares his plans to create a dedicated podcast episode about Medicare, underscoring the necessity of accessible and understandable information for clients. The group highlights the significant variation in individual needs, stressing the importance of considering various plans before making a choice to avoid unexpected costs and ensure alignment with healthcare needs and financial situations.

Tune in to gain a comprehensive understanding of these crucial programs and learn valuable strategies for maximizing retirement income and selecting the best healthcare plans for your needs.

The best place to express your desires for health care is within the four corners of a legal document, to wit: a health care power of attorney, advance directive, and a records release. Learn why in this episode and how you can create your own set of documents.

You will also learn why care costs are so expensive and what that means for many patients.

The reason the medical services industry is the most frequent target of cyber break-ins and theft also explains why so many go broke in retirement. Protecting yourself and your assets require and understanding of why care is so expensive. The Law has solutions but it takes effort.

Health Care Documents - intro to 18:00

especially the Power of Attorney and Advance Directive. Will a Power of Attorney help you end your pain if your state allows physician-assisted suicide?

Medicare Part D and the cost of prescription drugs - 16:00

Median net worth - 19:20

Think strategically about care - 22:10

Definition of plan at 23:00

Hacker answer at 23:20

What happens when you are sick and can't afford care? 24:30 one

Learn more about Medicaid: https://tinyurl.com/3fm4md2r

Three wealth taxes are estate tax, capital gains tax, and a new concept: a tax on your investments. Regardless of what you call them, they erode your family's wealth. This episode looks at how one state, Washington, has enacted two new wealth taxes at a time when thirty states gave back to taxpayers.(See note below).

Learn how federal and state taxes on wealth work, and how to leverage the exemptions available to avoid unnecessary taxation.

Key Points:

- Twelve states have their own estate tax. Ten do not allow each spouse to claim an individual exemption for a total of two. A credit shelter trust solves this problem and is easy to implement.

- Seven state legislatures have bill proposals to tax wealth. One state hopes to assess a 1% wealth tax on non-qualified investments wherever located in the world.

- Capital gains tax is an income tax but assessed against the value of the property when sold. In this sense, it taxes wealth, reduces your net worth, and leaves less to leave as a legacy.

Resources and links:

Three State Wealth Taxes

Estate Tax Masterclass

Case Study: In November 2022, the Washington Department of Revenue reported a 6% increase in its revenue. It now sits on a $15 billion dollar surplus, the largest in state history. Major General Fund-State (GF-S) revenue collections for the December 11, 2022 – January 10, 2023 collection period came in $87.8 million (3.9%) higher than forecasted in November. Cumulatively, collections are $83.3 million (1.4%) above the forecast.

In this episode, I interviewed a great attorney in Minnesota, his name is Andrew Ayers. He is a business planning and personal planning attorney and is also licensed in New York. We will give you great tips on what to look for when you are hiring an attorney in your state, or in your community, like the hidden secrets of picking a good lawyer from the perspective of two lawyers who have no dog in that fight, really. 

We will talk about rental properties and LLCs, and even if you do not have a rental property but just trying to figure out whether you should bother with forming your business as a limited liability company and making that all-important tax selection for S-Corp. 

Listen in to old salts talk about law, talk about the weather, and yuk it up.

To learn more about Andrew, you can go to ayerslawtv.com.

The best podcast episodes are those in which two people who sincerely want to help others connect, share stories, and lay out solutions. In this episode, Darol interviews Sarry Ibrahim, a young financial professional from Chicago, and they do just that. Sarry shows listeners can protect their privacy and assets by using a unique investment vehicle. This investment reduces risk, rows tax-deferred, and holds cash so that the investor can pay down debt to include current or future tax liabilities or leverage to diversify their portfolios.  Darol applies Sarry’s perspective to asset protection planning.

In the estate tax arena, lawyers recommend lifetime gifting to an irrevocable trust to 1) reduce the value of the taxable estate and 2) pay for a future estate tax bill with pennies on the dollar. Lawyers draft the trust. The trust, however, needs an investment that appreciates tax-deferred because irrevocable trusts are taxed at the highest tax bracket. Also, the trust needs a tax-free pay out to the estate to pay for final costs, including tax.

