1 00:00:00,109 --> 00:00:03,880 Intro/Outro: All right, Suze KT. Are you ready for today's podcast? 2 00:00:03,890 --> 00:00:10,300 Intro/Outro: Yeah, of course, we're ready because we are unstoppable. Yeah, baby. 3 00:00:12,359 --> 00:00:12,390 Intro/Outro: Music (in). 4 00:00:33,889 --> 00:00:37,818 Suze: August 20th, 2023. 5 00:00:37,909 --> 00:00:44,799 KT: Goal!! Do they know why I'm saying Goooal? 6 00:00:45,319 --> 00:00:50,520 Suze: I'm sure they do, KT. Welcome everybody to the Women 7 00:00:50,529 --> 00:00:53,569 Suze: and Money podcast as well as everybody smart enough to 8 00:00:53,580 --> 00:00:58,259 Suze: listen today rather than Suze School because I switch things up. 9 00:00:58,599 --> 00:01:03,069 Suze: I did Suze school on Thursday day without, without her, 10 00:01:03,259 --> 00:01:08,050 Suze: but I wanted her here today because a week ago 11 00:01:08,059 --> 00:01:11,589 Suze: I said that I would do Suze School today on 12 00:01:11,599 --> 00:01:17,809 Suze: Inherited IRAs on designated beneficiaries. Should they be contingent primary 13 00:01:17,819 --> 00:01:21,819 Suze: and all these things? Which is very, very complicated. You 14 00:01:21,889 --> 00:01:23,399 Suze: got that right. Right. 15 00:01:23,690 --> 00:01:28,010 Suze: I asked KT to go through all the emails and 16 00:01:28,019 --> 00:01:31,900 Suze: look for questions that had anything to do with inherited 17 00:01:31,910 --> 00:01:38,500 Suze: IRAs with primary beneficiaries, contingent beneficiaries and questions that she 18 00:01:38,510 --> 00:01:45,220 Suze: herself on no level, understood what they were asking. but 19 00:01:45,230 --> 00:01:47,080 Suze: because this is a complicated 20 00:01:49,010 --> 00:01:54,489 Suze: answer to questions like this again, just so you know, 21 00:01:54,569 --> 00:01:59,699 Suze: an inherited IRA is an IRA that somebody has died 22 00:01:59,709 --> 00:02:03,449 Suze: and they've left it to you and therefore you have 23 00:02:03,459 --> 00:02:08,410 Suze: inherited it. And the laws of how you withdraw money 24 00:02:08,729 --> 00:02:13,839 Suze: have totally changed over the years now. So you have 25 00:02:13,850 --> 00:02:18,520 Suze: to know what those rules are. So, Miss Travis, ask 26 00:02:18,529 --> 00:02:21,029 Suze: me your questions that you picked out. 27 00:02:21,038 --> 00:02:22,940 KT: I have quite a few here. So I don't know 28 00:02:22,949 --> 00:02:24,880 KT: if we're going to do rapid fire, but some of 29 00:02:24,889 --> 00:02:27,850 KT: these are real doozies. I could not, I couldn't even 30 00:02:27,860 --> 00:02:29,820 KT: understand what it meant. 31 00:02:29,850 --> 00:02:31,679 Suze: That's why you chose them. 32 00:02:31,690 --> 00:02:33,279 KT: Ok. First one's from Joie. 33 00:02:33,758 --> 00:02:37,149 KT: I have an annuity in my IRA rollover that I'm 34 00:02:37,160 --> 00:02:42,860 KT: not ready to annuity until next year. So at that time, 35 00:02:42,869 --> 00:02:47,179 KT: all of my income needs would be covered. I like that, Suze, 36 00:02:47,190 --> 00:02:51,190 KT: I'm turning 73 next year just like you. So my 37 00:02:51,199 --> 00:02:59,130 KT: question is, will those annuity payments of $500 a month 38 00:02:59,139 --> 00:03:00,600 KT: count towards my RMDs? 39 00:03:02,149 --> 00:03:05,740 KT: And then she says I have 100,000 in investments and 40 00:03:05,770 --> 00:03:08,279 KT: 100,000 in the annuity. 41 00:03:08,288 --> 00:03:11,259 Suze: Could you have picked a more complicated? 42 00:03:11,589 --> 00:03:14,978 KT: This is Suze... I got news for you and everyone listening. 43 00:03:15,210 --> 00:03:19,339 KT: This one is easy compared to what's to come. So 44 00:03:19,350 --> 00:03:20,940 KT: stay tuned. 45 00:03:21,860 --> 00:03:26,258 Suze: You're really gonna stay tuned because that question I will 46 00:03:26,270 --> 00:03:30,698 Suze: answer next Sunday on Susie School. 47 00:03:30,764 --> 00:03:35,255 Suze: Because KT that is one of the more complicated questions 48 00:03:35,264 --> 00:03:39,744 Suze: to understand of any question you could possibly ask. So 49 00:03:39,755 --> 00:03:42,975 Suze: we now know what Suze's school is going to be 50 00:03:42,985 --> 00:03:45,595 Suze: next Sunday. Next question. 51 00:03:47,350 --> 00:03:52,220 KT: Next question is from Lily. My dad had an Ira, sorry, 52 00:03:52,229 --> 00:03:57,179 KT: it wasn't a Roth Ira. He didn't listen to your podcast, Suze. However, 53 00:03:57,190 --> 00:04:00,880 KT: he named my mom as the primary beneficiary. 54 00:04:01,509 --> 00:04:04,500 KT: Oh, this is sad. He and my mom recently both 55 00:04:04,509 --> 00:04:08,279 KT: died in a car crash hit by a drunk driver. 56 00:04:08,559 --> 00:04:12,860 KT: My dad did not name a contingent beneficiary. 