WEBVTT - ESTATE PLANNING: TRUSTS, WILLS, & LIFE INSURANCE

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<v Speaker 1>A state plan very big. Yes, when we talk about

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<v Speaker 1>wills and we talk about putting beneficiaries, doing things, things

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<v Speaker 1>of that nature. What are some things that life insurance

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<v Speaker 1>stuff like that. What are some things that people need

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<v Speaker 1>to be aware when developing their estate plan.

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<v Speaker 2>So when it comes to your state plan, I want

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<v Speaker 2>you to think about a will, potentially a trust and beneficiaries.

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<v Speaker 2>Those are like the core components. So a will is

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

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<v Speaker 2>five years old, you ain't got no kids, you've got nothing,

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

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<v Speaker 2>even before that beneficiaries. Right, So, no matter what, even

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<v Speaker 2>if you are twenty one years old, you got a

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<v Speaker 2>bank account, you got in the state, you got life

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<v Speaker 2>insurance you have in the state. You know, So put

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<v Speaker 2>your mama, your cousin, your best friend, your sister, your

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<v Speaker 2>brother as a beneficiary on your bank account, on your

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<v Speaker 2>life insurance policy if you have one. That way, if

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<v Speaker 2>something should happen to you, that is what a state

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<v Speaker 2>planning looks like when you really don't have much, but

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

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<v Speaker 2>because if someone is a beneficiary on your on your

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<v Speaker 2>bank account. Let's just say you put them on when

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<v Speaker 2>you're twenty five, your sister, and then at thirty five

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<v Speaker 2>you got kids and a and a significant other, like

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<v Speaker 2>and you have a will and all other stuff, but

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<v Speaker 2>you never updated that form. If something should happen to you,

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

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<v Speaker 2>matter what's in your will or your or your trust.

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<v Speaker 2>So that's really important. I remember, like, so my my

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<v Speaker 2>husband when I met him, he had a daughter already

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<v Speaker 2>she was seven, so he and her mother were together,

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<v Speaker 2>and he had he has like he works for the city,

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<v Speaker 2>so he has a pension. So the other day he

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<v Speaker 2>was like, Babe, my friend is trying to figure out

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<v Speaker 2>how to change his beneficiaries on his pension. And I

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

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<v Speaker 2>let me show you how to log in because I

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<v Speaker 2>do all of my financial stuff. So we log in

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<v Speaker 2>change the beneficiaries and I'm like, hold up, and I'll say,

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<v Speaker 2>tiffany on here. It's said baby momm's on here. Now.

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<v Speaker 2>Don't get me wrong. Even baby and baby Mouse is

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<v Speaker 2>really cool, but not that cool.

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<v Speaker 1>Bruh.

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<v Speaker 2>You what if you would have died and left your

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<v Speaker 2>paton to her, I would have had to raise you

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<v Speaker 2>up from the dead, kill you back dead again. So

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<v Speaker 2>but I just say all that to say that, like,

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<v Speaker 2>it's so, it's so important to make sure those forms

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<v Speaker 2>are up to date. So then next level will if

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<v Speaker 2>you have children, you have to have a will. Who

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<v Speaker 2>do you want to raise your children. It's not enough

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<v Speaker 2>to be like, oh that's my that's my godmother. No no, no, no, no.

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<v Speaker 2>Legally you have to assign because you know, you.

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<v Speaker 1>Know us the conversation.

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<v Speaker 2>Yes, like, oh that's so that's your gradma. If something

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<v Speaker 2>happened to me, No, no, no, no, and this is

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<v Speaker 2>all we might been gigging with money, and so yes,

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<v Speaker 2>you want to make sure that you have you know,

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<v Speaker 2>like you legally have some papers drawn up to say

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<v Speaker 2>this is what happens to my minor children and I'm

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

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<v Speaker 2>your your parents a Christian, and you really don't want

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<v Speaker 2>your parents to raise your kids or your sister raise

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<v Speaker 2>your kids because you want your kids to be raising

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<v Speaker 2>a Muslim household. So you really want your brother, you know,

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<v Speaker 2>but if you want that to happen you have to

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<v Speaker 2>put that down. So a will is bare bones. But

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<v Speaker 2>a will is not going to save you from probate court.

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<v Speaker 2>You know you are still going to pay them tax

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<v Speaker 2>on tax on tax on taxes.

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<v Speaker 3>Right.

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<v Speaker 2>But I will say this, if you have a trust

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<v Speaker 2>is not for someone I would even consider a trust

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<v Speaker 2>because of the cost unless you have at least one

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<v Speaker 2>hundred thousand dollars in assets, right, because twenty thousand it

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

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<v Speaker 2>if you have assets to five hundred thousand or over,

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<v Speaker 2>you must have a trust because the amount of money

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<v Speaker 2>you're going to lose in probate court plus probaate court

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<v Speaker 2>is embarrassing. It's like ringside teeths to like, oh how

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<v Speaker 2>much eating got Oh? Okay, oh exactly, you.

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<v Speaker 1>Know what I mean.

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<v Speaker 2>And so that part is important.

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<v Speaker 1>So a trust.

