(2024) 12-8 David Carrier Show Hour 2

Episode Transcript

Speaker 1 (00:23):
He served at the Pentagon as an army jack. He
graduated from Notre Dame and has two law degrees from
Boston University and Georgetown University. He's been practicing law for
over thirty years. He's your family's personal attorney. It's time
for the David Carrier Show.

Speaker 2 (00:44):
Hello, and welcome to the David Carrier Show. I'm David Carrier,
your family's personal attorney, and you have found the place
where we talk about a state planning, elder law, real estate,
business law, and just about anything you want to call
in on. So give us a call. Six one six
seven four twenty four twenty four. That's six one six
seven seven four twenty four twenty four. How does a

(01:07):
state planning typically fail and what are we gonna do
about it? Well, that's what we spent the last hour on.
But there's one one more. There's three things. Number one
we got to focus on you. You know people think that, oh, yeah,
state playing something I do for the ones I leave behind. Well, yeah,
that's an aspect of it. But to my way of thinking,

(01:28):
the most important aspect of it is how do we
make sure that you're okay while you're alive? And what's
the big challenge. The big challenge is not staying away
from the casino. Okay, that's not the big challenge. The
big challenge is not how do I avoid spending you know,
umpty ump dollars on I don't know, Star Wars merchant,

(01:50):
I don't know. I mean, you're not gonna spend your
way if you're the kind of person who's been saving, saving, saving,
waiting for the rainy day, making sure everything's okay, all
the rest of the stuff, right. And look, there's varying
degrees of that. Some people are are very frugal, prudent,
whatever you want to say. Okay, love those people. Then

(02:13):
there are people at the other end of the spectrum,
live their life on a credit card and go out
the door laughing that they managed to stick someone else
with the bill. Okay, So those are two extremes. You know,
there are people who have the first nickel they ever earned,
and then there are people who never earned a nickel,
but they borrowed a lot and got away with it.
Most of us fall somewhere in between, most of us

(02:36):
and we're helping us. We're focused on the people who
are on the saving side of things, right, who helped
out with who actually bought a house and paid it
off and put money into four one K and or
the IRA, or you know, have stuff. Okay, if you've
got th stuff, there's still things that need to be
done so you don't really screw things up worse. Okay,

(03:00):
that's true, there's things that need to be done. But
I'm focused mostly mostly on the folks who actually, you know,
bought a house, condo, whatever, put some money away. You
don't need a lot. See, people get this idea that, oh,
if I don't have a million dollars in no sense
in planning, which is just like mind blowingly incorrect. Now,

(03:23):
most people who are wealthy, which you would consider wealthy people. Right,
here's the thing about wealthy people, right, most of them
earned it themselves. They ran a business, they were a
salesperson something like that, Right, and most of them earned
it themselves. And a consequence of earning it yourself, Okay,

(03:46):
a consequence a consequence of that is that you're now
invincible because you did better than everybody you went to
the grade school with. Okay, Now there's a buddy of
mine went I went to grade school with him, and
he's probably right about that. He's a billionaire running a
hedge fund out of out of New York City. Okay,

(04:06):
so that guy, yeah, yeah, we're you know, we actually
went to notreame together too, but he did the hedge
fund route. I went to the army there you go
see pass diverge anyway. Yeah, so he's got billions. He's
probably nothing to worry about with that guy. But that's
about most people. Most people, they've got some set aside.

(04:27):
The problem is once you crossed that million dollar barrier, right,
once you're up there, it's like, oh, I'm a millionaire.
Now I'm like Bruce Waite and so I had no
worries I'm invincible, which is fine, Well, it's okay, you
know it's not true, but okay, if that's what you
want to think. But if you're in the half a
million dollar range, right including your house, which now the

(04:48):
houses of well got value and stuff, you can't kid
yourself unless you're really trying hard. It's hard to kid
yourself that if you need the long term care anywhere
from nine to eighteen thousand dollars a month, pretty hard
to convince yourself you can afford that, okay, And that's