57 00:04:13,490 --> 00:04:16,380 KT: So, Suze, now what happens? There are three of us 58 00:04:16,390 --> 00:04:19,058 KT: kids remaining and we are heartbroken. 59 00:04:20,070 --> 00:04:24,238 KT: So this is a real what ifs of life from Lily, everybody? 60 00:04:24,329 --> 00:04:26,179 KT: What what happens now, Suze? 61 00:04:26,190 --> 00:04:29,519 Suze: So Lily, I'm so first of all, so, so sorry 62 00:04:29,529 --> 00:04:34,119 Suze: for your loss, right? And second of all, when there 63 00:04:34,130 --> 00:04:40,479 Suze: isn't a contingent beneficiary and the primary beneficiary has died 64 00:04:40,488 --> 00:04:45,140 Suze: along in this case with the owner of the retirement account. 65 00:04:45,660 --> 00:04:49,589 Suze: Now, what's going to happen is it will be dictated 66 00:04:49,600 --> 00:04:55,619 Suze: by your parents wills or trusts. The sad part about 67 00:04:55,630 --> 00:05:02,308 Suze: that is normally a retirement account that names a beneficiary 68 00:05:02,988 --> 00:05:08,299 Suze: bypasses probate. It just automatically goes to you when there 69 00:05:08,309 --> 00:05:14,920 Suze: is no beneficiary named or the beneficiary is no longer alive. 70 00:05:14,950 --> 00:05:18,890 Suze: It then has to go through probate designated by the 71 00:05:18,899 --> 00:05:23,260 Suze: wishes of the will. If for whatever reason, they didn't 72 00:05:23,269 --> 00:05:24,690 Suze: have wills, 73 00:05:25,269 --> 00:05:30,390 Suze: then it goes into something called intestate succession where the 74 00:05:30,399 --> 00:05:35,329 Suze: rules of the state that they lived in will govern 75 00:05:35,529 --> 00:05:41,078 Suze: how that money is distributed and to whom normally it 76 00:05:41,089 --> 00:05:42,899 Suze: would be to the spouse, 77 00:05:43,160 --> 00:05:47,410 Suze: possibly the spouse and the Children. But in this case, 78 00:05:47,420 --> 00:05:50,669 Suze: it probably all will go to the three of you 79 00:05:50,709 --> 00:05:53,630 Suze: and you will divide it, but you are gonna have 80 00:05:53,640 --> 00:05:58,660 Suze: to go through probate again. Our total condolences to you 81 00:05:58,670 --> 00:05:59,890 Suze: and your family. 82 00:06:00,390 --> 00:06:02,979 KT: You know, when I read this, when Suze, it reminded 83 00:06:02,988 --> 00:06:04,880 KT: me of you and me when we do the will 84 00:06:04,890 --> 00:06:07,929 KT: and trust and, and just so that everyone that's listening 85 00:06:07,940 --> 00:06:11,979 KT: knows Suze goes through hoops when she does this trust 86 00:06:11,988 --> 00:06:14,678 KT: and we change it all the time. But she's always 87 00:06:14,690 --> 00:06:18,368 KT: asking me, well, KT what if something happened to this 88 00:06:18,380 --> 00:06:21,618 KT: sister and then what, you know, she goes through so 89 00:06:21,630 --> 00:06:25,980 KT: many iterations of the questions and now I get it. 90 00:06:26,290 --> 00:06:29,510 KT: I mean, this is just so sad. The what ifs 91 00:06:29,529 --> 00:06:33,299 KT: so next question is from Jeffrey. My mom left her 92 00:06:33,309 --> 00:06:36,349 KT: 403 B at work to my brother as a primary 93 00:06:36,359 --> 00:06:42,609 KT: beneficiary and me as the contingent with verbal instructions. That's 94 00:06:42,619 --> 00:06:46,470 KT: the problem with this one, verbal instructions. It was to 95 00:06:46,480 --> 00:06:50,609 KT: be split 50 50. She was concerned for my brother 96 00:06:50,619 --> 00:06:53,679 KT: and I that we don't get along and we never did. 97 00:06:54,109 --> 00:06:57,250 KT: So now my mom has died and my brother said 98 00:06:57,260 --> 00:07:00,970 KT: he legally does not have to give me any of 99 00:07:00,980 --> 00:07:06,190 KT: the money. But Suze, I was the contingent beneficiary. So 100 00:07:06,200 --> 00:07:07,779 KT: how can he do that? 101 00:07:08,920 --> 00:07:13,079 Suze: Well, here's what you need to know that as long 102 00:07:13,809 --> 00:07:19,320 Suze: as the primary beneficiary is alive and kicking, 103 00:07:20,040 --> 00:07:26,149 Suze: you can't do anything about it. So once somebody has 104 00:07:26,160 --> 00:07:29,549 Suze: died and the money now goes, or the retirement account 105 00:07:29,559 --> 00:07:35,179 Suze: now goes down to the primary beneficiary. The contingent beneficiary 106 00:07:35,390 --> 00:07:39,619 Suze: is just stuck. It's over. You have no power in 107 00:07:39,630 --> 00:07:43,140 Suze: this situation whatsoever. What were you gonna say? 108 00:07:44,200 --> 00:07:47,140 KT: The, the, my, my big red flag was she said, 109 00:07:47,149 --> 00:07:51,690 KT: or he said with verbal instructions, is there a way 110 00:07:51,700 --> 00:07:54,149 KT: that you could write an instruction? 111 00:07:54,160 --> 00:08:01,220 Suze: Yeah, they mom could have left both brothers as primary 112 00:08:01,230 --> 00:08:05,929 Suze: beneficiaries to be divided equally between them. 113 00:08:06,429 --> 00:08:09,450 KT: So you can name two people as a primary? 