1 00:00:00,080 --> 00:00:01,360 Speaker 1: Welcome to Love, Death and Money. 2 00:00:01,400 --> 00:00:04,400 Speaker 2: I'm your host, attorney Nas Berruti on talk radio seven 3 00:00:04,519 --> 00:00:09,080 Speaker 2: ninety KABC. If you have questions about trust, wills, probate, 4 00:00:09,200 --> 00:00:12,120 Speaker 2: call the station now at one eight hundred two two 5 00:00:12,160 --> 00:00:15,600 Speaker 2: two five two two two. That's one eight hundred two 6 00:00:15,600 --> 00:00:18,960 Speaker 2: two two KABC. If this is the first time you're 7 00:00:19,040 --> 00:00:22,239 Speaker 2: joining the program, welcome. My name is Nas Beruti. I've 8 00:00:22,239 --> 00:00:26,080 Speaker 2: been practicing law in southern California for the last fifteen years. 9 00:00:26,440 --> 00:00:29,400 Speaker 2: I focus my practice on making sure that my clients 10 00:00:29,440 --> 00:00:32,519 Speaker 2: have the proper legal documents to protect themselves for the 11 00:00:32,600 --> 00:00:36,440 Speaker 2: day that they pass away or become incapacitated. And if 12 00:00:36,479 --> 00:00:38,919 Speaker 2: you don't have a plan, the state of California has 13 00:00:38,960 --> 00:00:41,800 Speaker 2: one for you, and trust me, you're not going. 14 00:00:41,600 --> 00:00:42,480 Speaker 1: To like that plan. 15 00:00:43,040 --> 00:00:44,680 Speaker 2: So for the next hour, I'm going to share with 16 00:00:44,720 --> 00:00:47,440 Speaker 2: you some information that's going to be general in nature. 17 00:00:47,560 --> 00:00:50,600 Speaker 2: You should always consult an attorney about your particular case, 18 00:00:50,920 --> 00:00:53,519 Speaker 2: but if you'd like to get more information about my practice, 19 00:00:53,560 --> 00:00:56,720 Speaker 2: you can visit my website at Burruti Law dot com. 20 00:00:56,760 --> 00:00:59,760 Speaker 1: That's BA R O U TI Law. 21 00:01:01,240 --> 00:01:04,600 Speaker 2: Now. One of the most important things when discussing end 22 00:01:04,600 --> 00:01:09,200 Speaker 2: of life planning is finances. This comes up quite frequently. 23 00:01:09,240 --> 00:01:12,240 Speaker 2: When I meet with potential clients. We go through an 24 00:01:12,280 --> 00:01:18,600 Speaker 2: extensive questionnaire asking very specific details about a client's finances, 25 00:01:18,720 --> 00:01:23,880 Speaker 2: meaning where do you have checking accounts, savings accounts, retirement accounts, 26 00:01:24,280 --> 00:01:28,959 Speaker 2: And through that conversation and planning, many clients become concerned 27 00:01:29,080 --> 00:01:33,000 Speaker 2: about their finances and retirement, which is another area that 28 00:01:33,080 --> 00:01:36,880 Speaker 2: my firm helps clients with, making sure that you have 29 00:01:37,080 --> 00:01:41,280 Speaker 2: enough for retirement, making sure that if you for whatever reason, 30 00:01:41,319 --> 00:01:43,760 Speaker 2: something happens to you and you're the breadwinner of the family, 31 00:01:43,800 --> 00:01:47,039 Speaker 2: your family can survive and continue the same lifestyle that 32 00:01:47,120 --> 00:01:53,000 Speaker 2: you've provided. So it's important to have this conversation on 33 00:01:53,200 --> 00:01:57,880 Speaker 2: the air because we are going through a very difficult 34 00:01:57,920 --> 00:02:01,680 Speaker 2: time in our economy and the war that we are 35 00:02:03,200 --> 00:02:07,440 Speaker 2: having with Iran is impacting our economy. And if you 36 00:02:07,520 --> 00:02:10,720 Speaker 2: are not aware, when the government gets involved in a war, 37 00:02:10,880 --> 00:02:16,760 Speaker 2: government spending shifts to our military. So wheny spending rises sharply, 38 00:02:17,760 --> 00:02:21,920 Speaker 2: the funds that were available for healthcare, education, and infrastructure 39 00:02:22,160 --> 00:02:26,560 Speaker 2: get directed towards the military spending. So this is going 40 00:02:26,600 --> 00:02:30,520 Speaker 2: to cause higher government debt, it's going to increase your taxes, 41 00:02:30,680 --> 00:02:34,560 Speaker 2: and there's going to be inflation. Now The economic impact 42 00:02:34,600 --> 00:02:37,560 Speaker 2: is really important to discuss because this is going to 43 00:02:37,639 --> 00:02:42,639 Speaker 2: affect all of us. The global market loss alone has 44 00:02:42,720 --> 00:02:47,679 Speaker 2: been estimated at eleven point five trillion eleven point five 45 00:02:47,840 --> 00:02:52,000 Speaker 2: trillion in market capitalization loss on the Bloomberg World Exchange 46 00:02:52,000 --> 00:02:55,600 Speaker 2: within the first month of the war. US military cost 47 00:02:55,840 --> 00:03:01,440 Speaker 2: has also increased. Daily expenses are potentially hitting one billion dollars. 48 00:03:01,960 --> 00:03:06,320 Speaker 2: The regional impact is also extremely crazy. Dubai and Abu 49 00:03:06,400 --> 00:03:09,800 Speaker 2: Dhabi stock markets have lost over one hundred and twenty 50 00:03:09,800 --> 00:03:15,760 Speaker 2: billion combined. There's been economic disruption. Oil prices have increased 51 00:03:15,800 --> 00:03:19,720 Speaker 2: around forty five percent. I mean, if you've seen, you know, 52 00:03:19,800 --> 00:03:22,880 Speaker 2: at any gas station, you'll be lucky if you're paying 53 00:03:22,960 --> 00:03:26,480 Speaker 2: under four dollars. And the asset damages I mean US 54 00:03:26,520 --> 00:03:30,760 Speaker 2: military assets lost or damaged in the conflict were estimated 55 00:03:30,800 --> 00:03:33,680 Speaker 2: at two point nine billion as of last month, two 56 00:03:33,680 --> 00:03:34,600 Speaker 2: point nine billion. 57 00:03:35,160 --> 00:03:36,200 Speaker 1: And not to mention the. 58 00:03:36,160 --> 00:03:40,000 Speaker 2: Trade disruptions that are having block ports and shipping routes. 59 00:03:41,080 --> 00:03:44,320 Speaker 2: It's triggering a lot of international sanctions. Some sanctions are 60 00:03:44,360 --> 00:03:47,680 Speaker 2: being actually removed so that these countries can ship oil 61 00:03:47,760 --> 00:03:48,720 Speaker 2: to the United States. 62 00:03:49,240 --> 00:03:51,440 Speaker 1: And it's going to reduce exports and imports. 63 00:03:52,040 --> 00:03:56,160 Speaker 2: And I am concerned about the economy, so it's important 64 00:03:56,160 --> 00:03:59,640 Speaker 2: to have a conversation about, Okay, what does the future 65 00:03:59,680 --> 00:04:02,920 Speaker 2: look like like for me? And when I see reports 66 00:04:02,960 --> 00:04:06,280 Speaker 2: coming out from the National Institute on Retirement Security that 67 00:04:06,360 --> 00:04:09,560 Speaker 2: the typical American worker has less than one thousand dollars 68 00:04:09,640 --> 00:04:14,040 Speaker 2: saved to a retirement, that is very concerning. And so 69 00:04:14,360 --> 00:04:19,080 Speaker 2: during periods of international conflict, managing the rate of return 70 00:04:19,200 --> 00:04:21,520 Speaker 2: on your money, for those of you that are nearing 71 00:04:21,600 --> 00:04:26,920 Speaker 2: retirement is extremely important, and there are certain options available 72 00:04:26,960 --> 00:04:30,279 Speaker 2: for you. If you are concerned about losing your money, 73 00:04:30,279 --> 00:04:32,159 Speaker 2: if your money's in a four to oh one k 74 00:04:32,400 --> 00:04:35,560 Speaker 2: from a former employer, or you don't want to take 75 00:04:35,600 --> 00:04:38,760 Speaker 2: the risk of investing in the stock market, a fixed 76 00:04:38,760 --> 00:04:43,040 Speaker 2: indexed annuity can mitigate your risks during this period. Because 77 00:04:43,400 --> 00:04:46,279 Speaker 2: I'm live on the air, I don't know what President 78 00:04:46,279 --> 00:04:48,520 Speaker 2: Trump is addressing the nation on right now. I'm sure 79 00:04:48,520 --> 00:04:50,600 Speaker 2: it's about the war, but I don't know what it's 80 00:04:50,600 --> 00:04:53,080 Speaker 2: going to end. I don't know what's going to happen. 81 00:04:53,279 --> 00:04:56,159 Speaker 2: So we got to make sure that our client's money 82 00:04:56,200 --> 00:04:59,400 Speaker 2: is protected. So with a fixed indexed annuity, you have 83 00:04:59,520 --> 00:05:02,960 Speaker 2: principles protection, meaning the principle of your money and any 84 00:05:03,040 --> 00:05:06,760 Speaker 2: credited interest cannot be lost due to market declines, which 85 00:05:06,800 --> 00:05:12,200 Speaker 2: is very important. These annuities also have guaranteed income. Many 86 00:05:12,279 --> 00:05:16,400 Speaker 2: of these fixed index annuities provide optional income writers that 87 00:05:16,480 --> 00:05:20,839 Speaker 2: can provide a predictable lifetime income stream regardless of how 88 00:05:20,880 --> 00:05:24,400 Speaker 2: poorly the stock market performs during a conflict, and it 89 00:05:24,480 --> 00:05:27,719 Speaker 2: avoids a force sale, meaning that you can use the 90 00:05:27,800 --> 00:05:31,720 Speaker 2: income from these indexed annuities. These fixed indexenuities to cover 91 00:05:31,800 --> 00:05:35,080 Speaker 2: living expenses, so it doesn't force you to sell other 92 00:05:35,120 --> 00:05:37,840 Speaker 2: equity investments like your four oh one K or ira. 93 00:05:38,560 --> 00:05:42,240 Speaker 2: Remember our four oh one K withdrawals are generally taxed 94 00:05:42,320 --> 00:05:47,560 Speaker 2: as ordinary income with a mandatory twenty percent federal tax, 95 00:05:47,920 --> 00:05:50,719 Speaker 2: and if you are withdrawing before the age of fifty 96 00:05:50,800 --> 00:05:53,760 Speaker 2: nine and a half, you have an additional ten percent penalty. 