1 00:00:10,920 --> 00:00:15,280 Speaker 1: Welcome to the Therapy for Black Girls Podcast, a weekly conversation 2 00:00:15,440 --> 00:00:19,880 Speaker 1: about mental health, personal development, and all the small decisions 3 00:00:19,920 --> 00:00:23,400 Speaker 1: we can make to become the best possible versions of ourselves. 4 00:00:24,079 --> 00:00:27,680 Speaker 1: I'm your host, doctor Joy hard and Bradford, a licensed 5 00:00:27,680 --> 00:00:32,640 Speaker 1: psychologist in Atlanta, Georgia. For more information or to find 6 00:00:32,640 --> 00:00:36,400 Speaker 1: a therapist in your area, visit our website at Therapy 7 00:00:36,479 --> 00:00:40,280 Speaker 1: for Blackgirls dot com. While I hope you love listening 8 00:00:40,280 --> 00:00:44,040 Speaker 1: to and learning from the podcast, it is not meant 9 00:00:44,080 --> 00:00:47,239 Speaker 1: to be a substitute for a relationship with a licensed 10 00:00:47,320 --> 00:00:58,080 Speaker 1: mental health professional. Hey, y'all, thanks so much for joining 11 00:00:58,080 --> 00:01:00,280 Speaker 1: me for session three ninety three of the Therapy for 12 00:01:00,280 --> 00:01:03,800 Speaker 1: Black Girls Podcast. We'll get right into our conversation after 13 00:01:03,880 --> 00:01:05,240 Speaker 1: word from our sponsors. 14 00:01:05,640 --> 00:01:08,520 Speaker 2: Hi. I'm Amy Griffin, an attorney and founder of the 15 00:01:08,560 --> 00:01:12,160 Speaker 2: Association of Black State Planning Professionals. Join me for this 16 00:01:12,280 --> 00:01:16,160 Speaker 2: special January Jumpstar episode designed to support you in making 17 00:01:16,240 --> 00:01:18,959 Speaker 2: twenty twenty five your best year yet. 18 00:01:32,280 --> 00:01:34,800 Speaker 1: If you've ever heard the term of state planning and 19 00:01:34,840 --> 00:01:37,440 Speaker 1: thought it was something only for the old wealthy, are 20 00:01:37,480 --> 00:01:42,160 Speaker 1: those of the children, think again. In today's January Jumpstart episode, 21 00:01:42,360 --> 00:01:44,679 Speaker 1: designed to help you make twenty twenty five one of 22 00:01:44,720 --> 00:01:47,960 Speaker 1: your best years yet. We'll be exploring how the process 23 00:01:47,960 --> 00:01:51,400 Speaker 1: of organizing your will, as well as encouraging family members 24 00:01:51,400 --> 00:01:53,680 Speaker 1: to do so, can be the key to unlocking a 25 00:01:53,720 --> 00:01:56,800 Speaker 1: legacy of generational wealth for yourself and your loved ones. 26 00:01:57,680 --> 00:01:59,920 Speaker 1: Joining me for this conversation is the founder of this 27 00:02:00,000 --> 00:02:05,360 Speaker 1: association of Black estate Planning Professionals, Attorney Amy Griffin. Amy 28 00:02:05,440 --> 00:02:08,840 Speaker 1: is the principal attorney of Life and Legacy Counselors, an 29 00:02:08,960 --> 00:02:12,600 Speaker 1: estate and business succession firm committed to creating, protecting, and 30 00:02:12,680 --> 00:02:17,440 Speaker 1: transferring wealth. She's committed to strategic community economic development for 31 00:02:17,480 --> 00:02:21,080 Speaker 1: Black people and serves as a corporate counselor, professor, and 32 00:02:21,160 --> 00:02:25,720 Speaker 1: community educator. During our conversation, we will break down the 33 00:02:25,720 --> 00:02:29,680 Speaker 1: steps of estate planning, highlight common mistakes to avoid during 34 00:02:29,680 --> 00:02:33,200 Speaker 1: the process, and explore how estate planning can serve as 35 00:02:33,200 --> 00:02:36,639 Speaker 1: a powerful too for addressing the racial wealth gap. If 36 00:02:36,680 --> 00:02:40,280 Speaker 1: something resonates with you while enjoying our conversation, please share 37 00:02:40,320 --> 00:02:43,320 Speaker 1: with us on social media using the hashtag TVG in 38 00:02:43,400 --> 00:02:46,760 Speaker 1: Session or join us over in the Sister Circle to 39 00:02:46,760 --> 00:02:49,280 Speaker 1: talk more about the episode. You can join us at 40 00:02:49,320 --> 00:02:53,480 Speaker 1: community dot therapy for Blackgirls dot Com. Here's our conversation. 41 00:02:57,400 --> 00:02:58,959 Speaker 1: Thank you so much for joining me today. 42 00:02:59,000 --> 00:03:02,079 Speaker 3: Amy is my pleasure. Thank you so much for having me. 43 00:03:02,360 --> 00:03:04,359 Speaker 1: Yeah, so can you tell me how you got into 44 00:03:04,360 --> 00:03:07,280 Speaker 1: the specific practice of family and estate planning. 45 00:03:08,600 --> 00:03:13,160 Speaker 2: As you know, lawyers can't tell a quick story. So 46 00:03:13,560 --> 00:03:17,480 Speaker 2: the truth is that my parents were civil rights activists. 47 00:03:17,800 --> 00:03:19,280 Speaker 3: I grew up in Massachusetts. 48 00:03:19,320 --> 00:03:21,959 Speaker 2: I had a good government job, and so when you 49 00:03:22,000 --> 00:03:24,400 Speaker 2: have parents who are a civil rights activist, you see 50 00:03:24,400 --> 00:03:27,799 Speaker 2: things through the lens of black and white. And so 51 00:03:28,120 --> 00:03:31,840 Speaker 2: I was again overseeing contracting and procurement for a state 52 00:03:31,880 --> 00:03:35,600 Speaker 2: agency and realize black folks didn't have access. And with me, 53 00:03:35,680 --> 00:03:38,920 Speaker 2: if I'm overseeing contractor and procurement and there is no access, 54 00:03:38,960 --> 00:03:41,640 Speaker 2: I know that there's a significant problem. So at forty 55 00:03:41,800 --> 00:03:44,640 Speaker 2: I quit my good government job. With two kids, I 56 00:03:44,720 --> 00:03:47,760 Speaker 2: was a divorced mom. Went to law school because you 57 00:03:47,800 --> 00:03:49,680 Speaker 2: can't win the game if you don't know the rules. 58 00:03:50,320 --> 00:03:53,360 Speaker 2: After graduation from law school, I created the newly Black 59 00:03:53,440 --> 00:03:56,839 Speaker 2: Chamber of Commerce. It's not just to get a good job, 60 00:03:56,840 --> 00:03:58,760 Speaker 2: but how do you make good jobs for the community. 61 00:03:59,200 --> 00:04:03,320 Speaker 2: And so I was working with business owners to create 62 00:04:03,400 --> 00:04:06,560 Speaker 2: jobs and opportunities. And one of the business owners with 63 00:04:06,600 --> 00:04:09,120 Speaker 2: whom I work gotten contracts as a result of the 64 00:04:09,120 --> 00:04:09,960 Speaker 2: work that we're doing. 65 00:04:10,320 --> 00:04:13,360 Speaker 3: He died. He died with nothing in place. 66 00:04:13,880 --> 00:04:16,360 Speaker 2: And so what I learned it's not just what you make, 67 00:04:16,400 --> 00:04:18,560 Speaker 2: it's what you keep that impacts our community. 68 00:04:18,920 --> 00:04:20,640 Speaker 3: So I went back to law school. 69 00:04:20,320 --> 00:04:22,440 Speaker 2: And got my Master of Laws and elder law and 70 00:04:22,560 --> 00:04:26,520 Speaker 2: estate plan so it can be about strategically supporting folks 71 00:04:26,839 --> 00:04:29,880 Speaker 2: to not just build wealth, but how do we create 72 00:04:29,920 --> 00:04:31,680 Speaker 2: it for multigenerational purposes. 73 00:04:33,120 --> 00:04:33,719 Speaker 1: I love that. 74 00:04:33,960 --> 00:04:34,440 Speaker 3: I love that. 75 00:04:34,600 --> 00:04:37,279 Speaker 1: Thank you so much for sharing that story. I think 76 00:04:37,279 --> 00:04:40,200 Speaker 1: when people think about estate planning, we typically think about 77 00:04:40,240 --> 00:04:43,080 Speaker 1: like life insurance and inheritance, but I know that there's 78 00:04:43,240 --> 00:04:45,760 Speaker 1: much more. So can you give us a more comprehensive 79 00:04:45,839 --> 00:04:48,120 Speaker 1: understanding of what we mean when we say estate planning. 80 00:04:48,279 --> 00:04:51,279 Speaker 2: It's a comprehensive look at not just your assets, but 81 00:04:51,360 --> 00:04:54,480 Speaker 2: your values. And we named are from Life Legacy Counselors 82 00:04:54,520 --> 00:04:57,800 Speaker 2: as a result of that, because it is being thoughtful 83 00:04:57,800 --> 00:05:00,560 Speaker 2: about what is it you want to have happened? Estate 84 00:05:00,640 --> 00:05:04,000 Speaker 2: planning answers three questions. First and foremost, what happens when 85 00:05:04,040 --> 00:05:07,000 Speaker 2: you die? That's what people think about, freak out about 86 00:05:07,040 --> 00:05:09,360 Speaker 2: and say, Okay, I'm dead. It doesn't really matter. The 87 00:05:09,480 --> 00:05:12,599 Speaker 2: second question is what happens if you're unable to care 88 00:05:12,640 --> 00:05:15,599 Speaker 2: for yourself. If you're unable to care for yourself, you 89 00:05:15,680 --> 00:05:18,480 Speaker 2: want the right people to make the right decisions for you, 90 00:05:18,600 --> 00:05:22,200 Speaker 2: because in many cases we've had circumstances where people don't 91 00:05:22,240 --> 00:05:25,520 Speaker 2: speak to family members again because of the actions taken 92 00:05:25,600 --> 00:05:30,080 Speaker 2: during incapacity. Also as the expenses of incapacity, what does 93 00:05:30,120 --> 00:05:32,120 Speaker 2: that look like and how do we plan for it? 94 00:05:32,200 --> 00:05:35,039 Speaker 2: But mostly what I think about is state planning is 95 00:05:35,080 --> 00:05:38,520 Speaker 2: pulling in your life insurance, your philanthropic work, and all 96 00:05:38,520 --> 00:05:40,680 Speaker 2: that kind of stuff to decide what is the legacy 97 00:05:40,720 --> 00:05:43,359 Speaker 2: that you want to leave, Because if you have a 98 00:05:43,400 --> 00:05:45,640 Speaker 2: great life insurance policy and leave it to someone who 99 00:05:45,640 --> 00:05:48,080 Speaker 2: doesn't out to manage money, or someone who has suddence 100 00:05:48,120 --> 00:05:50,920 Speaker 2: abuse issues, or no matter what it is, if there 101 00:05:51,000 --> 00:05:54,560 Speaker 2: is a structure and support to create multi generational wealth, 102 00:05:55,040 --> 00:05:57,799 Speaker 2: it's just often sometimes it's not just a best blessing, 103 00:05:57,920 --> 00:06:00,880 Speaker 2: it's a detriment. I tell people are the time. I'm 104 00:06:00,880 --> 00:06:04,359 Speaker 2: a professional pessimist because I've seen what can go wrong. 