WEBVTT - Death Doesn't Discriminate Make a Plan Now 0:00:00.210 --> 0:00:01.810 Welcome to Love, Death & Money. 0:00:01.910 --> 0:00:07.040 I'm your host, Attorney Naz Baroudi on Talk Radio 790 KABC. 0:00:07.700 --> 0:00:10.600 If you have questions about trust, wills, probate, call the 0:00:10.619 --> 0:00:11.730 station right now at 1-800-222-5222. 0:00:11.740 --> 0:00:14.240 That's 1-800-222-KABC. If this is the first time you're joining 0:00:14.320 --> 0:00:16.340 the program, welcome. My name is Naz Baroudi. 0:00:23.850 --> 0:00:26.489 I've been practicing law in Southern California for the last 0:00:26.489 --> 0:00:30.030 15 years, focusing my practice on making sure that my 0:00:30.090 --> 0:00:32.940 clients have the proper legal documents for the day that 0:00:32.950 --> 0:00:36.900 they pass away or become incapacitated. Now, if you don't 0:00:37.000 --> 0:00:39.640 have an end of life plan, the state of California 0:00:39.700 --> 0:00:42.920 has one for you. And trust me, you are not 0:00:43.020 --> 0:00:45.250 going to like it. For the next hour, I'm going 0:00:45.270 --> 0:00:48.529 to share with you some general information that will help 0:00:48.570 --> 0:00:52.120 you better decide on how to protect your family. As always, 0:00:52.180 --> 0:00:55.720 this information is general in nature. You should always consult 0:00:55.780 --> 0:00:59.740 an attorney about your particular situation. To get more information 0:00:59.780 --> 0:01:07.930 about my practice, you can visit my website, BarutiLaw.com. That's B-A-R-U-T-I-Law.com. Well, 0:01:07.950 --> 0:01:11.510 we've got a lot to go over tonight. Let's talk 0:01:11.550 --> 0:01:15.190 about what end-of-life planning is. Why is it a concern 0:01:15.330 --> 0:01:19.130 for you to get all this information? And what do 0:01:19.170 --> 0:01:22.510 you need to do? So information without implementation is a 0:01:22.530 --> 0:01:24.440 waste of time. So I hope by the end of 0:01:24.470 --> 0:01:28.319 the program tonight, you understand the importance of end-of-life planning 0:01:28.459 --> 0:01:32.240 and then you make a plan to either come into 0:01:32.300 --> 0:01:35.000 our office or call us with any additional questions that 0:01:35.040 --> 0:01:35.420 you have. 0:01:36.220 --> 0:01:37.300 Now, 72% of women and 59% of men. 0:01:40.040 --> 0:01:42.560 In a recent survey said they do not have an 0:01:42.760 --> 0:01:48.670 end-of-life plan. The top reason cited for those that have 0:01:48.790 --> 0:01:51.790 not created a plan is they believe they do not 0:01:51.870 --> 0:01:56.270 have enough money to warrant one. Now, if I told 0:01:56.330 --> 0:01:59.920 you that if you have about $ 209, 000 in assets, you 0:01:59.940 --> 0:02:01.900 need an end-of-life plan, you might be shocked. 0:02:01.980 --> 0:02:12.380 But that's the reality. that if you have about $ 208, 850. 0:02:10.160 --> 0:02:19.139 In assets, meaning bank account, real estate, personal items, your car, jewelry, 0:02:19.520 --> 0:02:21.660 if you add all those things up and it equals 0:02:21.700 --> 0:02:26.239 that amount or more, you need to have an end-of-life plan. Now, 0:02:26.260 --> 0:02:29.220 a lot of listeners will ask me, well, I have 0:02:29.260 --> 0:02:32.419 a mortgage on my house. Do I count the whole 0:02:32.520 --> 0:02:35.520 value of the house? Yes, you count the whole value 0:02:35.560 --> 0:02:38.530 of the house. It doesn't matter if you have a loan. Now, 0:02:39.010 --> 0:02:41.880 when you don't create an end of life plan, what happens? 0:02:41.960 --> 0:02:45.679 What is this plan that the state of California has? 0:02:45.800 --> 0:02:49.260 And why should we be concerned and not go through 0:02:49.300 --> 0:02:53.000 that process and create our own plan? Well, it's called 0:02:53.080 --> 0:02:55.680 probate court. That is the plan that the state has 0:02:55.760 --> 0:02:59.410 for you. And it is not ideal for many reasons. 0:02:59.990 --> 0:03:05.709 One being that this process of probate court is extremely expensive. 