Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the hidden world of wealth, where secrets of
the affluent become accessible to you. You are listening to
Your Money Matters, the most provocative financial radio show on
the airwaves. You are about to start your educational journey
here on Your Money Matters with your host, Drew Prescott,
(00:22):
President of Prescott Private Wealth and Chartered Retirement Planning Counselor.
Drew will unlock the complexities of the financial landscape with straightforward,
powerful insights. Whether you're planning for retirement, managing in a state,
or looking to grow your wealth. Consider this your exclusive invitation.
Turn up the volume, lean in closer. Let's navigate the
(00:45):
hidden paths of prosperity together. Your financial enlightenment begins now.
Speaker 2 (00:55):
Securities all produce a terror Financial Specialists LLC Member fen
the SIPC reservices offered through Setara Investment Advisors LLC, so
Terra firms are under separate ownership from any other named entity.
Speaker 3 (01:06):
Four five to one.
Speaker 1 (01:06):
THO sixth Street, Troy, New York, one two one eight zero.
Speaker 4 (01:15):
And now.
Speaker 5 (01:17):
The end is he.
Speaker 4 (01:21):
And so I faced the final curtain. My friend, I'll
say it clear. I'll state my case of which I'm serving.
Speaker 3 (01:39):
Good morning, and welcome back to your money matters. I'm
your host, Drew Prescott's chartered retirement planning counselor and accredited
wealth management advisor here at Prescott Private Wealth. And uh,
before we get going here today, I just want to
let you know, I don't know if my microphone will
pick this up, but I've got my son's puppy in
(02:00):
the studio today and he's this a great little dog.
Speaker 5 (02:07):
Very smart. Now.
Speaker 3 (02:09):
As a matter of fact, I trained him to I
don't know what I would call it. I guess if
you could visualize playing the piano. When we first met,
this little puppy did the cutest thing. He'd stand up
on his back feet, you know, he kind of looked
like he was playing the piano. So it was just coincidental.
And then I worked on it with him for about like,
(02:30):
oh maybe like ten minutes or so and rewarded him
after he did it. Now now he does it on demand.
He's a cute little guy. And so he's in the
office over here and playing some golf, so you're gonna
hear the golf ball rolling around potentially in the background.
But cute little guy. His name is Tao. And for
(02:51):
those of you that love doodles. He is a mini
golden doodle. Now, Stacey and I and the family have
have three of our own doodles, so he fits right in.
We've got a standard sized labradoodle, we have a mini
golden doodle of our own, and then we have a
(03:12):
mini Ossi poo and so when you take a picture,
I'll take a picture with him here and put it
up on social media. But a cute little guy. So
now it's like we've got one of every color and
one of every size. So it's pretty pretty funny now
as those of you who are parents now kids jumped
(03:33):
the gun on getting animals as me and Stacy did
when we were younger as well, and I've really enjoyed
having them.
Speaker 5 (03:41):
But it does, you know, makes it a little.
Speaker 3 (03:43):
Bit more stressful. You know, we already have three dogs
in the house and a cat. Some would call us crazy.
I find great joy in having animals in the house
and just find them to bring a lot of peace
when you hold them. But so Stacy says, hey, what
would we do if Parker and his girlfriend were not
(04:05):
able to keep the dog any longer at the apartment?
And I said, you kid me. I would definitely take
this dog. I love this dog. And she laughed and goes, yeah,
right over my dead body, that is not happening. She
can be cold hearted sometimes, I'll tell you. So anyways,
(04:28):
hopefully that's not the case, but stand by, we may
be taking applications at some point. And he's such a
sweet little dog. And other news in the Prescott household.
Very excited to share with you that our daughter Chloe,
as you know, she graduated from hair school at Paul
Mitchell back in the summer and she took a job
(04:52):
with Tuscan's son. Tuscan Son has Rumors and Kimberly's and
some other things as well. Not terribly familiar with all
the different companies that they have, but they're all under
one group, and she got moved over to Kimberly's as
a stylist full time. So congratulations Chloe, Super proud of you.
Speaker 5 (05:13):
We love you, hunt.
Speaker 3 (05:15):
And everybody's getting geared up here for Thanksgiving. So typically
what we find is that during the holiday seasons, of
course they're sentimental, but it also gets you kind of
reminiscing about your time with your children, and it.
Speaker 5 (05:35):
Gives you a.
Speaker 3 (05:38):
Time to reflect on time going by and the future.
And so with that in mind, we had two questions
that came in. Well, actually there were three, but I'm
gonna kind of narrow it down to two because the
third question gets answered in here as well, and coincidentally,
(06:02):
they're all about gifting and estate planning. So we're going
to camp out there today share some valuable insight with you.
And you know, it's interesting, isn't it As you get older.
I mean, it just seems like, you know, as you're
a kid, you're never gonna get old, right, And then
(06:23):
as you become a parent and you have these little ones,
it just seems like you're just trying to survive in
the jungle, doesn't it. Then next thing you know, a
decade goes by like this and you sit there and
you go, wow, things have happened really fast. And I
(06:43):
remember this quote that a fella always used to use
with me, and when I was younger, I used to
alwa say, that's really corny, that's just a cliche statement.
Speaker 5 (06:55):
Why does he say it all the time.
Speaker 3 (06:57):
While I was sitting there having coffee with Stacy the
other day and it was just two of us in
the house, and Parker is he's moved out, and Chloe
is so busy with work and her boyfriend, and then
Natalie was out with her friends and it just felt
(07:17):
pretty lonely. And I said, wow, just kind of hit me.
In that moment, that corny cliche statement that I used
to laugh at so much became so real to me.
And the statement is this is that life is what
happens while we're making other plans.
Speaker 5 (07:38):
Right, And for.
Speaker 3 (07:40):
Those of you that are younger that are listening, again,
just a corny statement, right, I'm with you, I understand
that part. But for those of you that it actually
resonates with at this point, well, now I'm in your
camp and I understand what that means. And boy, doesn't
life go fast? And so today my hope is that
by sharing with you these questions that came in, then
(08:03):
maybe maybe it'll be just enough encouragement to get you
to take the next step with your estate planning. And
estate planning is not just legal documents, and we'll talk
about that later on too, and it's it's not just
about gifting, it's you know, it's overall your financial plan,
(08:26):
all right, So let's begin with the first question that
came in. The first question that came in, uh said,
was asking about if they if this individual should place
a non qualified annuity into a medicaid trust. And the
decision for this is nuanced and it's highly dependent upon
(08:50):
your unique financial and estate planning goals. And by the way,
before we get roll on here, let me just let
me remind you I'm not an attorney. I'm not trying
to play an attorney. No matter how much it sounds
like I'm an attorney, I'm not an attorney.
Speaker 5 (09:06):
Okay.
Speaker 3 (09:07):
So make sure that not only do you get your
attorney involved with your state plan, but also your tax
professional okay. And it's important that they both have a
knowledge in this area. So just want to make sure
(09:28):
that you understand that before we get going here.
Speaker 5 (09:30):
Okay. So let's get moving on here.
Speaker 3 (09:34):
So to give this question the attention that it deserves,
will explore the mechanics of non qualified annuities and the
role of medicaid trust and the pros and cons of
this type of strategy.
Speaker 5 (09:50):
Okay.
Speaker 3 (09:51):
So first you want to understand nonqualified annuities. So let's
first break down what a non qualified annuity is is. So,
unlike qualified annuities, which are funded with pre tax dollars
from retirement accounts like your iras or your four oh
one k's. A non qualified annuity, they're purchased with after
(10:14):
tax dollars. So while well the contributions to the non
qualified annuities, they don't reduce your taxable income. They grow
deferred in tax, so they're tax deferred meaning that you
will not pay tax on the earnings until you withdraw them.
So sometimes people take money out of a brokerage account
(10:37):
or savings account CDs and things like that and they'll
deposit them into a non qualified annuity. Now, non qualified
annuities they often serve really as supplemental retirement income for
those who have maxed out their tax advantage retirement accounts. However,
for Medicaid purposes, non qualified anuwa these are considered countable
(11:02):
assets unless they're protected through proper planning. So how does
medicaid trust work? Well, a Medicaid trust, typically they're actually
called an irrevocable trust, is a legal tool that can
(11:23):
help shield assets for Medicaid spend down requirements and Medicaid
imposes strict asset limits for eligibility, and in most states
individuals can only have about two thousand dollars in countable
assets to qualify for Medicaid benefits and non qualified annuities,
they often exceed those thresholds. So when you transfer a
(11:47):
non qualified annuity into a Medicaid trust, it becomes a
non countable asset provided that it complies with the Medicaid
rules and that it's transferred outside of the five year
lookback period. So during this period, Medicaid could penalize the
transfer to the trust, so timing is crucial. Now here's
(12:11):
the benefits of placing a non qualified annuity into a
Medicaid trust, which is number one asset protection from the
Medicaid spend down rules. So Medicaid spend down rules, they
can deplete your financial resources awfully quickly. And by placing
a non qualified annuity into the irrevocable Medicaid trust, you
(12:33):
can safeguard it from being used to pay for long
term care costs. Because once it's protected, this annuity can
preserve as part of your legacy and that could benefit
your errors instead of just being consumed by medical expenses.
The second benefit would be the income diversion to beneficiaries.
(12:58):
So when you and an annuity is held within a trust,
the income generated from this innuity can it can be
directed to the trust beneficiaries instead of being counted as
part of the Medicaid applications income. Okay, so this strategy
(13:20):
provides financial support for your loved ones while it's also
keeping you eligible for Medicaid. The third benefit would be
that you have control over distributions because a Medicaid trust
gives you greater control over how the annuity's proceeds are distributed.