105 00:06:04,680 --> 00:06:07,760 Speaker 2: We've seen those lottery wedding shows where those people at 106 00:06:07,800 --> 00:06:10,000 Speaker 2: the end of the show they have nothing. But what 107 00:06:10,040 --> 00:06:12,800 Speaker 2: we know is, and inheritance is a lot like a 108 00:06:12,839 --> 00:06:13,799 Speaker 2: lottery weddings. 109 00:06:14,080 --> 00:06:15,120 Speaker 3: If you don't have a. 110 00:06:15,080 --> 00:06:17,800 Speaker 2: Structure and a plan and support system in place, or 111 00:06:17,839 --> 00:06:20,120 Speaker 2: the right people with the right knowledge base in. 112 00:06:20,120 --> 00:06:22,839 Speaker 3: Place, what's going to happen. It'll just be lost. 113 00:06:23,279 --> 00:06:26,680 Speaker 1: So, according to a twenty twenty two Consumer Report survey, 114 00:06:26,800 --> 00:06:29,960 Speaker 1: seventy seven percent of black adults don't have a will. 115 00:06:30,040 --> 00:06:31,640 Speaker 1: So I wonder if you could share a little bit 116 00:06:31,640 --> 00:06:35,240 Speaker 1: about the history of why this has been challenging, especially 117 00:06:35,279 --> 00:06:36,320 Speaker 1: in the black community. 118 00:06:36,600 --> 00:06:38,760 Speaker 2: Well, if we start off from the fact that so 119 00:06:38,839 --> 00:06:42,120 Speaker 2: often the laws have been used against black people, right, 120 00:06:42,160 --> 00:06:44,479 Speaker 2: so we don't necessarily know that we have as the 121 00:06:44,560 --> 00:06:47,479 Speaker 2: resource those things that we can do to make it 122 00:06:47,520 --> 00:06:50,279 Speaker 2: to our betterment as well as so often we have 123 00:06:50,520 --> 00:06:54,280 Speaker 2: we talk to estate planning folks who don't value what 124 00:06:54,320 --> 00:06:57,120 Speaker 2: we are, who we are, and what we have, right, 125 00:06:57,160 --> 00:07:00,280 Speaker 2: and if we look at the racial wealth gap, we 126 00:07:00,360 --> 00:07:03,120 Speaker 2: know that we have a small percentage of what the 127 00:07:03,120 --> 00:07:06,120 Speaker 2: white counterparts have. And so if you go to meet 128 00:07:06,120 --> 00:07:09,279 Speaker 2: with a professional who has the conversation and doesn't respect 129 00:07:09,360 --> 00:07:12,800 Speaker 2: or honor the work that you've built, it's not encouraging 130 00:07:12,920 --> 00:07:16,160 Speaker 2: or valuing, right. And so one of the things that 131 00:07:16,240 --> 00:07:18,640 Speaker 2: I've been mindful about is how do we one work 132 00:07:18,680 --> 00:07:21,600 Speaker 2: with anybody wherever they are to support them, to be 133 00:07:21,680 --> 00:07:24,000 Speaker 2: thoughtful about how do we build multigeneration. 134 00:07:24,120 --> 00:07:24,680 Speaker 3: Well, if you. 135 00:07:24,680 --> 00:07:28,040 Speaker 2: Start off with very little, it can become much more 136 00:07:28,360 --> 00:07:31,680 Speaker 2: with each generation. If there is indeed a plan, or 137 00:07:31,720 --> 00:07:33,720 Speaker 2: we don't even know, we think we don't have enough 138 00:07:33,760 --> 00:07:34,240 Speaker 2: to matter. 139 00:07:34,640 --> 00:07:37,280 Speaker 3: It's insignificant. And sometimes we have shame that's. 140 00:07:37,120 --> 00:07:40,000 Speaker 2: Associated with that which we've gained at this point, and 141 00:07:40,040 --> 00:07:42,040 Speaker 2: we think that we should have so much more, and 142 00:07:42,080 --> 00:07:43,680 Speaker 2: therefore we don't want to talk about it. 143 00:07:44,120 --> 00:07:46,200 Speaker 1: I appreciate you sharing that, and I wonder if you 144 00:07:46,240 --> 00:07:47,840 Speaker 1: could talk a little bit about because I think just 145 00:07:47,880 --> 00:07:50,680 Speaker 1: as a society, we don't do well with conversations about death, 146 00:07:51,080 --> 00:07:54,080 Speaker 1: especially our own right. So what is like the mental 147 00:07:54,080 --> 00:07:56,880 Speaker 1: health piece of the difficulty of even having this conversation 148 00:07:56,960 --> 00:07:58,040 Speaker 1: about estate planning? 149 00:07:58,440 --> 00:08:01,400 Speaker 3: Oftentimes we focus on just right. 150 00:08:01,880 --> 00:08:04,600 Speaker 2: Estate planning is more about thriving, because if we just 151 00:08:04,640 --> 00:08:06,880 Speaker 2: are surviving from day to day, that doesn't give us 152 00:08:06,960 --> 00:08:09,160 Speaker 2: the vantage point of thinking about how do we build 153 00:08:09,200 --> 00:08:12,680 Speaker 2: and grow and plan and strategically move to thriving. If 154 00:08:12,720 --> 00:08:15,320 Speaker 2: we are focused on if I can just get through, 155 00:08:15,680 --> 00:08:18,040 Speaker 2: we're not going to think about what happens when we 156 00:08:18,120 --> 00:08:21,360 Speaker 2: get through. So there is of course all the superstitions 157 00:08:21,400 --> 00:08:24,040 Speaker 2: around if I talk about it is going to happen, right, 158 00:08:24,240 --> 00:08:25,760 Speaker 2: I tell people, if you don't talk about, it's still 159 00:08:25,800 --> 00:08:26,360 Speaker 2: going to happen. 160 00:08:28,880 --> 00:08:31,280 Speaker 1: And how do you see estate planning as something that 161 00:08:31,400 --> 00:08:34,320 Speaker 1: is a very important tool in generational will? 162 00:08:35,040 --> 00:08:38,120 Speaker 2: What we know is that there are so many ways 163 00:08:38,160 --> 00:08:42,160 Speaker 2: in which the standard system is about taking your money right, 164 00:08:42,679 --> 00:08:45,880 Speaker 2: and most folks don't even understand. 165 00:08:45,280 --> 00:08:46,520 Speaker 3: What probate is. 166 00:08:47,200 --> 00:08:50,120 Speaker 2: And probate is the legal act of taking something that's 167 00:08:50,120 --> 00:08:53,000 Speaker 2: in your name out of your name if it doesn't 168 00:08:53,040 --> 00:08:55,000 Speaker 2: have a way to do it. And we don't understand, 169 00:08:55,520 --> 00:08:57,960 Speaker 2: you know, we hear about you know, what does a 170 00:08:58,040 --> 00:09:00,720 Speaker 2: will mean? We don't really know because we don't know 171 00:09:00,720 --> 00:09:03,320 Speaker 2: the conversation that it means that you've got to go 172 00:09:03,400 --> 00:09:05,840 Speaker 2: through the court system. And when you go through the 173 00:09:05,840 --> 00:09:08,200 Speaker 2: court system, we know that the court's are going to 174 00:09:08,240 --> 00:09:10,920 Speaker 2: get paid, right, and so we have to know the 175 00:09:11,000 --> 00:09:15,520 Speaker 2: strategies around how do we avoid and minimize the death taxes? 176 00:09:15,720 --> 00:09:15,960 Speaker 3: Right? 177 00:09:16,280 --> 00:09:19,320 Speaker 2: And there are death taxes that are truly taxes being 178 00:09:19,400 --> 00:09:22,720 Speaker 2: a state inheritance, but there are true death taxes that 179 00:09:22,760 --> 00:09:26,320 Speaker 2: are based on ignorance that if we can avoid probate, 180 00:09:26,679 --> 00:09:28,040 Speaker 2: we're safe and the money we don't have to pay 181 00:09:28,040 --> 00:09:29,920 Speaker 2: the court, and there are a lot of other things 182 00:09:29,960 --> 00:09:32,079 Speaker 2: we don't have to pay. We have to pay for bond, 183 00:09:32,400 --> 00:09:36,880 Speaker 2: but it's only if we are able to strategically maneuver 184 00:09:37,240 --> 00:09:41,280 Speaker 2: the process of transferring assets from a person who has 185 00:09:41,320 --> 00:09:43,360 Speaker 2: them built them and to the person they want them 186 00:09:43,400 --> 00:09:43,800 Speaker 2: to go to. 187 00:09:44,320 --> 00:09:47,640 Speaker 1: Can you share any examples of like generational wealth or 188 00:09:47,679 --> 00:09:49,920 Speaker 1: like legacy that you feel like you've helped to build 189 00:09:49,960 --> 00:09:52,319 Speaker 1: by helping someone with a state planning? 190 00:09:52,960 --> 00:09:56,439 Speaker 2: You used a great example with life insurance. So one 191 00:09:56,480 --> 00:09:58,520 Speaker 2: of the things that we encourage folks to do all 192 00:09:58,600 --> 00:10:00,840 Speaker 2: the time because even if you don't a lot of money, 193 00:10:00,840 --> 00:10:03,400 Speaker 2: if you haven't saved a lot of money, there are 194 00:10:03,400 --> 00:10:06,520 Speaker 2: things that you can do. For example, one of the 195 00:10:06,640 --> 00:10:08,800 Speaker 2: tools that we encourage people to do is when you 196 00:10:08,920 --> 00:10:12,160 Speaker 2: have a baby, be your child or your grandchild, to 197 00:10:12,160 --> 00:10:16,360 Speaker 2: get a whole life insurance policy owned by a trust 198 00:10:16,520 --> 00:10:20,040 Speaker 2: that is cash earning because it's cheapest when they're right 199 00:10:20,120 --> 00:10:22,960 Speaker 2: born right. Because what we know, life insurance pricing is 200 00:10:23,080 --> 00:10:26,079 Speaker 2: based upon your age as well as your health. When 201 00:10:26,080 --> 00:10:28,800 Speaker 2: you ran a new baby for six months. That's when 202 00:10:28,800 --> 00:10:32,480 Speaker 2: you are the youngest, right and then ideally the healthiest. 203 00:10:33,160 --> 00:10:36,120 Speaker 2: And so let's say you do that. That encourages us, 204 00:10:36,280 --> 00:10:40,640 Speaker 2: enables us to have the lowest amount cost but still 205 00:10:40,679 --> 00:10:43,600 Speaker 2: have the value. And as a result, they can withdraw 206 00:10:43,720 --> 00:10:47,000 Speaker 2: from some of that for college because it will continue 207 00:10:47,040 --> 00:10:48,440 Speaker 2: to be interest bearing and grow. 208 00:10:49,080 --> 00:10:50,240 Speaker 3: You can draw from. 209 00:10:50,160 --> 00:10:52,480 Speaker 2: Some of that as a down payment on the house, 210 00:10:52,760 --> 00:10:56,000 Speaker 2: and then what we know is when that child passes away, 211 00:10:56,679 --> 00:10:58,560 Speaker 2: that money goes back into the trust for the next 212 00:10:58,600 --> 00:11:01,760 Speaker 2: generation of the ways. Another way is that when we 213 00:11:01,920 --> 00:11:05,080 Speaker 2: think about home ownership, what are the things that we 214 00:11:05,120 --> 00:11:07,520 Speaker 2: talk about all as a community all the time, is 215 00:11:07,559 --> 00:11:10,839 Speaker 2: that home ownership is they're not making any more land, 216 00:11:10,880 --> 00:11:14,680 Speaker 2: so our land will continue to appreciate what money evaporates. 