97 00:05:54,200 --> 00:05:54,800 Speaker 1: And there was a. 98 00:05:54,760 --> 00:05:59,159 Speaker 2: Report not too long ago that right now, this year alone, 99 00:05:59,240 --> 00:06:02,400 Speaker 2: twenty twenty six, this has been the highest rate of 100 00:06:02,560 --> 00:06:06,240 Speaker 2: early withdraws from four oh one case, which means that 101 00:06:06,279 --> 00:06:08,880 Speaker 2: Americans are paying thirty percent of that in. 102 00:06:08,920 --> 00:06:10,600 Speaker 1: Taxes, which is crazy. 103 00:06:11,120 --> 00:06:14,840 Speaker 2: But if you are forced into a position where you 104 00:06:14,960 --> 00:06:18,520 Speaker 2: don't have enough money to cover your expenses, you're going 105 00:06:18,600 --> 00:06:22,400 Speaker 2: to go to option B, and I understand why people 106 00:06:22,400 --> 00:06:23,120 Speaker 2: get cornered. 107 00:06:23,480 --> 00:06:24,120 Speaker 1: So that's why. 108 00:06:24,120 --> 00:06:25,960 Speaker 2: If you're in a position right now where you do 109 00:06:26,040 --> 00:06:27,880 Speaker 2: have a four oh one K that's sitting around and 110 00:06:27,920 --> 00:06:30,560 Speaker 2: you don't want to keep losing money, or you're trying 111 00:06:30,680 --> 00:06:34,400 Speaker 2: you have some money in a bank and what the 112 00:06:34,920 --> 00:06:37,960 Speaker 2: savings account gives you half a percent interest and you 113 00:06:37,960 --> 00:06:39,800 Speaker 2: don't know what to do with it, A fixed index 114 00:06:39,800 --> 00:06:44,599 Speaker 2: annuity might be an option that will be useful for 115 00:06:44,680 --> 00:06:48,920 Speaker 2: you during this very hard period in our country. So 116 00:06:49,080 --> 00:06:51,960 Speaker 2: for those of you that are unaware, I'm also licensed 117 00:06:51,960 --> 00:06:54,960 Speaker 2: by the United States Tax Court. I'm also a tax attorney, 118 00:06:55,600 --> 00:06:59,320 Speaker 2: and we are in tax season. So if you are 119 00:06:59,520 --> 00:07:01,840 Speaker 2: listening right now and you need help with your taxes, 120 00:07:01,920 --> 00:07:05,080 Speaker 2: if you owe the irs back taxes, if you have 121 00:07:05,320 --> 00:07:08,400 Speaker 2: messy books and need help cleaning it up, if tax 122 00:07:08,440 --> 00:07:12,679 Speaker 2: season feels like a nightmare for you rather than a refundream, 123 00:07:12,880 --> 00:07:16,200 Speaker 2: this is a time to get organized. We're right around 124 00:07:16,240 --> 00:07:19,080 Speaker 2: the corner for the tax deadline, and if you are 125 00:07:19,200 --> 00:07:21,960 Speaker 2: worried about a potential audit, this is the time to 126 00:07:22,080 --> 00:07:25,040 Speaker 2: give our office a call. You have to make sure 127 00:07:25,160 --> 00:07:28,880 Speaker 2: this year you're getting every deduction you deserve. And if 128 00:07:28,920 --> 00:07:31,480 Speaker 2: you could save an additional five hundred dollars on your 129 00:07:32,280 --> 00:07:33,240 Speaker 2: taxes this season. 130 00:07:33,320 --> 00:07:35,320 Speaker 1: I mean that is beneficial and that can go a 131 00:07:35,360 --> 00:07:35,880 Speaker 1: long way. 132 00:07:36,400 --> 00:07:39,600 Speaker 2: Millions of Americans are overpaying their taxes, and. 133 00:07:39,520 --> 00:07:40,840 Speaker 1: You shouldn't be one of them. 134 00:07:40,960 --> 00:07:45,360 Speaker 2: You will become an accidental philanthropist. This is the term 135 00:07:45,400 --> 00:07:47,480 Speaker 2: I use for those of you that are paying taxes 136 00:07:47,520 --> 00:07:50,280 Speaker 2: that you don't need to pay. And what I mean 137 00:07:50,320 --> 00:07:55,000 Speaker 2: by an accidental philanthropist is that when you pay taxes 138 00:07:55,040 --> 00:07:58,720 Speaker 2: that you shouldn't pay, Okay, you are allowing the government 139 00:07:58,840 --> 00:08:00,960 Speaker 2: to decide what to do with your money. And right 140 00:08:01,000 --> 00:08:04,080 Speaker 2: now what's happening is they are using the money for 141 00:08:04,200 --> 00:08:07,720 Speaker 2: our military when that could just go into your pocket 142 00:08:07,800 --> 00:08:11,600 Speaker 2: for your retirement, or your family or your children. I'm 143 00:08:11,600 --> 00:08:15,640 Speaker 2: not saying that you can illegally not pay taxes, but 144 00:08:15,720 --> 00:08:18,440 Speaker 2: there are certain tax codes that many Americans are not 145 00:08:18,560 --> 00:08:22,680 Speaker 2: taking advantage of. The average Americans spends thirteen hours doing 146 00:08:22,720 --> 00:08:26,000 Speaker 2: their taxes, and they do it incorrectly or they want 147 00:08:26,000 --> 00:08:28,200 Speaker 2: to save on costs and they think they're doing the 148 00:08:28,240 --> 00:08:31,520 Speaker 2: smart thing, so they go to quote unquote a puppy 149 00:08:31,520 --> 00:08:34,360 Speaker 2: mill of taxes. Have you to just get your tax 150 00:08:34,400 --> 00:08:37,320 Speaker 2: return filed and those individuals are not sitting with you 151 00:08:37,400 --> 00:08:40,400 Speaker 2: trying to figure out how many tax deductions they can 152 00:08:40,520 --> 00:08:44,240 Speaker 2: legally provide for you. Because you're just paying a fixed 153 00:08:44,240 --> 00:08:46,960 Speaker 2: fee and you're just filing a quick tax return, you 154 00:08:47,000 --> 00:08:49,160 Speaker 2: think you're saving, but in the long run, you're losing 155 00:08:49,200 --> 00:08:52,000 Speaker 2: a lot of money. And with new twenty twenty six 156 00:08:52,080 --> 00:08:55,160 Speaker 2: tax breaks, you could boost your refund by one thousand 157 00:08:55,200 --> 00:08:59,240 Speaker 2: dollars or more. So again, if you are concerned about 158 00:08:59,240 --> 00:09:02,080 Speaker 2: your money, a fixed index annuity might be something that's 159 00:09:02,120 --> 00:09:05,840 Speaker 2: available that would be available for you uh with principal protection, 160 00:09:06,000 --> 00:09:10,040 Speaker 2: guaranteed income, and it's gonna avoid having to sale other 161 00:09:10,720 --> 00:09:13,199 Speaker 2: assets that are available to you to pay your expenses. 162 00:09:13,520 --> 00:09:15,920 Speaker 2: And if you need help with your taxes, our office 163 00:09:15,960 --> 00:09:18,480 Speaker 2: is here to help you. To make an appointment with me, 164 00:09:18,559 --> 00:09:21,520 Speaker 2: Attorney nas Beruti, you can call my office right now 165 00:09:21,559 --> 00:09:25,560 Speaker 2: at four two four four six five nine zero zero three. 166 00:09:25,960 --> 00:09:30,240 Speaker 2: That's four two four four six five nine zero zero three, 167 00:09:30,600 --> 00:09:33,800 Speaker 2: or you can visit my website Buruti Law dot com 168 00:09:33,800 --> 00:09:37,120 Speaker 2: that's b a r o u t I Law dot 169 00:09:37,160 --> 00:09:40,319 Speaker 2: com again to make an appointment with me, Attorney nas Berruti. 170 00:09:40,360 --> 00:09:43,800 Speaker 2: The numbers four two four four six five nine zero 171 00:09:44,000 --> 00:09:46,920 Speaker 2: zero three. You're listening to Love, Death and Money on 172 00:09:47,000 --> 00:09:49,880 Speaker 2: Talk radio seven ninety KBC. We're gonna take a quick 173 00:09:49,880 --> 00:09:52,840 Speaker 2: break and we'll be right back. Stay with us. Welcome 174 00:09:52,880 --> 00:09:55,400 Speaker 2: back to Love, Death and Money. I'm your host, Attorney 175 00:09:55,480 --> 00:09:59,720 Speaker 2: nas Berruti on Talk radio seven ninety KABC. If you 176 00:09:59,720 --> 00:10:02,600 Speaker 2: have a question about trust wills probate, call to station 177 00:10:02,840 --> 00:10:05,520 Speaker 2: right now at one eight hundred two two two five 178 00:10:05,600 --> 00:10:09,360 Speaker 2: two two two. That's one eight hundred two two two KABC. 179 00:10:10,040 --> 00:10:12,079 Speaker 2: We were talking about how the war is going to 180 00:10:12,200 --> 00:10:17,000 Speaker 2: impact the economy, and many Americans are afraid of losing 181 00:10:17,040 --> 00:10:21,040 Speaker 2: their retirement and one of the available options for those 182 00:10:21,160 --> 00:10:24,840 Speaker 2: concerned is a fixed indexed annuity which can mitigate your risk, 183 00:10:25,280 --> 00:10:28,800 Speaker 2: that has principal protection, guaranteed income, and it avoids a 184 00:10:28,840 --> 00:10:31,400 Speaker 2: forced sale of withdrawing money from your four oh one 185 00:10:31,480 --> 00:10:34,959 Speaker 2: K or IRA. If you are interested in getting one 186 00:10:35,000 --> 00:10:37,640 Speaker 2: of these fixed indexed annuities, you can call our office 187 00:10:37,640 --> 00:10:40,600 Speaker 2: and one of our teammates or myself will help you 188 00:10:40,760 --> 00:10:44,679 Speaker 2: better understand what that looks like. And again, for those 189 00:10:44,720 --> 00:10:48,280 Speaker 2: that are concerned about taxes, I'm licensed by the United 190 00:10:48,280 --> 00:10:51,120 Speaker 2: States Tax Court. I'm a tax attorney, So if you 191 00:10:51,160 --> 00:10:54,839 Speaker 2: need help in filing your tax returns. You owe the 192 00:10:54,880 --> 00:10:58,280 Speaker 2: irs back taxes, you're afraid of a potential audit. We're 193 00:10:58,280 --> 00:11:01,960 Speaker 2: also available to help you reg guarding that. Now, there 194 00:11:02,040 --> 00:11:06,000 Speaker 2: are many baby boomers that I am concerned about, those 195 00:11:06,040 --> 00:11:09,400 Speaker 2: of you born between nineteen forty six and nineteen sixty four. 196 00:11:09,800 --> 00:11:13,079 Speaker 2: I mean, you've pretty much seen it all, and they 197 00:11:13,120 --> 00:11:16,600 Speaker 2: are concerned about outliving their money. And so it's important 198 00:11:16,679 --> 00:11:19,439 Speaker 2: when we talk about end of life planning that we 199 00:11:19,520 --> 00:11:23,440 Speaker 2: talk about retirement planning as well. Social Security is going 200 00:11:23,480 --> 00:11:27,320 Speaker 2: to run out by twenty thirty. There's a huge wealth 201 00:11:27,400 --> 00:11:31,000 Speaker 2: transfer that's about to happen with baby boomers, about eighty 202 00:11:31,080 --> 00:11:34,000 Speaker 2: four trillion dollars in assets. It's going to be transferred 203 00:11:34,000 --> 00:11:37,679 Speaker 2: in twenty forty five. Baby Boomers own about forty one 204 00:11:37,720 --> 00:11:40,800 Speaker 2: percent of the US real estate. But it's important for 205 00:11:40,880 --> 00:11:44,560 Speaker 2: them to plan for retirement and also end of life 206 00:11:44,600 --> 00:11:49,040 Speaker 2: planning by making sure that they transfer these assets without 207 00:11:49,240 --> 00:11:52,360 Speaker 2: the government getting involved. What do I mean by that, Well, 208 00:11:52,800 --> 00:11:55,440 Speaker 2: seventy percent of Americans do not have an end of 209 00:11:55,520 --> 00:11:59,600 Speaker 2: life plan. So the option is when you don't have 210 00:11:59,640 --> 00:12:02,040 Speaker 2: a plan, the state that you live in has a 211 00:12:02,080 --> 00:12:04,880 Speaker 2: plan in place for you, and it's called probate court. 