(13:41):
So for example, you can specify that the income or
principle be used for your grandchildren's education and ensuring that
your legacy supports your family's goals rather than just being
lost to medical expenses. And then the fourth benefit would
be preserving your state for your family, and that's often
(14:04):
the top priority, so transferring a non qualified annuity to
a Medicaid trust that can help ensure that your wealth
is passed down to future generations without being depleted through
long term care costs. So nothing's always good, right, So
let's let's compare it. Let's see what the drawbacks of
(14:25):
this are. Well, the drawbacks of placing a non qualified
annuity into a Medicaid trust or the following number one,
the Medicaid look back penalty, which we just were talking about,
because transferring assets to a Medicaid trust within five years
of applying for Medicaid that can trigger penalties. So for example,
(14:46):
if you trigger it, let's say you transfer two hundred
thousand dollars of a non qualified annuity into a trust
and you apply for Medicaid within that five year lookback period,
you might be ineligible for benefits for a calculated penalty period. Okay,
(15:06):
Number two, you're going to lose the access to the
funds because once the annuity is placed in that irrevocable trust,
you're relinquishing your control over it. So this can really
pose challenges if you face unexpected expenses, such as a
large home repair or medical treatment that's not covered by Medicaid,
(15:30):
that's important to consider. The third drawback would be the
tax implications because distributions from a non qualified annuity, they're
taxable to the extent of earnings even when they're held
in a trust. And furthermore, trust are often subject to
higher tax rates on income, So these factors can reduce
(15:54):
the overall benefit of transferring the annuity. The fourth component
that I would say should be considered is that Medicaid
really has strict rules regarding annuities, So if the annuity
does not meet Medicaid's requirements such as being irrevocable and
actuarily sound, it may still be treated as accountable asset. Additionally,
(16:18):
Medicaid often requires the state to be named as the
remainder beneficiary of the annuity, which can reduce the inheritance
that's passed on to your errors. Now, the final point
that I'd like to point out to you is the
potential loss of benefits, which is important because many non
qualified annuities they have surrender charges or penalties for early withdrawal.
(16:43):
So these fees can significantly reduce the annuity's value when
transferred to a trust, and that makes the strategy a
little bit less advantageous. Now, if this is already an
annuity that you have in place, that you've had for years,
it's a different story.
Speaker 5 (17:01):
Okay. But still these other.
Speaker 3 (17:04):
Things are noteworthy and something that should be considered. So
let's let's give you a real life example here for
a second. Okay, So just to illustrate this, let's look
at a case study. So let's say Susan who's a
seventy two year old widow. She owns a two hundred
thousand dollars non qualified annuity. She's concerned about the rising
(17:28):
costs of long term care and wants to ensure that
her two grandchildren inherit her estate well. After consulting with
her financial advisor and an elder law attorney, Susan decides
that to transfer the annuity into a Medicaid trust because
she's in good health and it's unlikely that she is
(17:51):
going to need long term care in the next five years,
and the strategy aligns with her goals. So five years later,
Susan requires nursing home care. At this point, her annuity
is protected and Medicaid covers her expenses. Meanwhile, her grandchildren
receive the annuity proceeds as intended.
Speaker 5 (18:14):
So that's.
Speaker 3 (18:17):
A case where this was beneficial and it worked out
basically according to plan.
Speaker 5 (18:23):
Okay.
Speaker 3 (18:24):
Now, key factors to consider before you make a decision
like this is number one is timing, because the timing
of the transfers, it's really it's critical, and if you
establish the trust well before you anticipate needing long term care,
you can avoid the Medicaid penalties. However, if care is eminent,
(18:46):
transferring the annuity may not be feasible. Now, Medicaid rules
vary significantly by states, so some states are more lenient
in their treatment of the annuities, while others impose stricter regulations.
So consulting an expert familiar with your state's Medicaid policies
is absolutely essential to this. And remember not all non
(19:09):
qualified annuities are compatible with Medicaid planning, so ensuring that
the annuity is structured to meet Medicaid's requirements, and consider
all things inside of there, such as surrender charges or
penalties as well. And remember you want to get professional
(19:31):
guidance as I said earlier, because Medicaid planning is very
complex and it requires coordination between your financial advisor, your
elder law attorney, and your tax professional. So working with
a knowledgeable team ensures that your plan aligns with your
goals and it complies with the regulations. Now here are
(19:52):
some alternative strategies for annuities and Medicaid planning. You could
do Number one a Medicaid play an annuity, So instead
of transferring a non qualified annuity to a trust, consider
converting it into a Medicaid compliant annuity. And these annuities
are structured to meet MEDICAIDS requirements and can provide a
(20:14):
steady income stream while maintaining eligibility. Another thing here is
you always have to spend down strategy, So if trust
planning isn't feasible, spending down your assets in a strategic manner,
such as by paying off debts or purchasing exempt assets.
(20:37):
And that's a very interesting conversation. Purchasing exempt assets something
we could certainly talk about offline that can really help
you qualify for Medicaid without triggering any penalties. And then
also you might want to consider combining trust and gifting
because in some cases, using a combination of an revocable
(21:00):
trust and gifting strategies can maximize asset protection while supporting
your family. So placing a non qualified annuity into a
Medicaid trust, although it can be a powerful tool for
preserving wealth and protecting assets, the decision to do so
requires careful planning and consideration of factors like timing, Medicaid
(21:25):
rules and tax implications. So if you're unsure whether this
strategy is right for you, consult with your professionals who
can tailor a plan to get you started to hit
the needs that you have. And at Prescott Private Wealth.
We specialize in helping families navigate these complex decisions, So
feel free to reach out to us here at five
(21:46):
point eight two zero three one nine eighty three or
Drew at PRESCOTTPW dot com. Now, while we're on this topic,
don't forget to download our white paper titled Understanding Your
State and that'll give you a deeper dive into strategies
like this one. And it's available right on our homepage.
(22:07):
So if you go to PRESCOTTPW dot com, it's a
pop up that will show there as soon as you
go on the page and it's available for you and
it's packed with valuable insight. You just got to put
your name and email address and we'll get that out,
sire right away. And don't forget you're listening to your
money matters with me. Drew Prescott, chartered retirement Planning Counselor
(22:29):
and accredited wealth management advisor as well as President and
Wealth Advisor of Prescott Private Wealth.
Speaker 5 (22:38):
And I know that is a mouthful.
Speaker 3 (22:39):
It's a mouthful for me to say, and it's probably
a little bit painful to hear on and on, but
we have this beautiful department called Compliance and they want
to make sure that it's said properly. So that's why
I have to say it a couple of times through
the show.
Speaker 5 (23:00):
I hope you can appreciate that. Now.
Speaker 3 (23:03):
I don't know if you just heard that, but uh, teo,
stop golfing, and he is over here sleeping like a
little manchild, snoring like crazy. So I wasn't sure if
it was me or if it was him, because that's
exactly what I sound like when I sleep.
Speaker 5 (23:17):
So don't forget.
Speaker 3 (23:19):
Go on to the website and download our white paper
Understanding your State, and you're gonna get a deeper dive
into strategies like this one. And it's available again, it's
on our homepage and it's packed with valuable insight. So
make sure that you take.
Speaker 5 (23:35):
Advantage of that.
Speaker 3 (23:36):
Well, I have that up there, okay, So if you
have any questions about gifting a state, planning or wealth management,
reach out by calling or texting me at five one
eight two zero three one nine eight three five one
eight two zero three one nine eight three or emailing
me at Drew at PRESCOTTPW dot com. So let's die
(24:00):
into today's second big topic, and that's the rules and
the strategies surrounding gift tax. So I had another question
that came in here this week, and it was about
gifting to their daughter and son in law for the
(24:21):
purchase of a home. And let's see here. Yeah, I
just want to make sure that I always put some
notes together here to kind of keep me on track.
I just want to make sure that I'm not double
stepping on you here. So basically, the gift tax basics
the gift tax basics, and what you need to know
is that gifting can be a powerful tool in estate planning,
(24:44):
but it's critical that you understand the tax implications because
gift tax rules are designed to track and in some
cases tax, the transfer of wealth between individuals. Now, fortunately
the federal government provides thresholds that allow for tax free
(25:05):
gifting in many cases. So starting in twenty twenty four,
they increased the gift amount from seventeen thy eighteen thousand
per recipient annually without triggering the federal gift tax. So
married couples can combine their exclusions to gift up to
(25:28):
thirty six thousand dollars per recipient tax free, and this
limit resets each calendar year, which means that you can
gift strategically over time to maximize its impact. Now, remember
that thirty six thousand dollars is per recipient and it's
(25:49):
tax free. Now, if you exceed the annual exclusion, the
excess amount applies towards your lifetime gift and a state
tax exemption, which in twenty twenty four is thirteen point
six one million per individual or twenty seven point two
(26:11):
two million per married couple. So most people this is
this high lifetime exemption means that no immediate tax is
owed when gifting, but you are required to file Form
seven h nine to report that gift. So let's consider
(26:32):
a couple, Tom and Maria who planned to gift three
hundred thousand dollars to their daughter and son in law
to help them buy their first home. So here's how
they constructure the gift to maximize tax implications. Not to
maximize them oo, but to minimize the tax implications. Okay,
(26:55):
So here's how they constructure the gift to minimize tax implications. First,
Tom and Maria can each give eighteen thousand to their
daughter and eighteen thousand to their son in law. That's
combined seventy two thousand dollars that they could give this
year tax free, so the remaining two hundred and twenty
(27:19):
eight thousand will be reported on Form seven oh nine
and applied towards their lifetime exemption. So while they won't
owe gift taxes due to the high lifetime exemption, filing
Forms seven oh nine ensures that the IRS tracks the
excess gift properly. So how does gifting reduce your estate size? Well,
(27:44):
gifting assets during your lifetime it reduces the size of
your taxable estate. So for individuals with significant wealth, this
can be a crucial strategy for avoiding estate taxes, which
applies to states that exceed the lifetime exemption at the
time of death. So, for example, imagine that we have
(28:07):
a retiree named Linda and she has a fifteen million
dollar estate. So by gifting one million to her grandchildren
during her lifetime, she reduces her estate to fourteen million,
and that potentially saves her heirs hundreds of thousands in
estate taxes down the line. Now, this approach is especially
(28:32):
valuable for those expecting the lifetime exemption to decrease in
the future due to legislative changes. So the benefits of
gifting during your lifetime is number one. You get to
see the impact of your generosity, because gifting while you're
alive allows you to witness the benefit of your generosity
(28:55):
and the value that it brings to your loved ones.