217 00:11:14,960 --> 00:11:17,920 Speaker 2: So if we strategically plan for a house that we 218 00:11:18,080 --> 00:11:21,079 Speaker 2: have that if I have three kids in one house 219 00:11:21,160 --> 00:11:23,760 Speaker 2: to leave to my three kids, I don't want them 220 00:11:23,800 --> 00:11:25,760 Speaker 2: to sell it. If there are multiple kids, that it 221 00:11:25,800 --> 00:11:29,760 Speaker 2: can become income producing property and as a result it 222 00:11:29,880 --> 00:11:32,959 Speaker 2: can continue to appreciate. All of my children can benefit. 223 00:11:33,160 --> 00:11:36,439 Speaker 2: But we don't do a distribution of all of the assets. 224 00:11:36,760 --> 00:11:40,520 Speaker 2: We distribute a portion so that it can continue to 225 00:11:40,600 --> 00:11:44,640 Speaker 2: grow from generation to generation. The trust principle can continue 226 00:11:44,679 --> 00:11:47,440 Speaker 2: to grow if we are thoughtful about how do we 227 00:11:47,559 --> 00:11:50,400 Speaker 2: protect it. One of the things that I tell folks 228 00:11:50,400 --> 00:11:52,360 Speaker 2: who have multile kids, don't just say if I have 229 00:11:52,400 --> 00:11:56,400 Speaker 2: three kids, to divide it equally, because then what we 230 00:11:56,440 --> 00:11:58,760 Speaker 2: know is all of our kids aren't created equal when 231 00:11:58,760 --> 00:12:02,920 Speaker 2: it comes to financial management. And so if we're thoughtful 232 00:12:02,920 --> 00:12:05,800 Speaker 2: about how do we strategically allow them to as opposed 233 00:12:05,840 --> 00:12:08,760 Speaker 2: to divide and disseminate, that they do what I call 234 00:12:09,040 --> 00:12:12,439 Speaker 2: is create and collaborate create wealth, and that they can 235 00:12:12,440 --> 00:12:15,360 Speaker 2: build an enterprise for multi generational wealth. 236 00:12:15,760 --> 00:12:18,600 Speaker 3: But it's got to be that strategic planning. Jointly. 237 00:12:19,440 --> 00:12:21,280 Speaker 2: We know that we can be thoughtful about how do 238 00:12:21,320 --> 00:12:24,800 Speaker 2: we work together. We can be strategic about building wealth. 239 00:12:25,000 --> 00:12:27,160 Speaker 2: But it's got to be an intentional thing. It's not 240 00:12:27,200 --> 00:12:28,840 Speaker 2: going to be a default setting. 241 00:12:29,400 --> 00:12:31,480 Speaker 1: Jimmy, how are you working with some of your clients 242 00:12:31,520 --> 00:12:33,320 Speaker 1: around some of the things that you mentioned right, like 243 00:12:33,360 --> 00:12:36,040 Speaker 1: the shame that maybe I should have more or do 244 00:12:36,120 --> 00:12:38,280 Speaker 1: I even really have enough to leave? What kind of 245 00:12:38,280 --> 00:12:42,079 Speaker 1: culturally responsive approaches are you using to working with your clients. 246 00:12:42,360 --> 00:12:45,560 Speaker 2: We spend a lot of time doing education, right, we 247 00:12:45,720 --> 00:12:50,439 Speaker 2: probably connect with eight hundred people a month, educating folks 248 00:12:50,480 --> 00:12:55,480 Speaker 2: across the country because of webinars seminars, and I've had 249 00:12:55,520 --> 00:12:57,920 Speaker 2: people that say, you know, I've had to hear this 250 00:12:58,000 --> 00:13:01,160 Speaker 2: a few times to talk about what does that look like? 251 00:13:01,520 --> 00:13:04,679 Speaker 2: Because there are many times where it is the downside 252 00:13:04,679 --> 00:13:07,520 Speaker 2: of just knowing what happens if you don't plan. Because 253 00:13:07,520 --> 00:13:09,240 Speaker 2: we do a lot of stuff for the people that 254 00:13:09,280 --> 00:13:11,360 Speaker 2: we love and that we care about. If we are 255 00:13:11,400 --> 00:13:15,600 Speaker 2: thoughtful about that, strategic about that, we'll take those next steps. 256 00:13:15,960 --> 00:13:18,800 Speaker 2: I also like to work with a lot of churches 257 00:13:18,960 --> 00:13:23,480 Speaker 2: and community organizations so that they can use the benefit 258 00:13:23,559 --> 00:13:26,240 Speaker 2: of their trusted relationship to understand that we need to 259 00:13:26,280 --> 00:13:27,559 Speaker 2: have those conversations. 260 00:13:27,920 --> 00:13:29,439 Speaker 3: Even though it's not so easy. 261 00:13:29,640 --> 00:13:31,360 Speaker 1: Can you tell us a little bit about what does 262 00:13:31,400 --> 00:13:32,600 Speaker 1: happen if we don't plan. 263 00:13:33,240 --> 00:13:36,600 Speaker 2: If there's not a will, there is the state that 264 00:13:36,640 --> 00:13:39,320 Speaker 2: you live in, and every state is slightly different. That 265 00:13:39,440 --> 00:13:43,000 Speaker 2: gets to determine who gets what, when and how, And 266 00:13:43,120 --> 00:13:45,280 Speaker 2: so a lot of times people think, oh, my spouse 267 00:13:45,320 --> 00:13:48,760 Speaker 2: will get everything. No, your spouse will get a percentage 268 00:13:48,880 --> 00:13:52,679 Speaker 2: of everything in most cases if you don't have any 269 00:13:52,760 --> 00:13:55,960 Speaker 2: sort of a will, But a will again directs probate. 270 00:13:56,040 --> 00:13:57,880 Speaker 2: And so let me just walk you a little bit 271 00:13:57,920 --> 00:14:02,120 Speaker 2: through what this typical probate process that someone takes the 272 00:14:02,160 --> 00:14:04,760 Speaker 2: will if there is one and a petition to the 273 00:14:04,800 --> 00:14:08,960 Speaker 2: court that identifies the assets that the person had that 274 00:14:09,040 --> 00:14:12,880 Speaker 2: passed away when that person passes away, the value of 275 00:14:12,920 --> 00:14:16,480 Speaker 2: the assets that the court has based on the value 276 00:14:17,080 --> 00:14:20,840 Speaker 2: it is provided to the court for court fees. The 277 00:14:20,840 --> 00:14:24,600 Speaker 2: more you have, the more you paid to the court. Right, 278 00:14:24,640 --> 00:14:27,040 Speaker 2: So that's I feel like scam number one because if 279 00:14:27,040 --> 00:14:29,240 Speaker 2: you're affluent and you've saved a lot of stuff, save 280 00:14:29,280 --> 00:14:31,800 Speaker 2: a lot of money, then you've got to pay the 281 00:14:31,840 --> 00:14:35,800 Speaker 2: court more. Then the second thing that happens is that 282 00:14:35,840 --> 00:14:38,080 Speaker 2: the court will put a notice in the paper that 283 00:14:38,240 --> 00:14:41,240 Speaker 2: says Amy died, does she owe you any money? And 284 00:14:41,280 --> 00:14:44,800 Speaker 2: you have to wait Sears and Robot comes to say 285 00:14:45,280 --> 00:14:49,240 Speaker 2: that I owe money. American Express, any hospital bills come 286 00:14:49,360 --> 00:14:52,400 Speaker 2: forward to say, Amy owes me money and that should 287 00:14:52,400 --> 00:14:55,400 Speaker 2: be paid before my grand joken should be paid. If not, 288 00:14:55,440 --> 00:14:57,400 Speaker 2: only do we wait for them to tell us, then 289 00:14:57,440 --> 00:14:59,160 Speaker 2: we have to wait for them to guarantee that I 290 00:14:59,200 --> 00:15:01,880 Speaker 2: am indeed or that my loved ones have indeed made 291 00:15:01,880 --> 00:15:02,560 Speaker 2: those payments. 292 00:15:02,720 --> 00:15:05,080 Speaker 3: So there's a significant. 293 00:15:04,600 --> 00:15:08,440 Speaker 2: Waiting period before anything can happen, because what happens when 294 00:15:08,480 --> 00:15:11,880 Speaker 2: you pass away those things, those bank accounts, etc. Are 295 00:15:11,960 --> 00:15:14,880 Speaker 2: frozen until you are able to get what we call 296 00:15:15,000 --> 00:15:18,040 Speaker 2: letters of administration because then you have no authority to act. 297 00:15:18,200 --> 00:15:21,440 Speaker 2: You can't even open the mail of someone who's passed 298 00:15:21,440 --> 00:15:24,880 Speaker 2: away until the court gives you that direction. Depending on 299 00:15:24,920 --> 00:15:28,080 Speaker 2: the state that you're living in, some states have inheritance 300 00:15:28,120 --> 00:15:31,520 Speaker 2: taxes depending on the relationships and some do not. So 301 00:15:31,720 --> 00:15:34,560 Speaker 2: like I'm sitting in Maryland right now, so if my 302 00:15:34,800 --> 00:15:38,080 Speaker 2: niece receives anything from me, there is a percentage that 303 00:15:38,440 --> 00:15:41,280 Speaker 2: has to be paid an inheritance tax, and it has 304 00:15:41,360 --> 00:15:45,120 Speaker 2: to be approved by the court before any distributions are made. 305 00:15:45,360 --> 00:15:48,400 Speaker 2: So again probate that this is a state administration is 306 00:15:48,440 --> 00:15:52,680 Speaker 2: called probate and takes many times two to three years 307 00:15:52,720 --> 00:15:53,520 Speaker 2: before completion. 308 00:15:54,080 --> 00:15:56,160 Speaker 3: So we encourage people to avoid probate. 309 00:15:56,200 --> 00:15:57,640 Speaker 2: One we don't want to have to pay the court 310 00:15:57,640 --> 00:16:01,720 Speaker 2: fees and many times the legal phase, our significant as 311 00:16:01,760 --> 00:16:05,680 Speaker 2: well as the executor or the personal representative gets paid 312 00:16:05,760 --> 00:16:08,400 Speaker 2: a portion as well as praise the lord the lawyers. 313 00:16:08,720 --> 00:16:12,080 Speaker 2: So I encourage people to be thoughtful by what is 314 00:16:12,120 --> 00:16:15,240 Speaker 2: it we want to keep for the benefit of the ones. 315 00:16:14,960 --> 00:16:18,560 Speaker 1: That we love more from our conversation after the break, 316 00:16:19,000 --> 00:16:21,400 Speaker 1: But first a quick snippet of what's coming up next 317 00:16:21,440 --> 00:16:22,320 Speaker 1: week on TVG. 318 00:16:23,400 --> 00:16:25,680 Speaker 4: I always say that beauty is a feeling, because, yes, 319 00:16:25,880 --> 00:16:27,520 Speaker 4: it's something you can see, but how does it make 320 00:16:27,520 --> 00:16:29,840 Speaker 4: you feel when you see that something that's beautiful or 321 00:16:29,840 --> 00:16:32,880 Speaker 4: someone that's beautiful? What does it leave on you? Does 322 00:16:32,920 --> 00:16:35,200 Speaker 4: it leave a good impression? Does it leave you inspired? 