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January 19, 2025 • 40 mins
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Episode Transcript

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Speaker 1 (00:12):
He served at the Pentagon as an army jag. 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 (00:32):
Hello, and welcome to the David Carriers Show on David Carrier.
You're a retirement law specialist, expert Graham Poobah might as
well be. I kind of made it up. So anyway,
why do we say state planning an elder law?

Speaker 3 (00:47):
I don't know.

Speaker 2 (00:48):
Let's ditch that, let's go with retirement law. Why because
maybe you're retired, maybe you'd like to be retired. Maybe
you know somebody who's retired.

Speaker 3 (00:55):
Huh.

Speaker 2 (00:56):
Good things happen and life changes. And when life change
and you finally get out of the rat race, or
get as far out of the rat race as you
feel like getting out, now we call that retirement, right,
And then we have to figure out how do we
hang on to it? How do we hang on to
everything that we've built up over the years, How do
we pass it on effectively? So if you have a question,

(01:18):
come in or concern about wills, trusts or probate. If
you're wondering how do I beat the high cost of
long term care, or if you have real estate or
business issues, questions about that kind of thing, Like I
want to sell my business. It's a millstone around my neck.
You know what a millstone is, right, It's a great
big thing in a windmill that grinds the corn a millstone.

(01:39):
Think how big and heavy that is. Anyway, it's a
millstone around your neck, and you'd like to get rid
of it. Fine, there are ways to do that effectively,
efficiently and not give it all to long term care
because why because why not?

Speaker 3 (01:55):
If you're entitled? You know, that's the problem. I got
to tell you.

Speaker 2 (01:59):
The real PROBLEMLY have talking about this stuff, especially about
the long term care, is the word entitlement. Because most
of the folks listen to this show, most of the
folks who I work with, entitlement is kind of a
dirty word, you know what I mean? You know what
I say, Oh, I'm entitled to this.

Speaker 3 (02:19):
I deserve that.

Speaker 2 (02:20):
People very uncomfortable with that notion. I understand kind of
where I'm coming from it because it's like, well, I'm
used to the idea of working. I'm used to the
idea of getting paid for what I do.

Speaker 3 (02:37):
That I'm used to.

Speaker 2 (02:38):
I'm used to, you know, but this notion of a
government entitlement, it's like, ooh, that's it rubs me the
wrong way. And so that's why I always say, well,
think about social security? Is that an entitlement? Well, they
would say so, Well, why are you entitled to it? Well,
there's all these people who aren't entitled to it and
get it anyway. Stand but if you've been paying into

(03:02):
it for thirty, forty, fifty years, sixty years in some
cases this would be hard to do, but it's doable anyway.
You've been paying into it for that long, maybe you
should get something out, money and money out. I mean,
are you entitled to that? Do you deserve it? As
uncomfortable as it makes you feel? In taking a government

(03:25):
check right or medicare? Medicare is another one. Pay in
get out? How is that a bad thing? And you say, well,
I'm in. You know, government owes me?

Speaker 1 (03:36):
No, Well.

Speaker 3 (03:39):
Does it owe you or did you pay for it already?

Speaker 2 (03:45):
I mean, you know, if you order something mail order, right,
you know you're send the cupon away and you know
Are you entitled to receive whatever it was Amazon promised?

Speaker 3 (03:54):
Yes, of course you are.

Speaker 2 (03:56):
But it's not because this airy fairy oh as an
America and I'm just entitled to whatever. No, it's because
you earned it, because you paid for it, because you know,
you followed the rules.

Speaker 3 (04:07):
What's so bad about that?

Speaker 2 (04:09):
And the long term care thing is different. It is
different for political reasons. It's different, but it's the same
if in that you paid for it and now they're
not going to give it to you, which drives me
around the bend. That's this medicaid the long term care stuff.
Faithful listeners know that there's three things that old people

(04:31):
need old folks like us. Number one, we need income
social Security all right, because no one's giving a pension anymore.
The ones that were went bankrupt, and the Pension Benefit
Guarantee Corporation has no money anyway. As the teamsters asked
the who was it Delta pilots, you know, there's a
lot of people you could ask, Yeah, they get a
little bit back, but but but again that's only because

(04:54):
they paid in through the insurance of the PBGC. And
that's how it works. Okay, you know you they make
you pay before you get anything. And the difference between Medicare,
social Security, and Medicaid is simply that they want you
broke before they'll help out, before they'll give you back

(05:14):
any of the money that you paid in.