212 00:12:05,320 --> 00:12:08,520 Speaker 2: Probate court is the court that administers your estate when 213 00:12:08,559 --> 00:12:11,240 Speaker 2: you don't have a written plan. Now, you do not 214 00:12:11,400 --> 00:12:15,199 Speaker 2: want your family to end up in probate court. This 215 00:12:15,320 --> 00:12:19,440 Speaker 2: wealth transfer that's about to happen, I would hope that 216 00:12:19,520 --> 00:12:22,240 Speaker 2: you would want your family members to acquire this wealth 217 00:12:22,280 --> 00:12:25,280 Speaker 2: and not a random attorney that's going to make a 218 00:12:25,400 --> 00:12:29,080 Speaker 2: lot of money off of a probate case. Now, probate 219 00:12:29,160 --> 00:12:33,679 Speaker 2: case is Proba cases are not easy process. When I 220 00:12:33,720 --> 00:12:37,199 Speaker 2: say that the state has a plan for you, many 221 00:12:37,240 --> 00:12:39,800 Speaker 2: listeners think, oh, okay, great, I don't have to plan 222 00:12:39,880 --> 00:12:42,440 Speaker 2: because the state cares about me so much that there's 223 00:12:42,480 --> 00:12:44,440 Speaker 2: a plan in place. So my family, you're saying, my 224 00:12:44,480 --> 00:12:47,280 Speaker 2: family is going to be able to get everything right. Well, 225 00:12:47,520 --> 00:12:51,200 Speaker 2: not quite. When you go through probate court, you don't 226 00:12:51,240 --> 00:12:54,160 Speaker 2: want to go through this process because it is time consuming. 227 00:12:54,840 --> 00:12:57,880 Speaker 2: On average, probate court can take six months to two 228 00:12:57,960 --> 00:13:00,600 Speaker 2: years to go through the process. And I'm beings when 229 00:13:00,600 --> 00:13:03,160 Speaker 2: I say six months. I've never seen a probate case 230 00:13:03,840 --> 00:13:05,280 Speaker 2: get handled within six months. 231 00:13:05,320 --> 00:13:07,320 Speaker 1: Maybe a year. A year and a half is the 232 00:13:07,400 --> 00:13:08,640 Speaker 1: shortest that I've ever seen. 233 00:13:09,360 --> 00:13:14,000 Speaker 2: Now during this process, when they are going through this process, 234 00:13:14,040 --> 00:13:16,880 Speaker 2: the time period it takes. That means that your family 235 00:13:16,920 --> 00:13:19,920 Speaker 2: members are not able to touch any of the assets 236 00:13:19,960 --> 00:13:23,520 Speaker 2: that you left behind in your name, meaning bank accounts 237 00:13:23,520 --> 00:13:27,560 Speaker 2: are frozen, real estate cannot be sold, nothing can happen 238 00:13:27,640 --> 00:13:28,880 Speaker 2: without this court approval. 239 00:13:29,320 --> 00:13:31,319 Speaker 1: So to some six months to. 240 00:13:31,280 --> 00:13:34,800 Speaker 2: Two years may not seem like it's a very long time, 241 00:13:34,880 --> 00:13:37,920 Speaker 2: but when you need access to those assets, it becomes 242 00:13:38,640 --> 00:13:42,160 Speaker 2: a horrible process. Just waiting to get a court approval 243 00:13:42,600 --> 00:13:44,800 Speaker 2: to be able to access something that your husband owned, 244 00:13:44,840 --> 00:13:48,840 Speaker 2: or your wife owned, or your father owned, it's excruciatingly painful. 245 00:13:49,640 --> 00:13:54,840 Speaker 2: In addition to that, it's expensive. This process is not free. 246 00:13:55,040 --> 00:13:58,280 Speaker 2: On average, the filing fee alone is five hundred dollars 247 00:13:58,440 --> 00:14:00,880 Speaker 2: and you have to hire a probate attorney to help 248 00:14:00,920 --> 00:14:03,720 Speaker 2: you through this process. Now, I want to be very 249 00:14:03,760 --> 00:14:08,720 Speaker 2: clear probate attorneys they're not like contingency attorneys, meaning if 250 00:14:08,720 --> 00:14:12,320 Speaker 2: we win, then we collect something at the end. Probate 251 00:14:12,360 --> 00:14:17,160 Speaker 2: attorneys are able to collect statutory fees, meaning based on 252 00:14:17,240 --> 00:14:20,920 Speaker 2: the value of the estate that's left behind, they're able 253 00:14:20,960 --> 00:14:23,600 Speaker 2: to take a percentage of that. And in addition to 254 00:14:23,640 --> 00:14:27,400 Speaker 2: statutory fees, they're also able to charge hourly fees. So 255 00:14:27,720 --> 00:14:32,120 Speaker 2: I have seen a state probate cases where the probate 256 00:14:32,160 --> 00:14:35,360 Speaker 2: attorney has taken fifty to sixty percent of the estate. 257 00:14:35,640 --> 00:14:39,760 Speaker 2: It's been completely wiped out in legal fees. So that 258 00:14:39,920 --> 00:14:42,840 Speaker 2: is a huge number that could have just gone to 259 00:14:42,920 --> 00:14:45,440 Speaker 2: your family. Do you know how ridiculous that sounds? That 260 00:14:45,840 --> 00:14:48,840 Speaker 2: many people are willing to have their family members go 261 00:14:48,960 --> 00:14:51,040 Speaker 2: through this process because they don't want to pay the 262 00:14:51,120 --> 00:14:54,400 Speaker 2: fees to work with an attorney to create a plan today. 263 00:14:55,240 --> 00:14:59,160 Speaker 2: So what's the alternative. The alternative is your family has 264 00:14:59,200 --> 00:15:02,440 Speaker 2: to wait about two years. Then they have to hire 265 00:15:02,440 --> 00:15:05,520 Speaker 2: an attorney that's going to take a whole bunch of 266 00:15:05,640 --> 00:15:08,280 Speaker 2: money to help them through this process. That is money 267 00:15:08,280 --> 00:15:12,680 Speaker 2: that's rightfully yours. And on top of that, everything becomes 268 00:15:12,760 --> 00:15:17,480 Speaker 2: public record. And when things become public record, that's when 269 00:15:17,560 --> 00:15:21,160 Speaker 2: people get creative and trying to figure out how they 270 00:15:21,240 --> 00:15:24,320 Speaker 2: can get a piece of what you've left behind. Now, 271 00:15:24,360 --> 00:15:28,520 Speaker 2: the solution to all this is creating a revocable trust 272 00:15:29,240 --> 00:15:32,840 Speaker 2: and putting all your assets into the trust and designating 273 00:15:32,960 --> 00:15:35,800 Speaker 2: how your assets are going to be distributed, who's going 274 00:15:35,880 --> 00:15:39,480 Speaker 2: to manage the estate, who's going to be the successor trustee, 275 00:15:39,760 --> 00:15:43,800 Speaker 2: and then not requiring your loved ones to go through 276 00:15:43,840 --> 00:15:48,360 Speaker 2: probate because you've already decided for your family. And the 277 00:15:48,440 --> 00:15:51,280 Speaker 2: great thing about a revocable trust you are in full 278 00:15:51,320 --> 00:15:53,680 Speaker 2: control over the assets while you are alive and you 279 00:15:53,760 --> 00:15:58,720 Speaker 2: have capacity. Many listeners or potential clients get afraid when 280 00:15:58,760 --> 00:16:00,920 Speaker 2: they say, when I say you got to do a trust, 281 00:16:00,920 --> 00:16:03,560 Speaker 2: they say, oh my god, I'm gifting everything away. Does 282 00:16:03,600 --> 00:16:05,240 Speaker 2: that mean I don't have control? Does that mean I 283 00:16:05,240 --> 00:16:06,520 Speaker 2: can't access my bank account? 284 00:16:06,600 --> 00:16:07,240 Speaker 1: Does that mean I. 285 00:16:07,160 --> 00:16:10,720 Speaker 2: Can't sell real estate? No, you are still in control 286 00:16:10,800 --> 00:16:15,280 Speaker 2: over those assets. It just means that when you pass away, 287 00:16:15,600 --> 00:16:19,760 Speaker 2: the probate process is not necessary, and even after death, 288 00:16:19,840 --> 00:16:22,480 Speaker 2: you're able to control from the grave. What do I 289 00:16:22,520 --> 00:16:25,120 Speaker 2: mean by that, Well, when you have a revocable trust, 290 00:16:25,840 --> 00:16:29,960 Speaker 2: you are able to put requirements or clauses on how 291 00:16:30,000 --> 00:16:34,200 Speaker 2: the beneficiaries are to receive the assets that you leave behind, 292 00:16:34,560 --> 00:16:38,120 Speaker 2: whether that's age restrictions, whether that's restrictions that they have 293 00:16:38,160 --> 00:16:41,320 Speaker 2: to finish school or hold a full time job, or 294 00:16:41,360 --> 00:16:45,320 Speaker 2: get drug tested, or marry within a certain religion. I 295 00:16:45,360 --> 00:16:48,800 Speaker 2: know that sounds really crazy, but I have drafted documents 296 00:16:48,840 --> 00:16:53,320 Speaker 2: where a child had to marry within their religion or 297 00:16:53,520 --> 00:16:58,600 Speaker 2: had to major within a specific field, which is outlandish. 298 00:16:58,640 --> 00:16:59,600 Speaker 1: It's kind of crazy. 