This kind of trust, in a sense, is a replacement for the amount that the estate shrinks due to the tax paid. Wealth replacement can also be used to pay back long-term care costs retroactively for the benefit of the surviving spouse.

This episode will challenge your thinking. Fact-based from the experience of three and a half decades of combined experience, Darol and Sarry make the argument that listeners can build their own family bank that can grow family wealth for generations.

Learn more about Sarry Ibrahim and how he can help you grow more wealth using this link: https://finassetprotection.com

Legal documents help you grow and protect your wealth, establish family decision-making, and successfully transfer your property to the next generation without unnecessary loss or stress.

Illness or advanced old age may render you unable to manage your health and finances alone. In such a case, medical providers require the following legal documents:

Health Care Power-of-Attorney

HIPPA-compliant medical records release

Advance Directive

Financial Institutions require a Financial Power of Attorney.

When you pass, the property you once owned will transfer to your loved ones by one of the following methods:

Last Will and Testament

Revocable Trust

Transfer on Death Deed

Beneficiary Designation

If you are married, the only way to leave your property to your spouse and protect it from Medicaid spend-down and liens if they become ill is by funding a Spousal Protection Trust. Authorized by federal law, this trust also captures any estate tax credit afforded your estate. The following states have a death tax:

Connecticut

District of Columbia

Hawaii

Illinois

Maine

Maryland

Massachusetts

Minnesota

New York

Oregon

Rhode Island

Vermont

Washington

Federal law requires that a Will creates a Spousal Protection Trust. If you are married and wish to avail yourself of the most powerful asset protection trust in American jurisprudence, you must have a Will. Avoid living trusts or transfer-on-death deeds.

An investment is a lump sum deposit in exchange for income in the future. A business differs from investment because a business generates immediate income for its employees and dividends for its owners. The operation of a business is more time and labor-intensive than an investment. What if you could have an investment that generated immediate income without demanding time and labor?

In this episode, Darol interviews Dustin Heiner, who explains how to do just that. Dustin quit his job at age 37 because he purchased several rental properties but outsourced the properties to reliable management. You can learn more about Dustin and take his free masterclass by visiting https://www.masterpassiveincome.com/freecourse

You can also take Darol's free masterclass on asset protection by visiting https://boomx.biz/courses/asset-protection-masterclass/

Infinite Banking refers to a method of cash management using a carefully designed whole life insurance policy. A whole life policy distributes cash to the beneficiary when the insured dies. The insured, usually the policy owner, does not directly benefit for an obvious reason - they are dead. This begs a question - is there a reason to store cash in a whole life policy other than a tax-free death benefit? Proponents of Infinite Banking would answer "yes."

In addition to a tax-free death benefit, all whole life policies also store and pay dividends or accrued interest on the deposited cash, i.e., the "cash value." A portion of this cash pays for the guaranteed death benefit. The unused portion of the cash value grows on a tax-deferred basis.

Do not forget that twelve states impose an estate tax separate from a federal estate tax. Estate planning attorneys often set up irrevocable trusts to pay for imminent estate taxes at a discount because the trustee purchases a whole life policy on the life of the trustmaker. When the trustmaker dies, the death benefit pays the estate tax. The amount of premiums paid for the insurance is far less than the death benefit, which corresponds with the estate tax liability. This is a way to pay a future tax with pennies on the dollar.

In addition, all trusts grow and protect family wealth for more than one generation. Trusts must have cash to distribute to help the family, e.g., college tuition, business start-ups, or even unreimbursed medical expenses. Unfortunately, an irrevocable trust pays the highest tax rate on investment returns. To avoid this, trustees favor tax-deferred and tax-free investments, such as life insurance, annuities, or municipal bonds.

This episode makes the case that Infinite Banking works well in trusts to reduce estate tax and meet family goals generationally.