So it's helping a child purchase a home, finding a
funding a grandchild's education, or even starting a business. Lifetime
gifts lets you play an active role in your family's
financial success while you're alive, which is a beautiful thing.
(29:17):
Number two, you also have tax free growth of your
gifted assets, so when you gift assets like stock or
real estate, the future appreciation occurs outside of your state,
and this too can reduce the estate tax burden while
allowing your errors to benefit from long term growth and lump.
(29:41):
Some gifts can really provide financial support and key moments
in your heir's' lives. For example, a well timed gift
can help your child or your grandchild avoid taking on
high interest student loans or mortgage debt and really setting
them up for greater financial stability. Now, the potential drawbacks
(30:03):
here of lifetime gifting is that once you gift an asset,
it's no longer yours, and that's sometimes a tough thing
for people to accept. Now you speak with your attorney
about this. But there are ways to make you more
comfortable with this, and it's certainly all within the guidelines
(30:29):
of what needs to be done legally, but you can
eliminate some.
Speaker 5 (30:34):
Of that odjita if you would.
Speaker 3 (30:36):
But for retirees on a fixed income, this loss of
liquidity it can be a concern, especially if you have
unexpected medical or personal expenses that arise later on in life.
So not all airs manage windfalls wisely. And that's important
to note because if you're concerned about how your gift
(30:57):
will be used, consider alternatives stresstrategies like establishing a trust
to provide oversight and control. That's a nice measure to take. Also,
gifting over the annual exclusion. As you know I've said before,
it does require filing forms seven oh nine, which can
be complex. So while most gifts won't incur immediate taxes,
(31:22):
proper reporting is essential to avoid penalties or the misguidance
here and to alleviate any misunderstandings with the irs. So
some creative gifting strategies that you could use here to
(31:43):
minimize the impact are going to be as follow as
you could fund an irrevocable life insurance trust, which is
called an islet for an acronym, and one of the
most effective gifting strategies is using funds to pay premiums
on a life insurance policy that's held within an islet,
and this approach provides significant benefits. It provides leverage, so
(32:07):
you've got a modest annual gift can fund a policy
with a large death benefit, and then that ensures that
your errors receive a substantial tax free wealth. Also a
state tax mitigation because the proceeds from the policy, the
life insurance policy, they're excluded from your taxable estate and
(32:29):
they reduce the estate tax burden. And they they also
allow you to have control because the trust can outline
specific terms for distributing the death benefit that and you
can make them so that they align with your estate
planning goals. So, for example, let's say a couple coulde
(32:49):
gift thirty six thousand dollars annually to an islet or
an irrevocal life insurance trust, which uses the funds to
pay premiums on a two million dollar life insurn policy
well upon their passing the death benefit provides a tax
free inheritance for their children. By passing both income and
(33:10):
estate taxes. So there's such a valuable tool that we
use quite a bit, and really you just get such
a bang for your buck. You ultimately turning nickels and
dimes into dollars is what it really gives you the
ability to do, depending upon your health. So transferring appreciated
(33:35):
stock it can be a good thing too, because when
you transfer appreciated stock to your heirs in a lower
tax bracket, that can create a significant tax savings.
Speaker 5 (33:45):
And here's why.
Speaker 3 (33:47):
When you get the preciated stock, the recipient takes on
your original cost basis. Now, if your heirs are in
a lower tax bracket, they'll pay less in capital gains
taxes when they eventually sell the stock. So consider Susan again,
who owns one hundred thousand dollars worth of stock, and
she has a cost basis of forty thousand dollars. Well,
(34:10):
by gifting the stock to her son, who's in a
lower tax bracket, she will avoid paying capital gains taxes
on sixty thousand dollars in appreciation. And when her son
sells the stock, his lower tax rate significantly reduces the
overall burden. And another thing to consider here, setting up
(34:33):
a trust for gifting purposes to provide structure and oversight,
which can ensure that your generosity supports for long term goals.
And a family gifting trust allows you to one set
terms for how and when funds are distributed to protect
your assets from creditors and divorce settlements. Three preserve wealth
(34:59):
for multiple generations. And for an example, a family trust,
and we just went through this with one of our clients.
A family trust could allocate annual distributions to cover educational
expenses for your grandchildren, ensuring that they get the education
that you want them to have. And it also ensures
(35:22):
that your legacy supports their academic success, which is highly
important and valuable to a lot of our clients. So
another thing here that gets overlooked a lot, but I like,
I personally like this a lot is gifting to a
five to nine savings account for a loved one's education.
(35:44):
And you're also taking advantage of the tax benefits because
the contributions they grow tax free, and withdrawals that are qualified,
those two are also tax free, and you can front
load up to five years worth of annual exclusions into
a five to nine plan, allowing you to contribute ninety
(36:07):
thousand per child in twenty twenty four as a single
filer or one hundred and eighty thousand as a married couple.
And this strategy is ideal for grandparents who want to
jumpstart your grandchildren's college funds. And here's a let me
give you a real life success story. So I work
(36:28):
with a client. We'll say her name is Carol, and
she wanted to give two hundred and fifty thousand to
her three grandchildren. So rather than transferring cash outright, she
divided the gift among three strategies, funding a five to
nine plan, contributing to a family trust, and gifting appreciated stock.
(36:51):
So by diversifying her gifting approach, Carol maximized the tax
advantages while aligning her gifts with her grand and children's
long term needs. And that was, uh, that was something
that was very rewarding for Carol to do. And that
was that was a great plan. Now, what you want
(37:13):
to be aware of here is that you want to
be aware of tax implications of large gifts because the
federal filing requirement is that any gift exceeding the annual
exclusion it must be reported to the I R S.
Using guess what Form seven oh nine. So while this
(37:35):
doesn't necessarily result in immediate taxes, it reduces your lifetime exemption.
So filing ensures compliance with tax laws, and it provides
a record of the gift and you need that.
Speaker 5 (37:48):
You want that.
Speaker 3 (37:48):
It's a good thing. Okay, Now, state gift tax laws,
so this is something that you don't.
Speaker 5 (37:56):
Don't sleep on this. Okay.
Speaker 3 (37:58):
While most most dates don't impose gift taxes, a few do,
and consulting with a tax advisor can really help you
navigate any state specific requirements. So if you just tuned in,
you're listening to today's discussion about a state planning and gifting.
(38:22):
And if this discussion has sparked any questions about gifting
a state planning or tax strategies, do not hesitate to
reach out. Also, work your way over to PRESCOTTPW dot com,
download our white paper Understanding your State, and visit our
blog posts that I just put out there the other day,
which I titled to gift or not to gift? That's
(38:45):
the question, right, So for this I always try to
put this on the website so that our show aligns
with a blog post that I write. So, uh, this
week I think I really nailed it for you. I've
got some phenomenal resources that I put together here for you,
(39:06):
and it's just such a great way to piggyback off
the show. And you know, especially this week as we
approach Thanksgiving, because I get the pleasure of babysitting Tao
for Thanksgiving as well. So when when I when I
(39:28):
am full of food and I'm full of relational companions
around the Thanksgiving table, I have I have something to do,
I'll take care of Teo. Well, guess what my gift
to you this Thanksgiving is giving you these lovely resources.
(39:49):
It's going to be a welcome distraction if things get
a little bit uh heated up out there with politics
and everything else. You know, this should be a fun
year for that.
Speaker 5 (39:58):
Huh.
Speaker 3 (39:59):
Just just click with me. I know you say, how
did that just click with you? I don't know it did.
It just clicked with me. But so stay away from
those conversations, by the way, I've learned to do that.
I used to get deep into those conversations, but they're
just a bear trap and they don't they don't bring
any value in my opinion. But so anyways, you know,
(40:24):
remember gifting is not just a financial decision. It's really
a way to create a lasting impact on your family's future.
So whether you're supporting loved ones during your lifetime or
you're shaping your legacy for generations to come, this is
something that you need to have thoughtful planning about and
it can really ensure that your generosity makes a meaningful difference.
(40:47):
So get with your attorney, speak with your tax advisor,
your financial advisor. If this is something that they have
not brought up to you. Again, please reach out out
to me. Our door is open, phone line's open. We'd
love to have you as a client, so you're listening
(41:07):
to your money matters with me. Drew Prescott, Chartered Retirement
Planning counselor Accredited Wealth Management Advisor, President and wealth Advisor
here at Prescott Private Wealth. So if you have any
questions about gifting, trusts or estate planning, retirement planning, investing,
reach out any time by calling or texting me at
(41:27):
five one eight two zero three, one nine eight three
five one eight two zero three one nine eight three.
And like I said, you can do that at any time.
That doesn't mean I'll immediately get back to you, especially
after hours, but nonetheless I'll get back to you as
soon as I can, that's for sure. Email me at
Drew at Prescott PW dot com. Let's explore some creative
(41:47):
ways to make gifting a strategic and an impactful part
of your financial plan. So you know, think of this
as you know, this is your swan song. As a
fella so eloquently used that the other day at our
(42:09):
club event. So consider your state plan your swan song.