(05:08):
where we've got to do the number one planning, which
is planning for you. Right, it's very comfortable. I just
share my experience. Very comfortable to think about leaving stuff
to kids because you're never going to die anyway. And
now I check the box. And so when that thing
that's never going to happen actually happens, then the kids

(05:29):
will get it. And so I don't really have to
focus on this because it's not really about me. It's
about me being nice to somebody else. Okay, that's how
most people think about estate planning. I'm being nice to
somebody else. I'm making it easy for the kids. I'm
not leaving a big mess I'm making. I'm being nice
to them. And my argument, my observation, my conclusion, whatever

(05:54):
you want to say, motivating factor, I don't know what
words it.

Speaker 1 (05:57):
Right.

Speaker 2 (05:58):
Sometimes along those lines is that, no, it's not really
about them. It's really about you. It's about your spouse.
You remember that person you you know, love, honor and
obey and all that kind of stuff. You know that person.
It's about you and your spouse. And if you're single,
then it's only about you. Okay, it's only about you,
And there's very little we can do when the time

(06:19):
comes to make it good for you. Right, lots of
stuff we can do with marry people, much less we
can do with single people. Okay, so you really can't.
You know, you really got to be thinking about this
is my idea. You really got to be thinking about
this stuff when we covered this in the last hour
and the first two segments of the last hour. Number one,
take care of yourself. It's just like buckling your seatbelt.

(06:42):
It's just like you know, when the tires get worn out,
you change them. Okay, it's like getting a vaccine. It's
about eating good, eating well, eating good, eating well. I
don't know anyway, it's about that, you know, good nutrition.
Put it that way. There, you are, right, I mean,
that's what it's That's what this is about. It's about

(07:03):
taking care of yourself first. And you've got to reorient
yourself away from the idea that a state planning is
a favor you're doing to the next generation and recognize,
I think my view, recognize that it's about you. It's
about your spouse, if you got one. It's about making
sure that what you have earned, what you've built up,

(07:24):
serves you, serves those that you love while you're here Okay,
then number two, if you aren't going to leave something
to the kids, let's not make a mess out of it. Okay,
let's not have to go through probate. The problem with
much of a state planning is the trusts of the
trust based to state planning, trust aren't actually used with

(07:45):
what is used of Maybe the beneficiary designations get used.
Maybe it's uh, maybe you have to wind up going
through probate anyway, because the trusts are not funded. What
does that mean. It means you didn't put your stuff
in the trust, That's what it means. That's number two.
The trust don't actually work. Okay, I get criticized, Oh

(08:07):
so special. It's like, wait a second. Number one, I'm
doing all kinds of stuff Like number one, we're making
sure that you don't go brock. That's number one. Number two,
we're making sure that trust actually works. You know, you know,
you get invited to the steakhouse, right, you know, for
there's a guy sets up a booth at the trade shows.
You know, it's like it's it's like ridiculously cheap. Oh

(08:30):
and all your changes forever and a day are free,
And I wonder, well, how the hell can you do
that well, there's a way they do it. Actually, it's
not accurate, it's not true. I mean they're selling you stuff.
But hey, more power to you if you think that's
gonna work for him. But that's number two, Right, we
make sure that your trust actually works. And then number three,

(08:54):
when it goes to your kids, right, we don't pretend
that every day is a sunny day, everything's gonna work
out just fine, that nothing bad ever happens. We make
sure that our plans are set up so the number one,
there's stuff for you to serve you, that there are leftovers,
that it will actually avoid probate, it'll go by the

(09:14):
terms of the trust. Because we funded the trust, we
were conscious about that. And then number three, we make
sure that when it goes to the kids, we're not
just wishing, hoping and praying that the yellow brick road
is straight and narrow and there's no I don't remember,
but you know there's spooky woods and stuff on the

(09:34):
yellow brick road and the Wizard of Oz. Right, well,
sometimes the yellow brick Road of life has you know,
nasty apple trees and you know, and bad things and
lines and tigers and bears. These things are real these
things happen. Okay, that's why Wizard of Oz resonates, right,
because you think you're on the you know, you think