114 00:08:10,480 --> 00:08:14,200 Suze: Yes. But, but or you leave it to your trust 115 00:08:14,429 --> 00:08:18,880 Suze: where the trust has the two primary beneficiaries as the 116 00:08:18,890 --> 00:08:23,100 Suze: two of you. But once a death has happened and 117 00:08:23,109 --> 00:08:28,529 Suze: there's only one primary beneficiary, then a contingent beneficiary. It 118 00:08:28,540 --> 00:08:33,969 Suze: means squat in this situation. It only would have meant something. 119 00:08:33,979 --> 00:08:35,830 Suze: If the brother had died, 120 00:08:36,440 --> 00:08:41,780 Suze: then mommy had died, then it would have gone to Jeffrey. 121 00:08:42,380 --> 00:08:46,270 KT: Ok. Next question is from Laura. My mom was the 122 00:08:46,280 --> 00:08:52,109 KT: primary beneficiary of my granny's IRA. My granny died a 123 00:08:52,119 --> 00:08:55,809 KT: while ago now, but my mom was too heartbroken to 124 00:08:55,820 --> 00:09:00,489 KT: do anything with it. I know she felt listen to this. 125 00:09:00,590 --> 00:09:04,489 KT: She felt if she left it, her mom, meaning granny 126 00:09:04,500 --> 00:09:06,270 KT: would have been happy with her. 127 00:09:06,960 --> 00:09:10,689 KT: My goodness. A month ago, my mom died very quickly 128 00:09:10,700 --> 00:09:15,409 KT: after they found she had cancer. Now who gets the money? 129 00:09:16,280 --> 00:09:20,130 Suze: So that it's almost the same situation as what I 130 00:09:20,140 --> 00:09:25,709 Suze: just said. Your granny's Ira now becomes what's known as 131 00:09:25,719 --> 00:09:29,968 Suze: an inherited Ira with no beneficiary 132 00:09:30,250 --> 00:09:33,760 Suze: and just like Lily's question, KT it will now go 133 00:09:33,770 --> 00:09:39,659 Suze: according to Granny's will and through probate again. If granny 134 00:09:39,669 --> 00:09:42,619 Suze: didn't have a will or they can't find the will 135 00:09:42,630 --> 00:09:45,358 Suze: because it's been a while now, then it will go 136 00:09:45,369 --> 00:09:51,020 Suze: through intestate succession according to the state that they live 137 00:09:51,030 --> 00:09:54,479 Suze: in as to where that money is to go. Let 138 00:09:54,489 --> 00:09:56,619 Suze: me just say something before you go on. 139 00:09:57,169 --> 00:10:04,140 Suze: It is essential. Absolutely essential that if somebody dies and 140 00:10:04,150 --> 00:10:08,270 Suze: they leave you an IRA. So therefore you are a 401k, 141 00:10:08,280 --> 00:10:11,858 Suze: whatever it is and you have inherited it, you have 142 00:10:11,869 --> 00:10:16,440 Suze: to immediately take it over, set up an inherited account 143 00:10:16,450 --> 00:10:20,859 Suze: for yourselves and follow the rules. Otherwise you may find 144 00:10:20,869 --> 00:10:25,559 Suze: yourself in a situation like these people have found themselves. Go on KT. 145 00:10:26,809 --> 00:10:27,700 KT: How do you do that? 146 00:10:27,869 --> 00:10:29,098 Suze: What do you mean, how do you do that? 147 00:10:29,630 --> 00:10:30,539 KT: How do you do that? 148 00:10:30,549 --> 00:10:33,450 Suze: You set up an account at a brokerage firm or 149 00:10:33,460 --> 00:10:36,640 Suze: wherever you want it, you then roll it into it 150 00:10:36,650 --> 00:10:39,478 Suze: that it will be inherited. You will show the death 151 00:10:39,489 --> 00:10:43,260 Suze: certificates and everything of the person who left it to 152 00:10:43,270 --> 00:10:45,859 Suze: you and you just set it up that way. 153 00:10:46,179 --> 00:10:48,630 KT: All right. Next question is from Tom. I know how 154 00:10:48,640 --> 00:10:50,799 KT: to set mine up. It has a whole lot of money. 155 00:10:50,809 --> 00:10:54,190 KT: I know. I, I'm thinking like I knew you were. 156 00:10:54,260 --> 00:10:55,640 KT: I don't know how to do that. 157 00:10:56,000 --> 00:10:59,849 Suze: Well, KT, in our situation, I'm so sorry to say this. 158 00:10:59,859 --> 00:11:03,789 Suze: Everybody but Barbara and everybody will take care of you. 159 00:11:03,820 --> 00:11:05,630 Suze: I've put in place 160 00:11:06,099 --> 00:11:09,739 Suze: people to make sure that KT is OK. 161 00:11:09,799 --> 00:11:13,200 KT: If something happens to me, the majority of people don't 162 00:11:13,210 --> 00:11:17,580 KT: even know how to find Netflix, but don't be so 163 00:11:17,590 --> 00:11:21,380 KT: proud of that. The, the, you know, I say Suze 164 00:11:21,390 --> 00:11:23,478 KT: find us a movie. What do you want to see? 165 00:11:23,489 --> 00:11:27,390 KT: Netflix's it? And there it is, right? 