0:03:06.590 --> 0:03:11.110 So typically, an attorney, a probate attorney, your family will 0:03:11.150 --> 0:03:13.810 have to hire one to go through this process, can 0:03:13.870 --> 0:03:19.570 charge under two ways, statutory fees and extraordinary fees. Now, 0:03:19.660 --> 0:03:24.200 statutory fees are based on the value of the estate. So, 0:03:24.380 --> 0:03:30.180 for example, the first 4% of the estate, they can take. 0:03:30.860 --> 0:03:31.320 I'm sorry. 0:03:32.020 --> 0:03:35.620 on the first $ 100, 000 of the estate value, an attorney 0:03:35.640 --> 0:03:40.280 can take 4%. On the next 100,000, they take 3%. 0:03:40.280 --> 0:03:44.000 On the next 800,000, the attorney takes 2%. And on 0:03:44.040 --> 0:03:47.040 the next 9 million, they can take a percent. Okay, 0:03:47.060 --> 0:03:49.220 so this all adds up depending on the value of 0:03:49.260 --> 0:03:54.370 the estate. But in addition to statutory fees, extraordinary fees 0:03:54.850 --> 0:03:58.570 are also included. This means that if there's any litigation 0:03:58.690 --> 0:04:02.140 issues that the attorney has to deal with, If there's 0:04:02.640 --> 0:04:05.320 the sale of real estate and any other issues that 0:04:05.370 --> 0:04:09.110 arise through probate, the attorney can charge an hourly fee. 0:04:09.810 --> 0:04:13.870 So if you add the statutory fees and the extraordinary fees, 0:04:13.950 --> 0:04:16.650 this becomes very, very expensive. 0:04:17.170 --> 0:04:18.409 So I have seen some. 0:04:18.310 --> 0:04:21.870 Estates where 50 to 60 percent has been completely wiped 0:04:21.990 --> 0:04:23.630 out just in legal fees. 0:04:24.350 --> 0:04:26.830 And you have to ask yourself what makes more. 0:04:26.690 --> 0:04:29.640 Sense to work with an attorney now to create an 0:04:29.710 --> 0:04:33.240 end of life plan and pay significantly less than what 0:04:33.300 --> 0:04:37.380 probate fees would be or to allow the state to 0:04:37.520 --> 0:04:40.900 step in and implement their plan and have your family 0:04:40.980 --> 0:04:45.880 pay an attorney a huge amount of money unnecessarily to 0:04:46.100 --> 0:04:48.900 access the assets that you would want your family to have. 0:04:49.740 --> 0:04:52.839 I have seen some attorneys make high six figures on 0:04:52.900 --> 0:04:57.980 just one probate case. The second reason you do not 0:04:58.040 --> 0:05:02.110 want to go through probate is this is a time-consuming process. 0:05:02.630 --> 0:05:05.770 On average, it can take anywhere from a year to 0:05:05.850 --> 0:05:09.010 two years to go through this process. And that means 0:05:09.070 --> 0:05:13.029 during that time period, your family members will not be 0:05:13.130 --> 0:05:17.350 able to access the assets. Everything is frozen until the 0:05:17.410 --> 0:05:21.450 court proceeding is completed. That means nobody can go into 0:05:21.510 --> 0:05:24.880 a bank and access bank accounts. Nobody can sell property. 0:05:25.310 --> 0:05:29.360 Nobody can liquidate retirement accounts. And you have to wait 0:05:29.760 --> 0:05:34.980 until this process is over. This becomes very concerning when 0:05:35.180 --> 0:05:38.300 you need to access bank accounts to be able to 0:05:38.880 --> 0:05:43.799 pay for a mortgage, a car note, other credit card expenses, 0:05:43.900 --> 0:05:46.539 funeral expenses. That means you have to try to figure 0:05:46.600 --> 0:05:48.920 out a way to pay out of pocket to make 0:05:49.040 --> 0:05:51.570 sure that Real estate doesn't get foreclosed. 0:05:51.630 --> 0:05:53.090 Cars don't get repossessed. 0:05:53.810 --> 0:05:58.359 And after somebody dies, you also have six months to 0:05:58.420 --> 0:06:00.480 pay any IRS debt. 0:06:01.380 --> 0:06:03.300 So within that period. 0:06:03.800 --> 0:06:07.100 If you don't complete the probate process, you're going to 0:06:07.140 --> 0:06:09.990 have to find a way to pay all these expenses 0:06:10.050 --> 0:06:13.480 and then get reimbursed. There's a misconception that you can 0:06:13.520 --> 0:06:16.180 just walk into the bank and say, I'm so-and-so's wife. 0:06:16.260 --> 0:06:19.360 You've been seeing me every day for the last 30 years. 