And we'll go beyond the basics of the annual exclusions
in the lifetime exemptions here. So creative gifting strategies can
really amplify it can really amplify the impact of your generosity,
(42:33):
additionally optimizing your tax efficiency. So whether through trust, life insurance,
or education savings, there's numerous ways to align your gifts
with your state planning goals while still maximizing their benefits.
So one leveraging life insurance as a gift right. So
(42:56):
life insurance is not just about protecting your family after
your gone, because when paired with gifting strategies, it becomes
a powerful tool for wealth transfer and legacy building.
Speaker 5 (43:08):
And here's how.
Speaker 3 (43:10):
If you use an irrevocable life insurance trust again, an
islet is the acronym okay. An islet is a trust
that's designed to own and manage a life insurance policy.
So by gifting funds to the islet, the trustee can
use those gifts to pay premiums on policy. So upon
(43:31):
your passing, the death benefit is distributed to your beneficiaries
free of income and estate taxes. So, for example, if
you gift thirty six thousand annually as a couple to
an islet that funds a two million dollar policy, you
effectively transfer a much larger sum to your errors than
(43:53):
you could have with a direct gift. Additionally, the proceeds
are shielded from creditors and a state taxes, which is
only just going to help preserve your legacy. Now, the
second thing to consider is that gifting doesn't have to
involve cash, because transferring appreciated assets like stocks, real estate,
(44:15):
or other investments can provide significant tax advantage. As we
already talked about, when you gift appreciated stocks, the recipient
inherits your cost basis, and if they're in a lower
tax bracket, they'll pay less than capital gains taxes when
selling the asset. Additionally, once it's transferred, the future appreciation
(44:35):
occurs outside of your state, reducing your taxable state size.
So imagine a client named Sarah who owns a five
hundred thousand dollars worth of stock, and she purchased it
for two hundred thousand dollars. By gifting this stock to
her son, who is in a lower tax bracket, Sarah
avoids capital gains taxes on three hundred thousand dollars in appreciation.
(44:58):
Now her son can solve stock at a reduced tax rate,
benefiting the growth, benefiting i should say, from the growth
without a significant tax burden. Now, for families looking to
manage wealth over generations, a family gifting trust would provide
(45:20):
structure and control for that scenario. And here's why this
strategy is popular. You can set conditions for how and
when the funds are distributed, such as tying distributions to
milestones like graduating college, buying a home, and certain things
(45:40):
that you may want to put inside of that language well. Also,
a trust shields assets from creditors, from lawsuits and from
divorce settlements, and with proper planning, a trust can provide
financial support to multi generational purposes. Here while making management
(46:00):
and oversight of this and preventing the misuse of funds,
so it can be very attractive. So consider this family
who established a trust to benefit their three children and
their six grandchildren. Now, the trust terms provide annual distributions
(46:22):
to cover educational expenses, which in turn helps the grandchildren
graduate debt free while still preserving principle for future needs.
So this structure, the approach that's used here really ensures
that the family's wealth serves a purpose aligned with their values.
(46:45):
We talked about the ability to gift by using a
five to nine. Because the contributions here grow tax free
withdrawals that are qualified, they're also considered tax fie free.
Like I said a moment ago for a couple, if
you wanted to front load five years worth of annual exclusions,
(47:07):
you could do that for a total of one hundred
and eighty thousand and twenty and twenty four or ninety
thousand per beneficiary as a single individual without impacting your
lifetime exemption.
Speaker 5 (47:21):
So that's attractive.
Speaker 3 (47:23):
Also, in New York State, you can get up to
a ten thousand dollars deduction on your state taxes. So
real life example here, let's say Peter wanted to give
two hundred thousand dollars to his grandchildren, So instead of
transferring cash, he contributed one hundred thousand to two five
(47:46):
to nine plans. So this not only supported their education,
but it also provided tax free growth and it ensured
that these funds stretch a little bit further over time
as well. Now gifting isn't limiting to family members. It's
(48:06):
not limited to family members, So charitable gifts also are
on the table, and they allow you to make a
difference in your community or whatever charity that you're involved
in and enjoy tax benefits from doing so.
Speaker 5 (48:22):
Now, something that.
Speaker 3 (48:24):
We've worked on over the last few years here is
donor advised funds or deafs, and now deafts are flexible
ways to donate to multiple charities over time, and you
can contribute appreciated assets, receive an immediate tax deduction, and
recommend grants to your favorite nonprofits and this is all
(48:48):
at your own convenience. Now, you can also look into
charitable trusts. A charitable trust or a charitable remainder trust,
I should say, allows you to donate assets while still
retaining income from those assets during your lifetime. So after
you're passing, what happens is that the remaining assets go
(49:09):
to the charity of your choice. Now, this strategy provides income,
it reduces a state taxes, and it allows you to
make your mark philanthropically.
Speaker 5 (49:21):
So let me share this. I put this little quick.
Speaker 3 (49:25):
Scenario together for you because we're always talking about couples
and everything. I just want to make sure that I'm
hitting all these different individuals out there. So let's use
this example. Let's say Margaret and she's a widow. Margaret
has no children, and she established a CRT, which is
a charitable remainder trust, and she put a million dollars
in appreciated real estate inside of it. Well, she received
(49:49):
annual income from the trust. Well, she's avoiding capital gains taxes,
and upon her passing, the remaining assets funded scholarships for
underprivileged students. And it also gave a lasting legacy of generosity.
And so in that case, that is highly rewarding as well.
(50:10):
And remember that gifting real estate is another asset that
can be used strategically, and so whether it's a vacation
home or an investment property, and transferring real estate can
really provide a unique advantage. So it reduces your estate
(50:31):
size and gifting property removes it from your taxable estate,
potentially saving your errors from state taxes. Also, the recipient
can rent out the property for additional income. Now, the
challenges that you want to consider here is that the
recipient assumes your cost basis, so that could result in
a significant capital gains tax when the property is sold,
(50:55):
and the property valuation is crucial to ensure that the
gift is accurately reported to the irs as well. So
for example, let's say a couple gifted their vacation home
and it's valued at a million dollars and they give
it to their children. By utilizing the lifetime exemption, they
(51:17):
avoided immediate tax consequences while ensuring that the properties stayed
in the family. Now, another strategy here that you might
want to look into is, you know, for entrepreneurs that
are transferring ownership of a family business, that can be
a meaningful gift and it can also be a way
(51:38):
to ensure the continuity of the business as well. Now,
a grat or a grant or retained annuity trust that
allows you to transfer business ownership while retaining an income
stream for a set period and after the trust terms end,
the remaining assets pass to your beneficiaries tax free, assuming
(52:03):
that the trust the trust growth exceeds the IRS's assumed
rate of return. So an example here is David is
the founder of a successful manufacturing company here locally, and
he used a grat to transfer ownership to his two sons.
So by freezing the value of the business for state
(52:23):
tax purposes, he minimized his tax liability while ensuring that
the company stayed within the family. So there's a lot
of moves that can be made, and there's so many
different strategies that you can use, and you can do
a combination of them to maximize really the impact here.
(52:48):
So remember you're listening to your Money Matters. It can
be heard here every Sunday at eleven am on WGY
which is radio eight ten or one oh three one FM,
and I'm your host, Drew Prescott, and this is your
Money Matters, So don't forget to reach out well five
one eight two zero three one nine eight three or
(53:08):
email me at Drew at Prescott PW. And don't forget.
I put these beautiful resources up there for you this week.
One is the white Paper Understanding your State. So if
you go on Prescott PW dot com, it's gonna pop
up as soon as you get there, and once you
get there, go to our blog. You know, let me
(53:31):
just give you quick instructions on that, because I don't
know that I was very clear on how to get
there from here.
Speaker 5 (53:39):
Let's see here a little pop up. Let's see Prescott.
Speaker 3 (53:48):
PW dot com. All right, So, like I said, as
soon as you get in there, it says steps.
Speaker 5 (53:55):
It takes steps today.
Speaker 3 (53:56):
To manage your estate tomorrow. And if you put your
name any address in there, you can click download now
and you'll get that resource. But also go into media,
it's it says home, our team, credentials matter, our services,
and inside of our services tells you how to work
with us, our fee, schedule for service, the new clients,
(54:18):
how you can just get started right away getting yourself
in process to meet with me. But under media you'll
see the podcast, radio show, the YouTube, and the blog.
Click on blog and the first one on the top
says to gift or not to gift? That is the question.
(54:40):
And that's a great resource. You're gonna want to get
yourself a copy of that. Okay, So we get right
back to where we were here. As long as I
can navigate here, we are all right, good, almost like
I know what I'm doing over here. If you could
see me, boy, it's a thing of beauty. So anyways,
you were remember when we think about estate planning, okay,
(55:04):
the focus is often on specific tools like wills, trusts
or gifting, but a state planning, it's much more than
just documents. And that's what you need to walk away
with today is it's really about creating a roadmap for
your legacy and providing financial security for your loved ones
(55:26):
and ensuring that your wishes are honored. So let's explore
the critical elements of an effective estate plan and how
they come together to protect your family and your wealth.
And I would love to be someone on your team
that helps you design this beautiful, beautiful picture for your
(55:52):
family that you can hand off and be very proud of.
So that covers our show today, I think you would
have found a lot of value in that. I really do.
I really put my heart into today's show to provide
something that I thought was going to be incredibly meaningful
to you, and I really hope this hit the mark
(56:13):
for you. So if you have any questions, don't hesitate
to reach out again. My name is Drew Prescott, you're
listening to your money matters. The phone room here is
five point eight two zero three one nine eight three.