299 00:16:59,600 --> 00:17:01,760 Speaker 2: If you think about it, you're kind of forcing that 300 00:17:01,840 --> 00:17:04,760 Speaker 2: person to do something that you think is right. But 301 00:17:05,200 --> 00:17:07,200 Speaker 2: at the end of the day, this is your asset 302 00:17:07,280 --> 00:17:09,640 Speaker 2: and you want to put rules on it. You can now. 303 00:17:09,680 --> 00:17:12,720 Speaker 2: The alternative to this is that there are no rules 304 00:17:12,720 --> 00:17:15,160 Speaker 2: when it comes to the government taking over, the state 305 00:17:15,200 --> 00:17:16,240 Speaker 2: taking over, they'll. 306 00:17:16,040 --> 00:17:17,240 Speaker 1: Just distribute assets. 307 00:17:17,240 --> 00:17:20,160 Speaker 2: If that child is eighteen, they don't care what kind 308 00:17:20,160 --> 00:17:24,400 Speaker 2: of child you have. Maybe your child has many problems 309 00:17:24,560 --> 00:17:27,600 Speaker 2: dealing with money, or they have alcohol problems or drug 310 00:17:27,640 --> 00:17:29,120 Speaker 2: problems or gambling problems. 311 00:17:29,560 --> 00:17:31,960 Speaker 1: The state is not there to hold their hand. 312 00:17:32,520 --> 00:17:36,840 Speaker 2: The state is there to take whatever's rightfully theirs go 313 00:17:36,880 --> 00:17:40,119 Speaker 2: through this process, make money off of it, and just 314 00:17:40,240 --> 00:17:45,000 Speaker 2: distribute quickly. If you're just tuning in, you're listening to Love, 315 00:17:45,160 --> 00:17:48,640 Speaker 2: Death and Money on Talk Radio seven ninety KBC. We're 316 00:17:48,640 --> 00:17:51,400 Speaker 2: talking about the importance of end of life planning. If 317 00:17:51,400 --> 00:17:54,000 Speaker 2: you don't have a plan, the state of California has 318 00:17:54,040 --> 00:17:57,040 Speaker 2: one for you, and it's called probate court. You don't 319 00:17:57,040 --> 00:17:59,920 Speaker 2: want your family to go through probate court because it's 320 00:18:00,000 --> 00:18:03,679 Speaker 2: time consuming, expensive. They're not going to have access to 321 00:18:03,720 --> 00:18:07,520 Speaker 2: the assets that you leave behind and everything becomes public record. 322 00:18:07,960 --> 00:18:13,160 Speaker 2: So the alternative to creating or to avoid the probate 323 00:18:13,240 --> 00:18:16,760 Speaker 2: court is to make sure that you have a revocable 324 00:18:16,800 --> 00:18:20,040 Speaker 2: trust where you are in control over your assets and 325 00:18:20,160 --> 00:18:22,880 Speaker 2: you are able to control from the grave how those 326 00:18:22,920 --> 00:18:26,200 Speaker 2: assets are distributed. If you want to make an appointment 327 00:18:26,200 --> 00:18:28,679 Speaker 2: with me to create an end of life plan, you 328 00:18:28,680 --> 00:18:30,880 Speaker 2: can give my office a call right now at four 329 00:18:30,960 --> 00:18:35,160 Speaker 2: two four four six five nine zero zero three. That's 330 00:18:35,240 --> 00:18:39,000 Speaker 2: four two four four six five nine zero zero three, 331 00:18:39,560 --> 00:18:42,480 Speaker 2: or you can visit my website Beruti Law dot com 332 00:18:42,560 --> 00:18:43,760 Speaker 2: b a r o u. 333 00:18:43,920 --> 00:18:45,639 Speaker 1: TI Law dot com. 334 00:18:46,000 --> 00:18:47,960 Speaker 2: And for those of you that are interested in getting 335 00:18:47,960 --> 00:18:50,879 Speaker 2: a copy of my best selling book, Love, Death and Money, 336 00:18:51,080 --> 00:18:53,280 Speaker 2: you can get it on Amazon dot com. This is 337 00:18:53,320 --> 00:18:55,640 Speaker 2: a legal guide for you on how you can protect 338 00:18:55,640 --> 00:18:58,560 Speaker 2: yourself during different stages of life. The first part of 339 00:18:58,600 --> 00:19:00,920 Speaker 2: the book goes through what is end of life planning 340 00:19:00,960 --> 00:19:04,359 Speaker 2: and the second part is how to avoid traps in life. 341 00:19:04,400 --> 00:19:08,520 Speaker 2: These are real life situations of individuals that had plans 342 00:19:08,520 --> 00:19:12,240 Speaker 2: and some that did not and the devastating consequences it had. Again, 343 00:19:12,280 --> 00:19:14,879 Speaker 2: the book is called Love, Death and Money and you 344 00:19:14,920 --> 00:19:18,040 Speaker 2: can get it on Amazon dot com. Again to make 345 00:19:18,080 --> 00:19:20,680 Speaker 2: an appointment with me, Attorney nos Berruti. You can call 346 00:19:20,720 --> 00:19:24,040 Speaker 2: my office at four two four four six five nine 347 00:19:24,280 --> 00:19:27,720 Speaker 2: zero zero three. That's four two four four six five 348 00:19:27,960 --> 00:19:31,320 Speaker 2: nine zero zero three, or you can visit my website 349 00:19:31,320 --> 00:19:34,480 Speaker 2: Berudi Law dot com, b A r o U t 350 00:19:34,720 --> 00:19:37,639 Speaker 2: I Law dot com. You're listening to Love Death and 351 00:19:37,720 --> 00:19:42,480 Speaker 2: Money on Talk radio seven ninety KABC. Welcome back to 352 00:19:42,560 --> 00:19:45,720 Speaker 2: Love Death and Money. I'm your host, Attorney Nosberruti on 353 00:19:45,760 --> 00:19:49,159 Speaker 2: Talk radio seven ninety KA b C. If you have 354 00:19:49,280 --> 00:19:52,440 Speaker 2: questions about trust Will's probate, called the station right now 355 00:19:52,520 --> 00:19:55,680 Speaker 2: at one eight hundred two two two five two two two. 356 00:19:55,800 --> 00:19:59,520 Speaker 2: That's one one hundred two two two KABC. We've been 357 00:19:59,520 --> 00:20:02,199 Speaker 2: talking about about the importance of end of life planning, 358 00:20:02,280 --> 00:20:04,879 Speaker 2: making sure that you have the proper legal documents to 359 00:20:04,920 --> 00:20:08,520 Speaker 2: protect yourself from the day that you pass away or 360 00:20:08,560 --> 00:20:12,359 Speaker 2: become incapacitated. To get more information about my practice, you 361 00:20:12,400 --> 00:20:16,719 Speaker 2: can visit my website Burrudylaw dot com, br u TI 362 00:20:17,080 --> 00:20:19,399 Speaker 2: Law dot com. And if you don't have a plan, 363 00:20:19,480 --> 00:20:22,199 Speaker 2: the state of California has one for you. It's called 364 00:20:22,320 --> 00:20:26,679 Speaker 2: probate court, which is time consuming, expensive. Your assets become 365 00:20:26,760 --> 00:20:31,440 Speaker 2: frozen during the process and everything becomes public record. The 366 00:20:31,480 --> 00:20:34,440 Speaker 2: solution to making sure that your family doesn't go through 367 00:20:34,480 --> 00:20:37,919 Speaker 2: probate is having a revocable trust where you are in 368 00:20:38,000 --> 00:20:41,160 Speaker 2: control while you are alive, and you are in control 369 00:20:41,200 --> 00:20:44,200 Speaker 2: from the grave. You're able to put restrictions on how 370 00:20:44,240 --> 00:20:48,000 Speaker 2: your assets are to be distributed, and having a plan 371 00:20:48,160 --> 00:20:50,920 Speaker 2: gives you that reassurance that if something were to happen 372 00:20:50,960 --> 00:20:53,400 Speaker 2: to you, your family would be protected and they wouldn't 373 00:20:53,440 --> 00:20:56,400 Speaker 2: have to go through probate court. Now, when we're talking 374 00:20:56,480 --> 00:21:02,000 Speaker 2: about revocable trusts, its very important to understand how you 375 00:21:02,119 --> 00:21:06,639 Speaker 2: title assets in your revocable trust. So when you own property, 376 00:21:07,119 --> 00:21:09,240 Speaker 2: you have a deed, you have a grand deed. It 377 00:21:09,320 --> 00:21:13,240 Speaker 2: shows who the owner is, and when you create a trust, 378 00:21:13,320 --> 00:21:17,240 Speaker 2: you have to transfer that ownership from your personal name 379 00:21:17,359 --> 00:21:19,199 Speaker 2: to the trust's name. So I want to give you 380 00:21:19,240 --> 00:21:22,240 Speaker 2: an example so you understand what I'm talking about. So 381 00:21:22,320 --> 00:21:24,720 Speaker 2: let's say I own a property and I'm holding title 382 00:21:24,760 --> 00:21:28,800 Speaker 2: as nas Berudi, a single woman. Now, when I create 383 00:21:28,840 --> 00:21:33,160 Speaker 2: a trust, I name my trust the KABC Trust. So 384 00:21:33,480 --> 00:21:37,359 Speaker 2: when I have to record title to make sure that 385 00:21:37,440 --> 00:21:39,639 Speaker 2: my property is owned by my trust so that it 386 00:21:39,680 --> 00:21:43,639 Speaker 2: avoids probate, I have to transfer title I quick claim 387 00:21:43,720 --> 00:21:49,080 Speaker 2: from nas Berruti, a single woman, to nas Beruti, trustee 388 00:21:49,119 --> 00:21:53,360 Speaker 2: of the KABC trust. That's it has to be titled 389 00:21:53,680 --> 00:21:57,480 Speaker 2: exactly like that. So when clients come into my office, 390 00:21:57,600 --> 00:21:59,959 Speaker 2: they want to get really creative with the trust name, 391 00:22:00,200 --> 00:22:03,440 Speaker 2: thinking that if they put a creative name, then nobody's 392 00:22:03,480 --> 00:22:06,000 Speaker 2: going to tie back that property to their name because 393 00:22:06,040 --> 00:22:08,520 Speaker 2: they want to be incognito. They don't want anyone to 394 00:22:08,520 --> 00:22:11,119 Speaker 2: find out where they live. And I always have to 395 00:22:11,160 --> 00:22:15,400 Speaker 2: remind them that your name as the trustee still has 396 00:22:15,440 --> 00:22:19,679 Speaker 2: to be on title. So what many clients end up doing. 397 00:22:20,760 --> 00:22:24,159 Speaker 2: I do this a lot for celebrity clients, athletes, you know, 398 00:22:24,440 --> 00:22:25,640 Speaker 2: people in Hollywood. 399 00:22:26,000 --> 00:22:27,680 Speaker 1: We create privacy trusts. 