(09:56):
everything's wonderful, but no, not really. I mean there are
there are creepy things along along the way, and you
can ignore them. Most people do. Most people also die broke. Well,
if that's what you want to find. Most inheritances, right,
they're not protected for the for the beneficiaries, they're not

(10:17):
well could they be? Absolutely? That's what we do. So
those are one, two, three. When we get back. I
did promise I would talk about individual retirement accounts. I
think those are very important. So we'll be, uh, we'll
be talking about those when we get back. You've been
listening to the David Carrier shit, Well, still think I
have a minute? Okay, good enough. So when you put

(10:39):
all this together, right, it gets very expensive To do
it in a one on one situation. That gets expensive.
So the question is, and that's how we've done it
for years and years and years, one on one throughout
the process. But what if instead we did it to
a room of people. What if we were one to two, five,
ten to a room of people. What if and now

(11:02):
we don't have to go the one on one thing. Well,
guess what prices drops. I don't say the collapse, but
it's about half, you know, it's about half in order
to provide the same service that we used to do
in a one on one situation. And for some people. Look,
the one on one is very appropriate for some folks,

(11:24):
and it's more expensive too, But for most folks, you
can get everything that you need right going through the
workshop model, and that's what we're doing. If go to
the website Davidcarrier Law dot com and you'll find out
about all the workshops that we're doing in order to
deliver everything while we're bringing the cost by half. I've

(11:47):
been listening to the David Carrier Show. I'm David Carrier,
your Family's Personal Attorney, and this world The.

Speaker 1 (12:15):
David Carrier Show is probo though, so call in now
at seven four. This is the David Carrier Show.

Speaker 2 (12:25):
Well, welcome back to the David Carrier Show on David Carrier,
Your Family's Personal Attorney. That was anchor's away Yesterday was
Pearl Harbor Day, the first Captain Carrier that we're aware of,
at least in the United States military. Apparently they were
mercenary carriers back in the day from very old England

(12:49):
or Europe. Europe there were French anyway. That was the
first captain carrier and he served in World War IWO, Korea,
Vietnam in Arlington anyway, Peetie boat captain back in the day.
So then cruisers and battleships and all the rest of
that wonderful stuff. Anyway, Alphonse Carrier, he wasn't there at

(13:11):
Pearl Harbor, but he responded to the calling. My father's
brother and of course my dad. My dad didn't go
in as an officer. His brother was already at in
college at holy Cross, so he went directly in as
an officer, and dad Dad had to win. Well, that
was considerably younger. He had to win.

Speaker 1 (13:32):
List.

Speaker 2 (13:33):
So there you go. Anyway, But yesterday was Pearl Harbor Day.
Can't let December seventh go by without without recognizing the
loss of twenty four hundred sailors and seamen marines. Those guys.
I don't think there were very many army guys there,
and another twelve hundred wounded. I think I got the

(13:54):
numbers right. The twenty four hundred died and then you know,
and really tragic stories you know of the battleships that
capsized and they heard Now there were guys in there
for for days weeks who were still alive and tip
tip tip, you know you could hear them clanking on
the stuff. You know, we're doing the Morse code there.

Speaker 1 (14:16):
But.

Speaker 2 (14:18):
Well, you know there's that that express that expression FAFO right,
f around and find out And I guess that's World
War two for it anyway. Six one six seven seven
four twenty four twenty four. That's six one six seven
seven four two four two four. We'll get your question,

(14:40):
comment or concern on the ear. That's easy to do,
isn't it. Uh seven seven four twenty four twenty four
Area code six one six one six. We're talking about, Okay,
what's so different? You know, what is it you guys did?
It's so different? And I think Number one, we focus
on you while you're alive. Number two, we make sure
your trust actually works. Don't just give you a bunch

(15:02):
of papers and expect you to read them when we
know that you're not going to read them, and we
know you're not going to follow those instructions, so the
instructions wind up being nothing more than a you know,
fig leaf CYA for the for the attorney that they
gave them to you. Because unless you're an engineer, you're
you know, who reads the instructions Engineers engineers read the instruction.