0:06:19.440 --> 0:06:22.940 Come into the branch with my spouse. Let me access it. 0:06:23.279 --> 0:06:24.820 They're going to look at you like you have two 0:06:24.860 --> 0:06:28.460 heads because legally they are not allowed to disclose anything 0:06:28.500 --> 0:06:31.060 to you, give you access to anything. So you have 0:06:31.080 --> 0:06:34.680 to wait till this process is completed. And finally, this 0:06:35.020 --> 0:06:39.630 all becomes public record. And when things become public, People 0:06:39.670 --> 0:06:43.859 become really creative in trying to figure out ways to 0:06:43.940 --> 0:06:46.760 say that they are a creditor of the estate and 0:06:46.820 --> 0:06:49.620 they are owed X, Y, and Z. We see this 0:06:49.680 --> 0:06:53.760 happen all the time with celebrity cases where people will say, oh, 0:06:54.040 --> 0:06:57.180 you know, he actually owed me this or I'm his 0:06:57.300 --> 0:06:59.860 child and he didn't know I was his child. It 0:06:59.920 --> 0:07:03.260 creates an opportunity for people to get very, very creative 0:07:03.380 --> 0:07:07.710 and stall the process of being able to access the 0:07:07.830 --> 0:07:11.390 assets that are left behind for you. So the solution 0:07:11.830 --> 0:07:16.780 would be to create an end-of-life plan before something happens. 0:07:17.290 --> 0:07:21.330 before you become incapacitated, before, God forbid, you pass away, 0:07:21.770 --> 0:07:24.750 you want to have an end-of-life plan like a revocable 0:07:24.810 --> 0:07:28.390 trust where you control your asset while you are alive. 0:07:29.090 --> 0:07:30.530 And when you pass. 0:07:30.210 --> 0:07:34.750 Away, there's no court involvement because you have named your beneficiaries. 0:07:35.150 --> 0:07:38.170 You are controlling from the grave how your assets are 0:07:38.210 --> 0:07:42.030 to be distributed. You are naming someone or multiple people 0:07:42.070 --> 0:07:45.420 to manage the estate for you. And there's no need 0:07:45.480 --> 0:07:50.980 to have to go through this probate process. Now, despite 0:07:51.040 --> 0:07:54.230 me explaining the plan that the state of California has, 0:07:54.760 --> 0:07:57.890 there are many listeners that would prefer to have their 0:07:57.950 --> 0:07:59.670 family members deal with this. 0:07:59.590 --> 0:08:01.170 On their own when they're gone. 0:08:01.850 --> 0:08:04.730 But my question to those of you that don't want 0:08:04.750 --> 0:08:08.180 to deal with this is, Well, what if your biggest 0:08:08.360 --> 0:08:11.760 asset is real estate and you have one home and 0:08:11.780 --> 0:08:14.840 there's a mortgage on it and your family can't afford 0:08:14.960 --> 0:08:18.220 to find another home because maybe you had a good 0:08:18.340 --> 0:08:21.210 interest rate, they want to assume the loan, but that's 0:08:21.250 --> 0:08:23.350 the only asset that you have and it's going to 0:08:23.390 --> 0:08:26.630 go through probate. No attorney is going to take that 0:08:26.710 --> 0:08:30.130 case if there's no cash involved. And if you're not 0:08:30.150 --> 0:08:32.930 going to sell it, they can't take their fees from 0:08:33.010 --> 0:08:34.980 the sale of the home and So they're going to 0:08:35.120 --> 0:08:37.920 ask your family, okay, where do you plan on paying 0:08:38.020 --> 0:08:40.600 our legal fees? That means they would have to come 0:08:40.700 --> 0:08:44.100 up out of pocket for that amount to be able 0:08:44.140 --> 0:08:46.440 to pay the attorney to help them through this process. 0:08:46.860 --> 0:08:50.120 I have seen many families get stuck in this situation 0:08:50.900 --> 0:08:53.660 where they don't move forward with the probate and the 0:08:53.720 --> 0:08:55.839 title of the house stays in the name of. 0:08:55.800 --> 0:08:57.100 The person who passed away. 0:08:57.559 --> 0:09:01.469 And this just continues on from generation to generation to generation. 