Episode 34: Where There's A Will...There's A Way!

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing how to plan a safe future for your family by creating a Last Will & Testament.

Tune in today to hear John share all about why having a Will is absolutely crucial to add to your financial plan. Listen in to learn about why adding beneficiaries to all of your accounts, policies, and plans is a must do for you and your loved ones. Don't miss this one!

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy meld right to your door. I'm Michael Delan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. And welcome John Browning. How are you doing this fine day, sir? I'm doing great. How are you? I am well, I'm not as good as you. Look at that Shure you've got on today. Man, that is awesome. Yeah, this is. This is what we were here in Hawaii. It's a it's the standard equipment. It's like genuine, genuine, not even imported, probably probably made by hand by some Hawaiian Person. That's awesome. It is it is made in Hawaii. Yeah, I love it, and I've noticed you a couple times have VI. Is that how they say it? Yeah, I mean you hear both ways, but I'm learning that the correct way is with a v. and there's a there's a town over here, out to the west of US called Eva Beach, but is spelled Ewa beach, and so you know, if you're talking to somebody who's not from Hawaii, they say l see Ella or Ewa Beach, and it's actually Eva Beach. There you go. That's that's a dead giveaway for a tourist, right, that's right, exactly. So I think. Then you just smile any point. Yeah, yeah, right, well, that that's good, you know, because, well, well, we all need help and that's one reason why we're here to get help from you about finances and planning, and one of the one of the things, John, that I want to talk about is in terms...

...of planning, that I think. I think, and I'm not even a financial advisor like you, I think everybody should have this as they're thinking about their finances, and that's a just a will. I talk to people all the time, John, who are married, have the kids and I'm like, do you have a will? And they're not going, oh, I know, I want to ring the next talk to us. Talk to us about the importance of a will as as as part of a financial plan. Yeah, it's it's extremely important and it's just one of the things that we find that people don't have even booth for the will. What we find that so many people don't have as they had. Don't have not even set up their beneficiaries or they have a taxable account. It's not a transfer on on death account. So all right, you're going to explain all that. I will explain all that. The beneficiaries is really important. So all most almost everyone has either an IRA, a individual retirement account or a k four hundred and three V or something of that nature. Hey, and with those, whoever is setting that up for you will always send you who do you want your beneficiaries to be in the event of your passing? And a lot of people either don't fill it out or they filled it out ten fifteen years ago and it's out of date and they have an updated it and then when something unfortunately does happen to them and and they go to find that person, that person either isn't around anymore or it's not who they really wanted. That those funds to go to. So updating that is step number one. Step number two is do you have a will? And even with a will, there's some things that you may not understand about that. Right. So. So, with a will at least you have given instruction to the courts to probate...

...or your estate planning person who's in charge of that. Most people these days are going to have to go through probate, even if they have a will, which is something some people don't understand that I can't undergain. Even even with a will, it's still tends to go through probrate as long as you have a certain amount of assets, and most people, if they own a house and they paid for it for a little I don't fall into this category and end up going through probate. So whoever they've put is their estate, their executor has to deal with that. Okay, explain a probate. We hear that term all the time, but I don't even know if I could give you a definition. I think court system and when you're right, you're right. Okay, and and you we don't have time to really go into the legal explanation of what that means, but essentially got to go to court. You probably have to get a lawyer involved and there will be a judge there and just figuring it all out can take up to two years. Well, that's lovely. Yeah, and it's pretty inexpensive, because those guys work for free. Not so much. Yes, we're right. So, wow, is there any way to avoid probate with having a will or what do you do? Yeah, so it's I mean, I'm not not a lawyer, so I don't want to claim that I am. So I want to make sure a billions ins that what we do is that we've got we put together a team for you. Would you conference a financial planning and that part of the team is a group of lawyers and legal experts that we know and trust to do a great job for our clients. But I can't. What I can tell you is there's, there may not be a way to avoid probate, depending on their number of assets that you have. Okay, but what some people are scared of or intimidated by or think they don't need because all, I don't have enough facets, or I don't want to go to the trouble or it's too expensive, or whatever the excuse might be, is...

...setting up a trust and there's a lot of different trust so we don't have time to go into today, but there's two that are the most common. is either an irrevocable or revocable trust or living you may have heard them called living trusy, okay, I've heard of that. And with a living trust, if you do the irrevocable and it's exactly what it says it is, it's irrevocable, so you can't change it. So most people cannot go with that one. On the flip side, there's some tax of vantages to doing erevocable trust, so it is something that you may want to consider or you might want to consider splitting up a little bit in arevocable, little bit not. Again, this is all very personal to the individual. But with a revocable trust you still own the assets, but you put nearly everything in there. You retitle your house in the name of the revocable trust. You read all, you can even retitle your cars and any other large assets that you have, including your investment accounts, and you can even list them as a beneficiary. So once that trust is defined, you know X, Y Z person gets this amount and or this charitable organization gets another amount. It happens exactly as the trust mandates. And there's a trust to you are the trustee, normally speaking. So you still use the assets just as you always have and you can withdraw, take money out, put money in, whatever you need to do some nothing changes there. It's just that it belongs to that trust and it also can in many cases protect you in the event that there's a lawsuit or something of that nature, because it's not it's in the trust, it's not actually you, so that there can be instances where those trust...