(15:23):
That's who reads the instructions no one else, and they
follow through. Both are important. Now, there are some people, rare, unusual,
strange people besides the engineers who do it, but few
and far between. The vast majority of folks, you know,
you paid the money, you got the documents. You're doing
a favorite in the next generation anyway, So what's the

(15:44):
big deal? And my view of the world is you're
doing a favor to yourself, to your spouse, if you
got one single person even more important than you, do
it right because no one else is looking out for you,
just saying and right. So that's that's number one. Number
two that's different is by funding the trust, we actually
make it work. And then number three, when it gets

(16:06):
to the kids or to your beneficiaries, we make sure
that they actually get it as opposed to wish, hope,
dream that they get it because of their own personal
circumstances at the time, you know, and you don't know
what their personal circumstances are. Plan for the worst, hope
for the best, but plan for the plan for the worst.

(16:26):
And when you do it that way, it's a blessing
for generations. Can be anyway. Now, what do we do
with iras? Here's the thing. You can't put cannot put
an IRA into a trust. Can't do it. You can
do it, excuse me, but if you do, you trigger
the income tax, so you can't. Can you do it? Yeah,

(16:46):
you can do it, but you won't like the consequences.
It's like going through probate. Can you do it? Yeah,
you can do it, lots of people do, but you
may not like the consequences. Right, So if we can avoid,
if we can plan to avoid negative consequences, probably a
good idea. And that's what we're going to do with
the iras. But because I cannot put the IRA into

(17:08):
the trust and to the trust that protects it from
long term care. And I haven't even gone into the
details of that, I know it go to the three
secrets work Chap will later all out for you. But
the point is that because I can't protect the IRA
that way, protect the house, real estate, non tax qualified assets, yeah, yeah,
insurance possibly, all those stuff, All those can be protected

(17:31):
but not but not the IRA, the four one K,
the four fifty seven, the through Savings Plan, whatever else
it is. Plus there are the at home care programs,
which I think are absolutely wonderful, are not available if
your income is over I think they came out with
the new numbers right around twenty nine hundred dollars a month. Right,

(17:53):
So if you're so, you know, if your income is
more than that, and if you've got a pension it
probably is over that limit, you're not eligible. So now
you've got a situation where I've got a perfect, perfect
situation for someone to be at home who needs care.
We're in out the spouse, Okay, well, the spouse getting
worn out, kids get worn out, everybody's getting worn out.

(18:13):
And the conversation at this time of year is what
do we do with mom? What do we do with dad? Right?
And you're wishing and hope and you've been trying for
a long long time not to put them in the
say well, we'll make it to Christmas, which is why
January and February are off the charts for nursing home
long term curred missions. Okay, but what if instead you

(18:34):
got the help to keep the person at home. What
if you never did need to go to the nursing Well,
you say, but yeah, but that's expensive and they don't
qualify it don't qualify because the income's too high. Plus
I'd have to spend down the entire IRA four one
k whatever, and that's what the couple's living on. So
I'll put up with an accelerated you know, ten thousand

(18:57):
a month. I'll be taken out of my IRA to
pay for the long term care right, either for at
home or in the assistant living facility, because otherwise I
don't I just don't qualify. Right, That's a problem. That's
a problem, especially because usually I'm just saying, usually it's

(19:17):
the guy who has the dementia and needs the care, right,
and it's the guy who has the larger IRA, or
has the IRA four one k or the pension. Okay,
I mean just that's just the way it is in
this age, cohort. Right, it's the guy and he needs

(19:38):
to care. But if we go for the Medicaid, now
I have to Well, he doesn't qualify and stay at
home anyway because he's got too much income with that pension.
Plus I have to drain the IRA. I have to
pay all the taxes on it. Blah blah blah. I'm
not going to do that. I'd rather die by draining
it month by month, right, rather than lose the whole thing,

(20:01):
you know, because you don't know what the future holds.
Maybe get lucky and he dies quickly. Well, you know,
and you think, oh, that's so horrible that you would
say that. It's true. It's one of the things you've
got to be thinking about. Death is part of this planning.
If you're not aware of it, if you're not eyes
open on it, you're going to get surprised. Things are
not going to work out. Well, Okay, So we just

(20:21):
got to talk about this stuff, honestly. So now music
means I got to get out. When I get back,
we'll talk more about the ira s. You've been listening
to the Davy Carriers Show on David Carrier Your Family's
Personal Attorney.