0:09:01.900 --> 0:09:05.690 And then Nobody really owns the property. You do not 0:09:05.750 --> 0:09:09.750 want your family to be in this situation. It's unnecessary 0:09:09.870 --> 0:09:13.940 when you have the option to create a plan and 0:09:14.059 --> 0:09:15.980 push out the government from. 0:09:16.220 --> 0:09:18.740 Being involved in your family situation. 0:09:19.860 --> 0:09:21.800 If you're just tuning in, you're listening to Love, Death, 0:09:21.860 --> 0:09:25.189 and Money on Talk Radio 790 KABC. If you need 0:09:25.210 --> 0:09:27.390 to create an end-of-life plan and you've been putting it 0:09:27.470 --> 0:09:29.449 off for way too long, I want you to give 0:09:29.510 --> 0:09:31.250 my office a call right now at 424-465-9003. 0:09:31.309 --> 0:09:31.890 That's 424-465-9003. 0:09:31.890 --> 0:09:46.340 Or you can visit my website, BarutiLaw.com. That's B-A-R-U-T-I-Law.com. And 0:09:46.380 --> 0:09:49.380 if you'd like to order a copy of my bestselling book, Love, Death, 0:09:49.440 --> 0:09:52.559 and Money, you can get it on amazon.com. It's available 0:09:52.620 --> 0:09:55.450 in paperback and Kindle version. This is a legal guide 0:09:55.510 --> 0:09:58.310 for you on how you can protect yourself during different 0:09:58.350 --> 0:10:01.200 stages of life. Again, the book is called love death 0:10:01.320 --> 0:10:04.780 and money and it's available on amazon.com we're going to 0:10:04.800 --> 0:10:06.680 take a quick break and when we come back we 0:10:06.710 --> 0:10:10.069 have tina baruti founder of new capital insurance solutions with 0:10:10.190 --> 0:10:13.370 us stay tuned welcome back to love death and money 0:10:13.470 --> 0:10:16.309 i'm your host attorney naz baruti on talk radio 790k 0:10:16.370 --> 0:10:20.849 abc If you have a question about trust, wills, probate, 0:10:20.890 --> 0:10:28.880 call the station right now at 1-800-222-5222. That's 1-800-222-KABC. We've 0:10:28.900 --> 0:10:32.059 been talking about the importance of end-of-life planning because if 0:10:32.100 --> 0:10:34.520 you don't have a plan, the state of California has 0:10:34.640 --> 0:10:36.970 one for you. And trust me, you're not going to 0:10:37.000 --> 0:10:40.210 like it because it's probate court. In addition to getting 0:10:40.230 --> 0:10:41.670 your legal documents in order. 0:10:42.170 --> 0:10:43.590 Another important part of an. 0:10:43.630 --> 0:10:48.080 Estate plan is preparing yourself financially. That includes not only 0:10:48.150 --> 0:10:53.600 planning for retirement expenses, but also being prepared for long-term costs. 0:10:54.120 --> 0:10:56.920 Our guest, Tina Brody, is the founder of New Capital 0:10:57.020 --> 0:11:01.320 Insurance Solutions. Tonight, she will share with us some insights 0:11:01.360 --> 0:11:05.199 into the long-term care insurance concept. Her office is based 0:11:05.260 --> 0:11:08.280 in Southern California. You can find more information about her 0:11:08.340 --> 0:11:13.319 practice online at newcapitalinsurance.com, or you can reach her office 0:11:13.340 --> 0:11:13.939 directly at 424-465-9001. 0:11:13.940 --> 0:11:14.160 That's 424-465-9001. 0:11:14.160 --> 0:11:18.400 Welcome back, Tina. Thanks for having me on the program, Naza. 0:11:25.900 --> 0:11:27.960 For those of you just tuning in, my name is 0:11:28.000 --> 0:11:30.819 Tina Baruti and I am licensed with the California Department 0:11:30.860 --> 0:11:36.229 of Insurance, license number 4287218. I am the founder of 0:11:36.390 --> 0:11:43.209 New Capital Insurance Solutions, license number 6011901. Now, before we begin, 0:11:43.290 --> 0:11:46.880 please note that these opinions are for general information only 0:11:46.960 --> 0:11:50.699 and are not intended to provide specific advice for any individual. 