Thank you so much for listening, Have a happy Thanksgiving
and God bless We'll talk to you soon
Welcome to the hidden world of wealth, where secrets of
the affluent become accessible to you. You are listening to
Your Money Matters, the most provocative financial radio show on
the airwaves. You are about to start your educational journey
here on Your Money Matters with your host, Drew Prescott,
(00:22):
President of Prescott Private Wealth and Chartered Retirement Planning Counselor.
Drew will unlock the complexities of the financial landscape with straightforward,
powerful insights. Whether you're planning for retirement, managing in a state,
or looking to grow your wealth. Consider this your exclusive invitation.
Turn up the volume, lean in closer. Let's navigate the
(00:45):
hidden paths of prosperity together. Your financial enlightenment begins now.
Speaker 2 (00:55):
Securities all produce a terror Financial Specialists LLC Member fen
the SIPC reservices offered through Setara Investment Advisors LLC, so
Terra firms are under separate ownership from any other named entity.
Speaker 3 (01:06):
Four five to one.
Speaker 1 (01:06):
THO sixth Street, Troy, New York, one two one eight zero.
Speaker 4 (01:15):
And now.
Speaker 5 (01:17):
The end is he.
Speaker 4 (01:21):
And so I faced the final curtain. My friend, I'll
say it clear. I'll state my case of which I'm serving.
Speaker 3 (01:39):
Good morning, and welcome back to your money matters. I'm
your host, Drew Prescott's chartered retirement planning counselor and accredited
wealth management advisor here at Prescott Private Wealth. And uh,
before we get going here today, I just want to
let you know, I don't know if my microphone will
pick this up, but I've got my son's puppy in
(02:00):
the studio today and he's this a great little dog.
Speaker 5 (02:07):
Very smart. Now.
Speaker 3 (02:09):
As a matter of fact, I trained him to I
don't know what I would call it. I guess if
you could visualize playing the piano. When we first met,
this little puppy did the cutest thing. He'd stand up
on his back feet, you know, he kind of looked
like he was playing the piano. So it was just coincidental.
And then I worked on it with him for about like,
(02:30):
oh maybe like ten minutes or so and rewarded him
after he did it. Now now he does it on demand.
He's a cute little guy. And so he's in the
office over here and playing some golf, so you're gonna
hear the golf ball rolling around potentially in the background.
But cute little guy. His name is Tao. And for
(02:51):
those of you that love doodles. He is a mini
golden doodle. Now, Stacey and I and the family have
have three of our own doodles, so he fits right in.
We've got a standard sized labradoodle, we have a mini
golden doodle of our own, and then we have a
(03:12):
mini Ossi poo and so when you take a picture,
I'll take a picture with him here and put it
up on social media. But a cute little guy. So
now it's like we've got one of every color and
one of every size. So it's pretty pretty funny now
as those of you who are parents now kids jumped
(03:33):
the gun on getting animals as me and Stacy did
when we were younger as well, and I've really enjoyed
having them.
Speaker 5 (03:41):
But it does, you know, makes it a little.
Speaker 3 (03:43):
Bit more stressful. You know, we already have three dogs
in the house and a cat. Some would call us crazy.
I find great joy in having animals in the house
and just find them to bring a lot of peace
when you hold them. But so Stacy says, hey, what
would we do if Parker and his girlfriend were not
(04:05):
able to keep the dog any longer at the apartment?
And I said, you kid me. I would definitely take
this dog. I love this dog. And she laughed and goes, yeah,
right over my dead body, that is not happening. She
can be cold hearted sometimes, I'll tell you. So anyways,
(04:28):
hopefully that's not the case, but stand by, we may
be taking applications at some point. And he's such a
sweet little dog. And other news in the Prescott household.
Very excited to share with you that our daughter Chloe,
as you know, she graduated from hair school at Paul
Mitchell back in the summer and she took a job
(04:52):
with Tuscan's son. Tuscan Son has Rumors and Kimberly's and
some other things as well. Not terribly familiar with all
the different companies that they have, but they're all under
one group, and she got moved over to Kimberly's as
a stylist full time. So congratulations Chloe, Super proud of you.
Speaker 5 (05:13):
We love you, hunt.
Speaker 3 (05:15):
And everybody's getting geared up here for Thanksgiving. So typically
what we find is that during the holiday seasons, of
course they're sentimental, but it also gets you kind of
reminiscing about your time with your children, and it.
Speaker 5 (05:35):
Gives you a.
Speaker 3 (05:38):
Time to reflect on time going by and the future.
And so with that in mind, we had two questions
that came in. Well, actually there were three, but I'm
gonna kind of narrow it down to two because the
third question gets answered in here as well, and coincidentally,
(06:02):
they're all about gifting and estate planning. So we're going
to camp out there today share some valuable insight with you.
And you know, it's interesting, isn't it As you get older.
I mean, it just seems like, you know, as you're
a kid, you're never gonna get old, right, And then
(06:23):
as you become a parent and you have these little ones,
it just seems like you're just trying to survive in
the jungle, doesn't it. Then next thing you know, a
decade goes by like this and you sit there and
you go, wow, things have happened really fast. And I
(06:43):
remember this quote that a fella always used to use
with me, and when I was younger, I used to
alwa say, that's really corny, that's just a cliche statement.
Speaker 5 (06:55):
Why does he say it all the time.
Speaker 3 (06:57):
While I was sitting there having coffee with Stacy the
other day and it was just two of us in
the house, and Parker is he's moved out, and Chloe
is so busy with work and her boyfriend, and then
Natalie was out with her friends and it just felt
(07:17):
pretty lonely. And I said, wow, just kind of hit me.
In that moment, that corny cliche statement that I used
to laugh at so much became so real to me.
And the statement is this is that life is what
happens while we're making other plans.
Speaker 5 (07:38):
Right, And for.
Speaker 3 (07:40):
Those of you that are younger that are listening, again,
just a corny statement, right, I'm with you, I understand
that part. But for those of you that it actually
resonates with at this point, well, now I'm in your
camp and I understand what that means. And boy, doesn't
life go fast? And so today my hope is that
by sharing with you these questions that came in, then
(08:03):
maybe maybe it'll be just enough encouragement to get you
to take the next step with your estate planning. And
estate planning is not just legal documents, and we'll talk
about that later on too, and it's it's not just
about gifting, it's you know, it's overall your financial plan,
(08:26):
all right, So let's begin with the first question that
came in. The first question that came in, uh said,
was asking about if they if this individual should place
a non qualified annuity into a medicaid trust. And the
decision for this is nuanced and it's highly dependent upon
(08:50):
your unique financial and estate planning goals. And by the way,
before we get roll on here, let me just let
me remind you I'm not an attorney. I'm not trying
to play an attorney. No matter how much it sounds
like I'm an attorney, I'm not an attorney.
Speaker 5 (09:06):
Okay.
Speaker 3 (09:07):
So make sure that not only do you get your
attorney involved with your state plan, but also your tax
professional okay. And it's important that they both have a
knowledge in this area. So just want to make sure
(09:28):
that you understand that before we get going here.
Speaker 5 (09:30):
Okay. So let's get moving on here.
Speaker 3 (09:34):
So to give this question the attention that it deserves,
will explore the mechanics of non qualified annuities and the
role of medicaid trust and the pros and cons of
this type of strategy.
Speaker 5 (09:50):
Okay.
Speaker 3 (09:51):
So first you want to understand nonqualified annuities. So let's
first break down what a non qualified annuity is is. So,
unlike qualified annuities, which are funded with pre tax dollars
from retirement accounts like your iras or your four oh
one k's. A non qualified annuity, they're purchased with after
(10:14):
tax dollars. So while well the contributions to the non
qualified annuities, they don't reduce your taxable income. They grow
deferred in tax, so they're tax deferred meaning that you
will not pay tax on the earnings until you withdraw them.
So sometimes people take money out of a brokerage account
(10:37):
or savings account CDs and things like that and they'll
deposit them into a non qualified annuity. Now, non qualified
annuities they often serve really as supplemental retirement income for
those who have maxed out their tax advantage retirement accounts. However,
for Medicaid purposes, non qualified anuwa these are considered countable
(11:02):
assets unless they're protected through proper planning. So how does
medicaid trust work? Well, a Medicaid trust, typically they're actually
called an irrevocable trust, is a legal tool that can
(11:23):
help shield assets for Medicaid spend down requirements and Medicaid
imposes strict asset limits for eligibility, and in most states
individuals can only have about two thousand dollars in countable
assets to qualify for Medicaid benefits and non qualified annuities,
they often exceed those thresholds. So when you transfer a
(11:47):
non qualified annuity into a Medicaid trust, it becomes a
non countable asset provided that it complies with the Medicaid
rules and that it's transferred outside of the five year
lookback period. So during this period, Medicaid could penalize the
transfer to the trust, so timing is crucial. Now here's
(12:11):
the benefits of placing a non qualified annuity into a
Medicaid trust, which is number one asset protection from the
Medicaid spend down rules. So Medicaid spend down rules, they
can deplete your financial resources awfully quickly. And by placing
a non qualified annuity into the irrevocable Medicaid trust, you
(12:33):
can safeguard it from being used to pay for long
term care costs. Because once it's protected, this annuity can
preserve as part of your legacy and that could benefit
your errors instead of just being consumed by medical expenses.
The second benefit would be the income diversion to beneficiaries.
(12:58):
So when you and an annuity is held within a trust,
the income generated from this innuity can it can be
directed to the trust beneficiaries instead of being counted as
part of the Medicaid applications income. Okay, so this strategy
(13:20):
provides financial support for your loved ones while it's also
keeping you eligible for Medicaid. The third benefit would be
that you have control over distributions because a Medicaid trust
gives you greater control over how the annuity's proceeds are distributed.