323 00:16:35,520 --> 00:16:37,920 Speaker 4: When we see beautiful garden, when we look at a 324 00:16:38,360 --> 00:16:41,120 Speaker 4: really gorgeous home, taking beauty out of the context of people, 325 00:16:41,440 --> 00:16:43,600 Speaker 4: we look at environments or anything that provokes you to 326 00:16:43,680 --> 00:16:46,800 Speaker 4: feel something emotionally, it is a feeling. So I always 327 00:16:46,800 --> 00:16:49,880 Speaker 4: talk about, yes, it's great to look great, it's great 328 00:16:49,880 --> 00:16:52,240 Speaker 4: to get adult hair cut, it's beautiful to have a 329 00:16:52,320 --> 00:16:54,440 Speaker 4: nice new outfit, But if it doesn't make you feel 330 00:16:54,440 --> 00:16:56,840 Speaker 4: better inside, then it's just a mass it's just a 331 00:16:56,880 --> 00:17:05,440 Speaker 4: band aid. It's temporary. 332 00:17:12,480 --> 00:17:14,679 Speaker 1: So something that often comes up is that people are 333 00:17:14,680 --> 00:17:17,760 Speaker 1: trying to have conversations with maybe parents and grandparents about 334 00:17:17,800 --> 00:17:20,879 Speaker 1: the importance of the same planning. Can you give us 335 00:17:20,920 --> 00:17:23,920 Speaker 1: some conversation starters that we might be able to use 336 00:17:23,960 --> 00:17:26,080 Speaker 1: with the people in our family about how to talk 337 00:17:26,080 --> 00:17:27,680 Speaker 1: about this maybe sensitively. 338 00:17:28,400 --> 00:17:30,199 Speaker 2: One of the things that I always tried to do 339 00:17:30,280 --> 00:17:34,160 Speaker 2: is living examples, right when Chadwick Boseman passed away, when 340 00:17:34,200 --> 00:17:38,120 Speaker 2: Aretha Franklin passed away, and Melva Hass there were all 341 00:17:38,119 --> 00:17:42,080 Speaker 2: those lawsuits and bringing up those examples. But I often 342 00:17:42,160 --> 00:17:45,360 Speaker 2: try to recommend to people to use themselves as an example, 343 00:17:45,960 --> 00:17:49,400 Speaker 2: because many times people will say to me that, oh, 344 00:17:49,440 --> 00:17:51,160 Speaker 2: my mom doesn't want to do it because she thinks 345 00:17:51,160 --> 00:17:53,359 Speaker 2: for trying to kill her off. Right, But if you've 346 00:17:53,359 --> 00:17:56,480 Speaker 2: had it yourself, if you've completed that plan for yourself, 347 00:17:56,880 --> 00:17:59,359 Speaker 2: you can use the examples in the experience, in the 348 00:17:59,440 --> 00:18:02,640 Speaker 2: conversation as a starter to say, this is what's going 349 00:18:02,680 --> 00:18:04,720 Speaker 2: on for me, or this is what happened when I've 350 00:18:04,760 --> 00:18:07,760 Speaker 2: done this. You make it not such a mystery because 351 00:18:07,760 --> 00:18:10,840 Speaker 2: we're often fearful about those things that we just don't know, 352 00:18:11,640 --> 00:18:13,920 Speaker 2: and also being very thoughtful. I always say to people, 353 00:18:13,920 --> 00:18:16,359 Speaker 2: it's one of those things that it's really important to 354 00:18:16,520 --> 00:18:20,080 Speaker 2: have relationship with people that you like. It's a hard conversation, 355 00:18:20,240 --> 00:18:23,439 Speaker 2: so don't just pick the first person that you see 356 00:18:23,560 --> 00:18:25,760 Speaker 2: in the yellow pages, where we don't have anymore. But 357 00:18:26,240 --> 00:18:28,480 Speaker 2: making sure that you reach out to someone with whom 358 00:18:28,560 --> 00:18:31,480 Speaker 2: you like. I always say that every law firm has 359 00:18:31,480 --> 00:18:34,520 Speaker 2: a personality, you know, core values. Make sure that you 360 00:18:34,720 --> 00:18:38,000 Speaker 2: identify someone with whom you find a connection, or else 361 00:18:38,040 --> 00:18:39,480 Speaker 2: it's not going to work because you're just going to 362 00:18:39,520 --> 00:18:42,480 Speaker 2: want to get through as of course, to really experience 363 00:18:42,960 --> 00:18:45,120 Speaker 2: because a lot of times people say to me, why 364 00:18:45,160 --> 00:18:47,040 Speaker 2: do I even need a lawyer? And I will say 365 00:18:47,080 --> 00:18:49,479 Speaker 2: to you, like Aretha Franklin didn't have a lawyer, but 366 00:18:49,640 --> 00:18:53,960 Speaker 2: she didn't do it right. As a result, her loved 367 00:18:54,000 --> 00:18:56,960 Speaker 2: one who has special needs was not taking care of 368 00:18:57,160 --> 00:19:00,639 Speaker 2: as well as she ends up paying a signal amount 369 00:19:00,640 --> 00:19:03,720 Speaker 2: of taxes that she would have not known that she 370 00:19:03,760 --> 00:19:06,320 Speaker 2: would have to pay. But only if we are able 371 00:19:06,359 --> 00:19:08,960 Speaker 2: to structure it appropriate. You don't know what you don't know, 372 00:19:09,400 --> 00:19:12,480 Speaker 2: and so I encourage people to have the benefit of 373 00:19:12,600 --> 00:19:16,080 Speaker 2: that professional to talk to and ask those hard questions. 374 00:19:16,160 --> 00:19:18,320 Speaker 1: So, Amy, how do we get started with this process? 375 00:19:18,320 --> 00:19:20,720 Speaker 1: And we are looking through Google like you recommended, right, 376 00:19:20,760 --> 00:19:22,280 Speaker 1: But what are we looking for at first? Are we 377 00:19:22,320 --> 00:19:25,919 Speaker 1: looking for a state planning attorney? And do they have 378 00:19:26,000 --> 00:19:27,760 Speaker 1: to be like in our state or can you work 379 00:19:27,800 --> 00:19:29,160 Speaker 1: with anybody in any state? 380 00:19:29,760 --> 00:19:32,680 Speaker 2: No, you should work with a state planning attorney in 381 00:19:32,720 --> 00:19:36,200 Speaker 2: your state. Right, so that's first and foremost in your state. 382 00:19:36,240 --> 00:19:39,440 Speaker 2: But two, I say all the time that many times 383 00:19:39,680 --> 00:19:43,600 Speaker 2: we have a master of everyone. Right, I can I 384 00:19:43,600 --> 00:19:46,000 Speaker 2: get you out of jail if you ever broken back, 385 00:19:46,040 --> 00:19:47,879 Speaker 2: I can get you. But you know, we don't go 386 00:19:47,960 --> 00:19:50,520 Speaker 2: to doctors like that, so we shouldn't go to attorneys 387 00:19:50,640 --> 00:19:54,639 Speaker 2: like that. So there are many attorneys who are solopreneurs. 388 00:19:54,680 --> 00:19:58,160 Speaker 2: And you'll have an attorney who works all by him 389 00:19:58,200 --> 00:20:01,879 Speaker 2: or herself and has five are of expertise. That's not 390 00:20:02,040 --> 00:20:05,280 Speaker 2: typically the case, right, And so you can have those 391 00:20:05,320 --> 00:20:09,200 Speaker 2: two things that are interconnected. That makes sense. But if 392 00:20:09,240 --> 00:20:12,399 Speaker 2: you are at a state planning attorney, you shouldn't also 393 00:20:12,520 --> 00:20:16,040 Speaker 2: be doing criminal defense, right. Those two things don't really 394 00:20:16,080 --> 00:20:18,760 Speaker 2: align themselves. A lot of family lawyers and estate planners 395 00:20:18,960 --> 00:20:22,480 Speaker 2: are firm. We do business succession because that's really about 396 00:20:22,600 --> 00:20:25,360 Speaker 2: estate planning too, but it's state planning for a business 397 00:20:25,400 --> 00:20:29,280 Speaker 2: and being very thoughtful about that. But have the conversations. 398 00:20:29,560 --> 00:20:31,960 Speaker 2: I encourage people. We have webinars all the time and 399 00:20:32,040 --> 00:20:37,000 Speaker 2: most estate planners do. And then interview the attorney, get 400 00:20:37,000 --> 00:20:38,840 Speaker 2: to know what their values are and get to think 401 00:20:38,840 --> 00:20:42,600 Speaker 2: about what's important to them and make sure that's an alignment. Right, 402 00:20:43,040 --> 00:20:45,560 Speaker 2: And so we really want you to be comfortable enough 403 00:20:45,600 --> 00:20:48,200 Speaker 2: to ask the hard questions and to share your soul 404 00:20:48,560 --> 00:20:51,520 Speaker 2: about what keeps you up at night about leaving stuff 405 00:20:51,560 --> 00:20:54,200 Speaker 2: for your children or your grandchildren. Now, again we're a 406 00:20:54,240 --> 00:20:57,520 Speaker 2: big focus on multi generational wealth building, so we're very 407 00:20:57,560 --> 00:21:01,240 Speaker 2: thoughtful about not just your child, but your children's children. 408 00:21:01,600 --> 00:21:03,760 Speaker 1: Okay, so we've done our research, found the person that 409 00:21:03,800 --> 00:21:06,560 Speaker 1: we feel comfortable with, we've interviewed them. What is the 410 00:21:06,600 --> 00:21:09,400 Speaker 1: first step in this process of starting estate planning. 411 00:21:09,960 --> 00:21:13,800 Speaker 2: We ask people to complete information about what's important, and 412 00:21:13,840 --> 00:21:17,800 Speaker 2: who's important and what exists. What's really important is also 413 00:21:17,920 --> 00:21:21,000 Speaker 2: that we have a plan for everything, all of your assets, 414 00:21:21,080 --> 00:21:25,160 Speaker 2: be it your digital assets, your financial assets, and your 415 00:21:25,200 --> 00:21:29,359 Speaker 2: sentimental assets. Right, because I don't want to leave a 416 00:21:29,400 --> 00:21:31,119 Speaker 2: dollar on the table. It used to be in the 417 00:21:31,160 --> 00:21:36,320 Speaker 2: newspaper that you can see unclaimed property notices. Sometimes people 418 00:21:36,400 --> 00:21:40,119 Speaker 2: don't really know what assets exist. Many times, if we 419 00:21:40,119 --> 00:21:42,000 Speaker 2: don't have a plan, we leave what I call a 420 00:21:42,040 --> 00:21:44,800 Speaker 2: scavenger hunt for our loved ones because they. 421 00:21:44,760 --> 00:21:47,440 Speaker 3: Don't know where the assets are or what the assets are. 422 00:21:47,920 --> 00:21:50,440 Speaker 2: Back in the day, we could sit in someone's house 423 00:21:50,480 --> 00:21:53,400 Speaker 2: for a quarter and all of the bank statements would 424 00:21:53,400 --> 00:21:57,040 Speaker 2: come through. Now we have everything online. There are banks 425 00:21:57,080 --> 00:21:59,760 Speaker 2: that aren't bricks and mortar anymore, So we got to 426 00:21:59,760 --> 00:22:04,119 Speaker 2: be able to identify what indeed exists. And then wanting 427 00:22:04,160 --> 00:22:06,960 Speaker 2: to make sure that we are caring for the people 428 00:22:07,000 --> 00:22:10,560 Speaker 2: that we care about, especially if you have minor children. Right, 429 00:22:10,600 --> 00:22:13,680 Speaker 2: if you have minor children, being thoughtful about what's going 430 00:22:13,720 --> 00:22:16,639 Speaker 2: to happen for them, who's going to be involved in 431 00:22:16,680 --> 00:22:19,560 Speaker 2: their lives, and how do we support them. We do 432 00:22:19,600 --> 00:22:23,200 Speaker 2: a thing called a child Development Plan for our minor children. 