0:11:51.260 --> 0:11:54.580 please remember to consult with your financial professional to determine 0:11:54.640 --> 0:11:58.980 what may be appropriate for you. Now, September is recognized 0:11:59.300 --> 0:12:03.380 as Life Insurance Awareness Month. So far this month, we've 0:12:03.420 --> 0:12:07.179 discussed different types of life insurance from permanent to term. 0:12:07.710 --> 0:12:12.030 We discussed fixed indexed annuities last week. Tonight, I want 0:12:12.070 --> 0:12:15.569 to talk to your listeners, Naz, about the importance of 0:12:15.710 --> 0:12:19.830 planning for long-term care. If you don't have a plan 0:12:19.910 --> 0:12:25.410 for long-term care, you're faced with a triple burden. First, 0:12:25.670 --> 0:12:30.890 you have the emotional burden. Second, you have that administrative burden. 0:12:31.550 --> 0:12:35.770 And third, you have an economic burden. Now, when it 0:12:35.820 --> 0:12:39.339 comes to the emotional burden, you unfortunately have to cross 0:12:39.360 --> 0:12:43.160 that bridge yourself. So planning can definitely help lessen that stress, 0:12:43.260 --> 0:12:47.579 but you can't really ensure against all of the complicated 0:12:48.059 --> 0:12:52.790 emotions that arise when your loved one's health starts declining 0:12:53.010 --> 0:12:57.960 and they suddenly need around-the-clock care. The economic burden of 0:12:58.020 --> 0:13:02.160 long-term care, which is, you know, extremely expensive, is often 0:13:02.340 --> 0:13:07.730 the catalyst for these conversations with your financial planner. And 0:13:07.770 --> 0:13:11.150 the third and final burden, the administrative burden, is often 0:13:11.270 --> 0:13:15.130 a missed point. many people don't even think about it. 0:13:15.559 --> 0:13:18.640 And when I say administrative burden, I'm not just talking 0:13:18.679 --> 0:13:23.059 about the physical tasks of bathing your loved one, getting 0:13:23.100 --> 0:13:25.520 them in and out of bed, or helping feed them. 0:13:26.230 --> 0:13:31.150 I'm talking about arranging those care services, vetting people on 0:13:31.170 --> 0:13:34.030 your own, constantly having to wonder, is the nurse going 0:13:34.070 --> 0:13:34.910 to show up today? 0:13:35.030 --> 0:13:38.229 Can I even trust this person? The other day, I 0:13:38.350 --> 0:13:38.750 saw a. 0:13:38.929 --> 0:13:41.620 Young woman on the news saying, She drove down to 0:13:41.660 --> 0:13:45.699 Florida after her father stopped answering her calls and discovered 0:13:46.080 --> 0:13:49.790 his caretaker had moved everything out of the house, somehow 0:13:49.870 --> 0:13:52.130 transferred the deed to the house to her name, and 0:13:52.190 --> 0:13:55.150 didn't inform her that her dad had passed away. I mean, 0:13:55.170 --> 0:14:01.030 that's an absolute nightmare. In California, there are incredible new 0:14:01.130 --> 0:14:04.229 products on the market that will help you not only 0:14:04.390 --> 0:14:09.110 lessen that financial burden, but but also will handle all 0:14:09.170 --> 0:14:15.930 of that administrative headache. Many carriers are now offering concierge services. 0:14:16.070 --> 0:14:20.640 They're handling your bills. They're assigning you to caretakers across 0:14:20.680 --> 0:14:24.460 their trusted and vetted network so that when the time 0:14:24.540 --> 0:14:28.420 comes that you or your loved ones need long-term care, 0:14:28.920 --> 0:14:32.780 you and your family are better prepared to tackle this 0:14:32.880 --> 0:14:33.820 difficult period. 0:14:34.750 --> 0:14:37.670 That's a great point and not much different from what 0:14:37.750 --> 0:14:40.870 I share with my clients. Having a long-term care policy 0:14:40.910 --> 0:14:44.070 in place is not just for you, but also for 0:14:44.110 --> 0:14:47.340 your family. What do you say to clients who think 0:14:47.400 --> 0:14:50.540 they are too young to think about long-term care or 0:14:50.660 --> 0:14:53.580 say they are wealthy enough and therefore. 0:14:53.120 --> 0:14:56.380 Don't need to purchase additional insurance? I mean, those are 0:14:56.860 --> 0:15:00.660 excellent questions. I get that pushback all of the time. 0:15:01.370 --> 0:15:04.550 On one hand, I have clients who say, they're too young, 0:15:04.630 --> 0:15:07.350 they're very healthy, they don't need to think about something 0:15:07.490 --> 0:15:11.530 so negative and morbid so far in the future. But 0:15:11.570 --> 0:15:14.860 I always tell them that is the wrong mentality to 0:15:14.920 --> 0:15:17.380 have because you never know what. 0:15:17.240 --> 0:15:18.420 Can happen tomorrow. 