(13:41):
So for example, you can specify that the income or
principle be used for your grandchildren's education and ensuring that
your legacy supports your family's goals rather than just being
lost to medical expenses. And then the fourth benefit would
be preserving your state for your family, and that's often
(14:04):
the top priority, so transferring a non qualified annuity to
a Medicaid trust that can help ensure that your wealth
is passed down to future generations without being depleted through
long term care costs. So nothing's always good, right, So
let's let's compare it. Let's see what the drawbacks of
(14:25):
this are. Well, the drawbacks of placing a non qualified
annuity into a Medicaid trust or the following number one,
the Medicaid look back penalty, which we just were talking about,
because transferring assets to a Medicaid trust within five years
of applying for Medicaid that can trigger penalties. So for example,
(14:46):
if you trigger it, let's say you transfer two hundred
thousand dollars of a non qualified annuity into a trust
and you apply for Medicaid within that five year lookback period,
you might be ineligible for benefits for a calculated penalty period. Okay,
(15:06):
Number two, you're going to lose the access to the
funds because once the annuity is placed in that irrevocable trust,
you're relinquishing your control over it. So this can really
pose challenges if you face unexpected expenses, such as a
large home repair or medical treatment that's not covered by Medicaid,
(15:30):
that's important to consider. The third drawback would be the
tax implications because distributions from a non qualified annuity, they're
taxable to the extent of earnings even when they're held
in a trust. And furthermore, trust are often subject to
higher tax rates on income, So these factors can reduce
(15:54):
the overall benefit of transferring the annuity. The fourth component
that I would say should be considered is that Medicaid
really has strict rules regarding annuities, So if the annuity
does not meet Medicaid's requirements such as being irrevocable and
actuarily sound, it may still be treated as accountable asset. Additionally,
(16:18):
Medicaid often requires the state to be named as the
remainder beneficiary of the annuity, which can reduce the inheritance
that's passed on to your errors. Now, the final point
that I'd like to point out to you is the
potential loss of benefits, which is important because many non
qualified annuities they have surrender charges or penalties for early withdrawal.
(16:43):
So these fees can significantly reduce the annuity's value when
transferred to a trust, and that makes the strategy a
little bit less advantageous. Now, if this is already an
annuity that you have in place, that you've had for years,
it's a different story.
Speaker 5 (17:01):
Okay. But still these other.
Speaker 3 (17:04):
Things are noteworthy and something that should be considered. So
let's let's give you a real life example here for
a second. Okay, So just to illustrate this, let's look
at a case study. So let's say Susan who's a
seventy two year old widow. She owns a two hundred
thousand dollars non qualified annuity. She's concerned about the rising
(17:28):
costs of long term care and wants to ensure that
her two grandchildren inherit her estate well. After consulting with
her financial advisor and an elder law attorney, Susan decides
that to transfer the annuity into a Medicaid trust because
she's in good health and it's unlikely that she is
(17:51):
going to need long term care in the next five years,
and the strategy aligns with her goals. So five years later,
Susan requires nursing home care. At this point, her annuity
is protected and Medicaid covers her expenses. Meanwhile, her grandchildren
receive the annuity proceeds as intended.
Speaker 5 (18:14):
So that's.
Speaker 3 (18:17):
A case where this was beneficial and it worked out
basically according to plan.
Speaker 5 (18:23):
Okay.
Speaker 3 (18:24):
Now, key factors to consider before you make a decision
like this is number one is timing, because the timing
of the transfers, it's really it's critical, and if you
establish the trust well before you anticipate needing long term care,
you can avoid the Medicaid penalties. However, if care is eminent,
(18:46):
transferring the annuity may not be feasible. Now, Medicaid rules
vary significantly by states, so some states are more lenient
in their treatment of the annuities, while others impose stricter regulations.
So consulting an expert familiar with your state's Medicaid policies
is absolutely essential to this. And remember not all non
(19:09):
qualified annuities are compatible with Medicaid planning, so ensuring that
the annuity is structured to meet Medicaid's requirements, and consider
all things inside of there, such as surrender charges or
penalties as well. And remember you want to get professional
(19:31):
guidance as I said earlier, because Medicaid planning is very
complex and it requires coordination between your financial advisor, your
elder law attorney, and your tax professional. So working with
a knowledgeable team ensures that your plan aligns with your
goals and it complies with the regulations. Now here are
(19:52):
some alternative strategies for annuities and Medicaid planning. You could
do Number one a Medicaid play an annuity, So instead
of transferring a non qualified annuity to a trust, consider
converting it into a Medicaid compliant annuity. And these annuities
are structured to meet MEDICAIDS requirements and can provide a
(20:14):
steady income stream while maintaining eligibility. Another thing here is
you always have to spend down strategy, So if trust
planning isn't feasible, spending down your assets in a strategic manner,
such as by paying off debts or purchasing exempt assets.
(20:37):
And that's a very interesting conversation. Purchasing exempt assets something
we could certainly talk about offline that can really help
you qualify for Medicaid without triggering any penalties. And then
also you might want to consider combining trust and gifting
because in some cases, using a combination of an revocable
(21:00):
trust and gifting strategies can maximize asset protection while supporting
your family. So placing a non qualified annuity into a
Medicaid trust, although it can be a powerful tool for
preserving wealth and protecting assets, the decision to do so
requires careful planning and consideration of factors like timing, Medicaid
(21:25):
rules and tax implications. So if you're unsure whether this
strategy is right for you, consult with your professionals who
can tailor a plan to get you started to hit
the needs that you have. And at Prescott Private Wealth.
We specialize in helping families navigate these complex decisions, So
feel free to reach out to us here at five
(21:46):
point eight two zero three one nine eighty three or
Drew at PRESCOTTPW dot com. Now, while we're on this topic,
don't forget to download our white paper titled Understanding Your
State and that'll give you a deeper dive into strategies
like this one. And it's available right on our homepage.
(22:07):
So if you go to PRESCOTTPW dot com, it's a
pop up that will show there as soon as you
go on the page and it's available for you and
it's packed with valuable insight. You just got to put
your name and email address and we'll get that out,
sire right away. And don't forget you're listening to your
money matters with me. Drew Prescott, chartered retirement Planning Counselor
(22:29):
and accredited wealth management advisor as well as President and
Wealth Advisor of Prescott Private Wealth.
Speaker 5 (22:38):
And I know that is a mouthful.
Speaker 3 (22:39):
It's a mouthful for me to say, and it's probably
a little bit painful to hear on and on, but
we have this beautiful department called Compliance and they want
to make sure that it's said properly. So that's why
I have to say it a couple of times through
the show.
Speaker 5 (23:00):
I hope you can appreciate that. Now.
Speaker 3 (23:03):
I don't know if you just heard that, but uh, teo,
stop golfing, and he is over here sleeping like a
little manchild, snoring like crazy. So I wasn't sure if
it was me or if it was him, because that's
exactly what I sound like when I sleep.
Speaker 5 (23:17):
So don't forget.
Speaker 3 (23:19):
Go on to the website and download our white paper
Understanding your State, and you're gonna get a deeper dive
into strategies like this one. And it's available again, it's
on our homepage and it's packed with valuable insight. So
make sure that you take.
Speaker 5 (23:35):
Advantage of that.
Speaker 3 (23:36):
Well, I have that up there, okay, So if you
have any questions about gifting a state, planning or wealth management,
reach out by calling or texting me at five one
eight two zero three one nine eight three five one
eight two zero three one nine eight three or emailing
me at Drew at PRESCOTTPW dot com. So let's die
(24:00):
into today's second big topic, and that's the rules and
the strategies surrounding gift tax. So I had another question
that came in here this week, and it was about
gifting to their daughter and son in law for the
(24:21):
purchase of a home. And let's see here. Yeah, I
just want to make sure that I always put some
notes together here to kind of keep me on track.
I just want to make sure that I'm not double
stepping on you here. So basically, the gift tax basics
the gift tax basics, and what you need to know
is that gifting can be a powerful tool in estate planning,
(24:44):
but it's critical that you understand the tax implications because
gift tax rules are designed to track and in some
cases tax, the transfer of wealth between individuals. Now, fortunately
the federal government provides thresholds that allow for tax free
(25:05):
gifting in many cases. So starting in twenty twenty four,
they increased the gift amount from seventeen thy eighteen thousand
per recipient annually without triggering the federal gift tax. So
married couples can combine their exclusions to gift up to
(25:28):
thirty six thousand dollars per recipient tax free, and this
limit resets each calendar year, which means that you can
gift strategically over time to maximize its impact. Now, remember
that thirty six thousand dollars is per recipient and it's
(25:49):
tax free. Now, if you exceed the annual exclusion, the
excess amount applies towards your lifetime gift and a state
tax exemption, which in twenty twenty four is thirteen point
six one million per individual or twenty seven point two
(26:11):
two million per married couple. So most people this is
this high lifetime exemption means that no immediate tax is
owed when gifting, but you are required to file Form
seven h nine to report that gift. So let's consider
(26:32):
a couple, Tom and Maria who planned to gift three
hundred thousand dollars to their daughter and son in law
to help them buy their first home. So here's how
they constructure the gift to maximize tax implications. Not to
maximize them oo, but to minimize the tax implications. Okay,
(26:55):
So here's how they constructure the gift to minimize tax implications. First,
Tom and Maria can each give eighteen thousand to their
daughter and eighteen thousand to their son in law. That's
combined seventy two thousand dollars that they could give this
year tax free, so the remaining two hundred and twenty
(27:19):
eight thousand will be reported on Form seven oh nine
and applied towards their lifetime exemption. So while they won't
owe gift taxes due to the high lifetime exemption, filing
Forms seven oh nine ensures that the IRS tracks the
excess gift properly. So how does gifting reduce your estate size? Well,
(27:44):
gifting assets during your lifetime it reduces the size of
your taxable estate. So for individuals with significant wealth, this
can be a crucial strategy for avoiding estate taxes, which
applies to states that exceed the lifetime exemption at the
time of death. So, for example, imagine that we have
(28:07):
a retiree named Linda and she has a fifteen million
dollar estate. So by gifting one million to her grandchildren
during her lifetime, she reduces her estate to fourteen million,
and that potentially saves her heirs hundreds of thousands in
estate taxes down the line. Now, this approach is especially
(28:32):
valuable for those expecting the lifetime exemption to decrease in
the future due to legislative changes. So the benefits of
gifting during your lifetime is number one. You get to
see the impact of your generosity, because gifting while you're
alive allows you to witness the benefit of your generosity
(28:55):
and the value that it brings to your loved ones.