Speaker 3 (05:16):
Right with the Medicaid.

Speaker 2 (05:18):
With the Medicare, we keep paying in, keep paying in,
we'll pay out, and we don't care what you did
on the side. Social Security, we don't care what you
did on the side. You could have blown everything, right,
some people do. Sometimes it's their fault. Sometimes it's not
their fault. What do I care? And so Security doesn't
care either. You still get the money. Okay, So you

(05:40):
could be warm Buffett and get which I think he does,
get Social Security. Bill Gates will get social Security. Oh
that's terrible Bill Gates get.

Speaker 3 (05:48):
So what's so terrible about it?

Speaker 2 (05:50):
He paid for it. Why shouldn't he same way with Medicare.
And the more you earn currently, the more you pay
for it. That is more like more like an obvious
tax right where you pay in.

Speaker 3 (06:04):
But the more you earn, the more you pay in.

Speaker 2 (06:08):
Are you sicker if you're working still? Are you sicker
if you've you know, kept a job or working on
the side or something. Does that make you sicker? You
know that your insurance should be higher? Oh, I don't know,
but it doesn't matter anyway, because they're going to whack
you with it. Are you with me on this? So
most folks are paying a certain amount right based on

(06:30):
Social security kind of thing, just playing retirement income. But
if you're still working, right as some of us are,
then your premiums go okay, well fine, that's the way
it works. But then there's the third thing, which is
long term care. And that's where they, as they've said before,
that's where they strip your naked and kick you in
the ass on the way out the door because they

(06:52):
can get away with it because there is no political
repercussion to that. That's what retirement law is about. Retirement
law is all about getting what you have already paid for,
sort of like I don't know, what would you say,
a male delivery guarantee service. Right, you already paid for it.
They're supposed to deliver. Oh, but now there are all

(07:14):
these rules before you actually get before the before the
fat ex truck pulls up. You're right, there's a there's
a dance you got to do. Anyway, if you have
a question about any of that, any of it.

Speaker 3 (07:28):
Give us a call.

Speaker 2 (07:28):
Why not just sixty one six seven seven four twenty
four twenty four. That's six one six seven seven four
twenty four twenty four. Now we are live. You have
a question, what the heck do you mean by this? Well, fine,
give us a call. Whether it's about probate, whether it's
about doing a trust. What you should be thinking about
as you do a trust, how you should do a trust,

(07:51):
all the rest of that stuff. What are the things
that can be accomplished always within the bolence of the rules, always,
because that's the fundamental Oh, the rules?

Speaker 3 (08:01):
Did you know.

Speaker 2 (08:04):
We you know this is in today's what the nineteenth
I think? Yeah, January nineteenth, twenty twenty five. And it
turns out, see I thought that in order to amend
the Constitution of the United States. You know, we have
this constitution thing in the United States, right, the First Amendment,
the bulwark of freedom, the thing that prevents us from

(08:25):
being like everybody else, including Mary Old England. We have
this thing called the First Amendment. And the First Amendment says,
you know, you get to do this stuff, and Congress
shall make the law regarding religion, freedom of the press,
very peaceful, to symbol peaceably for redress agrievances, stuff like that,
you know, basic things that you would think were included

(08:47):
in the original document. And that's actually how they did it.
You know, the whole Bill of Rights. This is all
stuff that the original when they wrote the Constitution the
first time around, they figured out everybody, I'll understand this, seriously,
that's what they thought everybody would get it.

Speaker 3 (09:05):
But everybody didn't get it.

Speaker 2 (09:06):
So that's why we had to have the Bill of Rights,
which is the first ten amendments. But that's why we
had to have these things to clarify because you know,
I don't care what you do, there's going to be
people misunderstand, and that's why we have the Bill Rights.
But now it turns out that a president, by tweeting
or xing or whatever that is they call that on

(09:28):
the x formerly twitter platform, can enact a amendment to
the Constitution which has been found insufficient by all of
the courts, the archivists of the United States. Everybody says
it doesn't work. But if you are the president, then
you can take a failed amendment and turn it into

(09:48):
the Constitution. You know, and you would think, well, gee,
that's so far out of the box you would want
you want to get rid of that guy. He must
be tapioca, right, get get the vice president in there,
you know, who's got some smarts. And then of course
the vice president tweeted out the same thing, because we

(10:09):
don't want to get political here. You know, it's we're
not gonna mention any names. But now apparently apparently you
can amend the Constitution when the things that are provided
the Constitution to do an amendment, when you haven't met
those requirements, then the president and I guess maybe the
Vice president has to do it too, if they both
tweet out that here's an amendment and now it's the

(10:32):
law of the land.