166 00:11:27,400 --> 00:11:27,709 Suze: But 167 00:11:27,900 --> 00:11:31,978 Suze: majority of people KT don't have that luxury. So they 168 00:11:31,989 --> 00:11:34,530 Suze: really need to know how to do it. And the 169 00:11:34,539 --> 00:11:37,950 Suze: truth is I got news for you. You should know 170 00:11:37,960 --> 00:11:41,069 Suze: how to do these things. You should never KT be 171 00:11:41,080 --> 00:11:44,159 Suze: dependent on anybody to do anything. 172 00:11:44,429 --> 00:11:46,819 KT: I would figure it out. I mean, I feel very 173 00:11:46,830 --> 00:11:49,169 KT: confident that I can do it and I would figure 174 00:11:49,179 --> 00:11:49,609 KT: it out. 175 00:11:49,880 --> 00:11:52,809 KT: But a lot of these people are simply lost, right? 176 00:11:52,820 --> 00:11:56,130 KT: Listen to this one ready. This is from Tashi. 177 00:11:56,140 --> 00:11:57,830 Suze: Well, they're no different than you. My love. 178 00:11:59,030 --> 00:12:03,059 KT: Really? Yeah, but you just said is I have help 179 00:12:03,070 --> 00:12:06,340 KT: but I'm sure if I didn't have help, I would 180 00:12:06,349 --> 00:12:09,969 KT: have confidence to do this. But it would be, you know, 181 00:12:09,979 --> 00:12:12,770 KT: quite a struggle. At first I think it's, it's hard 182 00:12:12,780 --> 00:12:15,900 KT: because people are going through the heartbreak and the pain 183 00:12:15,909 --> 00:12:19,210 KT: and the loss and that's what this is all about. So, 184 00:12:19,219 --> 00:12:20,450 KT: listen to this one. 185 00:12:21,440 --> 00:12:24,710 KT: Uh This is from Tashi. My daughter in her trust 186 00:12:24,719 --> 00:12:29,819 KT: left all her assets mainly in her 401k to me 187 00:12:29,950 --> 00:12:34,968 KT: to take care of her kids if something were to happen. Sadly, 188 00:12:35,789 --> 00:12:38,849 KT: and this makes me so sad, Suze. Is it? Sadly 189 00:12:38,890 --> 00:12:44,880 KT: my daughter left this world before me. Uh, every mom's nightmare. Right? 190 00:12:45,010 --> 00:12:52,760 KT: And now I'm taking care of her kids, but I adore 191 00:12:52,770 --> 00:12:53,179 KT: them 192 00:12:53,460 --> 00:12:57,210 KT: and love that I can take care of them. However 193 00:12:57,219 --> 00:13:01,770 KT: money is tight, most of her money was in the IRA. 194 00:13:01,989 --> 00:13:05,570 KT: But when I called the brokerage firm, they said I was not 195 00:13:05,580 --> 00:13:09,309 KT: the beneficiary of that account. I know this is the 196 00:13:09,320 --> 00:13:13,150 KT: part where Suze tells everyone, get your house in order 197 00:13:13,159 --> 00:13:17,819 KT: and keep it updated ready. Everyone, it turns out the 198 00:13:17,830 --> 00:13:21,409 KT: ex-husband is the beneficiary. 199 00:13:21,760 --> 00:13:27,650 KT: And then however, Suze doesn't her trust override that beneficiary form. 200 00:13:27,919 --> 00:13:31,809 KT: And then, then Tashi goes on to say my daughter 201 00:13:31,820 --> 00:13:34,960 KT: would be turning over in her grave knowing he got 202 00:13:34,969 --> 00:13:40,770 KT: her money. It was not an amicable divorce. So now 203 00:13:40,780 --> 00:13:45,409 KT: what she can't do anything about it. So a lot 204 00:13:45,419 --> 00:13:46,968 KT: of these that I'm reading... 205 00:13:46,979 --> 00:13:51,469 Suze: All of you need to know that a trust 206 00:13:51,799 --> 00:13:57,429 Suze: and a will does not override the designated beneficiary of 207 00:13:57,479 --> 00:14:01,439 Suze: an insurance policy, a retirement account or even how you 208 00:14:01,450 --> 00:14:06,270 Suze: hold title to your house. Everybody, you hold your house 209 00:14:06,280 --> 00:14:08,729 Suze: and joint tenancy with right, a survivorship. 210 00:14:09,109 --> 00:14:12,690 Suze: But you think you're gonna leave your half to whoever 211 00:14:12,700 --> 00:14:17,380 Suze: in your trust. Uh, uh, uh, it will absolutely go 212 00:14:17,390 --> 00:14:21,239 Suze: to the joint Survivor, whoever else is on that title, 213 00:14:21,250 --> 00:14:27,159 Suze: if it's joint tenancy with right of survivorship. So, I'm so, 214 00:14:27,309 --> 00:14:32,840 Suze: so sorry. But how does that happen? How does that happen? 215 00:14:32,849 --> 00:14:33,799 Suze: I'll tell you 216 00:14:34,059 --> 00:14:36,710 Suze: a lot of times you forget that you even designated 217 00:14:36,719 --> 00:14:40,609 Suze: a beneficiary. You just think that you have an Ira 218 00:14:43,919 --> 00:14:48,080 Suze: and you just took care of everything and you did 219 00:14:48,090 --> 00:14:50,150 Suze: a trust or you did a will and you forgot 220 00:14:50,159 --> 00:14:52,820 Suze: that when you signed up for it. Oh, you were 221 00:14:52,830 --> 00:14:55,429 Suze: married at the time. So you put your husband or 222 00:14:55,440 --> 00:14:57,869 Suze: your wife or your spouse's name down 223 00:14:59,070 --> 00:15:01,510 Suze: and then here we go. You have no idea how 224 00:15:01,520 --> 00:15:07,289 Suze: many times I have heard this story and there's nothing 225 00:15:07,409 --> 00:15:11,159 Suze: you can do about it. It's not just divorce. He 226 00:15:11,169 --> 00:15:15,270 Suze: KT it's death. You're in love with somebody. You're married. 