The BoomX Show: Laws of Money

Trusts are used for personal planning and hold personal assets. Business entities such as corporations, partnerships, and limited liability companies hold business assets. Many families own a rental property but fail to view the rental house as a business asset because they do not view themselves as operating a business. This is unfortunate because business entities offer many advantages, which Darol discusses in this episode.

Trusts are similar to limited liability companies because the trust is able to protect assets if drafted correctly. Learn the two most important benefits of trusts that hold your family's wealth.

One of the missions of the BoomX Show is to help improve people's legal literacy, their financial literacy. Today, I will answer the questions of a young family leader who is building an estate plan, an asset protection plan, and his questions about tax.

How do I give a gift to my surviving spouse in order to avoid not only estate tax, not only capital gains tax, but also protect the assets against the possibility of high unreimbursed medical expenses? Some of the questions that he asked and I answer in today's episode is, what is the credit shelter trust?

How does that differ from a spousal protection trust and what is a QTIP trust? In the tax lingo there's unlimited marital deductions, but there's a trap. A mistake that you can make that can lead to significant estate tax if you live in a state with estate tax. All of these principles of course apply to federal estate tax.

If you are high net worth, even if your estate is below a taxable amount of millions of dollars, you should be even more interested because we all have the potential loss of our estate, of our assets during retirement, from high unreimbursed medical expenses, which can lead to Medicaid liens and transfer penalties and spend downs.

This is what we will discuss in today's episode of the BoomX show.

Do you own a timeshare? Want to know what it is, how to get rid of it, how to transfer it as part of your estate? I'll answer that question in today's episode. I will also dive deeper into trust law. We will talk about what a trust is, the job descriptions, trust, or trustee beneficiaries involved with a trust.

We will also talk about the advantages and disadvantages of a trust. And I will answer a very common question, should I choose a professional trustee or should I choose a family member to be responsible for administering my family trust?

As always, you can find additional content and resources at www.BoomXacademy.com. You also may request the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.

Larger estates face the possibility of paying a death tax. This tax erodes family wealth and the tax rate is much higher than many other types of taxes. Eleven states impose an estate tax of their own and the size of the estate that is taxable under state law is much lower.

Learn what you can do to reduce your estate tax bill and avoid unnecessary taxation completely in many cases. Darol will also describe the most generous provision of the tax code and how you can use it to avoid all capital gains tax.

As always, you can find additional content and resources at www.BoomXacademy.com. You also may request the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.

The BoomX Academy hosts office hours weekly, where family leaders gather and ask questions on various topics related to retirement planning, estate planning, and even long-term care planning.

In this episode, we bring you inside Office Hours as a family leader asks BoomX Show host Darol Tuttle the best way to protect his estate for his children from a prior marriage while providing for his surviving spouse if she should die first. Learn how a Spousal Protection Trust works, reduces estate tax bills, and preserves the estate from Medicaid liens. If you are confused about how trusts work and when they are created, this is the episode for you.

As always, you can find additional content and resources at www.BoomXacademy.com. You also may request the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.

The new year began with a tragic event, which occurs in retirement far too common and is completely avoidable. BoomX Show host Darol Tuttle tells the story of two actual events that occurred to retirees, sets the context by laying out the phases of retirement and alerts listeners to the risks of each phase. It is true that some mistakes have dire consequences and are even life-threatening, but there are ways to mitigate the risk of making this mistake. Join us and learn which legal document is necessary to protect yourself and your family.

As always, you can find additional content and resources at www.BoomXacademy.com. You also may request the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.

"Free members of the BoomX Academy are automatically enrolled in the BoomX Show: Laws of Money podcast. The course adds enhanced content to most podcast episodes but in a module-based format sequentially. The first lesson in the companion course defines the often abused term ""estate"" and its use in the tax, bankruptcy, and probate codes. The second lesson points out the real property is different than real estate. Further, personal property is the only other category and includes tangible and intangible property. Did you know your voice is intangible personal property and may have value?

This episode introduces you to the legal construct of a ""trust."" Trusts hold personal assets and business entities, e.g., limited liability companies hold business assets. Darol explains the difference as well as the structure, use, and benefits of a trust. This episode is an example of the companion course's enhanced content so you can decide if a deeper dive into legal literacy is for you. "

This episode is sponsored by SC Financial Group, LLC, located at 1417 116th Ave NE Suite 202, Bellevue, WA 98004. You can reach SC Financial Group by calling (425) 451-2950 or visiting their website at https://scfinancialgroup.com. (Securities and Advisory Services offered through Cadaret, Grant & Co., Inc., a Registered Investment Advisor and Member SC Financial Group LLC and Cadaret, Grant & Co., Inc. are separate entities.)

SC Financial Group, LLC, was founded by Shane Cloninger. Shane Cloninger has over 30 years of experience in financial services. He is a co-founder of SC Financial Group, LLC and a registered principal of Cadaret, Grant & Co., Inc. Mr. Cloninger graduated from Southern Connecticut State University in 1990 with a Bachelor of Science degree in Economics/Finance.

He is currently a co-host on the ‘Retirement Freedom’ radio show, a live call-in talk radio show developed to help the average investor gain clarity on a very complex financial world. ‘Retirement Freedom’ is in its 9th year on air and can be heard live Saturdays at 10am on 820 AM KGNW, simulcast on 1590 AM The Answer. The show has been on other stations in the past including KVI 570 AM and KKOL 1300 AM.

You can obtain a FREE retirement planning roadmap mentioned in this episode by clicking this link.

Downton Abbey, the PBS show about a British estate in the early 1900s, opens with a complex but fascinating estate planning problem. The owner of the estate, Lord Grantham, wakes up to the usual household activities only to learn that the qualified male heirs to the estate perished with the Titanic. Without lawful heirs, Lord Grantham faces the possibility that the estate, referred to as “Downton”, may revert back to the Crown or convey to distant, unknown family members.

Within the BoomX Academy, members ask estate planning questions in live office hours weekly. Tying the two together, Darol breaks down the archaic asset transfer rule that hindered Lord Grantham and uses it as a backdrop for ways to avoid the problem for the benefit of modern families in the current era. What is a lifetime beneficiary? What is a remaindermen or a “residuary beneficiaries”? These questions originate in British common law but modern trust techniques provide a better way, a way that protects privacy, reduces uncertainty, and even reduces tax erosion.

As usual, you may listen to past episodes and even explore enhanced content at the BoomX Academy found at www.boomxacademy.com.

You can also request a FREE retirement road map, provided by SC Financial Group.

In this episode, we will be talking about ways to create the family bank, why it's important, the benefits and the job descriptions attached to the family bank, which is an irrevocable non-grantor trust, which will protect your assets.

Join Darol and special guest Michelle Mendoza and they banter about the purpose of the new tax bill and ways to protect your retirement dollars by investing in a way that leverages the most important deductions. In particular, learn which provisions might impact your wealth and the hidden gem of the estate tax code might save your estate from paying any capital gains tax.

You can join BoomX Academy for free and will be automatically enrolled in the BoomX Show Companion Course. The lesson for this podcast includes the Estate and Gift Tax publication and a thorough explanation of mutual fund taxation. Learn more at www.boomxacademy.com

You also may receive the FREE BoomX Retirement Plan provided by SC Financial Group by clicking this link.