433 00:22:23,359 --> 00:22:26,600 Speaker 2: And again, as I said earlier in regards to Aretha Franklin, 434 00:22:27,119 --> 00:22:31,040 Speaker 2: if your loved one has special needs and receives governmental benefits, 435 00:22:31,320 --> 00:22:33,439 Speaker 2: you need to be thoughtful on how do we protect that, 436 00:22:33,840 --> 00:22:36,640 Speaker 2: because it doesn't take a lot to throw them off 437 00:22:36,680 --> 00:22:39,080 Speaker 2: of their benefits. And so we want to make sure 438 00:22:39,359 --> 00:22:41,560 Speaker 2: that we are protecting them and making sure that they 439 00:22:41,560 --> 00:22:43,720 Speaker 2: can have a quality of life that they want. 440 00:22:43,920 --> 00:22:44,920 Speaker 3: So making that. 441 00:22:45,000 --> 00:22:48,320 Speaker 2: Roadmap to the riches through the trusts or whatever the 442 00:22:48,440 --> 00:22:51,560 Speaker 2: estate plan looks like, and so how do we want 443 00:22:51,560 --> 00:22:54,760 Speaker 2: to plan for it, making sure that we've taken to consideration, 444 00:22:54,960 --> 00:22:56,800 Speaker 2: what are the strengths as well? As the areas of 445 00:22:56,880 --> 00:23:00,200 Speaker 2: weakness that our loved ones are challenged with that we 446 00:23:00,240 --> 00:23:03,080 Speaker 2: can create an action plan so that we can support 447 00:23:03,119 --> 00:23:05,280 Speaker 2: them that live the best life that they can have. 448 00:23:05,720 --> 00:23:08,520 Speaker 1: So when you said digital assets, Amy, are you talking 449 00:23:08,520 --> 00:23:11,600 Speaker 1: about like passwords, pictures? Like what are digital assets? 450 00:23:12,080 --> 00:23:15,159 Speaker 2: All of the above now especially it used to be pictures, 451 00:23:15,320 --> 00:23:20,120 Speaker 2: Facebook pages, but now it's cryptocurrency. It's also your hotel 452 00:23:20,119 --> 00:23:23,879 Speaker 2: redeem points, your credit card rewards, all of those things 453 00:23:23,880 --> 00:23:26,960 Speaker 2: that we take for granted that we've spent a lot 454 00:23:27,000 --> 00:23:28,879 Speaker 2: of money to earn those things, so we need to 455 00:23:28,920 --> 00:23:30,880 Speaker 2: be able to manage them as well. 456 00:23:31,359 --> 00:23:33,640 Speaker 1: So you can give that to somebody else. 457 00:23:34,320 --> 00:23:37,880 Speaker 2: Absolutely, Remember it's not like it's a gift. They're earned. 458 00:23:38,080 --> 00:23:40,960 Speaker 2: Those things that are earned we get to be thoughtful about. 459 00:23:41,320 --> 00:23:44,040 Speaker 1: Okay, And you mentioned sentimental assets, so is that like 460 00:23:44,080 --> 00:23:46,000 Speaker 1: your wardrobe and those kinds of things. 461 00:23:46,160 --> 00:23:48,120 Speaker 2: So, actually, if you can see behind me, you see 462 00:23:48,160 --> 00:23:50,159 Speaker 2: there's a picture of Thurgod Marshall and z Or in 463 00:23:50,200 --> 00:23:53,480 Speaker 2: Neil Hursty. That was a plaque that my mother received. 464 00:23:53,600 --> 00:23:56,560 Speaker 2: My mother is no longer living. There are heirlooms that 465 00:23:57,040 --> 00:24:02,600 Speaker 2: people really care about as well, and can us significant fights, right, 466 00:24:02,680 --> 00:24:05,320 Speaker 2: and so we encourage people to have a plan for 467 00:24:05,440 --> 00:24:08,160 Speaker 2: so many of those things, and we tell people greed 468 00:24:08,240 --> 00:24:10,640 Speaker 2: and grief are the two g's we have to guard 469 00:24:10,680 --> 00:24:13,639 Speaker 2: again because we don't really know what's going to happen, 470 00:24:13,920 --> 00:24:15,640 Speaker 2: but we know that they're going to feel some kind 471 00:24:15,640 --> 00:24:18,000 Speaker 2: of way. People that you love and so we get 472 00:24:18,040 --> 00:24:20,760 Speaker 2: to support them to make sure the heirlooms that they 473 00:24:20,800 --> 00:24:23,800 Speaker 2: have that means something to them get passed along. 474 00:24:24,240 --> 00:24:26,320 Speaker 1: So as a part of your planning, amy, is there 475 00:24:26,359 --> 00:24:28,400 Speaker 1: like a checklist that you have your clients go through 476 00:24:28,400 --> 00:24:30,320 Speaker 1: of like looking through everything in their house that they 477 00:24:30,400 --> 00:24:33,439 Speaker 1: may want to leave for someone after they're gone. 478 00:24:33,680 --> 00:24:35,760 Speaker 2: Most people say, oh, I don't have much, but the 479 00:24:35,840 --> 00:24:38,639 Speaker 2: reality is we all have a lot, whether or not 480 00:24:38,680 --> 00:24:43,120 Speaker 2: it's significant financial value, but what is valuable to someone 481 00:24:43,520 --> 00:24:45,639 Speaker 2: is based upon a lot of times the relationship that 482 00:24:45,680 --> 00:24:48,440 Speaker 2: you have. So we encourage people just walk through your house. 483 00:24:48,480 --> 00:24:50,959 Speaker 2: And sometimes it's easier to walk through with someone that 484 00:24:51,000 --> 00:24:53,840 Speaker 2: you love that notices things that you wouldn't notice because 485 00:24:53,840 --> 00:24:56,280 Speaker 2: we don't see what's there because we're used to seeing 486 00:24:56,280 --> 00:25:00,240 Speaker 2: it at so encouraging folks to take those steps to 487 00:25:00,320 --> 00:25:03,200 Speaker 2: take a picture of the room and sometimes those things 488 00:25:03,200 --> 00:25:05,719 Speaker 2: that we've taken for granted because they've been in our 489 00:25:05,760 --> 00:25:06,359 Speaker 2: family for. 490 00:25:06,280 --> 00:25:08,600 Speaker 3: So long we don't even see anymore. 491 00:25:08,880 --> 00:25:12,160 Speaker 2: So encouraging folks to have a new, fresh eye look 492 00:25:12,400 --> 00:25:13,320 Speaker 2: as we walk through. 493 00:25:13,800 --> 00:25:16,600 Speaker 1: So in addition to figuring out what happens with the fts, 494 00:25:16,680 --> 00:25:19,160 Speaker 1: what other pieces are there of estate planning? 495 00:25:19,680 --> 00:25:22,879 Speaker 2: How do we incentivize our young folks to have and 496 00:25:22,920 --> 00:25:24,600 Speaker 2: do and be what you've called them to. What we 497 00:25:24,680 --> 00:25:27,560 Speaker 2: know is that we want to make sure our loved 498 00:25:27,560 --> 00:25:30,160 Speaker 2: ones have the resources that they need to do whatever 499 00:25:30,200 --> 00:25:33,000 Speaker 2: they want to do, but not to have so many 500 00:25:33,080 --> 00:25:34,600 Speaker 2: resources that they don't do anything. 501 00:25:34,960 --> 00:25:36,440 Speaker 3: Many times we've had people. 502 00:25:36,240 --> 00:25:38,880 Speaker 2: Where just grief has just stuck them and they can 503 00:25:39,200 --> 00:25:42,280 Speaker 2: just not move because they have the resources that they 504 00:25:42,280 --> 00:25:45,479 Speaker 2: are not necessarily compelled to do anything, But then they 505 00:25:45,480 --> 00:25:48,760 Speaker 2: will sort of in essence waste the resources that are 506 00:25:48,800 --> 00:25:51,800 Speaker 2: available to them. Another thing that we encourage people to 507 00:25:51,840 --> 00:25:54,879 Speaker 2: do is if they have the value of philanthropy by giving, 508 00:25:55,200 --> 00:25:58,880 Speaker 2: and many many many Black folks do by either through 509 00:25:58,920 --> 00:26:02,719 Speaker 2: our houses of faith or just through our HBCUs or whatever. 510 00:26:02,800 --> 00:26:05,960 Speaker 2: There are many times when we give alanthropically. We encourage 511 00:26:05,960 --> 00:26:09,080 Speaker 2: people to incentivize that as well. They can do that 512 00:26:09,240 --> 00:26:11,880 Speaker 2: when they've passed away, but they can also encourage our 513 00:26:11,920 --> 00:26:15,600 Speaker 2: young folks to have that opportunity. I really want people 514 00:26:15,680 --> 00:26:18,520 Speaker 2: to be thoughtful about how do we teach children from 515 00:26:18,520 --> 00:26:21,359 Speaker 2: the time that they are young to have the mindset 516 00:26:21,440 --> 00:26:24,760 Speaker 2: of welcome And it may not seem like wealth because 517 00:26:24,960 --> 00:26:27,800 Speaker 2: they're starting out one spot. But I encourage folks in 518 00:26:27,800 --> 00:26:30,400 Speaker 2: many cases at the age of when the children are 519 00:26:30,440 --> 00:26:35,560 Speaker 2: teenagers or preteens to participate in the trust management so 520 00:26:35,560 --> 00:26:37,760 Speaker 2: that they can be thoughtful. And how do we coordinate 521 00:26:37,800 --> 00:26:41,560 Speaker 2: and strategically invest in the future for not just our kids, 522 00:26:41,600 --> 00:26:44,520 Speaker 2: but our kids' kids so they can be plannful of them. 523 00:26:45,000 --> 00:26:56,920 Speaker 1: More from our conversation after the break And where does 524 00:26:56,960 --> 00:27:00,000 Speaker 1: the estate plan live? Amy, Like, I'm guessing the lawyer 525 00:27:00,200 --> 00:27:03,200 Speaker 1: has a copy. Is there somebody in the family who 526 00:27:03,480 --> 00:27:05,639 Speaker 1: is like entrusted with a copy? What's the process of 527 00:27:05,640 --> 00:27:07,560 Speaker 1: how the estate plan even like how do people even 528 00:27:07,640 --> 00:27:08,440 Speaker 1: know it exists? 529 00:27:08,800 --> 00:27:11,960 Speaker 2: So it depends, which is every lawyer's answer to every question. 