227 00:15:15,340 --> 00:15:19,760 Suze: Your spouse is the designated beneficiary is the primary beneficiary. 228 00:15:20,039 --> 00:15:22,869 Suze: That person dies and you just are in such a 229 00:15:22,880 --> 00:15:25,869 Suze: state and you forget to add. Now, who do you 230 00:15:25,880 --> 00:15:28,000 Suze: want now, where should it go? 231 00:15:28,479 --> 00:15:31,820 Suze: Which is why I always said it's really good to 232 00:15:31,830 --> 00:15:36,030 Suze: have your spouse as the primary beneficiary, but the contingent 233 00:15:36,039 --> 00:15:42,849 Suze: beneficiary should always be the trust in case something happens, right? 234 00:15:42,859 --> 00:15:47,929 Suze: And as long as you keep your trust updated, so 235 00:15:47,940 --> 00:15:50,510 Suze: this person dies you put somebody else in. But usually 236 00:15:50,520 --> 00:15:51,789 Suze: when you do a trust, 237 00:15:52,260 --> 00:15:55,250 Suze: you designate, as you just said a little bit ago, 238 00:15:55,280 --> 00:15:58,450 Suze: something happens to A, then it goes to B if 239 00:15:58,460 --> 00:16:01,130 Suze: it goes, something happens to B it goes to C 240 00:16:01,250 --> 00:16:03,929 Suze: so you have all these contingencies so that if you 241 00:16:03,940 --> 00:16:09,570 Suze: forget to do something and change something, it's already there 242 00:16:09,580 --> 00:16:10,109 Suze: for you. 243 00:16:10,549 --> 00:16:17,020 Suze: However, if you do add a trust as your beneficiary, 244 00:16:17,179 --> 00:16:21,400 Suze: you have to make sure on a retirement account that 245 00:16:21,409 --> 00:16:24,900 Suze: it is ac through trust. 246 00:16:25,169 --> 00:16:29,340 Suze: And the reason for that is you want to be 247 00:16:29,349 --> 00:16:32,099 Suze: able to see through the trust as to who the 248 00:16:32,109 --> 00:16:37,020 Suze: beneficiaries are going to be to see if they qualify 249 00:16:37,119 --> 00:16:41,840 Suze: to be an eligible designated beneficiary so that they can 250 00:16:41,849 --> 00:16:47,039 Suze: have certain benefits. If it's not a see through trust, 251 00:16:47,669 --> 00:16:51,179 Suze: then they won't be entitled to something that maybe they 252 00:16:51,190 --> 00:16:56,359 Suze: are entitled to. So you best check with your attorney 253 00:16:56,369 --> 00:17:00,000 Suze: if you're going to leave your trust as a beneficiary 254 00:17:00,010 --> 00:17:01,419 Suze: of a retirement account 255 00:17:01,640 --> 00:17:07,050 Suze: that it is a see through trust. However, let's say 256 00:17:07,060 --> 00:17:10,609 Suze: you don't know, you're a little bit confused, just follow 257 00:17:10,619 --> 00:17:16,649 Suze: these guidelines. Your spouse should always, always, always be your 258 00:17:16,660 --> 00:17:18,530 Suze: primary beneficiary, 259 00:17:19,448 --> 00:17:23,838 Suze: your contingent beneficiary. If it's a see through trust can 260 00:17:23,848 --> 00:17:28,229 Suze: be a see through trust. If you don't understand what 261 00:17:28,239 --> 00:17:31,838 Suze: that means or you don't know, then make your contingent 262 00:17:31,848 --> 00:17:37,609 Suze: beneficiaries named people, your sister, your son, whoever it may 263 00:17:37,619 --> 00:17:39,677 Suze: be and not the trust 264 00:17:40,180 --> 00:17:44,130 Suze: I can tell by the look at KT's face, I've 265 00:17:44,140 --> 00:17:49,250 Suze: just silenced her totally right now. Sorry, girlfriend. I just 266 00:17:49,260 --> 00:17:52,310 Suze: wanted to say that let's go on to the next question. 267 00:17:52,439 --> 00:17:54,150 KT: Ok. Next is from a Suzy... 268 00:17:55,449 --> 00:17:59,410 KT: Suze, I'm so confused. You said that for those people 269 00:17:59,420 --> 00:18:03,339 KT: who died last year that were already taking their RM 270 00:18:03,349 --> 00:18:07,670 KT: DS that I did not have to take their RM 271 00:18:07,680 --> 00:18:09,510 KT: DS for 2023. 272 00:18:09,520 --> 00:18:10,050 Suze: Correct. 273 00:18:10,780 --> 00:18:12,109 KT: Do you understand that question? 