Speaker 1 (21:01):
David's got the how too you're looking for Just call
seven seven twenty four, twenty four. This is the David Carrier.

Speaker 2 (21:09):
Show that side. Welcome back to the David Carrier Show
on David Carrier Your Family's Personal Attorney. Now is the
time give us a call sixty one six seven seven
four twenty four twenty four. That's sixty one six seven
seven four twenty four twenty four. We'll get your question,
comment or concern on the air. Now we're dealing today

(21:33):
with what with how do we deal with iras? All right,
we're going over the first three things, which is number one,
how do we hang on to the stuff for you?
That's the goal, right. Number two, how do we make
sure that your trust actually works? That's making sure the
stuff is actually in there funding. Then number three is

(21:53):
how do we deliver it to the kids in a
way that the kids actually get it? And the answer
is we package it in a trust and the kids
if they want to empty the trust, they can. There's
a mechanism for that. But but it's protected for the kids.
So if something bad happens to the kids, which of
course would never happen to your kids, everybody else's kids,
I guess, then it's going to be protected as well. Now,

(22:16):
the one thing we're we can't use this methodology for
our pensions and individual retirement accounts for one k's or iras,
all the rest of that, all the rest of that
kind of stuff. So we need to do something for
those accounts, and of course the say, well, what do
you do? And here's the answer is, actually, it's actually

(22:38):
kind of twofold. There is a trust that we do
that is designed specifically for the iras. But but you
can't put the IRA into a trust while the person
is alive, while you're alive, you can't put your assets
into the you can't put your IRA into the trust.
But here's what you can do. And this this is

(23:00):
most everything I talked about. Everything I've talked about so
far applies and sometimes with greater force, for single people
than married people. Okay, single verses, married, Everything up to
this point works. But for married people, and this is
a thing that I'm repeating myself for married people. This

(23:22):
is how we preserve the IRA for married people. And
there's other stuff we do with single people, okay, but
married people, what we do is we go to court.
And now understand that your documents have to be set
up to allow this. I have powers of attorney. But oh,
I have a power of attorney. I can do that.
It ain't necessarily so you might be able to right,

(23:45):
you might be able to, but there's no guarantee on
that at all. It depends on how the powers attorney
is written, and so of course we write our powers
of attorney so that we can do this. And what
I'm talking about is I got a married couple. He's
got the pension. Maybe you both have pension, you both
have IRA, right, but he's the one with the dementia

(24:07):
and whatever. And what we do then is we go
to court, we go to circuit court, and we say
to the judge, Hey, judge, we're a married couple and
we want to divvy up our assets. And the judge
cannot ask you why you want to divvy up your assets. Okay,
there's some statutory requirements that we have to meet, Yes,
indeed there are. Okay, you know, we have to admit, hey,

(24:30):
with dementia, marriage relationship not what it used to be,
the old gray mayor you know, hey, what it used
to be. And when we've done that, now I can
move the IRA, the pension. And I'm obviously I'm shorthanding
this for you. But then what we can do is
we can move the IRA, we can move the pension

(24:51):
from one spouse to the other. And what we've seen
happen when we do this is time after time after time,
we enable the at home care benefits for the spouse
who had the pension. We're not getting rid of the IRA,
We're not losing out on the tax benefits. Here's the thing.
I don't know if anyone's noticed this, but men tend

(25:14):
to marry younger women. That tends to happen, and in
the tumult of the sixties, seventies, eighties, nineties, and et
cetera that we've been living through. Right, just saying there's
a lot of men and women now more than used
to be with the disparate ages between the spouses. Am

(25:37):
I being politically correct on all this? I've tried to
be sensitive? Good luck for that anyway. Hey, do you
come here for sensitivity? Is that what you want? You
want sensitivity?