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<v Speaker 2>What makes a trust so special is that a trust

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<v Speaker 2>locks things away behind closed doors, so no one can

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<v Speaker 2>see unless you decide to share, unlike a will where

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<v Speaker 2>everybody can see. But also trust is like a person

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<v Speaker 2>that never dies. When money goes passes from one person

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

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

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

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<v Speaker 2>Even if you pass, the trust stays alive. Even if

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

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<v Speaker 2>have to worry about the tax incurred going from person

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<v Speaker 2>to person. But you want to be mindful. What kind

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<v Speaker 2>of trust do you want to have? An irrevocable trust

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<v Speaker 2>or a vocable trust, And irrevocable means that it cannot

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<v Speaker 2>be broken or changed unless everyone who's involved in the

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<v Speaker 2>trust says okay, right. So, for example, Kobe Bryant had

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<v Speaker 2>an irrevocable trust right So the problem was that he

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<v Speaker 2>so he and his wife every when their children turned one,

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<v Speaker 2>they added that child to the trust. But we all

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<v Speaker 2>know he passed away when his baby was still younger

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<v Speaker 2>than one, so she was not in that trust all

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<v Speaker 2>of that wealth he had set aside. So she had

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<v Speaker 2>to petition the courts to say, I know this is irrevocable,

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<v Speaker 2>but let's be real, coll we would not want the

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<v Speaker 2>baby not to be in here. So they granted her that.

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<v Speaker 2>So you just want to be mindful. You know, what

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<v Speaker 2>kind of trust do you want to happen? At state planning,

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<v Speaker 2>we tend not to do it, but it's actually more

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<v Speaker 2>expensive not to you know, like it just is. So

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<v Speaker 2>if you if you have just a little bit of something,

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<v Speaker 2>you want to put something down, you want to get

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<v Speaker 2>it notarized, and you want to fund it and sign it.

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<v Speaker 2>So if something happens to you, everybody knows what your

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<v Speaker 2>desires are.

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<v Speaker 1>Don't like Prince and then prevents all the fight in

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<v Speaker 1>the three passes. I just want to I just want

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<v Speaker 1>to add one thing to that because everything you said

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<v Speaker 1>was right on point, and me as a financial advisor,

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<v Speaker 1>one of the things when I first came into the

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<v Speaker 1>industry is this guy, uh well, they was speaking and

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<v Speaker 1>they was talking about a guy that worked the job

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<v Speaker 1>for like thirty years, had like a big pension and

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<v Speaker 1>all of that, and you know, he got divorced like

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<v Speaker 1>twenty years ago and had a new wife and you know,

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<v Speaker 1>had like three kids and all that. And when he died,

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<v Speaker 1>he never updated his beneficiary. And like you said, the

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<v Speaker 1>beneficiary supersedes everything and it's no negotiation, nothing you can

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<v Speaker 1>do about it. So it went that it went to

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<v Speaker 1>his ex wife and she kept it.

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<v Speaker 2>She didn't have to give it up.

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<v Speaker 1>Yeah, so you have to you have to update your beneficiary,

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<v Speaker 1>and everything should have a beneficiary, including bank accounts. And

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<v Speaker 1>then also what you speak about as far as the

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<v Speaker 1>trust is extremely important. The Airvocable trust we spoke about

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<v Speaker 1>the hospital about the island before, which is the Airvocable

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<v Speaker 1>Life Insurance Trust. And I love how you say a

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

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

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<v Speaker 1>you know, especially when we have more advanced conversations about

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<v Speaker 1>tax shelter because life insurance can actually add to in a

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<v Speaker 1>state planning problem because the money goes into your state.

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<v Speaker 1>So if your state is worth three million dollars and

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<v Speaker 1>you have a two million dollar life insurance policy, now

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<v Speaker 1>when you die, you're actually a state is worth five

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<v Speaker 1>million dollars. So that can actually be counterproductive because it's

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<v Speaker 1>going to add to your tax bills. So that's why

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<v Speaker 1>people sometimes people will put the life insurance in a

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<v Speaker 1>trust because now that two million is not part is

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<v Speaker 1>not part of the estate's out of the estate, and

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<v Speaker 1>it still goes to the beneficiary tax free because of

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<v Speaker 1>the life insurance to tax free. So yeah, everything that

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<v Speaker 1>you speak about is extremely important, and like you said,

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<v Speaker 1>it's not something unfortunately that we have really thought about

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

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<v Speaker 1>just like, all right, figure it out when you die.

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<v Speaker 1>And then you know that leads to all kinds of issues,

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<v Speaker 1>and as you said, it's actually more expensive not to

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<v Speaker 1>have it mentally and financially because mentally, you know, family

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<v Speaker 1>members gotta fight. Breaks up families all the time. It's

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<v Speaker 1>pretty common. You know, your grandmother has a house and

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

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<v Speaker 1>So all of this stuff. We talk about stocks, we

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<v Speaker 1>talk about investing, all of that.

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<v Speaker 2>The fundamentals are critical, great.

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<v Speaker 1>Well, yeah, you gotta have the fundamentals down. My graduates

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<v Speaker 1>from my school being forced bad and drop drop, drop bad,

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<v Speaker 1>drop us.

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<v Speaker 3>An illegal alien from Guatemala charged with raping a child

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<v Speaker 3>in Massachusetts. An MS thirteen gang member from Al Salvador

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<v Speaker 3>accused of murdering a Texas man of Venezuelan charged with

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<v Speaker 3>filming and selling child pornography in Michigan. These are just

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<v Speaker 3>some of the heinous migrant criminals caught because of President

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

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<v Speaker 3>Secretary of Homeland Security under President Trump. Attempted illegal border

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<v Speaker 3>crossings are at the lowest levels ever recorded, and over

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<v Speaker 3>one hundred thousand illegal aliens have been arrested. If you

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<v Speaker 3>are here illegally, your next you will be fine nearly

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<v Speaker 3>one thousand dollars a day, imprisoned, and deported. You will

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<v Speaker 3>never return. But if you register using our CBP home

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<v Speaker 3>app and leave now, you could be allowed to return legally.

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

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<v Speaker 3>border and families will be protected.

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<v Speaker 1>Sponsored by the United States Department of Homeland Security,