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Speaker 1: A state plan very big. Yes, when we talk about

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Speaker 1: wills and we talk about putting beneficiaries, doing things, things

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Speaker 1: of that nature. What are some things that life insurance

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Speaker 1: stuff like that. What are some things that people need

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Speaker 1: to be aware when developing their estate plan.

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Speaker 2: So when it comes to your state plan, I want

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Speaker 2: you to think about a will, potentially a trust and beneficiaries.

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Speaker 2: Those are like the core components. So a will is

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Speaker 2: like the bare bones. You don't necessarily if you're twenty

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Speaker 2: five years old, you ain't got no kids, you've got nothing,

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Speaker 2: you don't necessarily need a will. Right, Well, let's start

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Speaker 2: even before that beneficiaries. Right, So, no matter what, even

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Speaker 2: if you are twenty one years old, you got a

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Speaker 2: bank account, you got in the state, you got life

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Speaker 2: insurance you have in the state. You know, So put

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Speaker 2: your mama, your cousin, your best friend, your sister, your

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Speaker 2: brother as a beneficiary on your bank account, on your

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Speaker 2: life insurance policy if you have one. That way, if

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Speaker 2: something should happen to you, that is what a state

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Speaker 2: planning looks like when you really don't have much, but

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Speaker 2: it's still something, But you don't want to be mindful

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Speaker 2: because if someone is a beneficiary on your on your

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Speaker 2: bank account. Let's just say you put them on when

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Speaker 2: you're twenty five, your sister, and then at thirty five

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Speaker 2: you got kids and a and a significant other, like

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Speaker 2: and you have a will and all other stuff, but

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Speaker 2: you never updated that form. If something should happen to you,

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Speaker 2: what's on your beneficiaries form trumps everything else. It doesn't

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Speaker 2: matter what's in your will or your or your trust.

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Speaker 2: So that's really important. I remember, like, so my my

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Speaker 2: husband when I met him, he had a daughter already

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Speaker 2: she was seven, so he and her mother were together,

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Speaker 2: and he had he has like he works for the city,

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Speaker 2: so he has a pension. So the other day he

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Speaker 2: was like, Babe, my friend is trying to figure out

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Speaker 2: how to change his beneficiaries on his pension. And I

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Speaker 2: was like, all right, well you know, let's update. Well,

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Speaker 2: let me show you how to log in because I

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Speaker 2: do all of my financial stuff. So we log in

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Speaker 2: change the beneficiaries and I'm like, hold up, and I'll say,

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Speaker 2: tiffany on here. It's said baby momm's on here. Now.

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Speaker 2: Don't get me wrong. Even baby and baby Mouse is

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Speaker 2: really cool, but not that cool.

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Speaker 1: Bruh.

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Speaker 2: You what if you would have died and left your

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Speaker 2: paton to her, I would have had to raise you

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Speaker 2: up from the dead, kill you back dead again. So

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Speaker 2: but I just say all that to say that, like,

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Speaker 2: it's so, it's so important to make sure those forms

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Speaker 2: are up to date. So then next level will if

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Speaker 2: you have children, you have to have a will. Who

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Speaker 2: do you want to raise your children. It's not enough

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Speaker 2: to be like, oh that's my that's my godmother. No no, no, no, no.

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Speaker 2: Legally you have to assign because you know, you.

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Speaker 1: Know us the conversation.

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Speaker 2: Yes, like, oh that's so that's your gradma. If something

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Speaker 2: happened to me, No, no, no, no, and this is

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Speaker 2: all we might been gigging with money, and so yes,

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Speaker 2: you want to make sure that you have you know,

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Speaker 2: like you legally have some papers drawn up to say

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Speaker 2: this is what happens to my minor children and I'm

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Speaker 2: not here because let's just say you're Muslim, right, and

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Speaker 2: your your parents a Christian, and you really don't want

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Speaker 2: your parents to raise your kids or your sister raise

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Speaker 2: your kids because you want your kids to be raising

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Speaker 2: a Muslim household. So you really want your brother, you know,

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Speaker 2: but if you want that to happen you have to

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Speaker 2: put that down. So a will is bare bones. But

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Speaker 2: a will is not going to save you from probate court.

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Speaker 2: You know you are still going to pay them tax

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Speaker 2: on tax on tax on taxes.

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Speaker 3: Right.

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Speaker 2: But I will say this, if you have a trust

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Speaker 2: is not for someone I would even consider a trust

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Speaker 2: because of the cost unless you have at least one

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Speaker 2: hundred thousand dollars in assets, right, because twenty thousand it

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Speaker 2: doesn't make sense for the cost of a trust. Now,

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Speaker 2: if you have assets to five hundred thousand or over,

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Speaker 2: you must have a trust because the amount of money

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Speaker 2: you're going to lose in probate court plus probaate court

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Speaker 2: is embarrassing. It's like ringside teeths to like, oh how

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Speaker 2: much eating got Oh? Okay, oh exactly, you.

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Speaker 1: Know what I mean.

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Speaker 2: And so that part is important.

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Speaker 1: So a trust.

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Speaker 2: What makes a trust so special is that a trust

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Speaker 2: locks things away behind closed doors, so no one can

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Speaker 2: see unless you decide to share, unlike a will where

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Speaker 2: everybody can see. But also trust is like a person

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Speaker 2: that never dies. When money goes passes from one person

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Speaker 2: to another person because of death, there's a tax involved.

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Speaker 2: But a trust, it's like this person that doesn't die.

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Speaker 2: So money, if it's held or your assets are held there.