Speaker 1 (25:55):
Yeah?

Speaker 2 (25:56):
Sorry, I'm at a stock of sensitivity. All we've got
is what works. Okay, So anyway, you got to you
gotta marry couple, right, figure, the woman's gonna live ten
years beyond the guy anyway, especially you've got dementia, you know,
I mean, the chances are I think it's six years
is the are the raw numbers right? But throw dementia

(26:18):
into it. My rule of thumb is ten years. Well,
if you've got a spouse who's ten years younger in
you or five years younger in you, right, just add
ten to the age differential, and that's how long the
spouse has gotta make it on whatever you've left, whatever
there is left after you've blown it all on your dementia, okay,

(26:39):
on the long term care. So the question is how
do I how do I preserve that? So I'm not
leaving my spouse high and dry Because the State of Michigan,
the way this thing works, is the maximum, the maximum
that the spouse can have accountable assets is around one

(27:00):
hundred and fifty thousand. Call it hundred. They're adjusting it again,
so call it one hundred and sixty. I don't care.
Call it one hundred and sixty thousand. Is how much
you can have, good luck making it for fifteen years,
one hundred and sixty thousand dollars versus what you've got
right now in terms of assets. Okay, and you tell
me and next year, of course, it'll be nineteen thousand

(27:21):
dollars a month or twenty thousand dollars a month. Who
the hell knows, right, I just know that because the demand.
Here's the thing. People think, oh, it's going to level off. Oh,
you know, inflation will be less. Yeah, sure, inflation will
be less, but you know it's not less. Is the
number of people hitting the gateway ages hitting the sixties,
the seventies, the eighties, and that's going to keep on going. Okay,

(27:45):
that's not gonna stop for years. Yet, the demand for
care is going through the roof, the supply of caregivers
is going through the floor. Now, maybe Elon Musk will
come up with some robots to fix this problem so
that the only people working at long term care facility
right are people who really have a thing for caregiving,

(28:07):
not wiping butts, not cleaning up messes on the floor,
not making beds made. If we could get the road
think about this, If we could get the robots to
do all the nasty stuff, and that's what we need
robots for it to do the nasty stuff, not the
caregiving stuff, so that the people who have you ever

(28:27):
talked to anybody who works in long term care facility,
these are the best people in the world. They're doing
and you can't do that stuff for a paycheck, all right,
you can't do it for a paycheck. It's just there's
too many other paychecks out there that aren't as hard
to do, okay, But for anyone it grinds on you.

(28:50):
It wears you out, all right, it does. So it's
it's very tough to find the people, it's tough to
keep them. It's tough, you know, to provide. But what
if you can have robots doing it? Uh huh? Right?
What if they were doing not the caregiving part, not
the important part, not the personal relationship part, just the
nasty stuff that nobody wants to do, right. You know,

(29:14):
you got to change the bedding, all right. What if
a robot could do that, all right, and free up
free up the human beings who really have a thing
for the long term care to do the long term
care part of it, the caring part of it, all right?
What if I'm just asking anyway, The point is that

(29:37):
after that, you know, how is your spouse supposed to
make it on one hundred and fifty hundred and sixty
thousand dollars for the next fifteen years or the next
ten years. If it's just a normal situation, right, you're
the same age, she's gonna live you by ten years.
That's the deal. I mean, just accept it, okay, And

(29:57):
my dad outlive my mom to what mama had dementia
twelve years later. That's what's going on. So how are
you supposed to make it on what they leave you?
Very difficult? What if we didn't have to? That's why
we move the pension. That's why we move the IRA
for one K from one spouse to the other. Now
I'm not blowing it all at once. I'm creating a