Speaker 3 (10:33):
There you go. So welcome to the United States of America. Okay,
I guess you're listening to the David Carrier Show.

Speaker 2 (10:41):
On David Carrier your retirement law expert specialists.

Speaker 3 (10:45):
I don't know, we'll come up with a name.

Speaker 4 (10:48):
What you ow you can't always get what you ow,
you can't always.

Speaker 1 (11:09):
This hour of the David Carrier Show is pro bono,
so call in now at seven seven four, twenty four,
twenty four. This is the David Carrier Show.

Speaker 3 (11:21):
Welcome back to the David Carrier Show.

Speaker 2 (11:23):
That music means what it means that Notre Names playing
for the national championship, That's what it means. Yay, go
Irish all the way and then some six one six
seven seven four twenty four twenty four six one, six,
seven seven four twenty four to twenty four. That's the
number to call if you'd like to get your question,

(11:43):
comment or concern on the air. You know, I remember
when gambling on sports was a bad thing.

Speaker 3 (11:48):
Do you remember that?

Speaker 2 (11:49):
It seems like so long ago, so long ago, But
now you can bet on everything.

Speaker 3 (11:56):
I don't know what you came bet on.

Speaker 2 (11:58):
Also paying players, paying college football players, right, that was
a bad thing. Well, saw a thing yesterday about the
Notre Dame quarterback, right, you know, no names of course,
but anyway, wonderful guy, wonderful guy. Everybody loves him because
you know, the quarterback is always the star of the team,

(12:18):
start of the show. You know, he's the football hero
and all the rest. He's the one that people want
to endorse or advertise or whatever. So they have this
thing called name, image and likeness. So you can't sell
your athletic performance. Get this, You can't sell your athletic performance,
but you can sell your name, image and likeness.

Speaker 3 (12:39):
Okay.

Speaker 2 (12:39):
So what this guy did, the quarterback? Did you talk
about intelligence? I mean smart guy. So what he did
it wasn't the whole team, but he included when he
made a deal to sell his name, image and likeness,
he said, no deal unless you include my offensive line.

Speaker 3 (12:59):
Okay.

Speaker 2 (12:59):
So in other words, all the guys, you know, the big,
heavy guys who looks like have you ever stood next
to like a Division one football player? You know, especially
in the defensive line. These guys weigh like three hundred
pounds and are built. I don't mean big fat guys.
I mean you know, they're like eight feet tall and
refrigerator right anyway, unbelievable. But apparently what he did was

(13:25):
he cut in everybody.

Speaker 3 (13:26):
On the money. How smart is that? How you talk
about you know?

Speaker 2 (13:32):
Now there's a guy who because if you know, is
there more name, image and likeness money coming if this
guy gets flattened, probably not.

Speaker 3 (13:42):
Probably not.

Speaker 2 (13:45):
So if we take care of this guy, right, we
get that little special incentive that we're also getting also
getting a paycheck for it indirectly according to the rules
et cetera, et cetera. But you talk about a world
that's changed. You know, everybody's betting on everything, and now
we're playing college football players for their name, image and likeness,

(14:06):
which has nothing to do with anything else except that. Obviously,
of course it does unbelievable speaking of things that are
right out in front of you, but people aren't getting
So every week we do trust review meetings more than
once a week, so you have an opportunity, once you

(14:28):
have a trust with us, have an opportunity every week,
two hour block of time, you know, to ask questions.
Come on in, sit down. We actually ask you to
come to these. We invite people on an ongoing basis
to come in and get their documentary reviewed.

Speaker 3 (14:43):
Ask questions.

Speaker 2 (14:43):
So you've your you've had your plan for a number
of years, Come on in, let's go to a refresher
and yeah, what we're doing is I have been criticized,
Oh oh, what you're doing is not customary. That is
not customary, that's not what what everybody else is doing,
which is true, which is absolutely accurate. We are not

(15:07):
doing what everybody else is doing. We're doing what they're doing.
And then what I would say is, you know the
extra that makes it actually work in the real world, okay,
because I you know, faithful listeners know I don't have
much of an opinion for the way that it's customarily done.