400 00:22:28,200 --> 00:22:32,439 Speaker 2: So if you think someone like Kim Kardashian is going 401 00:22:32,520 --> 00:22:37,520 Speaker 2: to buy property under Kim Kardashian, you know Kardashian Trust, I. 402 00:22:37,520 --> 00:22:38,800 Speaker 1: Mean, it doesn't work like that. 403 00:22:39,040 --> 00:22:44,680 Speaker 2: So they usually have their business partners or their business managers, 404 00:22:45,080 --> 00:22:50,240 Speaker 2: or an LLC for example, that owns the asset. And 405 00:22:50,320 --> 00:22:54,280 Speaker 2: so when there is concern about you not wanting anybody 406 00:22:54,320 --> 00:22:57,679 Speaker 2: to find what you own, I can't create just a 407 00:22:57,720 --> 00:23:01,320 Speaker 2: revocable trust where you are in control and your name 408 00:23:01,560 --> 00:23:05,080 Speaker 2: is not on title when we record your property. So 409 00:23:05,240 --> 00:23:07,920 Speaker 2: a solution to that is to create a privacy trust 410 00:23:08,000 --> 00:23:11,159 Speaker 2: where you name your lawyer or somebody that cannot be 411 00:23:11,240 --> 00:23:15,199 Speaker 2: tied back to you as the owner of this privacy trust. 412 00:23:15,640 --> 00:23:19,000 Speaker 2: And that privacy trust it's going to reference your personal 413 00:23:19,040 --> 00:23:22,840 Speaker 2: trust with your full name on it. So for those 414 00:23:22,880 --> 00:23:26,360 Speaker 2: of you that are concerned and you want to create 415 00:23:26,480 --> 00:23:30,359 Speaker 2: a loophole and making sure that nobody finds out where 416 00:23:30,400 --> 00:23:33,000 Speaker 2: you live or what you own, that is one option 417 00:23:33,119 --> 00:23:34,159 Speaker 2: that's available to you. 418 00:23:35,080 --> 00:23:38,840 Speaker 1: Now. I also want to talk about businesses and estate planning. 419 00:23:38,880 --> 00:23:41,359 Speaker 2: This is a really hot topic, especially for those of 420 00:23:41,400 --> 00:23:44,960 Speaker 2: you that have family businesses and you are actively involved. 421 00:23:45,400 --> 00:23:47,840 Speaker 1: Maybe a father or a mother owns. 422 00:23:47,560 --> 00:23:51,760 Speaker 2: The business, but you've been contributing your time and your 423 00:23:51,840 --> 00:23:54,919 Speaker 2: full time employee, and you're concerned about the legacy of 424 00:23:54,960 --> 00:23:59,439 Speaker 2: the business because you have siblings that are not very involved, 425 00:23:59,560 --> 00:24:02,439 Speaker 2: and after the death of a parent, this can cause 426 00:24:02,480 --> 00:24:06,199 Speaker 2: a lot of problems within the family. So if you 427 00:24:06,359 --> 00:24:10,280 Speaker 2: own an LLC or a corporation, you have to have 428 00:24:10,520 --> 00:24:14,320 Speaker 2: a properly planned legacy within that business of how things 429 00:24:14,359 --> 00:24:17,400 Speaker 2: are going to transfer. But the first step is also 430 00:24:17,520 --> 00:24:20,760 Speaker 2: making sure that you're keeping proper business records. So if 431 00:24:20,800 --> 00:24:23,480 Speaker 2: you have an LLC, do you have an operating agreement? 432 00:24:23,880 --> 00:24:26,679 Speaker 2: If you have a corporation, are there bylaws? Do you 433 00:24:26,840 --> 00:24:30,360 Speaker 2: keep annual minutes? Are there business bank accounts? Or are 434 00:24:30,400 --> 00:24:35,399 Speaker 2: you just using your own personal account to transfer the 435 00:24:35,440 --> 00:24:40,480 Speaker 2: business assets into? So you have have you assigned the 436 00:24:40,600 --> 00:24:44,479 Speaker 2: business interests that you own in this LLC or a 437 00:24:44,520 --> 00:24:47,400 Speaker 2: corporation to a trust to avoid probate? 438 00:24:47,880 --> 00:24:49,119 Speaker 1: This is really important. 439 00:24:49,359 --> 00:24:53,600 Speaker 2: Many people keep their membership or stock ownership in a 440 00:24:53,640 --> 00:24:57,000 Speaker 2: business in their individual name, and if they die, this 441 00:24:57,080 --> 00:25:01,800 Speaker 2: can cause probate issues. Now, a lot of people don't 442 00:25:01,840 --> 00:25:05,679 Speaker 2: want to transfer their ownership in their business to the 443 00:25:05,760 --> 00:25:08,840 Speaker 2: revocable trust that owns all their personal assets. And I'll 444 00:25:08,880 --> 00:25:13,000 Speaker 2: tell you why, because if that business gets sued and 445 00:25:13,040 --> 00:25:17,520 Speaker 2: your trust owns that interest in the business, then what 446 00:25:17,680 --> 00:25:21,439 Speaker 2: tends to happen is during a lawsuit, they will also 447 00:25:21,560 --> 00:25:26,160 Speaker 2: subpoena your trust documents. And sometimes you don't want anybody 448 00:25:26,200 --> 00:25:28,439 Speaker 2: to know what's owned in the trust because it's a 449 00:25:28,480 --> 00:25:32,439 Speaker 2: completely separate issue. So what we tend to do for 450 00:25:32,560 --> 00:25:35,800 Speaker 2: clients that own businesses is we set up a separate 451 00:25:35,840 --> 00:25:39,080 Speaker 2: trust to own that business interest where it doesn't commingle 452 00:25:39,200 --> 00:25:40,920 Speaker 2: with all your other personal assets. 453 00:25:41,280 --> 00:25:43,120 Speaker 1: So you can have one trust. 454 00:25:42,800 --> 00:25:46,199 Speaker 2: That owns your primary residents, your personal bank accounts, and 455 00:25:46,240 --> 00:25:49,119 Speaker 2: so forth, and we create another trust that owns the 456 00:25:49,160 --> 00:25:53,359 Speaker 2: interests of the LLC or the corporation, so that way, 457 00:25:53,440 --> 00:25:57,280 Speaker 2: if the business gets sued, the business assets are only exposed. 458 00:25:57,480 --> 00:26:01,159 Speaker 2: The trust's other assets are generally not ondically liable. So 459 00:26:01,200 --> 00:26:04,000 Speaker 2: if you have you know, your personal residents and another trust, 460 00:26:04,040 --> 00:26:07,439 Speaker 2: they're not going to get involved in. 461 00:26:06,560 --> 00:26:08,399 Speaker 1: Trying to figure out what that trust owns. 462 00:26:09,680 --> 00:26:14,560 Speaker 2: So that's why it's really important for you to start 463 00:26:14,640 --> 00:26:18,640 Speaker 2: having these conversations. And you may have a trust already 464 00:26:18,640 --> 00:26:20,919 Speaker 2: in place, but you don't know if you've done proper 465 00:26:20,920 --> 00:26:22,520 Speaker 2: planning with your business. 466 00:26:22,200 --> 00:26:24,280 Speaker 1: Or your corporation. 467 00:26:25,359 --> 00:26:28,880 Speaker 2: You're a limited liability company, and it's important to review 468 00:26:28,960 --> 00:26:32,720 Speaker 2: these operating agreements. It's important to review the bylaws. What 469 00:26:33,000 --> 00:26:37,239 Speaker 2: happens after the passing of an owner. Maybe you have 470 00:26:37,320 --> 00:26:41,520 Speaker 2: different partners that it's not family, So maybe you have 471 00:26:41,640 --> 00:26:44,359 Speaker 2: a friend that you're in business with, and you're concerned 472 00:26:44,359 --> 00:26:47,159 Speaker 2: that if you pass away, your spouse is not going 473 00:26:47,200 --> 00:26:49,200 Speaker 2: to be able to deal with your business partner, maybe 474 00:26:49,200 --> 00:26:53,160 Speaker 2: because they're more business savvy. You need to make sure 475 00:26:53,200 --> 00:26:58,040 Speaker 2: that there's a clear plan as to how your fifty 476 00:26:58,080 --> 00:27:02,520 Speaker 2: percent interest, for example, is going to be structured, meaning 477 00:27:02,560 --> 00:27:05,800 Speaker 2: that if you die, does your estate get voting rights 478 00:27:06,040 --> 00:27:08,760 Speaker 2: or is your state only going to get the income 479 00:27:08,800 --> 00:27:12,040 Speaker 2: from the business. This is very important and this causes 480 00:27:12,080 --> 00:27:16,200 Speaker 2: a lot of conflict, especially with surviving spouses, because they 481 00:27:16,280 --> 00:27:21,000 Speaker 2: feel like they are boxed out of the business, they 482 00:27:21,400 --> 00:27:24,240 Speaker 2: don't get any information about what's going on, and then 483 00:27:24,280 --> 00:27:26,440 Speaker 2: they feel like they're getting taken advantage of and this 484 00:27:27,040 --> 00:27:31,640 Speaker 2: can potentially create lawsuits. So if you're listening right now 485 00:27:31,640 --> 00:27:34,480 Speaker 2: and you have a corporation or a limited liability company, 486 00:27:34,800 --> 00:27:38,800 Speaker 2: it's really important to review those documents to make sure 487 00:27:38,840 --> 00:27:42,199 Speaker 2: that everything is in order to separate the business asset 488 00:27:42,240 --> 00:27:45,439 Speaker 2: from your personal trust and to make sure that those 489 00:27:45,600 --> 00:27:50,800 Speaker 2: assets are properly documented within a trust to avoid any probate. 490 00:27:51,359 --> 00:27:53,360 Speaker 2: So for those of you that are listening right now 491 00:27:53,400 --> 00:27:55,800 Speaker 2: and you own businesses and you need help, I want 492 00:27:55,800 --> 00:27:58,080 Speaker 2: you to give my office a call right now at 493 00:27:58,080 --> 00:28:00,160 Speaker 2: four two four four six five. 494 00:28:00,000 --> 00:28:02,520 Speaker 1: Five nine zero zero three. 495 00:28:02,560 --> 00:28:06,720 Speaker 2: That's four two four four six five nine zero zero three, 496 00:28:07,280 --> 00:28:10,439 Speaker 2: or you can visit my website Buruti Law dot com. 497 00:28:10,560 --> 00:28:11,200 Speaker 1: B A. R. 498 00:28:11,440 --> 00:28:15,679 Speaker 2: O u TI law dot com and again the number 499 00:28:15,720 --> 00:28:19,120 Speaker 2: to reach me attorney nos Berruti four two four four 500 00:28:19,200 --> 00:28:21,919 Speaker 2: six five nine zero zero three. 