0:15:18.560 --> 0:15:20.940 You don't know what your health will look like down 0:15:20.980 --> 0:15:24.600 the line. So it's best practice to lock in that 0:15:24.660 --> 0:15:28.710 coverage when you are young and healthy. When you're applying 0:15:28.780 --> 0:15:31.970 for life insurance, you get a better rating and often 0:15:32.070 --> 0:15:36.250 lower premiums that way. A lot of my high net 0:15:36.310 --> 0:15:40.430 worth clients are under the false impression that they can 0:15:40.470 --> 0:15:44.230 just self-insure their long-term care needs in the future. But 0:15:44.530 --> 0:15:48.470 ask yourself, is your wealth liquid? Or is it tied 0:15:48.550 --> 0:15:52.480 up in real estate, for example? If you're critically ill, 0:15:53.160 --> 0:15:57.080 will your children have a hard time liquidating those assets? 0:15:57.970 --> 0:16:02.010 Do they have the capacity to sell off your investment 0:16:02.030 --> 0:16:06.760 properties to pay for their long-term care expenses? And ask yourself, 0:16:06.920 --> 0:16:10.080 if you do have a large pool of cash, why 0:16:10.120 --> 0:16:13.240 would you take such a huge bite out of your 0:16:13.300 --> 0:16:17.890 net worth to cover long-term care costs when you can 0:16:17.990 --> 0:16:23.670 purchase an insurance policy and leverage your dollars? Self-funding is 0:16:24.110 --> 0:16:27.650 simply not the smartest, nor is it the most efficient 0:16:27.870 --> 0:16:31.970 use of your assets. So with an insurance policy in place, 0:16:32.010 --> 0:16:37.080 you can maximize your dollar, get more in return. For example, 0:16:37.820 --> 0:16:41.780 I had a client whose mother became cognitively impaired and 0:16:41.820 --> 0:16:48.450 was in a Because with a lot of those neurological disorders, 0:16:48.670 --> 0:16:52.320 your quality of life goes down, but your life expectancy 0:16:52.520 --> 0:16:57.520 often doesn't. Their total monthly expenses to keep their mother 0:16:57.720 --> 0:17:03.590 in this facility was around $ 7, 000. The policy she had 0:17:03.680 --> 0:17:07.730 purchased provided them with around $ 5, 500 in coverage each month. 0:17:07.770 --> 0:17:16.340 So their only responsibility was $ 1, 500 a month. Now, I 0:17:16.380 --> 0:17:17.180 don't know about you. 0:17:17.320 --> 0:17:21.660 But I would take the $ 1, 500. 0:17:20.010 --> 0:17:21.830 Over $ 7, 000 a. 0:17:21.970 --> 0:17:23.170 Month any day. 0:17:23.890 --> 0:17:27.659 The goal is really to not go broke trying to 0:17:27.720 --> 0:17:29.980 cover all of those long-term care expenses. 0:17:30.859 --> 0:17:33.359 If you're just tuning in, we're talking Tina Baruti, the 0:17:33.400 --> 0:17:37.940 founder of New Capital Insurance Solutions. To reach her office directly, 0:17:38.010 --> 0:17:39.070 you can call her at 424-465-9001. 0:17:39.150 --> 0:17:39.580 That's 424-465-9001. 0:17:39.690 --> 0:17:51.980 Or you can visit her website, newcapitalinsurance.com. Tina, I do 0:17:52.040 --> 0:17:55.000 agree with you there. On top of that, you have 0:17:55.040 --> 0:17:58.240 to ask yourself, can your family members drop everything to 0:17:58.280 --> 0:18:00.900 take care of you? And what I'm noticing is that 0:18:01.380 --> 0:18:05.850 a lot of younger people are having strokes or heart attacks, 0:18:06.160 --> 0:18:08.370 and they're not able to take care of themselves. People 0:18:08.410 --> 0:18:11.930 in their 40s and 30s, I'm seeing, they most likely, 0:18:12.190 --> 0:18:15.730 family members will not have energy, time, or financial resources 0:18:15.790 --> 0:18:19.690 to take on that task. What are some insurance solutions 0:18:19.830 --> 0:18:20.950 available to listeners? 0:18:21.640 --> 0:18:23.040 Yeah, that's a really good point. 