274 00:18:13,300 --> 00:18:20,849 Suze: Yes I do. When you died in 21 22? Right. You, the IRS 275 00:18:21,050 --> 00:18:25,520 Suze: was very, very confusing in their Secure Act regulations that 276 00:18:25,530 --> 00:18:31,989 Suze: they passed. So when you inherited an Ira with somebody 277 00:18:32,000 --> 00:18:35,790 Suze: who is already taking required minimum distributions, 278 00:18:36,260 --> 00:18:39,920 Suze: everybody thought that you had to continue to take the 279 00:18:39,930 --> 00:18:45,349 Suze: required minimum distribution that the person you inherited it from 280 00:18:45,359 --> 00:18:48,709 Suze: was already taking. However, 281 00:18:49,010 --> 00:18:53,900 Suze: that was not true if they died last year or 282 00:18:53,910 --> 00:18:57,540 Suze: the year before they have postponed it because it's still 283 00:18:57,550 --> 00:19:02,300 Suze: so complicated. So if somebody died last year, for instance, 284 00:19:02,310 --> 00:19:06,420 Suze: in 2023 and this year, they didn't have to take 285 00:19:06,430 --> 00:19:10,688 Suze: the required minimum distributions that everybody thought they were going 286 00:19:10,699 --> 00:19:11,859 Suze: to have to take, 287 00:19:12,319 --> 00:19:15,599 Suze: want to hear the rest of the question says Susie, 288 00:19:15,609 --> 00:19:19,479 Suze: did I hear that correctly from my friend's father said 289 00:19:19,780 --> 00:19:22,869 Suze: you were wrong and that I had to take it. 290 00:19:22,880 --> 00:19:26,599 Suze: He's a financial advisor at his own firm. So I 291 00:19:26,609 --> 00:19:30,099 Suze: took it if he is wrong, can I put it 292 00:19:30,109 --> 00:19:35,010 Suze: back in the account? First of all, he is wrong. 293 00:19:35,060 --> 00:19:39,949 Suze: Tell him to look up. I think it's 2023-54. I 294 00:19:39,959 --> 00:19:41,030 Suze: think that's it. 295 00:19:41,339 --> 00:19:45,589 Suze: The IRS regulation code and he will find out that 296 00:19:45,599 --> 00:19:49,829 Suze: I am not wrong. I am absolutely correct. The sad 297 00:19:49,839 --> 00:19:53,790 Suze: part about it is since you already took it from 298 00:19:53,800 --> 00:19:59,180 Suze: an inherited Ira, you cannot put it back. All right. 299 00:19:59,750 --> 00:20:01,889 KT: OK. You cannot put it back now. 300 00:20:02,699 --> 00:20:05,709 Suze: All right. But she didn't have to take it. 301 00:20:07,229 --> 00:20:08,869 KT: So now that she should, 302 00:20:08,880 --> 00:20:11,780 Suze: She can't go back and can't go back on this 303 00:20:11,790 --> 00:20:12,550 Suze: one right? 304 00:20:12,760 --> 00:20:16,729 KT: Next question from Bristol, I took out my R MD 305 00:20:16,739 --> 00:20:19,869 KT: this year even though I was only 72. 306 00:20:20,270 --> 00:20:23,040 KT: Now, I realize it was a mistake. Can I put 307 00:20:23,050 --> 00:20:23,839 KT: it back? 308 00:20:24,189 --> 00:20:27,790 Suze: Oh, here's one another one. So you put him, you 309 00:20:27,800 --> 00:20:29,329 Suze: picked them both because you wanted to know. 310 00:20:29,339 --> 00:20:34,880 KT: I'm so confused about this 72. 73. All right. 2023. 311 00:20:34,890 --> 00:20:37,229 KT: But here's how you, what you have to know is 312 00:20:37,239 --> 00:20:38,750 KT: that yes, 313 00:20:39,250 --> 00:20:40,219 Suze: what's her name? 314 00:20:41,150 --> 00:20:41,910 KT: Bristol. 315 00:20:41,920 --> 00:20:47,188 KT: You can put it back in your case, not in 316 00:20:47,199 --> 00:20:52,260 KT: the case before this, right? So Susie cannot, but you 317 00:20:52,270 --> 00:20:58,180 KT: can as long as you took the required minimum distribution 318 00:20:59,089 --> 00:21:05,849 Suze: before July 31st of this year and you have until 319 00:21:05,859 --> 00:21:09,379 Suze: September 30th of this year 320 00:21:10,050 --> 00:21:13,859 Suze: to put it back as long as you were born 321 00:21:13,869 --> 00:21:18,560 Suze: in 1951. Now, KT why are you looking at me 322 00:21:18,569 --> 00:21:19,089 Suze: like that? 323 00:21:19,130 --> 00:21:21,419 KT: I was gonna remember and know all this information. 324 00:21:21,839 --> 00:21:25,260 Suze: And that's why you have a podcast and a Suze 325 00:21:25,270 --> 00:21:30,639 Suze: notebook to write these things down. Now, I get, 326 00:21:30,709 --> 00:21:35,680 Suze: they are confusing. I get you like eligible, designated beneficiary 327 00:21:35,689 --> 00:21:39,410 Suze: uh rollover with an R MD. You can put it back, 328 00:21:39,420 --> 00:21:43,000 Suze: you can't put it back a stretch. You have to 329 00:21:43,010 --> 00:21:49,170 Suze: know these things. That's why I did the podcast that 330 00:21:49,180 --> 00:21:51,270 Suze: I did on Thursday. 331 00:21:51,959 --> 00:21:57,410 Suze: You have to get involved. You cannot say, oh my God, 332 00:21:57,420 --> 00:21:59,680 Suze: this is too complicated. I don't want to deal with this. 333 00:21:59,689 --> 00:22:03,459 Suze: My head is spinning. Your head better be spinning and 334 00:22:03,469 --> 00:22:07,040 Suze: you better listen to this podcast over and over again 335 00:22:07,219 --> 00:22:09,250 Suze: until your head doesn't spin. 336 00:22:10,010 --> 00:22:13,420 Suze: I, you can keep one what? 337 00:22:15,180 --> 00:22:18,010 KT: My head isn't attached anymore. 338 00:22:20,030 --> 00:22:23,839 KT: I don't mean to laugh Suze, but it's not easy. 339 00:22:23,849 --> 00:22:27,520 KT: This is a complicated topic. I hope I picked questions 340 00:22:27,530 --> 00:22:29,859 KT: that are going to help some of you out there. 