So it's helping a child purchase a home, finding a
funding a grandchild's education, or even starting a business. Lifetime
gifts lets you play an active role in your family's
financial success while you're alive, which is a beautiful thing.
(29:17):
Number two, you also have tax free growth of your
gifted assets, so when you gift assets like stock or
real estate, the future appreciation occurs outside of your state,
and this too can reduce the estate tax burden while
allowing your errors to benefit from long term growth and lump.
(29:41):
Some gifts can really provide financial support and key moments
in your heir's' lives. For example, a well timed gift
can help your child or your grandchild avoid taking on
high interest student loans or mortgage debt and really setting
them up for greater financial stability. Now, the potential drawbacks
(30:03):
here of lifetime gifting is that once you gift an asset,
it's no longer yours, and that's sometimes a tough thing
for people to accept. Now you speak with your attorney
about this. But there are ways to make you more
comfortable with this, and it's certainly all within the guidelines
(30:29):
of what needs to be done legally, but you can
eliminate some.
Speaker 5 (30:34):
Of that odjita if you would.
Speaker 3 (30:36):
But for retirees on a fixed income, this loss of
liquidity it can be a concern, especially if you have
unexpected medical or personal expenses that arise later on in life.
So not all airs manage windfalls wisely. And that's important
to note because if you're concerned about how your gift
(30:57):
will be used, consider alternatives stresstrategies like establishing a trust
to provide oversight and control. That's a nice measure to take. Also,
gifting over the annual exclusion. As you know I've said before,
it does require filing forms seven oh nine, which can
be complex. So while most gifts won't incur immediate taxes,
(31:22):
proper reporting is essential to avoid penalties or the misguidance
here and to alleviate any misunderstandings with the irs. So
some creative gifting strategies that you could use here to
(31:43):
minimize the impact are going to be as follow as
you could fund an irrevocable life insurance trust, which is
called an islet for an acronym, and one of the
most effective gifting strategies is using funds to pay premiums
on a life insurance policy that's held within an islet,
and this approach provides significant benefits. It provides leverage, so
(32:07):
you've got a modest annual gift can fund a policy
with a large death benefit, and then that ensures that
your errors receive a substantial tax free wealth. Also a
state tax mitigation because the proceeds from the policy, the
life insurance policy, they're excluded from your taxable estate and
(32:29):
they reduce the estate tax burden. And they they also
allow you to have control because the trust can outline
specific terms for distributing the death benefit that and you
can make them so that they align with your estate
planning goals. So, for example, let's say a couple coulde
(32:49):
gift thirty six thousand dollars annually to an islet or
an irrevocal life insurance trust, which uses the funds to
pay premiums on a two million dollar life insurn policy
well upon their passing the death benefit provides a tax
free inheritance for their children. By passing both income and
(33:10):
estate taxes. So there's such a valuable tool that we
use quite a bit, and really you just get such
a bang for your buck. You ultimately turning nickels and
dimes into dollars is what it really gives you the
ability to do, depending upon your health. So transferring appreciated
(33:35):
stock it can be a good thing too, because when
you transfer appreciated stock to your heirs in a lower
tax bracket, that can create a significant tax savings.
Speaker 5 (33:45):
And here's why.
Speaker 3 (33:47):
When you get the preciated stock, the recipient takes on
your original cost basis. Now, if your heirs are in
a lower tax bracket, they'll pay less in capital gains
taxes when they eventually sell the stock. So consider Susan again,
who owns one hundred thousand dollars worth of stock, and
she has a cost basis of forty thousand dollars. Well,
(34:10):
by gifting the stock to her son, who's in a
lower tax bracket, she will avoid paying capital gains taxes
on sixty thousand dollars in appreciation. And when her son
sells the stock, his lower tax rate significantly reduces the
overall burden. And another thing to consider here, setting up
(34:33):
a trust for gifting purposes to provide structure and oversight,
which can ensure that your generosity supports for long term goals.
And a family gifting trust allows you to one set
terms for how and when funds are distributed to protect
your assets from creditors and divorce settlements. Three preserve wealth
(34:59):
for multiple generations. And for an example, a family trust,
and we just went through this with one of our clients.
A family trust could allocate annual distributions to cover educational
expenses for your grandchildren, ensuring that they get the education
that you want them to have. And it also ensures
(35:22):
that your legacy supports their academic success, which is highly
important and valuable to a lot of our clients. So
another thing here that gets overlooked a lot, but I like,
I personally like this a lot is gifting to a
five to nine savings account for a loved one's education.
(35:44):
And you're also taking advantage of the tax benefits because
the contributions they grow tax free, and withdrawals that are qualified,
those two are also tax free, and you can front
load up to five years worth of annual exclusions into
a five to nine plan, allowing you to contribute ninety
(36:07):
thousand per child in twenty twenty four as a single
filer or one hundred and eighty thousand as a married couple.
And this strategy is ideal for grandparents who want to
jumpstart your grandchildren's college funds. And here's a let me
give you a real life success story. So I work
(36:28):
with a client. We'll say her name is Carol, and
she wanted to give two hundred and fifty thousand to
her three grandchildren. So rather than transferring cash outright, she
divided the gift among three strategies, funding a five to
nine plan, contributing to a family trust, and gifting appreciated stock.
(36:51):
So by diversifying her gifting approach, Carol maximized the tax
advantages while aligning her gifts with her grand and children's
long term needs. And that was, uh, that was something
that was very rewarding for Carol to do. And that
was that was a great plan. Now, what you want
(37:13):
to be aware of here is that you want to
be aware of tax implications of large gifts because the
federal filing requirement is that any gift exceeding the annual
exclusion it must be reported to the I R S.
Using guess what Form seven oh nine. So while this
(37:35):
doesn't necessarily result in immediate taxes, it reduces your lifetime exemption.
So filing ensures compliance with tax laws, and it provides
a record of the gift and you need that.
Speaker 5 (37:48):
You want that.
Speaker 3 (37:48):
It's a good thing. Okay, Now, state gift tax laws,
so this is something that you don't.
Speaker 5 (37:56):
Don't sleep on this. Okay.
Speaker 3 (37:58):
While most most dates don't impose gift taxes, a few do,
and consulting with a tax advisor can really help you
navigate any state specific requirements. So if you just tuned in,
you're listening to today's discussion about a state planning and gifting.
(38:22):
And if this discussion has sparked any questions about gifting
a state planning or tax strategies, do not hesitate to
reach out. Also, work your way over to PRESCOTTPW dot com,
download our white paper Understanding your State, and visit our
blog posts that I just put out there the other day,
which I titled to gift or not to gift? That's
(38:45):
the question, right, So for this I always try to
put this on the website so that our show aligns
with a blog post that I write. So, uh, this
week I think I really nailed it for you. I've
got some phenomenal resources that I put together here for you,
(39:06):
and it's just such a great way to piggyback off
the show. And you know, especially this week as we
approach Thanksgiving, because I get the pleasure of babysitting Tao
for Thanksgiving as well. So when when I when I
(39:28):
am full of food and I'm full of relational companions
around the Thanksgiving table, I have I have something to do,
I'll take care of Teo. Well, guess what my gift
to you this Thanksgiving is giving you these lovely resources.
(39:49):
It's going to be a welcome distraction if things get
a little bit uh heated up out there with politics
and everything else. You know, this should be a fun
year for that.
Speaker 5 (39:58):
Huh.
Speaker 3 (39:59):
Just just click with me. I know you say, how
did that just click with you? I don't know it did.
It just clicked with me. But so stay away from
those conversations, by the way, I've learned to do that.
I used to get deep into those conversations, but they're
just a bear trap and they don't they don't bring
any value in my opinion. But so anyways, you know,
(40:24):
remember gifting is not just a financial decision. It's really
a way to create a lasting impact on your family's future.
So whether you're supporting loved ones during your lifetime or
you're shaping your legacy for generations to come, this is
something that you need to have thoughtful planning about and
it can really ensure that your generosity makes a meaningful difference.
(40:47):
So get with your attorney, speak with your tax advisor,
your financial advisor. If this is something that they have
not brought up to you. Again, please reach out out
to me. Our door is open, phone line's open. We'd
love to have you as a client, so you're listening
(41:07):
to your money matters with me. Drew Prescott, Chartered Retirement
Planning counselor Accredited Wealth Management Advisor, President and wealth Advisor
here at Prescott Private Wealth. So if you have any
questions about gifting, trusts or estate planning, retirement planning, investing,
reach out any time by calling or texting me at
(41:27):
five one eight two zero three, one nine eight three
five one eight two zero three one nine eight three.
And like I said, you can do that at any time.
That doesn't mean I'll immediately get back to you, especially
after hours, but nonetheless I'll get back to you as
soon as I can, that's for sure. Email me at
Drew at Prescott PW dot com. Let's explore some creative
(41:47):
ways to make gifting a strategic and an impactful part
of your financial plan. So you know, think of this
as you know, this is your swan song. As a
fella so eloquently used that the other day at our
(42:09):
club event. So consider your state plan your swan song.