0:18:23.520 --> 0:18:26.440 Now, I want to also emphasize first and foremost that 0:18:26.640 --> 0:18:32.420 Medicare generally does not pay for ongoing custodial care. Many people, 0:18:32.500 --> 0:18:36.040 they assume that they can rely on these government-sponsored programs, 0:18:36.520 --> 0:18:39.790 but the coverage is simply not enough for most individuals. 0:18:40.290 --> 0:18:44.030 And with private coverage, you have more control over what 0:18:44.070 --> 0:18:47.090 your care looks like, which is, you know, hands down 0:18:47.130 --> 0:18:51.590 a more dignified experience. Now, there are lots of great 0:18:51.750 --> 0:18:56.330 approaches I introduce to my clients. One option, and this 0:18:56.369 --> 0:18:59.359 is what most of my younger clients opt for, is 0:18:59.440 --> 0:19:03.600 to add what's called a critical illness rider to your 0:19:03.640 --> 0:19:06.240 life insurance policy for a fee. 0:19:06.540 --> 0:19:08.659 So for example, say you have a. 0:19:08.619 --> 0:19:14.030 $ 100, 000 policy, you have a death benefit of $ 100, 000. If 0:19:14.070 --> 0:19:17.449 you can no longer complete two or more of the 0:19:17.530 --> 0:19:21.879 six activities of daily living, your long-term care coverage is 0:19:21.920 --> 0:19:25.510 then triggered and you go on what's called claim. And 0:19:25.550 --> 0:19:29.210 you can typically, in this scenario, you can use around 4% 0:19:29.210 --> 0:19:34.250 of your death benefit towards your long-term care expenses, which 0:19:34.330 --> 0:19:41.090 gives you, in this scenario, $ 4, 000. 0:19:37.550 --> 0:19:39.010 A month to spend. 0:19:39.990 --> 0:19:43.889 Now, the third option, which is really popular now, is 0:19:44.250 --> 0:19:49.970 asset based long term care. For example, say you have 0:19:50.050 --> 0:19:54.800 a qualified account, meaning pre tax money, like a 401k 0:19:54.859 --> 0:19:59.540 sitting around, you can use that money to fund a 0:19:59.619 --> 0:20:03.880 long term care policy, not only for yourself, but even 0:20:03.980 --> 0:20:06.890 for a spouse. So Take a look at your finances. 0:20:06.970 --> 0:20:09.370 See what's sitting there. What kind of accounts do you 0:20:09.410 --> 0:20:13.010 have that you could use to fund long-term care? Doesn't 0:20:13.030 --> 0:20:16.040 have to be expensive. And let me give you a 0:20:16.100 --> 0:20:21.879 hypothetical scenario. Say we have a male age 60 married 0:20:21.920 --> 0:20:22.899 to a female age 60. 0:20:22.880 --> 0:20:23.679 We are using his $. 0:20:23.600 --> 0:20:34.290 160, 000 IRA and repositioning it to purchase long-term care. With 0:20:34.369 --> 0:20:37.320 some carriers, you can get a 25% bonus on day one, 0:20:37.380 --> 0:20:38.919 meaning that $ 160, 000 grows to $ 200, 000 when the policy goes 0:20:38.940 --> 0:20:42.399 into effect on day one. Now, with the purchase of 0:20:42.420 --> 0:20:44.040 a continuation of benefits rider, they can each receive $ 7, 400 0:20:43.940 --> 0:21:07.850 per month for life, tax-free, for their long-term care expenses 0:21:08.210 --> 0:21:11.410 once they need it. Now, this is just an example 0:21:11.470 --> 0:21:16.090 of how it can look for you. Each person's situation 0:21:16.170 --> 0:21:18.590 is different. So if you give us a call at 0:21:18.670 --> 0:21:24.680 New Capital Insurance Solutions or visit our website, newcapitalinsurance.com, that's 0:21:24.840 --> 0:21:31.270 N-E-W-C-A-P-I-T-A-L insurance.com, You can fill out our client intake form 0:21:31.350 --> 0:21:33.370 and we will respond to you in 24 hours. 0:21:33.970 --> 0:21:35.510 At our office, we can. 0:21:35.330 --> 0:21:40.100 Tailor each policy to your particular needs and financial situation. 0:21:41.130 --> 0:21:44.250 I just wanted to quickly mention that women tend to 0:21:44.350 --> 0:21:48.429 outlive men. So as women listening tonight, you usually are 0:21:48.470 --> 0:21:51.320 the caretakers of the family. But once everybody grows up 0:21:51.410 --> 0:21:54.360 or your spouse passes away, there's no one to essentially 0:21:54.400 --> 0:21:59.300 take care of you. So having this conversation is crucial sooner. 