530 00:27:12,640 --> 00:27:17,000 Speaker 2: But in Maryland and in some states but not the district, 531 00:27:17,280 --> 00:27:20,840 Speaker 2: the court can keep your will for safe keeping right 532 00:27:20,880 --> 00:27:22,960 Speaker 2: for five dollars in Maryland for a lifetime. 533 00:27:23,320 --> 00:27:26,480 Speaker 3: You can keep the will at the register of wills. 534 00:27:26,520 --> 00:27:30,360 Speaker 2: However, when I say one of the problems with probate 535 00:27:30,960 --> 00:27:35,040 Speaker 2: is that it is a public thing. Right anybody anywhere 536 00:27:35,400 --> 00:27:38,639 Speaker 2: can look at the will once you've passed away and 537 00:27:38,680 --> 00:27:43,280 Speaker 2: has published, and unfortunately it becomes a public process, and 538 00:27:43,359 --> 00:27:47,320 Speaker 2: many times vultures are looking at your assets and then 539 00:27:47,400 --> 00:27:50,440 Speaker 2: going after your heirs and your loved ones that they 540 00:27:50,560 --> 00:27:54,000 Speaker 2: see on the petition to go to seek them out 541 00:27:54,080 --> 00:27:57,159 Speaker 2: and to try to take advantage of their grief, and 542 00:27:57,320 --> 00:28:01,399 Speaker 2: unfortunately many times it happens. With that being said, I 543 00:28:01,480 --> 00:28:04,480 Speaker 2: encourage people to avoid probate, which is having a private 544 00:28:04,600 --> 00:28:07,679 Speaker 2: estate plan, which is oftentimes a trust. And so with 545 00:28:07,800 --> 00:28:12,000 Speaker 2: that being said, there is oftentimes a copy with the 546 00:28:12,040 --> 00:28:16,199 Speaker 2: attorney and the original is with the testator or the 547 00:28:16,359 --> 00:28:19,680 Speaker 2: person who has the estate plan, and I encourage people 548 00:28:19,680 --> 00:28:21,000 Speaker 2: to sometimes give a portion. 549 00:28:21,680 --> 00:28:24,800 Speaker 3: Now there are people think, oh, it's because we don't 550 00:28:24,800 --> 00:28:25,240 Speaker 3: want to give them. 551 00:28:25,280 --> 00:28:26,640 Speaker 2: The whole thing is we don't want them to knock 552 00:28:26,640 --> 00:28:29,119 Speaker 2: them off in order to get the assets. But what 553 00:28:29,200 --> 00:28:31,520 Speaker 2: are the clauses that we often put in our estate 554 00:28:31,560 --> 00:28:34,880 Speaker 2: plans is that the slayer cannot benefit so that even 555 00:28:34,920 --> 00:28:37,560 Speaker 2: if they have this thought that if they've done something 556 00:28:37,600 --> 00:28:40,600 Speaker 2: to facilitate the end of life for our test stator, 557 00:28:40,680 --> 00:28:43,200 Speaker 2: they won't get anything as a result. That also reminds 558 00:28:43,240 --> 00:28:45,680 Speaker 2: me that we also have a pullboy in Bimbo clauses 559 00:28:45,720 --> 00:28:49,080 Speaker 2: for people who remarry after death. So we keep all 560 00:28:49,120 --> 00:28:52,120 Speaker 2: of those rules in place so that we can protect 561 00:28:52,280 --> 00:28:55,000 Speaker 2: multi generational if we have the plan, and that's why 562 00:28:55,040 --> 00:28:58,280 Speaker 2: we encourage people to have that strategic plan. You can 563 00:28:58,360 --> 00:29:01,680 Speaker 2: have a copy and you can form your executor or 564 00:29:01,720 --> 00:29:05,680 Speaker 2: your success or trustees where that plan is kept. And 565 00:29:05,680 --> 00:29:07,880 Speaker 2: it's often not safe or something to. 566 00:29:07,800 --> 00:29:11,040 Speaker 1: That effect, and is the successor typically like a family 567 00:29:11,080 --> 00:29:13,600 Speaker 1: member or like some other trusted person. 568 00:29:13,960 --> 00:29:16,640 Speaker 2: Or some other trusted person. It can be your family member, 569 00:29:16,920 --> 00:29:17,640 Speaker 2: but it depends. 570 00:29:17,680 --> 00:29:17,880 Speaker 3: Now. 571 00:29:18,120 --> 00:29:21,120 Speaker 2: I always say, if Pooky is your oldest child and 572 00:29:21,200 --> 00:29:25,080 Speaker 2: the Pooky has never managed money and doesn't manage money regularly, 573 00:29:25,360 --> 00:29:27,360 Speaker 2: don't appoint that Pooky. 574 00:29:27,640 --> 00:29:27,800 Speaker 3: Right. 575 00:29:27,880 --> 00:29:29,560 Speaker 2: A lot of times people say, oh, he'll step up 576 00:29:29,600 --> 00:29:31,400 Speaker 2: when I pass away when I need them to. 577 00:29:31,920 --> 00:29:34,040 Speaker 3: No, they won't. No, they won't. 578 00:29:34,320 --> 00:29:38,760 Speaker 2: So identify someone who manages money and has utmost integrity, right, 579 00:29:38,880 --> 00:29:40,920 Speaker 2: and then a backup to that person, because you don't 580 00:29:40,920 --> 00:29:42,560 Speaker 2: know who's going to be there when you need them 581 00:29:42,560 --> 00:29:44,920 Speaker 2: to be there as well as we want very specific 582 00:29:45,040 --> 00:29:47,080 Speaker 2: rules so that they can make sure that they're doing 583 00:29:47,200 --> 00:29:49,640 Speaker 2: exactly what you would want them to do, not what 584 00:29:50,080 --> 00:29:52,040 Speaker 2: they or their spouse would want them to do. 585 00:29:52,880 --> 00:29:53,360 Speaker 4: Got it. 586 00:29:53,880 --> 00:29:56,280 Speaker 1: So what kinds of things that you can encourage younger 587 00:29:56,320 --> 00:29:59,800 Speaker 1: people to think about, maybe even before they have a family, 588 00:30:00,240 --> 00:30:02,880 Speaker 1: in thinking about protecting their future, before they really feel 589 00:30:02,880 --> 00:30:05,840 Speaker 1: like they've created something. What kinds of conversations are things 590 00:30:05,840 --> 00:30:08,120 Speaker 1: should they be thinking about. Get in the mindset of 591 00:30:08,160 --> 00:30:08,680 Speaker 1: this thinking. 592 00:30:09,280 --> 00:30:12,520 Speaker 2: What we know is again I'm a professional pessimist, right, 593 00:30:13,360 --> 00:30:15,440 Speaker 2: is that you should have your first estate plan at 594 00:30:15,480 --> 00:30:17,920 Speaker 2: the age of eighteen. And I tell people the story 595 00:30:17,920 --> 00:30:20,120 Speaker 2: all of the time. My baby girl was in college 596 00:30:20,160 --> 00:30:23,440 Speaker 2: and in a car accident in the hospital and I 597 00:30:23,560 --> 00:30:26,520 Speaker 2: was five hours away and did not have legal authority 598 00:30:26,560 --> 00:30:29,280 Speaker 2: to talk to the hospital. Praise the Lord, she's fine. 599 00:30:29,760 --> 00:30:33,280 Speaker 2: But at eighteen, we know that our children, although legally 600 00:30:33,320 --> 00:30:36,640 Speaker 2: of age, don't have the capacity or don't have the 601 00:30:36,680 --> 00:30:39,520 Speaker 2: wisdom in many cases, to manage all of those things 602 00:30:39,520 --> 00:30:43,560 Speaker 2: that are necessary. And if you are single, if you 603 00:30:43,760 --> 00:30:46,880 Speaker 2: are not married, or don't have any children, or don't 604 00:30:47,000 --> 00:30:50,240 Speaker 2: have that legal structure in place, that means the court's 605 00:30:50,280 --> 00:30:52,280 Speaker 2: going to identify someone who's going to act in your 606 00:30:52,320 --> 00:30:55,920 Speaker 2: behalf right, because someone's going to be appointed if you 607 00:30:56,080 --> 00:30:59,160 Speaker 2: are unable to. And the truth is, you don't want 608 00:30:59,400 --> 00:31:02,080 Speaker 2: that nger to be the one who's going to make 609 00:31:02,120 --> 00:31:04,840 Speaker 2: the rules. You don't want them to be whoever the 610 00:31:04,880 --> 00:31:07,880 Speaker 2: court identifies because they don't know you or care about 611 00:31:07,880 --> 00:31:11,240 Speaker 2: what your values are, but they're paid to be expedient 612 00:31:11,280 --> 00:31:11,920 Speaker 2: and efficient. 613 00:31:12,480 --> 00:31:14,360 Speaker 1: I think the other thing amy is that so many 614 00:31:14,440 --> 00:31:16,920 Speaker 1: young people are pessimistic, like you talked about right about 615 00:31:16,920 --> 00:31:19,520 Speaker 1: the future and feel like, oh, what am I even 616 00:31:19,600 --> 00:31:22,680 Speaker 1: going to protect? Right? Like what's even going to be happening? 617 00:31:22,880 --> 00:31:25,400 Speaker 1: What would you say to help manage any anxiety people 618 00:31:25,400 --> 00:31:26,800 Speaker 1: have around that the. 619 00:31:26,760 --> 00:31:29,920 Speaker 2: Most important thing that anybody has is a life right, 620 00:31:30,240 --> 00:31:34,960 Speaker 2: and so if we are thoughtful and careful, we want 621 00:31:35,000 --> 00:31:37,200 Speaker 2: to protect the life that we have. It's not about 622 00:31:37,200 --> 00:31:40,000 Speaker 2: the millions. The most important thing is your life, and 623 00:31:40,080 --> 00:31:44,160 Speaker 2: so we want to make the decisions about our life. 624 00:31:44,440 --> 00:31:46,720 Speaker 2: So I don't want people to take that for granted. 625 00:31:47,080 --> 00:31:49,880 Speaker 1: So what's the difference between a four one K and 626 00:31:49,960 --> 00:31:53,560 Speaker 1: an iri? Like how would we decide what we want 627 00:31:53,600 --> 00:31:56,200 Speaker 1: to do in terms of thinking about the insurance plan? 628 00:31:56,320 --> 00:31:56,480 Speaker 3: Like that? 629 00:31:57,200 --> 00:32:00,040 Speaker 2: So the FURL one K is a retirement plan that 630 00:32:00,120 --> 00:32:04,240 Speaker 2: is employer's sponsor, and ideally I tell everybody if your 631 00:32:04,280 --> 00:32:07,520 Speaker 2: employer is matching you, make sure you put as much 632 00:32:07,640 --> 00:32:11,080 Speaker 2: as you can and don't leave forty cents on the table. 633 00:32:11,520 --> 00:32:14,600 Speaker 2: If they're going to match, make sure you're getting all 634 00:32:14,640 --> 00:32:18,000 Speaker 2: of that return. IRA is an individual retirement plan that 635 00:32:18,120 --> 00:32:21,360 Speaker 2: you have funded, and there are two different kinds. There 636 00:32:21,440 --> 00:32:24,760 Speaker 2: is the pre tax and then there's the post tax, 637 00:32:25,080 --> 00:32:28,320 Speaker 2: which is the wroth IRA. And I'm not trying to 638 00:32:28,320 --> 00:32:31,479 Speaker 2: be that specific, but knowing this, when you have a 639 00:32:31,560 --> 00:32:36,640 Speaker 2: pretax IRA, that means the money comes before it has 640 00:32:36,720 --> 00:32:40,200 Speaker 2: been taxed by your FAIKA, your federal taxes. All of 641 00:32:40,240 --> 00:32:43,960 Speaker 2: that stuff is in the account, which brings your taxable 642 00:32:44,000 --> 00:32:44,959 Speaker 2: amount lower. 