(15:27):
And now they're like, ohhh, well, you're not doing the
customary way. It's like, yeah, I never intended to. I
intended to do it correctly. What do you mean correctly?
I mean, let's look at all the risks and let's
address all the risks, not just some of them, not
just the customary ones, but everything that we really should
be thinking about. That's why we do this radio show

(15:49):
now for almost twenty years. That's why we do all
the workshops, That's why we do a weekly newsletter on
and on and on all this stuff. Why because it's
important stuff to do. It's important stuff to get right.
Which doesn't mean customary, okay, or some buggy is customary.
That's the custom that's the way everybody does it. Yeah,

(16:09):
until somebody thought about doing it maybe a little bit differently,
maybe the boy that would be better. So here's what
I want to talk about this morning. That it keeps
coming up, and it's one of the four major things
that we do differently. It's uh, I would say number
three what we do differently. The third thing we do
differently is make sure that after you're gone, you're onto

(16:34):
the reward, onto the next lap. Okay, you've passed over
the great Divide, you're you know whatever, and let's hope
you're enjoying your reward. But anyway, when you leave stuff
to kids, when you leave stuff to your beneficiaries, whoever, whoever,
they may be right, So we're leaving stuff to beneficiaries.

(16:57):
What everybody does, and I have seen I think I've
seen everybody's work by everybody. I mean, I've seen the
big firms work. I've seen the small firms work. I've
seen the Institute for Continuing Legal Education stuff. I've seen
the Wealth Council stuff. I think I've seen it all now,
because people will bring these things.

Speaker 3 (17:17):
In and.

Speaker 2 (17:19):
Routinely with very few exceptions and minor exceptions at that.
The idea is, as soon as i've you know, you've died, right,
as soon as we have cleared the hurdles of notice
to creditors, notice the unknown creditors, as soon as we've
cleaned up the claims against the estate, right, write a

(17:41):
check to the individual. And then and then some of
them say well, I'm not using the trust because the
kids are beneficiaries on the account, which is exactly the
same problem. Which and here's the problem. It's a direct distribution.

Speaker 3 (17:57):
Are you with me on this? So it's not so.

Speaker 2 (17:59):
You've done what triggers distribution to the beneficiary outright distribution,
free from trust distribution, no strings attached distribution.

Speaker 3 (18:12):
See. And here's the problem. People like that.

Speaker 2 (18:15):
People say, whoa, yeah, as soon as I die, I
want them to get the money, no strings attached, right,
very direct, very easy, very straightforward. Boom, as soon as
if when I'm gone, right, And the sooner you can
do this the better. As soon as i'm you know,
I haven't reached room temperature yet. Uh, that's fine, hand
over the money. And this is what you're doing, frankly,

(18:36):
when you put kids on the accounts, when you do
these beneficiary designations. All we have to do is get
that death certificate right, and now I can clean out
the account of the kids directly with no probate, no probate,
no hassle, very easy, right, because there is pay on
death beneficiary.

Speaker 3 (18:55):
It's true.

Speaker 2 (18:56):
With life insurance and the other stuff iras four one
K four or three B you name them as beneficiary.
They show up with the death certificate and the cashier
at the window hands over the money, and you think, well.

Speaker 3 (19:09):
That's great. This is what's so screwed up.

Speaker 2 (19:13):
It's you think it's great. I understand that you think
it's great, and it sounds ideal. Right, I'm you know,
I'm not going to use it anymore. Quick, give it
to the kids. I trust my kids, I like my kids,
and if they blow it, I don't really care anyway.
That's the ethos, the mentality, the whatever. And you see

(19:33):
it in the wills, you see it in the trusts,
you see it in the beneficiary designations, you see it
in these god blessed ladybird deeds. Right, it's all about
get the stuff boom to the next generation. No thought,
no reflection, no nothing. Just get it to them. That's
all I want to do is just get it to them. Okay,

(19:55):
consider the possibility, the possibility that there might be a
problem with that. Might there be a problem with that,
There might be there might be a enormous freaking problem
with that, which we will cover in the next segment.
So you got to stick around through the news and
the weather, which apparently he's getting bad and we'll deal

(20:16):
with it even listening to your retirement law specialist. That's
me David Carrier and the David Carrier Show.

Speaker 1 (20:48):
David's got the how too you're looking for. Just call
seven seven twenty four. This is the David Carrier Show.