341 00:22:29,869 --> 00:22:33,218 KT: And if they don't, at least now when you're confused, 342 00:22:33,229 --> 00:22:35,359 KT: you know where to go and get the answers right. 343 00:22:35,369 --> 00:22:37,000 Suze: Ask me one more. 344 00:22:37,010 --> 00:22:40,219 KT: I have one more left. This is from Jackie, Suze. 345 00:22:40,229 --> 00:22:43,410 KT: Just love your podcast. I know you can help me. 346 00:22:43,699 --> 00:22:45,959 KT: And if you can, I'm gonna call KT. 347 00:22:47,099 --> 00:22:50,849 KT: She didn't write that. OK. Both myself and my brothers 348 00:22:50,859 --> 00:22:53,750 KT: were the beneficiary of my dad's Ira, 349 00:22:54,060 --> 00:22:58,890 KT: but my brother was killed in a plane crash years ago. Recently, 350 00:22:58,900 --> 00:23:02,869 KT: my dad's death. I know that's when people find out 351 00:23:02,880 --> 00:23:07,569 KT: about all this inherited business. Right recently my dad died. 352 00:23:07,579 --> 00:23:11,030 KT: But both me and my brother are named as the 353 00:23:11,040 --> 00:23:17,649 KT: beneficiaries per capita, whatever that means. However, all the money 354 00:23:17,660 --> 00:23:21,939 KT: has been given to me. And now my brother's wife 355 00:23:21,949 --> 00:23:23,170 KT: is saying that 356 00:23:24,219 --> 00:23:28,959 KT: half legally should go to my deceased brother's kids. Is 357 00:23:28,969 --> 00:23:29,949 KT: that true? 358 00:23:31,300 --> 00:23:33,218 Suze: This will be your pop up quiz. 359 00:23:33,349 --> 00:23:34,459 KT: Can I answer it? 360 00:23:35,400 --> 00:23:37,780 Suze: Well, do you know the answer? 361 00:23:38,180 --> 00:23:40,239 KT: No, I don't know the answer if it's true or not. 362 00:23:40,250 --> 00:23:42,579 KT: But I think that it should. I think that it 363 00:23:42,589 --> 00:23:46,149 KT: should because it, the dad named both her and her 364 00:23:46,160 --> 00:23:49,630 KT: brother as the beneficiary, the brother died. Dad forgot to 365 00:23:49,640 --> 00:23:50,770 KT: make the changes. 366 00:23:51,020 --> 00:23:56,170 KT: So she is the only surviving beneficiary. She got everything. 367 00:23:56,430 --> 00:23:59,849 KT: But yeah, she should give some of that money to 368 00:23:59,859 --> 00:24:00,369 KT: her brother. 369 00:24:01,300 --> 00:24:03,989 Suze: So legally you think it should go 370 00:24:04,699 --> 00:24:05,550 Suze: to 371 00:24:06,229 --> 00:24:07,439 Suze: the brother's kids? 372 00:24:07,449 --> 00:24:10,199 KT: No, no, no. I don't think that it's a legal thing, 373 00:24:10,209 --> 00:24:12,160 KT: but morally, morally. 374 00:24:12,170 --> 00:24:14,478 Suze: Moally is not what this person's asking. 375 00:24:14,489 --> 00:24:16,919 KT: I think that if this is a pop quizzie, I'll 376 00:24:16,930 --> 00:24:22,399 KT: say that legally she doesn't have to legally the beneficiary 377 00:24:22,410 --> 00:24:26,209 KT: that's surviving gets the whole pot the whole kid. 378 00:24:26,369 --> 00:24:29,819 Suze: So listen to me closely now, ding ding, ding, ding. 379 00:24:30,609 --> 00:24:34,399 Suze: But notice how lethargic that ding ding ding was because 380 00:24:34,410 --> 00:24:35,439 Suze: I'll tell you why 381 00:24:35,890 --> 00:24:42,640 Suze: the mere fact that the father added the words per capita. 382 00:24:42,989 --> 00:24:44,938 Suze: Is that what you said? 383 00:24:45,469 --> 00:24:46,219 KT: What does that mean? 384 00:24:46,619 --> 00:24:51,500 Suze: What that means is the father wanted. If one of 385 00:24:51,510 --> 00:24:53,310 Suze: them died, that the other 386 00:24:53,435 --> 00:24:57,165 Suze: other one would get all of it. There are two 387 00:24:57,175 --> 00:25:01,905 Suze: ways KT to designate a beneficiary. And by the way, 388 00:25:01,915 --> 00:25:06,925 Suze: all of you on your retirement accounts, sometimes now they're 389 00:25:06,935 --> 00:25:10,323 Suze: actually putting this there and if not, you should write 390 00:25:10,334 --> 00:25:15,035 Suze: it in, but there are two ways to leave money 391 00:25:15,045 --> 00:25:19,584 Suze: to a beneficiary. One way is per capita. The other 392 00:25:19,594 --> 00:25:21,295 Suze: way is something called per sterpies. 393 00:25:22,689 --> 00:25:28,060 Suze: All right. Now, what does that mean? Per Sterpies simply means 394 00:25:28,069 --> 00:25:32,780 Suze: if you die before the person who left you something, 395 00:25:32,880 --> 00:25:37,699 Suze: your share goes down to your kids and you can 396 00:25:37,709 --> 00:25:40,959 Suze: designate the percentages of who gets what 397 00:25:41,180 --> 00:25:46,130 Suze: Per capita means if you and other people are named 398 00:25:46,140 --> 00:25:50,149 Suze: as beneficiaries and the owner of the retirement account or 399 00:25:50,160 --> 00:25:54,349 Suze: whatever it is dies, then your share goes to the 400 00:25:54,359 --> 00:25:58,459 Suze: remaining beneficiaries that were named. Do you want me to 401 00:25:58,469 --> 00:25:59,790 Suze: give you an example of that? 402 00:25:59,939 --> 00:26:02,410 KT: No, I just want to know the dad wrote 403 00:26:03,390 --> 00:26:06,819 Suze: per capita. She and her brother are named as beneficiaries 404 00:26:06,829 --> 00:26:07,510 Suze: per capita. 