501 00:28:22,359 --> 00:28:22,840 Speaker 1: One of the. 502 00:28:22,800 --> 00:28:26,560 Speaker 2: Biggest disputes that I've seen in the last fifteen years 503 00:28:27,000 --> 00:28:31,280 Speaker 2: is children fighting over business assets. And what ends up 504 00:28:31,280 --> 00:28:34,480 Speaker 2: happening is there's always that one child that's been actively 505 00:28:34,520 --> 00:28:38,200 Speaker 2: involved building up the business, making sure that it's profitable, 506 00:28:38,640 --> 00:28:40,800 Speaker 2: and then there's other children that are like, you know what, 507 00:28:41,080 --> 00:28:44,560 Speaker 2: let's just liquidate because they want their share, and what 508 00:28:44,720 --> 00:28:48,320 Speaker 2: ends up happening is a huge lawsuit. They start fighting 509 00:28:48,320 --> 00:28:50,960 Speaker 2: with each other. So as a parent, you need to 510 00:28:51,000 --> 00:28:53,560 Speaker 2: make sure that you have a proper plan in place 511 00:28:54,040 --> 00:28:56,640 Speaker 2: as to how that business is going to operate. Are 512 00:28:56,640 --> 00:28:58,040 Speaker 2: you going to put a clause in there that it 513 00:28:58,080 --> 00:29:00,200 Speaker 2: can't be sold. Are you going to put a law 514 00:29:00,320 --> 00:29:03,480 Speaker 2: in there that the child that's actively involved is going 515 00:29:03,560 --> 00:29:06,200 Speaker 2: to make decisions as to what happens with that business, 516 00:29:06,200 --> 00:29:09,120 Speaker 2: and the other siblings just get a profit at the 517 00:29:09,200 --> 00:29:11,280 Speaker 2: end of the year. That's why it's so important to 518 00:29:11,320 --> 00:29:14,280 Speaker 2: review these documents. And I would love to think that 519 00:29:14,720 --> 00:29:17,120 Speaker 2: children will be able to get along with each other 520 00:29:17,200 --> 00:29:20,040 Speaker 2: when it comes to issues like this, But if there's 521 00:29:20,080 --> 00:29:23,880 Speaker 2: already conflict, if there's already resentment, it's better to get 522 00:29:23,920 --> 00:29:29,800 Speaker 2: these decisions in writing and to name maybe individuals that 523 00:29:29,840 --> 00:29:33,320 Speaker 2: are not your children as the successor trustees so that 524 00:29:33,480 --> 00:29:36,440 Speaker 2: there's no conflict. What I see a lot of parents 525 00:29:36,520 --> 00:29:42,760 Speaker 2: doing is they put all the children together to make decisions, 526 00:29:42,800 --> 00:29:46,239 Speaker 2: and this can create problems. So I always advise that 527 00:29:46,400 --> 00:29:49,760 Speaker 2: if you are going to do that, to have a 528 00:29:49,840 --> 00:29:53,920 Speaker 2: tiebreaker vote, whether that's your attorney, whether that's your accountant, 529 00:29:54,120 --> 00:29:57,600 Speaker 2: or a party that's disinterested in the assets to be 530 00:29:57,720 --> 00:30:00,960 Speaker 2: the final tiebreaker vote to avoid having to go to 531 00:30:01,000 --> 00:30:01,480 Speaker 2: court to. 532 00:30:01,480 --> 00:30:03,760 Speaker 1: Resolve these issues again. 533 00:30:03,800 --> 00:30:06,280 Speaker 2: To make an appointment with me, Attorney nos Berruti, you 534 00:30:06,320 --> 00:30:08,920 Speaker 2: can reach me at four two four four six five 535 00:30:09,080 --> 00:30:12,560 Speaker 2: nine zero zero three. That's four two four four six 536 00:30:12,760 --> 00:30:15,640 Speaker 2: five nine zero zero three. We're gonna take a quick 537 00:30:15,680 --> 00:30:17,680 Speaker 2: break and Katie, I'm gonna get to your question when 538 00:30:17,680 --> 00:30:18,240 Speaker 2: we come back. 539 00:30:18,280 --> 00:30:19,240 Speaker 1: Stay with us. 540 00:30:20,040 --> 00:30:22,480 Speaker 2: Welcome back to Love, Death and Money. I'm your host, 541 00:30:22,560 --> 00:30:26,960 Speaker 2: Attorney Nasbruty on Talk Radio seven ninety KABC. If you 542 00:30:27,000 --> 00:30:30,160 Speaker 2: have questions about trust wills, probate, call the station right 543 00:30:30,200 --> 00:30:33,200 Speaker 2: now at one eight hundred two two two five two 544 00:30:33,240 --> 00:30:33,640 Speaker 2: two two. 545 00:30:33,800 --> 00:30:36,440 Speaker 1: That's one eight hundred two two two KABC. 546 00:30:37,040 --> 00:30:39,600 Speaker 2: To get more information about my practice, you can visit 547 00:30:39,640 --> 00:30:41,760 Speaker 2: my website Burudi law dot com. 548 00:30:41,760 --> 00:30:45,160 Speaker 1: That's b A r o U t I Law dot com. 549 00:30:45,440 --> 00:30:47,040 Speaker 2: And if you like to order a copy of my 550 00:30:47,080 --> 00:30:49,720 Speaker 2: best selling book, Love, Death and Money, you can get 551 00:30:49,760 --> 00:30:52,800 Speaker 2: it on Amazon dot com. It's available in paperback and 552 00:30:52,880 --> 00:30:55,720 Speaker 2: kindle version. This is a legal guide for you on 553 00:30:55,840 --> 00:30:59,320 Speaker 2: how you can protect yourself during different stages of life. Again, 554 00:30:59,360 --> 00:31:02,320 Speaker 2: the book is called Love, Death and Money. All right, 555 00:31:02,360 --> 00:31:04,440 Speaker 2: let's go to some callers. Katie, you're on the air 556 00:31:04,480 --> 00:31:06,320 Speaker 2: on talk radio seven ninety KBCE. 557 00:31:06,320 --> 00:31:07,000 Speaker 1: What's your question? 558 00:31:08,320 --> 00:31:10,840 Speaker 3: Him? So glad to be able to speak with you. 559 00:31:12,400 --> 00:31:16,600 Speaker 3: I have been dealing with a cousin who had passed 560 00:31:16,600 --> 00:31:19,680 Speaker 3: away over with an overdose. Oh, I'm sorry, and he 561 00:31:19,800 --> 00:31:24,000 Speaker 3: had thank you. He had made a trust before he 562 00:31:24,600 --> 00:31:29,800 Speaker 3: passed because he was waiting for settlement money and he 563 00:31:31,000 --> 00:31:34,640 Speaker 3: made the trust. I was named in the trust basically 564 00:31:34,680 --> 00:31:39,560 Speaker 3: to give whatever he got to me. And then he 565 00:31:39,640 --> 00:31:44,920 Speaker 3: died about ten days before receiving the money. And when 566 00:31:44,960 --> 00:31:51,120 Speaker 3: he died, his trust lawyer told me that literally that 567 00:31:51,240 --> 00:31:53,920 Speaker 3: day he told me, oh, we need to send this 568 00:31:54,120 --> 00:31:57,240 Speaker 3: through probate. And I was like what, I'm like, I 569 00:31:57,240 --> 00:31:58,680 Speaker 3: don't like that word probrate. 570 00:31:59,040 --> 00:32:04,640 Speaker 4: Now he has a trust, and then he said, because 571 00:32:04,840 --> 00:32:08,160 Speaker 4: he doesn't have assets right now to put in the trust, right, 572 00:32:08,640 --> 00:32:09,240 Speaker 4: we need to. 573 00:32:09,120 --> 00:32:12,320 Speaker 3: Go through probate. And then ten days later we got 574 00:32:12,320 --> 00:32:15,480 Speaker 3: the settlement and now I'm dealing with the court. 575 00:32:15,840 --> 00:32:19,600 Speaker 2: Yeah, so what ends up happening and I'm so sorry 576 00:32:19,640 --> 00:32:21,959 Speaker 2: that you had to go through that. What ends up 577 00:32:21,960 --> 00:32:26,280 Speaker 2: happening is he created the trust, but no assets were 578 00:32:26,360 --> 00:32:29,600 Speaker 2: funded in the trust. But he had the intention that 579 00:32:30,080 --> 00:32:32,960 Speaker 2: when I get this settlement, this is how I want 580 00:32:32,960 --> 00:32:34,600 Speaker 2: the settlement to be distributed. 581 00:32:34,760 --> 00:32:37,720 Speaker 1: Now, your attorney should should. 582 00:32:37,400 --> 00:32:41,400 Speaker 2: Have filed something called a hegstat petition, which is a 583 00:32:41,440 --> 00:32:45,840 Speaker 2: faster process to go through probate, meaning that your cousin 584 00:32:46,120 --> 00:32:49,840 Speaker 2: already had the intent of receiving this money and giving 585 00:32:49,880 --> 00:32:50,560 Speaker 2: this money to you. 586 00:32:50,680 --> 00:32:52,080 Speaker 1: That's why he created the trust. 587 00:32:52,520 --> 00:32:53,960 Speaker 3: So with a hex he did that. 588 00:32:54,080 --> 00:32:57,640 Speaker 2: Okay, So even though it doesn't make sense of why 589 00:32:57,680 --> 00:33:01,960 Speaker 2: you have to go through probate, your attorney is doing 590 00:33:02,000 --> 00:33:04,959 Speaker 2: the right The attorney's doing the right thing. It's just 591 00:33:05,000 --> 00:33:08,560 Speaker 2: because nothing had been properly transferred into that trust to 592 00:33:08,720 --> 00:33:10,480 Speaker 2: give you to avoid probate. 593 00:33:11,240 --> 00:33:12,400 Speaker 1: So that's what. 594 00:33:12,280 --> 00:33:17,000 Speaker 3: About go ahead, What about the trust? When the when 595 00:33:17,120 --> 00:33:19,920 Speaker 3: when the lawyer made the trust, if he had actually 596 00:33:19,960 --> 00:33:23,280 Speaker 3: put the settlement in the trust, then would that have 597 00:33:23,480 --> 00:33:26,240 Speaker 3: changed it. You make a mistake by not doing that. 598 00:33:26,600 --> 00:33:30,600 Speaker 2: So once he received that money, the if the attorney 599 00:33:30,640 --> 00:33:33,760 Speaker 2: had already received the money before your cousin passed away, 600 00:33:34,160 --> 00:33:37,720 Speaker 2: he should have transferred that money into a trust account 601 00:33:37,720 --> 00:33:40,960 Speaker 2: that your cousin prepared. So when your cousin, when your 602 00:33:41,000 --> 00:33:43,920 Speaker 2: cousin created that trust, he should have gone to a 603 00:33:43,960 --> 00:33:46,800 Speaker 2: bank and opened a bank account under that trust name. 604 00:33:47,280 --> 00:33:50,680 Speaker 2: When your attorney when that attorney. Yeah, so that's that's 605 00:33:50,640 --> 00:33:53,800 Speaker 2: why that yeah, yeah, because he had already he had 606 00:33:53,800 --> 00:33:57,440 Speaker 2: already passed away before the money was available. So I'm 607 00:33:57,480 --> 00:33:59,320 Speaker 2: really sorry that you had to go through that. But 608 00:33:59,400 --> 00:34:03,000 Speaker 2: at least your cousin had the you know, the the 609 00:34:03,080 --> 00:34:05,960 Speaker 2: insight to make sure to even create that trust, because 610 00:34:05,960 --> 00:34:08,200 Speaker 2: then you would have probably been fighting with other family 611 00:34:08,239 --> 00:34:10,160 Speaker 2: members to get that settlement money, do you know what 612 00:34:10,239 --> 00:34:10,520 Speaker 2: I mean? 613 00:34:10,960 --> 00:34:15,359 Speaker 3: Yeah, his brother, Yeah, that's really yeah. Yeah, I'm sorry. Yeah, 614 00:34:15,400 --> 00:34:17,160 Speaker 3: I just want to make sure that it was right 615 00:34:17,239 --> 00:34:19,759 Speaker 3: and that nobody was screwing me over. 616 00:34:20,120 --> 00:34:20,920 Speaker 1: No, you're good. 617 00:34:21,040 --> 00:34:23,160 Speaker 2: I'm sorry that you had to go through that, and 618 00:34:23,239 --> 00:34:25,239 Speaker 2: I hope that you can go through this process as 619 00:34:25,280 --> 00:34:27,600 Speaker 2: quickly as possible. 