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Speaker 2: Even if you pass, the trust stays alive. Even if

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Speaker 2: someone else passes, the trust stays alive. So you don't

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Speaker 2: have to worry about the tax incurred going from person

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Speaker 2: to person. But you want to be mindful. What kind

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Speaker 2: of trust do you want to have? An irrevocable trust

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Speaker 2: or a vocable trust, And irrevocable means that it cannot

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Speaker 2: be broken or changed unless everyone who's involved in the

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Speaker 2: trust says okay, right. So, for example, Kobe Bryant had

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Speaker 2: an irrevocable trust right So the problem was that he

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Speaker 2: so he and his wife every when their children turned one,

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Speaker 2: they added that child to the trust. But we all

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Speaker 2: know he passed away when his baby was still younger

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Speaker 2: than one, so she was not in that trust all

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Speaker 2: of that wealth he had set aside. So she had

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Speaker 2: to petition the courts to say, I know this is irrevocable,

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Speaker 2: but let's be real, coll we would not want the

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Speaker 2: baby not to be in here. So they granted her that.

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Speaker 2: So you just want to be mindful. You know, what

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Speaker 2: kind of trust do you want to happen? At state planning,

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Speaker 2: we tend not to do it, but it's actually more

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Speaker 2: expensive not to you know, like it just is. So

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Speaker 2: if you if you have just a little bit of something,

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Speaker 2: you want to put something down, you want to get

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Speaker 2: it notarized, and you want to fund it and sign it.

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Speaker 2: So if something happens to you, everybody knows what your

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Speaker 2: desires are.

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Speaker 1: Don't like Prince and then prevents all the fight in

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Speaker 1: the three passes. I just want to I just want

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Speaker 1: to add one thing to that because everything you said

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Speaker 1: was right on point, and me as a financial advisor,

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Speaker 1: one of the things when I first came into the

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Speaker 1: industry is this guy, uh well, they was speaking and

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Speaker 1: they was talking about a guy that worked the job

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Speaker 1: for like thirty years, had like a big pension and

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Speaker 1: all of that, and you know, he got divorced like

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Speaker 1: twenty years ago and had a new wife and you know,

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Speaker 1: had like three kids and all that. And when he died,

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Speaker 1: he never updated his beneficiary. And like you said, the

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Speaker 1: beneficiary supersedes everything and it's no negotiation, nothing you can

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Speaker 1: do about it. So it went that it went to

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Speaker 1: his ex wife and she kept it.

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Speaker 2: She didn't have to give it up.

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Speaker 1: Yeah, so you have to you have to update your beneficiary,

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Speaker 1: and everything should have a beneficiary, including bank accounts. And

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Speaker 1: then also what you speak about as far as the

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Speaker 1: trust is extremely important. The Airvocable trust we spoke about

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Speaker 1: the hospital about the island before, which is the Airvocable

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Speaker 1: Life Insurance Trust. And I love how you say a

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Speaker 1: trust is a person that can die, because that's really true.

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Speaker 1: It's treated like an outside entity as a person. So,

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Speaker 1: you know, especially when we have more advanced conversations about

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Speaker 1: tax shelter because life insurance can actually add to in a

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Speaker 1: state planning problem because the money goes into your state.

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Speaker 1: So if your state is worth three million dollars and

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Speaker 1: you have a two million dollar life insurance policy, now

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Speaker 1: when you die, you're actually a state is worth five

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Speaker 1: million dollars. So that can actually be counterproductive because it's

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Speaker 1: going to add to your tax bills. So that's why

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Speaker 1: people sometimes people will put the life insurance in a

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Speaker 1: trust because now that two million is not part is

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Speaker 1: not part of the estate's out of the estate, and

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Speaker 1: it still goes to the beneficiary tax free because of

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Speaker 1: the life insurance to tax free. So yeah, everything that

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Speaker 1: you speak about is extremely important, and like you said,

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Speaker 1: it's not something unfortunately that we have really thought about

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Speaker 1: a lot. It's like, yeah, most of the time, it's

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Speaker 1: just like, all right, figure it out when you die.

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Speaker 1: And then you know that leads to all kinds of issues,

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Speaker 1: and as you said, it's actually more expensive not to

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Speaker 1: have it mentally and financially because mentally, you know, family

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Speaker 1: members gotta fight. Breaks up families all the time. It's

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Speaker 1: pretty common. You know, your grandmother has a house and

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Speaker 1: then there's like four kids and they're fighting over the house.

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Speaker 1: So all of this stuff. We talk about stocks, we

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Speaker 1: talk about investing, all of that.

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Speaker 2: The fundamentals are critical, great.

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Speaker 1: Well, yeah, you gotta have the fundamentals down. My graduates

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Speaker 1: from my school being forced bad and drop drop, drop bad,

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Speaker 1: drop us.

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Speaker 3: An illegal alien from Guatemala charged with raping a child

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Speaker 3: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 3: accused of murdering a Texas man of Venezuelan charged with

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Speaker 3: filming and selling child pornography in Michigan. These are just

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Speaker 3: some of the heinous migrant criminals caught because of President

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Speaker 3: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 3: Secretary of Homeland Security under President Trump. Attempted illegal border

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Speaker 3: crossings are at the lowest levels ever recorded, and over

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Speaker 3: one hundred thousand illegal aliens have been arrested. If you

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Speaker 3: are here illegally, your next you will be fine nearly

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Speaker 3: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 3: never return. But if you register using our CBP home

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Speaker 3: app and leave now, you could be allowed to return legally.

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Speaker 3: Do what's right, leave now. Under President Trump, America's laws,

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Speaker 3: border and families will be protected.

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Speaker 1: Sponsored by the United States Department of Homeland Security,