Speaker 2 (20:58):
Welcome back to the David Carrier Show. I'm your retirement
laws specialist expert.

Speaker 3 (21:04):
I don't know.

Speaker 2 (21:04):
I haven't figured out exactly what you want to say.
But here's the problem. When you say estate planning, like
who wants in a state?

Speaker 3 (21:12):
Right? I mean you're dead when that happens.

Speaker 2 (21:14):
An older law, elder law, that's the name we were
stuck with for so many years until in a flash
of brilliance a buddy of mine said, hey, why don't
we call a retirement law instead? And it's like, you know,
it's one of those things I keep coming up against
them where it's like, damn, I wish I had thought
of that, but I didn't. I but I'm happy to implement. Right,

(21:39):
So if somebody else comes up with a good idea, right,
the wheel wasn't my idea, but I don't mind using them.
The same with the retirement law, because who wants to
be elderly anyway, right, and the estate stuff that's too
focused on after death.

Speaker 1 (21:56):
Right.

Speaker 2 (21:57):
But if you say retirement, hey, guess what, You're still alive.
You're in retirement. You're in this phase. You're past the
boost phase. You're in the orbit phase.

Speaker 3 (22:07):
And let's not like space. Let's not blow up in
the orbit phase.

Speaker 2 (22:10):
Right, Let's make sure that that goes, that that goes
well as long as it can until we get to
a soft landing. So that's why we're calling it retirement law.

Speaker 3 (22:19):
Anyway.

Speaker 2 (22:20):
Here's the oh six one six seven seven four twenty
four twenty four. That's six one six seven seven four
twenty four twenty four.

Speaker 3 (22:30):
You're listening to the David Carrier Show. I'm David Carrier.

Speaker 2 (22:33):
I'd love to get your questions regarding wills, trust, probate,
et cetera, cetera, long term care, how do we stay
at home?

Speaker 3 (22:40):
How do we not go broke?

Speaker 2 (22:41):
You know, minor things like that, little things, unimportant things
like planning ahead for you while you're still here, like
while you're retired. You know, let's look at the We'll
still get nowhere, We'll still get the stuff to the kids.
And that's what I want to talk about today. So,
as I said before, our goal through thirty five years

(23:02):
now has been to continue not just to give you
some documents. Okay, is it customary that people get documents?
As customary, there are certain things that are always done,
and they're always done in a certain way. Okay, Well
I aim to do it correctly what I think is correctly.

(23:24):
If I have effectively communicated what correctly is, and then
let's implement now necessarily.

Speaker 3 (23:32):
Right.

Speaker 2 (23:32):
If you're thinking, oh, I want what's customary and you
come in, well, we're probably going to talk about things
that you may not have thought about, may not considered,
things that are not customary. Why because customary is Abraham Lincoln.
But I can't tell you how often you see a will,
a will for example, or a trust that Abraham Lincoln

(23:55):
himself could have written. He did that too, you know,
because everybody thinks that this retirement laws stuff is a sideline.
It's like, oh, yeah, I'm a divorce attorney, but I
can do that for you.

Speaker 3 (24:05):
Or I'm a business lawyer, but I can do that.
You know how many people do you know? Friends? Maybe
family members? Right?

Speaker 2 (24:12):
Who?

Speaker 3 (24:12):
Oh?

Speaker 2 (24:12):
Sure I can crank out of trust. I've got one
of those on the computer, right, no big deal. Well,
it's all we do all day. So you see what
the difference is. Here's here's the key what I want
to talk about. You know, people are coming over from
the last segmentre and getting frustrated, like, talk about it.

Speaker 3 (24:31):
Well, maybe.

Speaker 2 (24:35):
Everything that's done, most everything that's done, unless you have
someone who you know is in prison, or has a
developmental disability, or is just outrageously whatever. Right, people say,
I just want to deliver to the kid. I just
want to get it, push it on. And in my opinion,

(24:57):
it's like the worst thing you can do. Okay, it's
just it's just a desecration of your whole life's work.
You know, if we've done the work, if you did
the work right, I mean you accumulated the stuff. We
did the work right in terms of making sure that
long term care facility costs, et cetera isn't going to

(25:18):
eat up or eat away at what you've built up. Okay,
so let's assume that we've done those things. If you
didn't work, if you didn't save, if you don't have
two nickels to rub together for whatever reason, this doesn't
really apply. Okay, there's other stuff.