405 00:26:07,520 --> 00:26:10,640 KT: That's right. So per capita means... the brother dies, which means 406 00:26:10,650 --> 00:26:12,300 KT: the sister gets everything. 407 00:26:12,310 --> 00:26:16,729 Suze: That's right. And that's what the father wanted. So whether 408 00:26:16,739 --> 00:26:21,439 Suze: morally she should give it to the kids of her 409 00:26:21,449 --> 00:26:27,040 Suze: brother or not, is another question legally. And according to 410 00:26:27,050 --> 00:26:31,140 Suze: what the father wanted because he put those words in, 411 00:26:31,709 --> 00:26:35,239 Suze: that's not what the father wanted. 412 00:26:35,250 --> 00:26:39,619 KT: So legally, legally, she doesn't have to give any of 413 00:26:39,630 --> 00:26:43,339 KT: that money to not on any level. I think it's 414 00:26:43,349 --> 00:26:44,209 KT: right that she does. 415 00:26:44,329 --> 00:26:48,000 Suze: Well, it depends, the father obviously didn't want that. 416 00:26:48,010 --> 00:26:50,020 KT: Maybe he didn't want it to go to the wife. 417 00:26:50,030 --> 00:26:53,239 Suze: Who knows what? But you have to kind of do 418 00:26:53,250 --> 00:26:57,199 Suze: what the father designated there and therefore. 419 00:26:58,099 --> 00:27:01,449 Suze: Right. It just depends. Did the, did the brother get 420 00:27:01,459 --> 00:27:04,339 Suze: a big insurance policy? Who knows what happened there? 421 00:27:04,660 --> 00:27:09,329 Suze: But somehow the father wanted it to just go between 422 00:27:09,339 --> 00:27:14,688 Suze: them not to anybody else. So that what if you 423 00:27:14,699 --> 00:27:19,530 Suze: don't designate a a or a per capita that it 424 00:27:19,540 --> 00:27:24,069 Suze: can become very, very confusing. Well, no, then legally, then 425 00:27:24,079 --> 00:27:27,180 Suze: legally she probably could go back and then you have 426 00:27:27,189 --> 00:27:29,569 Suze: lawsuits and all kinds of things happen. 427 00:27:29,920 --> 00:27:34,899 Suze: So all of you should designate on your 401k s 428 00:27:34,910 --> 00:27:40,770 Suze: your Ira s, especially if you have multiple beneficiaries, you 429 00:27:40,780 --> 00:27:45,438 Suze: should designate whether they're per or per capita. There are 430 00:27:45,449 --> 00:27:49,790 Suze: many retirement accounts now that actually ask you to check 431 00:27:49,800 --> 00:27:51,189 Suze: which one do you want? 432 00:27:51,510 --> 00:27:55,520 Suze: And so you should know what they mean. There you go. 433 00:27:55,530 --> 00:27:59,389 Suze: KT are you ready? We're gonna go watch. 434 00:27:59,449 --> 00:28:00,520 KT: Can't wait. All right. 435 00:28:00,530 --> 00:28:02,300 KT: So this is really a tough one. 436 00:28:03,089 --> 00:28:04,958 KT: Well, who do we want to win?  Spain. 437 00:28:08,160 --> 00:28:09,619 Suze: You want Spain to win? 438 00:28:09,640 --> 00:28:10,319 KT: I do. 439 00:28:10,550 --> 00:28:15,629 KT: Well, then we study Spanish all summer long and I 440 00:28:15,640 --> 00:28:19,560 KT: really want to say, you know, Bravo and, and speak 441 00:28:19,569 --> 00:28:21,290 KT: Spanish all day. 442 00:28:21,310 --> 00:28:23,239 Suze: All right. Well, you can do that if you want, 443 00:28:23,250 --> 00:28:28,280 Suze: but I personally want England to win just because I do. Right. 444 00:28:28,290 --> 00:28:30,810 Suze: You want Spain to win? So we'll sit on the 445 00:28:30,819 --> 00:28:35,119 Suze: opposite sides of the room. But for all of you, 446 00:28:35,459 --> 00:28:39,550 Suze: you got to watch it. Oh my God. It's just starting. 447 00:28:39,560 --> 00:28:43,930 Suze: It's starting right about now. And so we'll see what happens. 448 00:28:43,939 --> 00:28:44,390 Suze: But 449 00:28:44,699 --> 00:28:52,089 Suze: until Thursday when we have another Ask KT and Suze anything, 450 00:28:52,229 --> 00:28:55,469 Suze: there's only one thing that we want you to say 451 00:28:55,479 --> 00:29:00,670 Suze: every single day and it is today, wherever I go, 452 00:29:00,680 --> 00:29:07,550 Suze: I will create a more peaceful, joyful and loving world. 453 00:29:07,560 --> 00:29:08,979 Suze: And if you do that 454 00:29:10,349 --> 00:29:12,689 Suze: and what am I going to do with her? And 455 00:29:12,699 --> 00:29:17,640 Suze: if you do that, we promise you what that England 456 00:29:17,650 --> 00:29:21,420 Suze: will win and you will be unstoppable. 457 00:29:28,010 --> 00:29:29,130 Intro/Outro: Music (out).