A new story from Money Sense with Ellenbecker Investment Group


You within the business or act at your direction so you can call your agent to do certain things those documents sees when you pass but they're very very important documents people don't realize that if you become disabled for any period of time and again if somebody goes in the hospital for a couple weeks that's not going to trigger well I think it has a lot of the problems but if you go beyond that three four five weeks it may be where the family members need to file for guardianship which is a court proceeding people's particular spouses think that they are empowered to make decisions for their husband or wife in the case of disability but that's that is not true if you want to make finance or healthcare decisions for somebody who's disabled and can't make them you need a power of attorney or you need a guardianship so that's one of the first accidents the next document is a well and well generally for business owners we leave everything to a trust it is really a catch all if you do the planning properly the will has no effect because you already put everything into the trust let me explain that a trust is a document that you put together and it allows you to put all your assets into it so you create the trust you are the founder of the trust what's known as the grand tour you are the trustee of the trust that means you manage it and you are the beneficiary of the trust while you were alive so you were all the hats the reason I explain it that way as people are concerned that when they do that that they give up control which they do not or that creates complexity particular tax filings which it does not if you are the grand tore the trustee and a beneficiary of a remarkable trust meaning you can revoke it at any time you file your taxes the exact same way so it essentially becomes what I refer to as a legal fiction all your assets are held in trust let's kind of walk through that you have your well you have your trust yet when you pass away if you put everything into the trust already the trust just continues to operate and you name a successor trustee that was the person who then takes over and operates things on your behalf as I mentioned earlier in the program if you want different people to do different things I'll give you an example during the crisis we just finished a a estate plan for a gentleman that ran three different business he wanted three different people to run those businesses in a specific way are some of which were going to be sold one of which was going to be around and tell the time that his spouse which is second spouse passed away and then the money would be distributed accordingly so the the trust gives you a tremendous amount of flexibility to pick and choose the way you want thanks to call but that is it in a nutshell the doctor if there are additional documents you can do when we typically do one is America property greatness and that essentially calls out well what's the spouse's own and how they want them to be handled within the trust for a long term marriage not a big deal just basically the property green it says everything that one is more of a property however in the second or third marriage situation you can designate who owns what and I can give you a Karen a personal example my wife inherited money from her grandparents many years ago and that is held separately within our vocal trust that she controls what if she passes away first I get income for life and then when I pass away the balance goes to our children she wanted to meet Mrs marijuana make doggone sure that I think will blow any money on a new wife well and another issue with so many people there business owners do have real estate and other states and a well as a ticket to probate court and if you have a well and if you don't have a will you can appropriate each one of those states unless you do some planning which is a nightmare yes as a great point I we just had I I got a case in people that I did not know before they referred to me but they have a parcel of farm in Illinois right across the border and they figured it was no big deal never made it into the trust in fact they never leave their properties in Wisconsin never made it to the trust and never funded the trust we had all been a probate Illinois the property into the Wisconsin probate it costs tens of thousands of dollars Lockley actually has lawyers licensed in Illinois so we don't have to go to outside counsel but it was an absolute master two great points particular people who a lot of my clients own property in Florida and if they don't if it is held in their individual names why you have to have a probate proceeding down Florida transfer that property into trust it can be yeah very difficult two things that I just wanna touch on really quickly as every one of our employees has an estate plan that's part of what we do for our employees is to make sure that they are taking care of and in a situation like this that we've gone through this call that and and but we know that they've got their their documents in place of course that's a really important piece and for other employee is out there I would suggest as something that you have a position to bring somebody in I'd love to come in I know don would talk come in and talk to your employees about making sure that their documents are in place and then of course for all of you who have children over eighteen you can't make decisions for them either okay these are really important and important issues to talk over with your financial advisor talk over with your attorney bring this advisors.

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