Speaker 3 (25:33):
That we do.

Speaker 2 (25:34):
But all right, and if we've made it to the
end of life and there's something and you want to
give it to beneficiaries. Maybe it's your kids, maybe it's
a church, maybe it's a charity, maybe it's somebody else, right.

Speaker 3 (25:46):
Then.

Speaker 2 (25:48):
You really, in my opinion, you really need to think
a little bit about how it is you're getting it
to them. And customarily nobody thinks about it. They say, oh,
so do a beneficiary designation. Oh do a ladybird deed.
Oh do a ladybird deed to a trust that says,

(26:09):
give it right to the person, no slowing down, no reflection,
no thought, no protection, and here's the deal. Typically, typically
the state planning that you see, whether it's trust based,
will based or beneficiary designation based, it's all about getting

(26:30):
the stuff to the beneficiary as quickly as possible. And
the problem with that is it assumes that you know
what condition the beneficiary is in when they receive it.
You assume that they're not getting sued. You assume that
they're not getting divorced fifty six percent of the time.

Speaker 3 (26:51):
Hello.

Speaker 2 (26:52):
You assume that there's no student loan debt, which wasn't
forgiven no matter what you may hear. Okay, you assume
these things, you assume that they're not in bankruptcy. Okay,
there was this thing you may recall, it was four
years ago now called COVID. You remember that COVID. Okay, well,
COVID wiped out according to the it was all statistics

(27:16):
on it. But sixty percent of small businesses you know,
took the dirt bath after COVID bankrupt right out of business,
sold out, whatever. Okay, that's what happened thanks to COVID. Now,
no one saw that coming. No one planned for that, right,
you didn't know that that was about to happen. But

(27:39):
if your kid was running a business and you died
during the COVID and you left your stuff to the
kid who was running the business, it is now in bankruptcy.
Your kid didn't get the inheritance, all right, in a
divorced situation. People tell me all this, Oh, well, inheritance
is are protected in case of divorce. You know, it

(28:01):
doesn't count.

Speaker 3 (28:02):
It's like, yeah, I know, there's a law that says
that I understand. I understand there's.

Speaker 2 (28:08):
A law that says that in divorce, right, the inheritance
or the proceeds from the inheritance are protected against division
in the divorce unless and there are some conditions on it.
You know, it's not what I do all day, but
there are some you know, well, you know, if it's
the only asset they've got, blah blah blah. But what happens.
It's not that clean, right, it's not that clean, because

(28:32):
what happens is you get the inherance, the lady bridid
whatever else, then you put your spouse on it. Well
you just you just abrogated that, okay, Or you put
the money in the joint account and it gets spent,
or you know.

Speaker 3 (28:44):
Or and here's the other thing. Here's the other thing.

Speaker 2 (28:47):
I don't know if you realize this, but most divorces
don't go to court. Most divorces, and by court I
mean trial. There's no trial on these things. They're negotiated.
Ninety nine. I was a clerk back in the day,
you know, I clerk for a judge, and one of
the things they did was, you know, in in addition
to bench memos and research and blah blah and all
that kind of stuff, we also managed to docket a

(29:09):
trial docket. Okay, how many divorces actually to actually go
to trial, like none, very very few. Now, if there's
a big chunk of money just kind of sitting there,
do you think it's not going to be the subject of negotiation.
Of course it is, so you know, don't tell me

(29:29):
it doesn't count.

Speaker 3 (29:30):
It counts.

Speaker 2 (29:30):
Everybody. Everybody knows it does. It enters into the negotiation.
It matters unless you take it completely off the table,
off the table from creditors, off the table from the
bankruptcy court, off the table from any other kind of
civil action that you may be that you may be
involved in. Okay, that's what we want to do also

(29:53):
in this divorce thing, because that's the lawsuit that most
people seem to like, the biggest percentage of folks get
involved in.

Speaker 3 (30:01):
Right.

Speaker 2 (30:01):
Lots of times, one person gets the house, gets the house, right,
the other person gets a money judgment for when the
house sells. But you're not limited to the house. It's
a money judgment against the other party. Well, what if
the other party.

Speaker 3 (30:15):
Gets an inheritance?