620 00:34:27,160 --> 00:34:29,640 Speaker 1: And you honor your cousin by always remembering him. 621 00:34:30,320 --> 00:34:31,919 Speaker 3: That's so awesome. Thank you so much. 622 00:34:32,000 --> 00:34:35,200 Speaker 1: Welcome, thank you, Katie. Oh that's so hard to hear. 623 00:34:35,360 --> 00:34:38,880 Speaker 2: And you know, these things happen, and it's just sometimes 624 00:34:38,920 --> 00:34:42,040 Speaker 2: people have the right intent, but the last step that's 625 00:34:42,080 --> 00:34:46,520 Speaker 2: needed just doesn't get met while that person's alive, and 626 00:34:46,840 --> 00:34:49,760 Speaker 2: you still have to go through probate. So we're sending 627 00:34:49,760 --> 00:34:51,279 Speaker 2: you a lot of love and I hope that this 628 00:34:51,360 --> 00:34:54,960 Speaker 2: process goes through very quickly for you. Now we've been 629 00:34:55,000 --> 00:35:00,800 Speaker 2: talking about revocable trusts and how it have voids probate. 630 00:35:00,880 --> 00:35:02,800 Speaker 2: But one thing that I want to make very clear 631 00:35:03,480 --> 00:35:06,960 Speaker 2: is that when you have a revocable trust, the revocable 632 00:35:07,000 --> 00:35:08,359 Speaker 2: trust is only helping you. 633 00:35:08,440 --> 00:35:10,200 Speaker 1: Avoid probate court. 634 00:35:10,560 --> 00:35:13,719 Speaker 2: And there is a lot of misinformation online and I 635 00:35:13,800 --> 00:35:17,480 Speaker 2: see YouTube videos, I see TikTok videos, I see posts 636 00:35:17,480 --> 00:35:23,520 Speaker 2: on Instagram where non legal professionals are stating that if 637 00:35:23,520 --> 00:35:26,560 Speaker 2: you have a revocable trust and you put your assets 638 00:35:26,560 --> 00:35:31,719 Speaker 2: in a revocable trust, you avoid any potential lawsuit claims. 639 00:35:32,440 --> 00:35:35,799 Speaker 2: And that couldn't be further from the truth. If you 640 00:35:35,920 --> 00:35:39,919 Speaker 2: have a revocable trust, you can still get sued and 641 00:35:40,239 --> 00:35:43,920 Speaker 2: that creditor if they win a judgment against you, or 642 00:35:43,960 --> 00:35:46,799 Speaker 2: if there is a lawsuit and the you know, they 643 00:35:46,840 --> 00:35:50,279 Speaker 2: win and the judge files a claim that they can 644 00:35:50,280 --> 00:35:53,920 Speaker 2: go after your assets. The assets in a revocable trust 645 00:35:54,080 --> 00:35:59,160 Speaker 2: can be accessed. Okay, A revocable trust does not prevent 646 00:35:59,200 --> 00:36:01,799 Speaker 2: a creditor from coming after that asset. And everyone's like, 647 00:36:01,840 --> 00:36:04,279 Speaker 2: but why it's a trust, Like, I mean, I don't 648 00:36:04,320 --> 00:36:07,719 Speaker 2: own it anymore, Yes, you do. A revocable trust is 649 00:36:07,840 --> 00:36:09,839 Speaker 2: usually managed by you. 650 00:36:09,840 --> 00:36:11,359 Speaker 1: You are in control over it. 651 00:36:11,960 --> 00:36:15,400 Speaker 2: And if you are concerned about acid protection, that is 652 00:36:15,440 --> 00:36:19,440 Speaker 2: a completely different type of trust. And it's important to 653 00:36:19,480 --> 00:36:23,760 Speaker 2: have this conversation about acid protection because every thirty seconds 654 00:36:23,760 --> 00:36:27,040 Speaker 2: a lawsuit is filed in this country. In twenty twenty 655 00:36:27,080 --> 00:36:30,600 Speaker 2: three alone, there were about sixty nine million lawsuits filed 656 00:36:30,600 --> 00:36:35,000 Speaker 2: in this country. So it's very important to make sure 657 00:36:35,239 --> 00:36:39,040 Speaker 2: if you are concerned about lawsuits, that you create an 658 00:36:39,080 --> 00:36:43,319 Speaker 2: acid protection plan before a lawsuit is filed. And there 659 00:36:43,320 --> 00:36:46,120 Speaker 2: are certain groups of Americans that need to create an 660 00:36:46,160 --> 00:36:50,959 Speaker 2: acid protection before something happens. Now, if you fall within 661 00:36:51,000 --> 00:36:53,520 Speaker 2: one of these groups you need to make sure to 662 00:36:53,560 --> 00:36:57,120 Speaker 2: call my office immediately. One if you have paid off 663 00:36:57,160 --> 00:37:00,839 Speaker 2: property and you're just holding title in your personal name 664 00:37:00,960 --> 00:37:01,200 Speaker 2: or in. 665 00:37:01,160 --> 00:37:02,120 Speaker 1: A revocable trust. 666 00:37:02,920 --> 00:37:05,800 Speaker 2: Two if you are a landlord and you have tenants, 667 00:37:05,880 --> 00:37:08,880 Speaker 2: so you own an apartment complex or you have a 668 00:37:08,880 --> 00:37:11,880 Speaker 2: commercial building and you have tenants, it's really important for 669 00:37:11,920 --> 00:37:15,719 Speaker 2: you to have acid protection. Three you have children under 670 00:37:15,719 --> 00:37:19,200 Speaker 2: the age of eighteen that are now driving. They are 671 00:37:19,239 --> 00:37:22,279 Speaker 2: a liability as a sixteen year old who's driving a 672 00:37:22,400 --> 00:37:25,480 Speaker 2: Tesla that's like a computer versus an actual vehicle, and 673 00:37:25,520 --> 00:37:28,640 Speaker 2: they get distracted and they're with their friends. If that 674 00:37:28,760 --> 00:37:31,800 Speaker 2: child gets into a car accident, they're coming after the parent. 675 00:37:32,160 --> 00:37:34,880 Speaker 1: Okay. Four. 676 00:37:35,080 --> 00:37:37,879 Speaker 2: If you are a business owner, you need to make 677 00:37:37,920 --> 00:37:41,560 Speaker 2: sure that you have acid protection. And the last group 678 00:37:41,640 --> 00:37:43,920 Speaker 2: of individuals that need to make sure that they are 679 00:37:44,000 --> 00:37:46,919 Speaker 2: highly protected is if you are in a profession where 680 00:37:46,960 --> 00:37:49,440 Speaker 2: you are at high risk for getting sued. And I'm 681 00:37:49,480 --> 00:37:54,400 Speaker 2: talking about physicians and people in the construction business now. 682 00:37:54,520 --> 00:37:58,080 Speaker 2: When we're talking about acid protection, the first line of 683 00:37:58,120 --> 00:38:01,799 Speaker 2: defense always is to make sure that you have insurance, 684 00:38:02,280 --> 00:38:05,560 Speaker 2: that you have malpractice insurance, that you have car insurance, 685 00:38:05,600 --> 00:38:10,280 Speaker 2: that you have umbrella insurance, but unfortunately there are policy 686 00:38:10,320 --> 00:38:14,000 Speaker 2: limits when dealing with insurance carriers, and not only that 687 00:38:14,360 --> 00:38:18,120 Speaker 2: your insurance carrier can deny your claim. I always say 688 00:38:18,200 --> 00:38:20,840 Speaker 2: that insurance companies are not in the business of paying 689 00:38:20,880 --> 00:38:23,400 Speaker 2: out claims. They are in the business of denying claims 690 00:38:23,719 --> 00:38:26,799 Speaker 2: because they strategically write these policies where there's a gray 691 00:38:26,880 --> 00:38:30,319 Speaker 2: area and they can deny your claim and say that no, 692 00:38:30,400 --> 00:38:33,920 Speaker 2: you were actually a fault. So that is your first 693 00:38:33,920 --> 00:38:36,000 Speaker 2: line of defense, but we want to make sure that 694 00:38:36,200 --> 00:38:39,480 Speaker 2: if that line of defense doesn't block a potential creditor, 695 00:38:40,080 --> 00:38:42,919 Speaker 2: that we have a second line of defense, and that's 696 00:38:42,960 --> 00:38:47,160 Speaker 2: making sure that you maximize your exempt assets, meaning there 697 00:38:47,200 --> 00:38:50,759 Speaker 2: are certain assets that you can have that are protected 698 00:38:50,840 --> 00:38:55,800 Speaker 2: by state statute where a creditor cannot access them. For example, 699 00:38:55,920 --> 00:38:59,120 Speaker 2: retirement accounts like four to oh one k's and define 700 00:38:59,160 --> 00:39:05,600 Speaker 2: benefit plans. A judgment on you cannot access that money 701 00:39:05,680 --> 00:39:08,600 Speaker 2: in an account, a creditor can't come after it. Now, 702 00:39:08,680 --> 00:39:12,520 Speaker 2: iras have limits, So for those of you that haven't 703 00:39:12,520 --> 00:39:14,160 Speaker 2: opened to four to one K or can do a 704 00:39:14,160 --> 00:39:16,799 Speaker 2: defined benefit plan, I highly recommend that you call our 705 00:39:16,800 --> 00:39:19,120 Speaker 2: office so we can help you with that. And many 706 00:39:19,200 --> 00:39:24,280 Speaker 2: of you are overfunding taxable accounts and underfunding protected vehicles 707 00:39:24,400 --> 00:39:25,960 Speaker 2: like I just mentioned, like the four to one K 708 00:39:26,120 --> 00:39:30,640 Speaker 2: or a defined benefit plan. So maximizing your exempt assets 709 00:39:30,680 --> 00:39:31,960 Speaker 2: is also very important. 710 00:39:32,719 --> 00:39:33,000 Speaker 1: Three. 711 00:39:33,400 --> 00:39:36,600 Speaker 2: Setting up proper business entities. If you're a business owner, 712 00:39:36,960 --> 00:39:39,600 Speaker 2: I can't tell you how many people are just sole proprietors. 