And we'll go beyond the basics of the annual exclusions
in the lifetime exemptions here. So creative gifting strategies can
really amplify it can really amplify the impact of your generosity,
(42:33):
additionally optimizing your tax efficiency. So whether through trust, life insurance,
or education savings, there's numerous ways to align your gifts
with your state planning goals while still maximizing their benefits.
So one leveraging life insurance as a gift right. So
(42:56):
life insurance is not just about protecting your family after
your gone, because when paired with gifting strategies, it becomes
a powerful tool for wealth transfer and legacy building.
Speaker 5 (43:08):
And here's how.
Speaker 3 (43:10):
If you use an irrevocable life insurance trust again, an
islet is the acronym okay. An islet is a trust
that's designed to own and manage a life insurance policy.
So by gifting funds to the islet, the trustee can
use those gifts to pay premiums on policy. So upon
(43:31):
your passing, the death benefit is distributed to your beneficiaries
free of income and estate taxes. So, for example, if
you gift thirty six thousand annually as a couple to
an islet that funds a two million dollar policy, you
effectively transfer a much larger sum to your errors than
(43:53):
you could have with a direct gift. Additionally, the proceeds
are shielded from creditors and a state taxes, which is
only just going to help preserve your legacy. Now, the
second thing to consider is that gifting doesn't have to
involve cash, because transferring appreciated assets like stocks, real estate,
(44:15):
or other investments can provide significant tax advantage. As we
already talked about, when you gift appreciated stocks, the recipient
inherits your cost basis, and if they're in a lower
tax bracket, they'll pay less than capital gains taxes when
selling the asset. Additionally, once it's transferred, the future appreciation
(44:35):
occurs outside of your state, reducing your taxable state size.
So imagine a client named Sarah who owns a five
hundred thousand dollars worth of stock, and she purchased it
for two hundred thousand dollars. By gifting this stock to
her son, who is in a lower tax bracket, Sarah
avoids capital gains taxes on three hundred thousand dollars in appreciation.
(44:58):
Now her son can solve stock at a reduced tax rate,
benefiting the growth, benefiting i should say, from the growth
without a significant tax burden. Now, for families looking to
manage wealth over generations, a family gifting trust would provide
(45:20):
structure and control for that scenario. And here's why this
strategy is popular. You can set conditions for how and
when the funds are distributed, such as tying distributions to
milestones like graduating college, buying a home, and certain things
(45:40):
that you may want to put inside of that language well. Also,
a trust shields assets from creditors, from lawsuits and from
divorce settlements, and with proper planning, a trust can provide
financial support to multi generational purposes. Here while making management
(46:00):
and oversight of this and preventing the misuse of funds,
so it can be very attractive. So consider this family
who established a trust to benefit their three children and
their six grandchildren. Now, the trust terms provide annual distributions
(46:22):
to cover educational expenses, which in turn helps the grandchildren
graduate debt free while still preserving principle for future needs.
So this structure, the approach that's used here really ensures
that the family's wealth serves a purpose aligned with their values.
(46:45):
We talked about the ability to gift by using a
five to nine. Because the contributions here grow tax free
withdrawals that are qualified, they're also considered tax fie free.
Like I said a moment ago for a couple, if
you wanted to front load five years worth of annual exclusions,
(47:07):
you could do that for a total of one hundred
and eighty thousand and twenty and twenty four or ninety
thousand per beneficiary as a single individual without impacting your
lifetime exemption.
Speaker 5 (47:21):
So that's attractive.
Speaker 3 (47:23):
Also, in New York State, you can get up to
a ten thousand dollars deduction on your state taxes. So
real life example here, let's say Peter wanted to give
two hundred thousand dollars to his grandchildren, So instead of
transferring cash, he contributed one hundred thousand to two five
(47:46):
to nine plans. So this not only supported their education,
but it also provided tax free growth and it ensured
that these funds stretch a little bit further over time
as well. Now gifting isn't limiting to family members. It's
(48:06):
not limited to family members, So charitable gifts also are
on the table, and they allow you to make a
difference in your community or whatever charity that you're involved
in and enjoy tax benefits from doing so.
Speaker 5 (48:22):
Now, something that.
Speaker 3 (48:24):
We've worked on over the last few years here is
donor advised funds or deafs, and now deafts are flexible
ways to donate to multiple charities over time, and you
can contribute appreciated assets, receive an immediate tax deduction, and
recommend grants to your favorite nonprofits and this is all
(48:48):
at your own convenience. Now, you can also look into
charitable trusts. A charitable trust or a charitable remainder trust,
I should say, allows you to donate assets while still
retaining income from those assets during your lifetime. So after
you're passing, what happens is that the remaining assets go
(49:09):
to the charity of your choice. Now, this strategy provides income,
it reduces a state taxes, and it allows you to
make your mark philanthropically.
Speaker 5 (49:21):
So let me share this. I put this little quick.
Speaker 3 (49:25):
Scenario together for you because we're always talking about couples
and everything. I just want to make sure that I'm
hitting all these different individuals out there. So let's use
this example. Let's say Margaret and she's a widow. Margaret
has no children, and she established a CRT, which is
a charitable remainder trust, and she put a million dollars
in appreciated real estate inside of it. Well, she received
(49:49):
annual income from the trust. Well, she's avoiding capital gains taxes,
and upon her passing, the remaining assets funded scholarships for
underprivileged students. And it also gave a lasting legacy of generosity.
And so in that case, that is highly rewarding as well.
(50:10):
And remember that gifting real estate is another asset that
can be used strategically, and so whether it's a vacation
home or an investment property, and transferring real estate can
really provide a unique advantage. So it reduces your estate
(50:31):
size and gifting property removes it from your taxable estate,
potentially saving your errors from state taxes. Also, the recipient
can rent out the property for additional income. Now, the
challenges that you want to consider here is that the
recipient assumes your cost basis, so that could result in
a significant capital gains tax when the property is sold,
(50:55):
and the property valuation is crucial to ensure that the
gift is accurately reported to the irs as well. So
for example, let's say a couple gifted their vacation home
and it's valued at a million dollars and they give
it to their children. By utilizing the lifetime exemption, they
(51:17):
avoided immediate tax consequences while ensuring that the properties stayed
in the family. Now, another strategy here that you might
want to look into is, you know, for entrepreneurs that
are transferring ownership of a family business, that can be
a meaningful gift and it can also be a way
(51:38):
to ensure the continuity of the business as well. Now,
a grat or a grant or retained annuity trust that
allows you to transfer business ownership while retaining an income
stream for a set period and after the trust terms end,
the remaining assets pass to your beneficiaries tax free, assuming
(52:03):
that the trust the trust growth exceeds the IRS's assumed
rate of return. So an example here is David is
the founder of a successful manufacturing company here locally, and
he used a grat to transfer ownership to his two sons.
So by freezing the value of the business for state
(52:23):
tax purposes, he minimized his tax liability while ensuring that
the company stayed within the family. So there's a lot
of moves that can be made, and there's so many
different strategies that you can use, and you can do
a combination of them to maximize really the impact here.
(52:48):
So remember you're listening to your Money Matters. It can
be heard here every Sunday at eleven am on WGY
which is radio eight ten or one oh three one FM,
and I'm your host, Drew Prescott, and this is your
Money Matters, So don't forget to reach out well five
one eight two zero three one nine eight three or
(53:08):
email me at Drew at Prescott PW. And don't forget.
I put these beautiful resources up there for you this week.
One is the white Paper Understanding your State. So if
you go on Prescott PW dot com, it's gonna pop
up as soon as you get there, and once you
get there, go to our blog. You know, let me
(53:31):
just give you quick instructions on that, because I don't
know that I was very clear on how to get
there from here.
Speaker 5 (53:39):
Let's see here a little pop up. Let's see Prescott.
Speaker 3 (53:48):
PW dot com. All right, So, like I said, as
soon as you get in there, it says steps.
Speaker 5 (53:55):
It takes steps today.
Speaker 3 (53:56):
To manage your estate tomorrow. And if you put your
name any address in there, you can click download now
and you'll get that resource. But also go into media,
it's it says home, our team, credentials matter, our services,
and inside of our services tells you how to work
with us, our fee, schedule for service, the new clients,
(54:18):
how you can just get started right away getting yourself
in process to meet with me. But under media you'll
see the podcast, radio show, the YouTube, and the blog.
Click on blog and the first one on the top
says to gift or not to gift? That is the question.
(54:40):
And that's a great resource. You're gonna want to get
yourself a copy of that. Okay, So we get right
back to where we were here. As long as I
can navigate here, we are all right, good, almost like
I know what I'm doing over here. If you could
see me, boy, it's a thing of beauty. So anyways,
you were remember when we think about estate planning, okay,
(55:04):
the focus is often on specific tools like wills, trusts
or gifting, but a state planning, it's much more than
just documents. And that's what you need to walk away
with today is it's really about creating a roadmap for
your legacy and providing financial security for your loved ones
(55:26):
and ensuring that your wishes are honored. So let's explore
the critical elements of an effective estate plan and how
they come together to protect your family and your wealth.
And I would love to be someone on your team
that helps you design this beautiful, beautiful picture for your
(55:52):
family that you can hand off and be very proud of.
So that covers our show today, I think you would
have found a lot of value in that. I really do.
I really put my heart into today's show to provide
something that I thought was going to be incredibly meaningful
to you, and I really hope this hit the mark
(56:13):
for you. So if you have any questions, don't hesitate
to reach out again. My name is Drew Prescott, you're
listening to your money matters. The phone room here is
five point eight two zero three one nine eight three.
Thank you so much for listening, Have a happy Thanksgiving
and God bless We'll talk to you soon
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