Speaker 2 (30:16):
All right, Now you can enforce your money judgment, right,
which everybody thought was going to be against the house,
but you can enforce it against anything. It's not limited
to the house. It's secured by the house. If they
sell the house, you get paid, right, But it's a
money judgment. You can go after other stuff like inherited
i alais like anything else you want. Are you with

(30:38):
me on this? That needs to be protected? In my opinion,
you're listening to the David Carrier Show. I'm David Carrier,
your retirement law specialist.

Speaker 1 (31:06):
David's working and working has taken your calls. Now this
is the David Carrier Show.

Speaker 2 (31:14):
Welcome back to the David Carriers Show. I'm David Carrier,
your retirement law specialist. That's for Grand Pooba, whatever you
want to call it. Anyway, here's the thing we're talking about.

Speaker 3 (31:24):
Why is it?

Speaker 2 (31:25):
What is the one of the major failings of traditional
customary estate planning? Is this idea that delivering the goods
to the next generation immediately right, free from trust, you know,
without nose strings attached all that. It sounds good, right,
It's it's just like the worst thing you can possibly do,

(31:46):
in my opinion, except it's not the worst thing. I mean,
there's other things I suppose you could do that worse,
but none spring to mind. The point here is that
you can't predict the future. Sometimes kids get divorced, they
have student loans, they co sign student loans for your grandkids.
Those ingrades, right, I mean, that's a whole other a
whole other thing. But the point is that you assume

(32:10):
the way most of the state planning is done. The way, Oh,
I'll just put the kids on the deed. I'll just
put the kids on the account. You know, I'll make
them beneficiary, right, which is what I admit everybody's telling
you to do it. It's customary, Okay, I'm saying no,
let's not be customary about this. Let's do it in
a way that is secure. Let's do it in a

(32:31):
way where you actually get where the kids get what
you're leaving them. And that's how we always do it, right,
And here's how you do it. So you funnel all
the assets, even things with beneficiary designations whatever, you funnel.

Speaker 3 (32:48):
It through the trust.

Speaker 2 (32:50):
And what the trust says in it is when you distribute, Yeah,
pay the bills.

Speaker 3 (32:56):
Right.

Speaker 2 (32:56):
If it's a revocable trust, you have to pay the bills.
You don't have to pay the bills. If it's an
irrevocable trust, the assets in the irrevocable trust do not
stand for your creditors. Okay, so okay, fine. The point is,
once we're done with all the claims, whatever claims we
choose to admit and pay and have to pay and
all the rest. Once we've done that, there are going

(33:17):
to be leftovers.

Speaker 3 (33:19):
Right.

Speaker 2 (33:20):
There's a whole three hours on how we get from
one place to the other. But let's assume that we've
gotten to the point where there are leftovers, and now
we want those to go to the kids. And the traditional,
typical customary way of doing that is to hand them
a check.

Speaker 3 (33:39):
That's it.

Speaker 2 (33:40):
Here's your pillar case of gold blooms, right, pillar case
of cash.

Speaker 3 (33:45):
Here it is, and everybody, oh, that's wonderful. Let's do
it like that. Accept that.

Speaker 2 (33:51):
What it does is it completely ignores reality, right, the
uncertainty of the future. Right, it's not certain, and you're
in a planning mode. You know how difficult it is
to get people in a planning mindset? All right, it's difficult.
I got people in their eighties, late eighties who don't

(34:12):
want to rush into planning. I mean, you were supposed
to be dead twenty years ago. You're not rushing anything,
you know, But very difficult to do that. But you
finally have gotten to the point where it's like, yeah,
I really need to do something, okay, and instead of
taking advantage of the opportunity, all right, the opportunity to

(34:33):
actually do it correctly. People my father I used to
hate when he would say, oh, you just give it
a lick and a promise, A lick and a promise
meaning you know, you just did a liquor work and
you promise to get back to it. And it's like
that was a that was pretty constant criticis maybe that's
why I'm so sensitive to it because it was drilled
into me. You don't you don't do it that way.

(34:55):
You don't give things a lick and a promise. You
do it correctly. Whatever correctly means means all right, you
do it all the way, or you just don't do it.

Speaker 3 (35:04):
You know.