713 00:39:40,320 --> 00:39:43,000 Speaker 2: If you're a sole proprietor, if you get sued, all 714 00:39:43,000 --> 00:39:44,280 Speaker 2: of your assets are at risk. 715 00:39:44,920 --> 00:39:48,040 Speaker 1: So with the. 716 00:39:47,040 --> 00:39:50,320 Speaker 2: Ability for you to create a corporation or a limited 717 00:39:50,320 --> 00:39:54,319 Speaker 2: liability company that can save you tremendously. That's another line 718 00:39:54,320 --> 00:39:57,520 Speaker 2: of defense. And I always state that you should have 719 00:39:57,600 --> 00:40:00,600 Speaker 2: one entity that is going to earn income and one 720 00:40:00,719 --> 00:40:04,480 Speaker 2: entity that's going to own assets like equipment and real estate. 721 00:40:04,840 --> 00:40:08,040 Speaker 2: Now I have a lot of clients that are gas 722 00:40:08,080 --> 00:40:11,400 Speaker 2: station owners, and not only do they own the business 723 00:40:11,520 --> 00:40:13,680 Speaker 2: of the gas station, but they own the land that 724 00:40:13,719 --> 00:40:16,319 Speaker 2: the gas station is on. So the way that we 725 00:40:16,400 --> 00:40:19,399 Speaker 2: protect them is we start a corporation for the gas 726 00:40:19,480 --> 00:40:22,720 Speaker 2: station and then the land is owned by a limited 727 00:40:22,760 --> 00:40:27,479 Speaker 2: liability company. So the limited liability company has a lease 728 00:40:27,520 --> 00:40:30,520 Speaker 2: agreement with the corporation so that they can operate this 729 00:40:30,680 --> 00:40:33,960 Speaker 2: gas station on their land. So the corporation pays rent 730 00:40:34,040 --> 00:40:37,400 Speaker 2: to the limited liability company. They are two separate business 731 00:40:37,719 --> 00:40:40,839 Speaker 2: So if the gas station gets sued or the LLC 732 00:40:40,960 --> 00:40:44,839 Speaker 2: gets sued, these assets are in separate entities. Okay, this 733 00:40:44,920 --> 00:40:49,960 Speaker 2: is very important, and you should also have asset protection trust. 734 00:40:50,040 --> 00:40:52,880 Speaker 2: Now I don't have enough time to go over what 735 00:40:52,960 --> 00:40:54,560 Speaker 2: an acid protection trust. 736 00:40:54,680 --> 00:40:57,480 Speaker 1: Looks like, but the general view of. 737 00:40:57,480 --> 00:40:59,759 Speaker 2: An acid protection trust, so you understand it is they 738 00:40:59,760 --> 00:41:04,640 Speaker 2: are usually irrevocable trusts. They're not like revocable trusts. They're 739 00:41:04,719 --> 00:41:08,520 Speaker 2: irrevocable trust and it shifts the asset out of your estate, 740 00:41:08,680 --> 00:41:12,480 Speaker 2: meaning you no longer own it. You've transferred it to 741 00:41:12,560 --> 00:41:16,239 Speaker 2: an irrevocable trust where somebody else is managing it. 742 00:41:16,719 --> 00:41:19,040 Speaker 1: You have to give up control. Now. 743 00:41:19,080 --> 00:41:23,000 Speaker 2: I can't if I had a dollar for every time 744 00:41:23,120 --> 00:41:25,960 Speaker 2: someone called me and said, I want to do acid protection, 745 00:41:26,320 --> 00:41:29,239 Speaker 2: but I don't want to do an irrevocable trust. I say, 746 00:41:29,280 --> 00:41:31,399 Speaker 2: I'm sorry, I can't help you. You have to give 747 00:41:31,480 --> 00:41:35,320 Speaker 2: up control. If you are controlling an irrevocable trust, it's 748 00:41:35,360 --> 00:41:37,840 Speaker 2: there's no protection for you. A judge is going to say, 749 00:41:38,200 --> 00:41:39,799 Speaker 2: wait a minute, this is irrevocable. 750 00:41:40,000 --> 00:41:42,200 Speaker 1: You're in control over it. There's no acid protection. 751 00:41:42,520 --> 00:41:45,759 Speaker 2: A creditor can access the assets within this trust, So 752 00:41:46,239 --> 00:41:49,040 Speaker 2: that is the hardest part for clients to give up 753 00:41:49,080 --> 00:41:52,839 Speaker 2: that control. But guess what, there's something called a protector 754 00:41:53,600 --> 00:41:55,880 Speaker 2: that can make sure that if you have issues with 755 00:41:55,960 --> 00:41:59,480 Speaker 2: the person managing it, they could remove the trustee. So 756 00:41:59,560 --> 00:42:02,680 Speaker 2: there are always safeguards available to you when creating an 757 00:42:02,880 --> 00:42:09,440 Speaker 2: irrevocable trust and also avoiding common mistakes putting too much 758 00:42:09,680 --> 00:42:12,160 Speaker 2: wealth in your personal accounts. I can't tell you how 759 00:42:12,160 --> 00:42:15,080 Speaker 2: many times I have seen clients that have a million 760 00:42:15,120 --> 00:42:18,200 Speaker 2: dollars just sitting in a checking account or six figures, 761 00:42:18,760 --> 00:42:23,600 Speaker 2: like what are you doing in their personal names. Also, 762 00:42:23,640 --> 00:42:29,480 Speaker 2: you should not be guaranteeing everything personally, and waiting until 763 00:42:29,480 --> 00:42:32,959 Speaker 2: a complaint is filed before doing anything is sometimes too late. 764 00:42:33,400 --> 00:42:35,799 Speaker 1: You want to make sure even with a state. 765 00:42:35,560 --> 00:42:38,839 Speaker 2: Planning and creating a revocable trust with acid protection, it's 766 00:42:38,880 --> 00:42:41,799 Speaker 2: the same. Timing is everything. You want to make sure 767 00:42:41,840 --> 00:42:45,640 Speaker 2: to do this before something bad happens. Not having a 768 00:42:45,680 --> 00:42:48,840 Speaker 2: plan is like driving your car on the freeway without 769 00:42:48,840 --> 00:42:51,880 Speaker 2: your seat belt on. If something bad goes down, you 770 00:42:51,880 --> 00:42:53,799 Speaker 2: get into a car accident and you have to be 771 00:42:53,880 --> 00:42:57,200 Speaker 2: rushed to the hospital, you can't tell the paramedics, hey, 772 00:42:57,239 --> 00:42:59,400 Speaker 2: I want to go back and put my seat belt on. 773 00:43:00,080 --> 00:43:02,560 Speaker 2: So we want to make sure that you are creating 774 00:43:03,040 --> 00:43:06,920 Speaker 2: these documents ahead of time so you are prepared. Again, 775 00:43:07,040 --> 00:43:09,400 Speaker 2: if you fall within one of these groups, it is 776 00:43:09,480 --> 00:43:12,560 Speaker 2: important for you to have ACID protection if you have 777 00:43:12,640 --> 00:43:15,799 Speaker 2: paid off property, if you are a landlord and you 778 00:43:15,800 --> 00:43:18,719 Speaker 2: have tenants, if you have children under the age of 779 00:43:18,760 --> 00:43:22,080 Speaker 2: eighteen who are driving, if you are a business owner 780 00:43:22,560 --> 00:43:25,120 Speaker 2: and you or you are in a profession that is 781 00:43:25,320 --> 00:43:27,960 Speaker 2: a high risk for getting sued like a physician, or 782 00:43:27,960 --> 00:43:31,320 Speaker 2: if you are in the construction business, it is important 783 00:43:31,360 --> 00:43:34,800 Speaker 2: that you, in addition to a revocable trust, have ACID 784 00:43:34,840 --> 00:43:39,400 Speaker 2: protection to make sure that creditors cannot easily access the 785 00:43:39,440 --> 00:43:41,200 Speaker 2: assets that you have acquired. 786 00:43:41,640 --> 00:43:43,400 Speaker 1: Again, this is important. 787 00:43:43,000 --> 00:43:46,799 Speaker 2: To make sure that you work with a professional to 788 00:43:46,840 --> 00:43:50,120 Speaker 2: have a plan because every thirty seconds a lawsuit is filed. 789 00:43:50,960 --> 00:43:52,960 Speaker 2: You're listening to Love, Death and Money on Talk Radio 790 00:43:53,000 --> 00:43:55,280 Speaker 2: seven ninety KBC. If you want to make an appointment 791 00:43:55,280 --> 00:43:57,719 Speaker 2: with me, Attorney Nosbruty, you can give my office a 792 00:43:57,760 --> 00:44:00,680 Speaker 2: call right now at four to two four four six 793 00:44:00,880 --> 00:44:03,160 Speaker 2: five nine zero zero three. 794 00:44:03,600 --> 00:44:08,440 Speaker 1: That's four two four four six five nine zero zero three. 795 00:44:08,920 --> 00:44:12,280 Speaker 2: Or you can visit my website Burrudi Law dot com. 796 00:44:12,320 --> 00:44:16,520 Speaker 2: That's b a r o u ti Law dot com. 797 00:44:16,960 --> 00:44:19,080 Speaker 2: And for those of you that are tech savvy, you 798 00:44:19,120 --> 00:44:23,480 Speaker 2: can visit my Instagram page at Burrudi Law. There is 799 00:44:23,520 --> 00:44:26,000 Speaker 2: a link in my bio where you can click and 800 00:44:26,400 --> 00:44:30,360 Speaker 2: schedule an appointment directly with me for a complimentary fifteen 801 00:44:30,400 --> 00:44:33,120 Speaker 2: minute phone call. Again, you can go to my Instagram 802 00:44:33,160 --> 00:44:34,920 Speaker 2: page at Baruti. 803 00:44:34,520 --> 00:44:37,560 Speaker 1: Law b a r o u t I Law. 804 00:44:38,239 --> 00:44:41,359 Speaker 2: Again, the number to reach me Attorney nos Berruti is 805 00:44:41,400 --> 00:44:45,920 Speaker 2: four two four four six five nine zero zero three. 806 00:44:46,080 --> 00:44:50,280 Speaker 2: Four two four four six five nine zero zero three. 807 00:44:50,560 --> 00:44:52,200 Speaker 2: And if you like to order a copy of my 808 00:44:52,239 --> 00:44:54,920 Speaker 2: best selling book, Love Death and Money, you can get 809 00:44:54,960 --> 00:44:58,320 Speaker 2: it on Amazon dot com. It's available in paperback and 810 00:44:58,440 --> 00:45:00,799 Speaker 2: kindle version. Again, this is a lead guide for you 811 00:45:00,920 --> 00:45:04,040 Speaker 2: on how you can protect yourself during different stages of life. 812 00:45:04,200 --> 00:45:06,320 Speaker 2: It's called Love, Death and Money. 813 00:45:06,640 --> 00:45:08,840 Speaker 1: Again. To make an appointment with me, Attorney. 814 00:45:08,520 --> 00:45:13,000 Speaker 2: Nosberruti four two four four six five nine zero zero three. 815 00:45:13,320 --> 00:45:15,400 Speaker 2: You're listening to Love, Death and Money on Talk Radio 816 00:45:15,560 --> 00:45:16,840 Speaker 2: seven ninety KABC