643 00:32:45,480 --> 00:32:45,720 Speaker 3: Right. 644 00:32:45,880 --> 00:32:48,320 Speaker 2: But when you take the money out of that IRA, 645 00:32:48,760 --> 00:32:50,920 Speaker 2: that's when Uncle Sam is going to hit it, and 646 00:32:51,080 --> 00:32:55,120 Speaker 2: Uncle Sam will hit it, right, and it is often. 647 00:32:54,920 --> 00:32:57,040 Speaker 3: Appreciated, so there's more money in it. 648 00:32:57,080 --> 00:33:00,760 Speaker 2: And so oftentimes people put their money in an IRA 649 00:33:00,960 --> 00:33:03,200 Speaker 2: pull it out expecting that when they're older and no 650 00:33:03,280 --> 00:33:06,600 Speaker 2: longer working, that it's at a lower tax rate, and 651 00:33:06,680 --> 00:33:09,720 Speaker 2: therefore that's why they want to defer the taxes until 652 00:33:09,760 --> 00:33:13,720 Speaker 2: later However, a rough IRA is money that I've put 653 00:33:13,760 --> 00:33:15,200 Speaker 2: in that's already been taxed. 654 00:33:15,200 --> 00:33:16,720 Speaker 3: After I've received my paycheck. 655 00:33:17,000 --> 00:33:21,480 Speaker 2: I put money into my IRA, and therefore when I 656 00:33:21,560 --> 00:33:22,840 Speaker 2: pull it out, it does not. 657 00:33:23,040 --> 00:33:24,720 Speaker 3: Have to be taxed by Uncle Sam. 658 00:33:25,120 --> 00:33:27,560 Speaker 2: It has already been taxed, and so that's a benefit 659 00:33:27,600 --> 00:33:30,360 Speaker 2: all by itself. But there are limits on how much 660 00:33:30,400 --> 00:33:33,239 Speaker 2: you can put in that pre tax dollars. So I 661 00:33:33,360 --> 00:33:37,959 Speaker 2: encourage people to be very thoughtful about taking advantage of 662 00:33:38,120 --> 00:33:41,280 Speaker 2: every opportunity. And one of the things that I say 663 00:33:41,320 --> 00:33:44,320 Speaker 2: as an estate planning attorney, I encourage folks that you 664 00:33:44,400 --> 00:33:45,840 Speaker 2: should all have attorneys and we should all have a 665 00:33:45,920 --> 00:33:49,880 Speaker 2: financial advisors because we should be very strategic, and the 666 00:33:50,040 --> 00:33:53,400 Speaker 2: younger you are start saving that money sooner because we 667 00:33:53,440 --> 00:33:56,280 Speaker 2: always talk about the time value of money is significant. 668 00:33:56,480 --> 00:33:58,840 Speaker 2: There is no better way to have your money grow 669 00:33:59,120 --> 00:33:59,840 Speaker 2: than through time. 670 00:34:00,320 --> 00:34:03,200 Speaker 1: Thank you for them. So you've talked about, you know, 671 00:34:03,240 --> 00:34:05,760 Speaker 1: working with churches and feeling like that's a really good place, 672 00:34:05,760 --> 00:34:08,080 Speaker 1: like well all the trust basically of the congregation. To 673 00:34:08,120 --> 00:34:11,600 Speaker 1: have this estate planning conversation, what are the things would 674 00:34:11,640 --> 00:34:14,200 Speaker 1: you suggest for the black community to get more comfortable 675 00:34:14,239 --> 00:34:16,960 Speaker 1: with the estate planning process and to really recognize the 676 00:34:16,960 --> 00:34:17,799 Speaker 1: importance of it. 677 00:34:18,320 --> 00:34:20,640 Speaker 2: So one of the things that bothers me a lot 678 00:34:20,880 --> 00:34:23,000 Speaker 2: is the fact that we lose so much land as 679 00:34:23,040 --> 00:34:26,200 Speaker 2: a people, that we've lost so much plann We complain. 680 00:34:25,920 --> 00:34:29,759 Speaker 3: About the gentrification because we don't plan for it. 681 00:34:30,000 --> 00:34:32,440 Speaker 2: If I leave my house and it goes through probate 682 00:34:32,480 --> 00:34:34,920 Speaker 2: and I have three kids, there's only one way to 683 00:34:34,920 --> 00:34:37,000 Speaker 2: give a third of a house to a child, and 684 00:34:37,040 --> 00:34:39,800 Speaker 2: that's by selling the house. And what we know is, 685 00:34:39,880 --> 00:34:42,879 Speaker 2: especially in this area, when the appreciation is so great, 686 00:34:43,400 --> 00:34:45,880 Speaker 2: we're not going to be able to recoup that property 687 00:34:45,880 --> 00:34:49,560 Speaker 2: in many times, So I encourage us to be thinking 688 00:34:49,680 --> 00:34:53,120 Speaker 2: not just short term, but think long term. That property 689 00:34:53,160 --> 00:34:56,360 Speaker 2: is going to appreciate over time, and they're not making 690 00:34:56,480 --> 00:34:59,360 Speaker 2: any more land. So what we know is if we 691 00:34:59,520 --> 00:35:04,919 Speaker 2: can create and protect strategies for our wealth, building land 692 00:35:04,960 --> 00:35:07,000 Speaker 2: should be the foundation for it. 693 00:35:07,120 --> 00:35:09,520 Speaker 3: We should be truly far sighted. 694 00:35:09,680 --> 00:35:12,280 Speaker 2: We know that we're losing land through air properties because 695 00:35:12,280 --> 00:35:15,240 Speaker 2: so many times we have great grandparents who had a property, 696 00:35:15,239 --> 00:35:17,799 Speaker 2: but nobody wants to live on that land anymore, and 697 00:35:17,880 --> 00:35:21,319 Speaker 2: as a result, that land end up being sold for 698 00:35:21,600 --> 00:35:24,799 Speaker 2: taxes because nobody's caring for it, being thoughtful about it. 699 00:35:25,160 --> 00:35:28,319 Speaker 2: I encourage folks to take the time to realize that 700 00:35:28,360 --> 00:35:30,240 Speaker 2: you don't have to live there to make it value. 701 00:35:30,360 --> 00:35:32,160 Speaker 2: You just have to make sure that you care for 702 00:35:32,200 --> 00:35:34,960 Speaker 2: it and have that longer vision for it. I talk 703 00:35:35,120 --> 00:35:38,560 Speaker 2: a lot about the racial wealth gap, but that is 704 00:35:38,600 --> 00:35:43,000 Speaker 2: all tied into our land, our economy, and if we 705 00:35:43,520 --> 00:35:47,560 Speaker 2: as an individual, if my personal property I don't take 706 00:35:47,600 --> 00:35:50,239 Speaker 2: the steps to protect it when I pass away, that 707 00:35:50,440 --> 00:35:54,120 Speaker 2: value of the probate value of the house goes down, 708 00:35:54,320 --> 00:35:57,240 Speaker 2: and that impacts the comps on all. 709 00:35:57,080 --> 00:35:58,839 Speaker 3: Of my community and my neighbors. 710 00:35:59,040 --> 00:36:01,600 Speaker 2: So it is not just about me, but it's about 711 00:36:01,840 --> 00:36:05,080 Speaker 2: my family and my community by me taking the steps 712 00:36:05,080 --> 00:36:07,400 Speaker 2: that are necessary to protect those assets. 713 00:36:07,760 --> 00:36:10,879 Speaker 1: For like that example, right with a land, let's say 714 00:36:10,920 --> 00:36:13,480 Speaker 1: somebody does have three children, and you're saying, like, don't 715 00:36:13,520 --> 00:36:15,839 Speaker 1: just give it to the oldest or whatever, like, think 716 00:36:15,880 --> 00:36:18,080 Speaker 1: about another way to kind of continue to protect the 717 00:36:18,160 --> 00:36:21,080 Speaker 1: land or what would be some alternatives to just giving 718 00:36:21,080 --> 00:36:22,080 Speaker 1: it to one of the children. 719 00:36:22,680 --> 00:36:24,160 Speaker 3: Thank you for asking that question. 720 00:36:24,280 --> 00:36:25,640 Speaker 2: One of the things that we do, and I'm going 721 00:36:25,719 --> 00:36:27,799 Speaker 2: to say ninety five percent of the time I tell people, 722 00:36:27,960 --> 00:36:31,040 Speaker 2: do not put your kids name on the deed with you, right, 723 00:36:31,160 --> 00:36:33,279 Speaker 2: do not put your kids name on the deed with you, 724 00:36:33,600 --> 00:36:36,120 Speaker 2: because that will create a capital gains impact. 725 00:36:36,600 --> 00:36:39,680 Speaker 3: The second thing that I would say is that being. 726 00:36:39,480 --> 00:36:42,759 Speaker 2: Thoughtful about and protecting that property with a trust right. 727 00:36:43,120 --> 00:36:46,839 Speaker 2: And so a trust is a probate avoidance vehicle, and 728 00:36:46,920 --> 00:36:50,720 Speaker 2: it's a private vehicle. That means that when I pass away, 729 00:36:50,960 --> 00:36:53,640 Speaker 2: my assets don't need to go through probate, but it 730 00:36:53,680 --> 00:36:56,360 Speaker 2: has to follow the rules. The trust is really just 731 00:36:56,480 --> 00:36:59,320 Speaker 2: a rule book that says what happens to my assets 732 00:36:59,360 --> 00:37:02,239 Speaker 2: when I am no longer here, how do I strategically 733 00:37:02,239 --> 00:37:04,640 Speaker 2: build it from generation to generation. 734 00:37:05,160 --> 00:37:06,720 Speaker 3: I get to make those rules. 735 00:37:07,120 --> 00:37:09,799 Speaker 2: And so if I have a house, Let's say I 736 00:37:09,840 --> 00:37:12,480 Speaker 2: have three kids and one of the kids wants to 737 00:37:12,480 --> 00:37:15,000 Speaker 2: live in the house, they have to pay. Let's say 738 00:37:15,000 --> 00:37:17,040 Speaker 2: that they have to pay to live there, and it's 739 00:37:17,120 --> 00:37:21,000 Speaker 2: a percentage of the fair market rental value, and so 740 00:37:21,360 --> 00:37:23,239 Speaker 2: it goes back into the trust. Let's say there's no 741 00:37:23,320 --> 00:37:26,399 Speaker 2: mortgage on the house whatsoever, he has to pay so 742 00:37:26,440 --> 00:37:30,239 Speaker 2: that the property taxes are maintained, the homeowner's insurance are maintained, 743 00:37:30,440 --> 00:37:33,080 Speaker 2: as well as the maintenance is kept up on the house. 