0:21:59.060 --> 0:21:59.879 Rather than later. 0:22:00.359 --> 0:22:02.980 If you want to get started on long-term care planning, 0:22:03.119 --> 0:22:06.320 give Tina Baruti of New Capital Insurance Solutions a call. 0:22:06.760 --> 0:22:17.350 Her number is 424-465-9001. That's 424-465-9001. You can also email 0:22:17.410 --> 0:22:25.550 her at tina at newcapitalinsurance.com. That's tina at newcapitalinsurance.com. Or 0:22:25.609 --> 0:22:29.320 you can visit her website and complete the client intake 0:22:29.359 --> 0:22:36.030 form at newcapitalinsurance.com, newcapitalinsurance.com. Again, the number to reach Tina 0:22:36.090 --> 0:22:46.100 from New Capital Insurance Solutions, 424-465-9001. That's 424-465-9001. Thank you 0:22:46.119 --> 0:22:46.720 so much, Tina. 0:22:46.859 --> 0:22:47.300 Thank you. 0:22:47.480 --> 0:22:51.060 You're listening to Love, Death & Money on Talk Radio 790K. 0:22:51.800 --> 0:22:54.619 Welcome back to Love, Death & Money. I'm your host, 0:22:54.680 --> 0:22:59.490 Attorney Naz Baroudi on Talk Radio 790K ABC. If you 0:22:59.530 --> 0:23:02.280 have a question about trust, wills, probate, call the station 0:23:02.359 --> 0:23:02.830 right now, 1-800-222-5222. 0:23:02.840 --> 0:23:03.320 That's 1-800-222-KABC. 0:23:03.380 --> 0:23:05.040 And I just want to say, I know many people 0:23:05.060 --> 0:23:08.160 have questions that come up while listening to this program. 0:23:16.290 --> 0:23:18.830 They get nervous. They get shy. They think it's a 0:23:18.869 --> 0:23:20.690 stupid question. There's no such thing. 0:23:20.810 --> 0:23:22.950 Change your name. Change the city that you're calling from 0:23:22.990 --> 0:23:23.770 and ask the question. 0:23:23.790 --> 0:23:27.060 Because if you have a question about this topic, I'm 0:23:27.150 --> 0:23:31.379 sure many other listeners also have the same questions. Or 0:23:31.440 --> 0:23:34.600 you can always call the office. We're talking about the 0:23:34.680 --> 0:23:38.040 importance of end-of-life planning, making sure that you have the 0:23:38.119 --> 0:23:40.840 proper legal documents for the day that you pass away 0:23:40.960 --> 0:23:46.040 or become incapacitated. Now, on average, 70% of Americans do 0:23:46.100 --> 0:23:49.290 not have an end-of-life plan, which means that the plan 0:23:49.350 --> 0:23:51.449 that their family has to use is the one that 0:23:51.490 --> 0:23:54.590 the state of California has for them, which is probate court, 0:23:54.990 --> 0:23:58.490 which is expensive, time-consuming, and your family's not going to 0:23:58.530 --> 0:24:02.510 have access to the assets until the probate proceeding is complete. 0:24:02.990 --> 0:24:07.389 And everything becomes public record. So to solve this issue, 0:24:07.410 --> 0:24:11.430 it is important while you have capacity to make sure 0:24:11.490 --> 0:24:14.620 that you create an end-of-life plan where your family doesn't. 0:24:14.420 --> 0:24:15.919 Have to go through this process. 0:24:17.340 --> 0:24:21.360 Not having an end-of-life plan is like driving in your 0:24:21.420 --> 0:24:24.500 car without a seatbelt on. If you get into a 0:24:24.540 --> 0:24:28.160 car accident and you become injured, it's too late to 0:24:28.300 --> 0:24:30.310 ask the paramedics to go back in your car and 0:24:30.330 --> 0:24:33.750 put your seatbelt on. It's the same thing with end-of-life planning. 0:24:33.810 --> 0:24:36.890 If you become incapacitated or you pass away, it's too 0:24:36.930 --> 0:24:39.530 late at that point. I mean, look at what happened 0:24:39.550 --> 0:24:44.100 yesterday with the truck that went into the bus, caused 0:24:44.160 --> 0:24:44.800 an accident. 0:24:45.619 --> 0:24:46.940 Multiple people were injured. 0:24:47.320 --> 0:24:50.880 And then we have NBC News flying above and then 0:24:50.960 --> 0:24:54.560 their helicopter crashes. Then two people on the ground get in, 0:24:54.660 --> 0:24:56.920 pass away, get hit. I mean, it's just, it's a 0:24:57.000 --> 0:25:00.800