(30:20):
lifetime income stream now for the spouse. You still get
your one hundred and fifty, right, one hundred and sixty
whatever it is, you get that, but now your spouse's
IRA provides additionally income to you because the spouse can
have an unlimited amount of income. They don't care. I
don't care how much income your spouse has. Doesn't matter

(30:41):
unless it's very very low, and then there's a shift.
But forget about that. I'm just talking in the general
scheme of things. Now, you secured your spouse, right, we're
just wrapping up one of these exactly saying, and now
they're finally getting the services. It works very very well. Now.
Not everybody liked it. We went through a difficult time

(31:04):
when they thought it was I've talked about this too.
I thought it was the worst thing in the world.
But now the Court of Appeal is very clear. You know,
they don't get to snoop, the agencies don't get to inquire,
blah blah, it's all you know. It's locked down now.
So that's what we do with the iras. All right,
So your conventional assets you protected, those those are off

(31:26):
the table, and now the IRA is preserved. Four your spouse.
When we get back, I'll talk about what we do
for single people with regard to the IRA, because again,
something we can do to help out. Even listening to
the David Carrier Show, I'm David Carrier, your family's personal attorney.

Speaker 1 (32:12):
David's working and working and taking your calls. Now this
is the David Carrier Show.

Speaker 2 (32:22):
My mom, Oh, keep playing this, my MoMA. Welcome back

(32:42):
to the David Carriers Show. I'm David Carrier, your family's
personal attorney. I have to tell you. You know that
music's the March of the Ten Soldiers, whatever the hell
it is. That was the music that Channel thirty eight
T eight in Boston for the Boston Bruins game. I
grew up listening to that and never knew what it was.

(33:06):
And there it is. The March of the Ten Soldiers.
But anyway, that's what they would play. That was the
background music, the electric guitars and everything for the Boston Bruins. Well,
there you go, a little slice of history that you
had no interest in. Welcome back to the David Carriers Show.
I'm David Carrier, your family's personal attorney, inviting you to
give us a call. Six one six seven seven four

(33:28):
twenty four, twenty four. But now what you should do,
I mean it's kind of like, right, we've only got
a few minutes left. So what you should do is
go to the website Davidcarrierlaw dot com. If you have
a loved one, you're providing care for them now, right,
you'll make it to Christmas, you'll make it to New
Year's and then you'll be looking for care. Right. Now's

(33:48):
the time to start to beat the rush. Right, if
you are caring for a loved one, there are lots
of things that can be done. You just have to
do them and giving us a call. Going to the website,
give us a call, we'll get can plan for you know,
the next the next steps. The worst thing that happens

(34:09):
is when a situation has been developing for a while,
and then there's a fall. Falls are very common, that's
for a lot of families. That's what brings them in.
But a stroke or other situation, you know, unfortunate situation.
If we've already got the thing going at least got
a file open on you, then things can go much

(34:31):
more smoothly. And in many cases where we get the
at home care for a family because they've been planning
ahead right, then you never need the assisted living, you
never need the memory care of the skilled nursing whatever,
because those services can be provided at home if you

(34:51):
intervene soon enough, and if we develop that kind of
planning and it doesn't cost you anything I mean, because
I mean our exorbitive these of course. But apart from that,
you know, once the services are in place, you've already
paid for it. The at home care, whether it's waiver
or pace or whatever, they're not even taking they don't

(35:13):
take your income, so you can actually stay at home.
If you're safe at home, you can stay at home.
That's a good thing. Now we're just talking about married
people with iras. What can we do with single people again?
The state medicaid whatever you want to call it, they
don't like it when you've got a lump of money.

(35:35):
If you have money and it's sitting there, Okay, they
don't like it, all right, they will penalize you for that.
You will, well, you won't penalize you. You just don't
qualify because you get this lump of money sitting there.
Money in motion. However, very different story. And here's the thing.