744 00:37:33,320 --> 00:37:36,400 Speaker 2: And there's resources to do that. If nobody wants to 745 00:37:36,440 --> 00:37:39,200 Speaker 2: live in the property, then we are able to rent 746 00:37:39,239 --> 00:37:41,640 Speaker 2: it out and then all three of the children get 747 00:37:41,640 --> 00:37:45,840 Speaker 2: a benefit from the income of that property. But I say, consistently, 748 00:37:46,360 --> 00:37:48,959 Speaker 2: do not give one hundred percent of what comes in out. 749 00:37:49,360 --> 00:37:52,320 Speaker 2: Let's keep a portion to continue to grow the principle 750 00:37:52,800 --> 00:37:55,480 Speaker 2: as well as what we are knowing that real property 751 00:37:55,560 --> 00:37:58,439 Speaker 2: is going to continue to need maintenance. So if we're 752 00:37:58,480 --> 00:38:01,680 Speaker 2: thoughtful about protecting that, we can do it and build 753 00:38:01,760 --> 00:38:04,800 Speaker 2: multi generational wealth. We preserve it for the venefit of 754 00:38:04,840 --> 00:38:07,000 Speaker 2: the children. We are making sure that it does not 755 00:38:07,200 --> 00:38:10,080 Speaker 2: impact or not impacted by a divorce of any of 756 00:38:10,120 --> 00:38:13,520 Speaker 2: the children, and therefore can be maintained as a benefit 757 00:38:13,600 --> 00:38:14,920 Speaker 2: for the children's. 758 00:38:14,520 --> 00:38:16,600 Speaker 3: Children following through the bloodline. 759 00:38:16,840 --> 00:38:19,439 Speaker 2: All of those things that we can plan for by 760 00:38:19,520 --> 00:38:21,400 Speaker 2: strategically building the right rules. 761 00:38:21,520 --> 00:38:23,799 Speaker 1: So you can put it in your trust that this 762 00:38:23,880 --> 00:38:25,799 Speaker 1: house should never be sold and. 763 00:38:25,880 --> 00:38:29,040 Speaker 2: Never say never, never say always, right, because if there 764 00:38:29,080 --> 00:38:32,960 Speaker 2: is a great opportunity and it's gazillion benefits, But then 765 00:38:33,040 --> 00:38:35,520 Speaker 2: I say that what the resources should be used for 766 00:38:35,800 --> 00:38:38,799 Speaker 2: to buy other land? Right, and so we should never 767 00:38:38,840 --> 00:38:42,120 Speaker 2: be a landless people if we have the thoughtfulness to 768 00:38:42,200 --> 00:38:42,520 Speaker 2: do it. 769 00:38:43,080 --> 00:38:44,919 Speaker 1: Can you talk about maybe some of the other kind 770 00:38:44,920 --> 00:38:47,520 Speaker 1: of common mistakes that you see or things that you're like, 771 00:38:47,560 --> 00:38:50,040 Speaker 1: oh no, let's reconsider that. What are some things that 772 00:38:50,120 --> 00:38:52,280 Speaker 1: kind of come up in your sessions with clients. 773 00:38:52,440 --> 00:38:54,800 Speaker 2: So a couple of things is that when we don't 774 00:38:55,160 --> 00:38:57,200 Speaker 2: plan for our business is too I mention that, ever 775 00:38:57,280 --> 00:39:00,399 Speaker 2: so briefly, that if people have a business that means 776 00:39:00,440 --> 00:39:03,720 Speaker 2: a business that has its own ein that is separate 777 00:39:03,760 --> 00:39:06,760 Speaker 2: and distinct from you as a person, like a limited 778 00:39:06,800 --> 00:39:10,239 Speaker 2: liability company or a corporation, that they should have a 779 00:39:10,280 --> 00:39:13,960 Speaker 2: strategy as well for what happens when someone passes away, 780 00:39:14,320 --> 00:39:16,920 Speaker 2: because we don't want that to go through probate either. 781 00:39:17,239 --> 00:39:20,920 Speaker 2: That's one of the common mistakes. The other mistake is 782 00:39:21,320 --> 00:39:25,279 Speaker 2: that when someone needs long term care planning that if 783 00:39:25,280 --> 00:39:28,080 Speaker 2: you need to go into a nursing home or need 784 00:39:28,160 --> 00:39:31,880 Speaker 2: to have services in your home and you want everyone 785 00:39:31,920 --> 00:39:34,239 Speaker 2: to support to have that, what there will say to 786 00:39:34,280 --> 00:39:36,800 Speaker 2: you right away is to spend down all your money. 787 00:39:37,280 --> 00:39:39,359 Speaker 2: I will tell you that you should be thoughtful about 788 00:39:39,360 --> 00:39:41,839 Speaker 2: how do we plan and protect that in many case 789 00:39:41,920 --> 00:39:45,120 Speaker 2: we can preserve some of those assets. If indeed you 790 00:39:45,120 --> 00:39:47,880 Speaker 2: have that conversation with an attorney. But you've got to 791 00:39:47,920 --> 00:39:51,000 Speaker 2: have the conversations, and that's when I encourage people to 792 00:39:51,000 --> 00:39:53,960 Speaker 2: be thoughtful about how do we want to protect it? 793 00:39:54,040 --> 00:39:55,719 Speaker 3: What do we want to be thoughtful of in. 794 00:39:55,760 --> 00:40:00,160 Speaker 2: Thinking multi generationally, because it's not just while we're planning 795 00:40:00,200 --> 00:40:02,840 Speaker 2: for your kids and your kids' kids, and not just 796 00:40:02,920 --> 00:40:06,240 Speaker 2: your biological kids. I encourage folks to be thinking about 797 00:40:06,239 --> 00:40:08,440 Speaker 2: who are the people that we care about that may 798 00:40:08,520 --> 00:40:11,960 Speaker 2: or may not be our bloodline, because in many cases 799 00:40:12,000 --> 00:40:15,200 Speaker 2: we can be strategic about how do we protect and 800 00:40:15,280 --> 00:40:19,279 Speaker 2: promote our values and invest in the people that we love. 801 00:40:19,680 --> 00:40:21,960 Speaker 1: Amy is there any kind of directory that exists for 802 00:40:22,040 --> 00:40:26,000 Speaker 1: us to find a state planning people lawyers in our states? 803 00:40:26,560 --> 00:40:30,520 Speaker 2: So I have created the Association of Black Estate Planning 804 00:40:30,560 --> 00:40:34,640 Speaker 2: Professionals because what we know is there is unfortunately not 805 00:40:34,880 --> 00:40:37,719 Speaker 2: a lot of us right. There's not a lot of us, 806 00:40:38,160 --> 00:40:40,319 Speaker 2: and so I want us to be able to be 807 00:40:40,320 --> 00:40:43,000 Speaker 2: connected to not just skin folk, but kinful right because 808 00:40:43,000 --> 00:40:45,919 Speaker 2: we know that that's not necessarily always the truth. And 809 00:40:46,239 --> 00:40:52,719 Speaker 2: the Association of Black State Planned Professionals identifies attorneys, financial advisors, accountants, realtors, 810 00:40:52,840 --> 00:40:57,360 Speaker 2: all of those folks who really have impact on economic empowerment. 811 00:40:57,440 --> 00:41:00,640 Speaker 2: Because we are committed to bridging the racial wealth. Also, 812 00:41:00,880 --> 00:41:03,640 Speaker 2: I'm a lifetime member of the National Bar Association that 813 00:41:03,719 --> 00:41:06,880 Speaker 2: has a real property and trust in the States section, 814 00:41:07,440 --> 00:41:10,520 Speaker 2: as a member of the National Black Lawyers Associations and 815 00:41:10,600 --> 00:41:14,600 Speaker 2: the Justice Connection. So there are those black organizations that 816 00:41:14,640 --> 00:41:18,640 Speaker 2: are committed to providing the connection to those folks who 817 00:41:18,760 --> 00:41:22,440 Speaker 2: care about us to achieve the community that we really 818 00:41:22,480 --> 00:41:23,360 Speaker 2: want to see. 819 00:41:23,560 --> 00:41:25,840 Speaker 1: Thank you so much for this, Amy, I really appreciate 820 00:41:25,840 --> 00:41:28,759 Speaker 1: all the information that you've shared. Where can people stay 821 00:41:28,760 --> 00:41:30,839 Speaker 1: connected with you and maybe participate in one of these 822 00:41:30,840 --> 00:41:33,279 Speaker 1: webinars that you've talked about. What is your website as 823 00:41:33,320 --> 00:41:35,560 Speaker 1: well as any social media channels you'd like to share. 824 00:41:35,920 --> 00:41:39,959 Speaker 2: We are Life and Legacy Counselors on Facebook and Instagram. 825 00:41:40,320 --> 00:41:43,960 Speaker 2: We are not on x We are in LinkedIn our website. 826 00:41:43,960 --> 00:41:46,280 Speaker 2: We have two URLs that will get you there. One 827 00:41:46,400 --> 00:41:50,200 Speaker 2: is your Estate Planning Attorney dot com. I think that's 828 00:41:50,239 --> 00:41:55,520 Speaker 2: the easier, but also Life and Legacy dot law. Almost 829 00:41:55,560 --> 00:41:59,000 Speaker 2: every week we have a webinar or a seminar, so 830 00:41:59,080 --> 00:42:01,319 Speaker 2: we encourage you to check us out. 831 00:42:01,560 --> 00:42:03,120 Speaker 1: Thank you for that, Amy. We will be sure to 832 00:42:03,120 --> 00:42:04,920 Speaker 1: include all of that in the show notes. Thank you 833 00:42:04,960 --> 00:42:06,680 Speaker 1: so much for spending some time with me today. I 834 00:42:06,719 --> 00:42:07,520 Speaker 1: appreciate it. 835 00:42:07,960 --> 00:42:09,920 Speaker 2: I thank you so much for doing this because we 836 00:42:10,000 --> 00:42:12,000 Speaker 2: know that when we know better, we can do it. 837 00:42:13,120 --> 00:42:13,520 Speaker 3: Thank you. 838 00:42:17,040 --> 00:42:18,960 Speaker 1: I'm so glad Amy was able to join me for 839 00:42:19,000 --> 00:42:22,080 Speaker 1: this conversation. To learn more about her and her work, 840 00:42:22,320 --> 00:42:25,000 Speaker 1: visit the show notes at Therapy for Blackgirls dot com 841 00:42:25,040 --> 00:42:28,319 Speaker 1: slash Session three ninety three, and don't forget to text 842 00:42:28,360 --> 00:42:30,680 Speaker 1: this episode to two of your girls right now and 843 00:42:30,719 --> 00:42:33,279 Speaker 1: tell them to check it out. If you're looking for 844 00:42:33,280 --> 00:42:36,560 Speaker 1: a therapist in your area, visit our therapist directory at 845 00:42:36,560 --> 00:42:40,200 Speaker 1: Therapy for Blackgirls dot com slash directory. And if you 846 00:42:40,200 --> 00:42:42,800 Speaker 1: want to continue digging into this topic or just be 847 00:42:42,880 --> 00:42:45,600 Speaker 1: in community with other sisters, come on over and join 848 00:42:45,680 --> 00:42:48,279 Speaker 1: us in the Sister Circle. It's our cozy corner of 849 00:42:48,280 --> 00:42:51,319 Speaker 1: the Internet designed just for black women. You can join 850 00:42:51,440 --> 00:42:55,279 Speaker 1: us at community dot Therapy for Blackgirls dot com. This 851 00:42:55,320 --> 00:42:59,719 Speaker 1: episode was produced by Elise Ellis, Zaria Taylor, and Tyrie Rush. 852 00:43:00,120 --> 00:43:03,120 Speaker 1: Editing was done by Dennis and Bradford. Thank y'all so 853 00:43:03,280 --> 00:43:05,920 Speaker 1: much for joining me again this week. I look forward 854 00:43:05,960 --> 00:43:09,520 Speaker 1: to continuing this conversation with you all real soon. Take 855 00:43:09,560 --> 00:43:10,000 Speaker 1: good care