...can protect those assets in life as well. Does that makes and it's well at some level, and I just I just made a note to do an entire podcast on trust, because it is. It's one of those those things, John, that for many of us it's out there a bit. So, as you were explaining, I'm thinking trust is in a sense it's kind of an umbrella that I can put assets into and still move around, but it protects me at some level. And there are different types of umbrellas. Right we're vocable, irrevocable. We don't have to go into that today. We might do an entire podcast on those different types in benefits, but it comes but a trust does that come after you do a will, or is it all the if I don't have a will, which I do, fortunthing. But if I didn't have a will, do you set up a will, then a trust, or is it at that point? Is it all one or how does how does it all play out? So it did really again, depends on the person right. But the first thing to do is, you know, I recommend if you have really any substantial assets at all, because the other thing we don't talk about a lot is at least with a will if you've got children. Forget about the financial side of things. We talked about life. You know, build a lot, not a portfolio. That's that's the theme here. But if you got children, you definitely want to have a will because otherwise your children are going to become words of the state and having been involved with that through my foster care days, I can tell you that's not a fun place for your kids to be. So please, even if you don't have any assets of all, you're just listening to this to get some information, put together a will. But, but that was kind of a rabid trail. To get back to your question. Before you have any assets, you still need a will. That's number one, all right, and you can do that really relatively cheaply. If you don't have a lot of assets there, you can even go online and do those. But I do not recommend doing a will online and doing the doityourself...

...thing, just for the same reasons that we've talked about many times before. Doing it yourself on something that important is not really a great idea. This is important stuff here and you don't want to get it wrong and make a mistake just by not knowing what you don't know. So what you want to do is you want to go and talk to your legal counsel and say, what do I need in my personal situation? And maybe it is just a will, but I think a lot of times are going to steer you two that trust and that idea of a revocable trust, and it's it's intimidating. There's some things that you do have to do it or some paperwork involved, and you do have to think through these things what you want to happen, but it is not nearly as bad as people think. So well, you're you're right. It does take some time, it does take some thinking, but most of the question it's already done for you just have to think about how. What are the implications? But the other aspect is once you have it in place, you do need to updated every so often. Talk about what happens if you don't update your will and yet let's say you had a beneficiaryor had somebody in there and they're no longer living and something happens to you. What would what could be? What could happen? Yeah, if you if you don't have kind of a waterfall approach in your in your will, which is a lot did more difficult than a will, that it isn't a trust. Typically, in a trust you just set up you use the trustee and then a success or trustee and then a third note. You can third, fourth and fifth success or trustee. So it can be fairly easy just to set that up so it's you don't have to update it as much. But life happens and and things do change on a regular basis. Just like with your financial planning, we ask that we want to talk to you, you know, at least four times a year, if not more, to find out what's going on in your life. What what is change, because...

...what you put in that trust or that will six months ago or year, years ago, not just that, the success your trustee mean may not be around anymore or maybe you something happen, you don't get along with that trustee and maybe you want to change that. But you want to keep on top of that thing just just because life changes. Well, it doesn't. And one quick example. So Joe and I have a trust and we put it all together, we put the will together, we do who's going to take care of our kids and things? And they were about our age right. Well, then, as we grew, their kids got older, our kids got over but we ended up foster care and adopting to younger girls now. So the people who are supposed to take care of our kids are much older now, right, and so we need to go up and Redo that will to say, you know, they probably need younger parents if we die. So it's little things, maybe maybe not, but it's a decision that we have to go and think about. Of that wasn't even the case eight years ago. Well, now it is life. Life happens and things change, right, M and it is one of those things that you don't tend to think about, and that's a that's another great thing. If you have a financial advisor. That's doing the right thing, and comprehensive financial planning. You know, we're going to tell you, we're gonna remind you to think about those things, even though that's not really what we do. Again, not a lawyer, I'm also not a CPA, so I don't give you tax advice, but I can point out things and ask a question. Recently, like literally last week, I ask a simple question about a particular account that a client had and she said, Oh, I don't really know the answer to that, and so we got in touch with both her, ended up being both her legal counsel and her and her tax advisor, and we got everybody together and we found out, you know what, we're not managing this...

...thing correctly based on what you in particular need. And so that's our job. We know enough about everything to at least ask the question. And a lot of times you are frankly like, I don't even know enough about electrical wiring or plumbing to even ask the right question right. So I can get myself in trouble real fast on that type of thing. And it's the same way with comprehensive financial advice. Yeah, and that's great, and I just might know, John, we're on to a whole podcast on comprehensive financial planning and what it is, because up until you just really said that, I just always think when somebody says that, I think it's comprehensive because your thought dealing with stocks and bonds and usual funds in this and that it's all financial. It really never him. I forgive me, to think about no, it's all about life and and your financial planning to build a life, not just a portfolio. It encompasses taxes and legal things and real estate holdings in it. It's all of that that I'm not going to think about and you need to think about them, although you may not be the expert in all of them, but you can help facilitate bringing those experts to the table or to a zoom call probably now. You're right, yeah, to deal with those to go. Here's why you're hilary. This way, you hired me in a sense, right, and we're going to talk about that in upcoming podcast, about the value of having somebody like you guiding, directing, steering, helping create a comprehensive financial plan that helps you build a life, not just a portfolio. That's right. Well, borrother, I'm thank you, thank you and and I let me reiterate for everybody listening, make sure you have a will bottom line. From there, you probably need to look into a trust and you most definitely need to reach out to John Browning and his team at the Guardian rock wealth and just have a conversation about these things and many other things to say. Where are you in your financial journey and how can they help you build a life, not just a portfolio? So,...

John Brownie, thanks so much for a being with us. I appreciate you and always enjoy talking with you friend. It's been great and I appreciate you taking the time as well. Everything all right, you did say, but bye bye. So thanks for listening to the building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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