(35:55):
If you are the applicant, So if you're a single person,
that's what I'm addressing to right now. If you're a
single person, different rules when we move the assets over
to the other spouse. But when you're a single person,
the rules that govern how an annuity gets paid out
do not apply, all right, So there are very rigid

(36:16):
rules when we move the IRA from one spouse to
the other. There has to be a payout period, it
has to be equal monthly installments. There has to be
actuarily sound, which is the equal monthly installment thing. There
are these rules that apply that do not apply when
it's the applicant's own IRA. Now you say, well, why

(36:40):
don't we just do that? Why am I moving the
IRA over to the other spouse. The answer is because
when I do, if I were to do this with
the married couple, right, then it's going to increase the income.
So now I don't qualify. And if we're in a
skill nursing facility or other facility, they're going to take it.
The only way to present serve it for the other

(37:00):
spouse is to move it to the other spouse. But
and if you have a single person, right, and we
annuitize it, I've got more flexibility in how I innuitize
it to minimize the annuity, to minimize the payment, to
qualify for the for the Medicaid benefits, the at home

(37:22):
care benefits. You see, I have a lot more flexibility,
is the point. And so when we've got a single
person with a significant IRA, we'll do a what do
you want to say, non standard custom, non actuarily sound
distribution plan, right, so that we can maximize, again, maximize

(37:46):
the benefit for that person. You say, well, you know,
everything that comes out of the IRA has got to
go to the state anyway until they're gone. That's true.
That's true. Okay, So what if I a single person
who's got a condo or a house or whatever, right,
and they're at home getting the at home care, and

(38:08):
we've adjusted the annuity so that we still qualify for
the at home care, but then we balloon the payment
out so that when the person died, there's a balloon payment.
Let's say, you say, well, how does that help anybody
because the balloon payment only comes after the person has died.
I mean that's how we that's how you figure it, right,

(38:28):
that's how you that's how you do it, right. You
got to make your best guess there. But but how
does that? How does that benefit anybody? All right? And
the answer is now, if I've got the kids. So
let's say Dad's died and his mom right, and I
do this with the i R right now, somebody's got

(38:50):
to keep paying because mom doesn't have enough income. Somebody's
got to pay for the house. Or we're in long
term care and there's no income, we got to pay
for the house. Well, how can we do that? Who
would pay for that? The answer is one of the kids.
If there's a possibility of getting a benefit at the
end of the day, with a traditional non qualified innuity,

(39:14):
I got to make the state of Michigan the primary beneficiary.
I don't have to do that with an IRA, all right,
because it doesn't have to be quote unquote actuarily. So
my point is that for single people with iras, there's
others not as effective. It's not as effective, it's not
as good. I wish it was, but it isn't. But
there's still no giving up the ship. There's still things

(39:34):
that can be done that can be very effective for
the per And listen, if you wind up with five
bucks more at the end of the day than you
had before, and you can use that five dollars to
help out your kids, or to pay for additional services
or something make your life better, it's that seems worth

(39:54):
it to me. And you don't have to say millions
and millions. It's not about that. It's about improving your
quality of life, improving the future for your family, so
that what you've worked for, what you've saved for, which
you've blood, sweat and tears for right will continue to
have benefits. First for yourself, because that's number one, but
then also for that next generation. I think it's more important.

(40:18):
Now you look at the world. It's a scary place
out there, yes it is, right. Any bit of security
that we can provide for that next generation seems like
a good idea to me. Now, maybe you think it's
termal idea fine, don't do it all. Then we'll just
take care of you and you'll be fine. But if
you do have a urge, some reason, you know, some

(40:38):
desire to leave a lasting legacy, that's a positive one.
This is how you do it you you know. But
you've got to take care of yourself. For if you
don't take care of yourself, there won't be anything left
for the kids anyway. You know. That's you can't take
care of them without taking care of you, without taking
care of you first, that's fatigue. You've been listening to

(40:59):
the Maybe Carrier Show. I'm David Carrier, your family Christian attorney.

Speaker 1 (41:26):
You've been listening to the David Carrier Show a lively
discussion addressing your questions and concerns, but not legal advice.
There is a big difference. So when making decisions that
affect your family, your property, or yourself, the best advice
is to seek good advice specific to your unique needs.
If you missed any of today's show, or would like
additional information about the law offices and