Speaker 2 (35:04):
If you just don't do it, well God bless you.
I suppose, right, But if you are going to do it,
and if people are going to hold themselves out as oh,
I'm going to sleep plitter, ooh I'm going to help
you here with does, then they ought to do the
job the way the job needs to be done. Am
I sensitive of Yes? I am very sensitive about this.
But the key is what you do is you leave

(35:25):
your kids a trust. You don't just give it to them,
You put it in the safe deposit box. That is
a trust. Do you have to think about this, Yes
you do. Do you have to write it up? Yes
you do. But what's the advantage of it. The advantage
is if you have done it correctly. If you have
done it correctly, no one can break that trust. See,

(35:47):
the most powerful trust there is is a third party
discretionary trust. You can't break it. It's protected against super creditors.
Your kid didn't pay taxes for the last twenty years,
that's okay, won't be sleeping in the gutter because he
can buy a house the trust. Can buy a house
in the trust that you created for them, right, that

(36:07):
you created for them, and no one can take it away.
Government can't take it away. Government can get all his
other income. Right if it's student loan default we're talking about,
they can get up to twenty five percent of that
poor SAP's social security. The only way, you know, federal
debt the only way you can get social security. While
you can get so security that way. They don't even
get their own social security but this trust that you

(36:30):
created for the benefit of your kids is unbreakable. Okay,
we've got prisoners, I mean, I mean just to say,
you know, there are people whose kids are in prison, jail,
what have you. And then the Park of Corrections would
like nothing more than to get the toothpaste fund or
the you know, the fund that parents had set up

(36:52):
for the for the kids. But they're not getting it.
Why aren't they getting it because and we didn't know
the kids were going to be in prison, we didn't
know told us, right, but we set it up so
that no one can take that away from the kid,
right in terms of divorce, in terms of bankruptcy, in
terms of whatever horrible thing may happen to a car accidents,

(37:12):
whatever it may be that may happen to your kid.
You don't have to worry that the inheritance is going
to go to the ex spouse, is going to go
to the you know whoever, it's gonna go victim, whatever,
it's gonna go to your kid because you didn't have
anything to do with whatever trouble they got into. But

(37:33):
it's your kid. You know, I understand that there's like,
you know, people like their kids, you know, this people
like their kids. There was this one politician once upon
a time, I forget, it was a long time ago,
hard to remember. But this kid, like like for years,
like he pedaled influence because his dad was some big
politician or other, right, you know, like, and they traced it,

(37:55):
like they saw that there were tens of millions of
dollars going here there, and the kid didn't have you know,
two Nichols to rub together in the intellect department whatever.
But his dad was a famous politician, and so the
foreign governments and whoever. I don't even know what the
details are, but apparently there was like all this money
that went to the kid, right, and apparently a bunch

(38:16):
of it got kicked back to the big guy, you know,
his dad. But anyway, the point is that and the dad,
I guess could have pardoned him. He was a governor,
I don't know, some big politicians anyway, and he said, oh,
I will never pardon my kid, because I believe in
the rule of law.

Speaker 3 (38:32):
The rule of law. It's all important, it's all important.

Speaker 2 (38:35):
Because he was fighting out with some other politician who
they claimed didn't obey the rule of law or something
like this. Anyway, the point is when push came to
shove and the kid finally got convicted and he was
fell in and all the rest. He got pardoned, right,
and it was huge. It was years ago. I'm sure
it was a long time ago. I don't really remember

(38:55):
the details, but there was this big brew haha about
oh you promised, and everybody said it and da da
da da da. But that family bond and I suppose
part of it not want to go jail yourself because
you were taking the kickbacks. But anyway, anyway, the point
is the way everyone excused it was, oh, it's his kid,
so you can understand that he lied constantly, but it

(39:17):
wasn't really a lie or something like that when he
said he wasn't going to pardon him and then he
did pardon him, but it wasn't a lie because it's
his kid, or I don't know, something like that. I
maybe you could google it. I don't remember what the
details were. But some politician as kid who've got all
these convictions and stuff. But anyway the point is, like
we like our kids. We'll do all kinds of things

(39:38):
for our kids, right, why not when you're leaving money
to your kids, why not package it up so that
if your kid, God forbid, you know, had like this
politician's kid, you know, oh, smoking crack and all kinds
of nefarious stuff, lives who knows, you know, on his laptop.

(39:58):
But whatever, I mean, maybe you're would do that. I
don't know. Maybe they're just in a car accident, maybe
the wrong place, wrong time, who knows. But wouldn't it
be nice to leave the inheritance to the kid in
a way that the kid would get it.

Speaker 3 (40:10):
That's my point. You've been listening to the David.

Speaker 2 (40:12):
Carrier Show on David Carrier your retirement law Grand Pooba.

Speaker 3 (40:18):
Why not
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