Types of Trusts – revocable, irrevocable, living, etc.

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What is a Trust and when should you have one? Which type is best for you? Learn how to protect your finances with a Trust. What you learn in the next few minutes could give you peace of mind for the rest of your life. Listen to #1 Amazon Best Selling Author and Financial Planning Expert, John Browning... he's a guy you can trust. :)

Welcome to the build your life podcast with John Brownie. 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 freak copy mild right to your door. I'm Michael Dlan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. and John Browning, welcome back to your podcast. I can't wait to ask you these questions. But how are you today, sir? I'm doing well. I'm glad. How about self? You know, things are great. Yeah, it's it's before Christmas right now when we're recording this, so getting my head and heart around Christmas and things are good, so I'm real excited. Great. Hey, you know we've...

...talked a lot about in business. Everybody says you get you need to know, like and trust somebody and people get to know you. A lot through your book and trust you to help them with their finances. I want to talk about a different kind of trust, John, and this is one I don't know quite as much about. Is Is. That's in terms of there are different kinds of trust you can set up from a financial standpoint. Right, we're vocable trust, are revocable trust, living trust, and they're probably a few others that I I don't even understand, the ones I just talked about. So help me understand what our trusts? Do I even need one, and what kinds do I need under what circumstances? Okay, so I'll understand trusts. Wells trusts, and I think the big reason is they think they're very difficult to put together. Their expensive, you have to deal with the lawyer and people just don't like to deal with lawyers, which all of that I get a right, totally understand. But you have to realize that...

...if you have substantial assets, and by substantial I'm not talking about millions, I'm talking about you know, say you just even if you have, say, a hundred thousand dollars and maybe most of this tied up in your house, trust can be really beneficial to you. So if you just have a will. Like people think, well, I have a will and that's plenty. Well, a will is better than nothing. Yeah, if you if you pass on, but the problem with the will is that you still go through probates and there's you know, everybody can come in and see that you're doing probate and if they want to get in the way and hold things up because they say you owe the money and things like that, can happen and really make a mess if all you have is a will in place, because it's a public process. Okay. So what's important about a trust is to understand that it's as separate legal entity. So it's not you anymore, it's...

...not John Browning anymore. It's the John Browning X Y Z, call it whatever you want trust. And the idea of a revocable trust is that there you don't have quite the tax benefits and and things like that as you have with an ear vocable trust, and I'll talk to just briefly about what an ear vocable is. Versus are revocable. But with a revocable trust it's a separate legal entity. It gives you still you retain control over everything that you own. So if you want to write a check out of that trust and use it to do whatever, by a car, whatever, you can do that. If you want to put your car inside of that trust so that the trust owes it, your house can go inside of that trust. So it's not just those the money things that we always think about, but it's also some of the your physical act sets and there's some protection there. So...

...if some someone happens to sue you, there's a little bit of protection around what they can go after you for, as opposed to your trust. And Okay, a lot of complicated legal issues surrounding them. So you really need to talk to the lawyer. And that's part of what comprehensive financial planning is, is that we have a team built around us. I'm not a I'm not a lawyer, don't claim to be. Don't even not even on TV, and he fled one on TV now. Want now once. So I don't try and put together these trusts. But what I do know enough to tell you this is what you might want to consider versus, say, and irrevocable trust here. Irrevocable Trust has a lot less flexibility. It's really difficult to change once you put it in place. With a revocable trust. If something changes in my life, which is highly likely to happen at some point, maybe something completely unanticipated, probably, then you can go in, you can change that revocable trust, which is for most people. These a are also called living trust, by the way. So if you've heard a living...

...trust, that's the same thing as a revocable trust. How is it? Yeah, so you can when you can change that a little bit. You know, say you have another child or one of your children kind of goes off the deepend which happens on occasion, maybe you would want to restrict what they get in, you know, upon your passing. Right. Whatever the case, maybe it's not too difficult to change, whereas a irrevocable trust very difficult to change. But there's some tax benefits to having an irrevocal trust, and that's what we use our CPA's and our tax accounting guys on our team that we help you with confidence of financial plane. We use them to help us decide what's best for you as the investor. Got It okay, and that's one of the neat things, John, about your your firm and how you set things up, is you have these resources of these attorneys and the...

CPS that you can bring to the table to discuss with your clients and go okay, based on your unique situation, which is how you do with every client, right, building that relationship, helping them build their life. So so here's what the CPA says we need to do. Great, now, they may not be able to execute it because they may need the attorney, but you're going to bring the attorney to the table as well. So having that that, what do you call it? Be I call it bench strength. What you call it your team, I guess, because they're around you to come to the table to help you serve your clients. So your client doesn't so it just saves your time, your clients time and effort and energy. So you're not saying well, you need to talk to an attorney, good luck finding one, and we're going to bring it to the table bill and they're part of your team. That's what that's way cool. Yeah, yeah, that's right. Yeah, it's it's really part of our difference and how we treat people. And then the it also it saves the client time. It also saves, you know, the lawyer time, it saves the...

CPA time, it saves US time because we can facilitate the flow of information. Because what's one of the hardest things to do when it comes tax time? Gather up all the little pieces of paper that what's your cost basis? What's this, that and the other thing? We keep it all there for you, nice and organized. We send that Nice little package to your CPA who's on our team. They get it and they have all everything that they need for the most part. So it's works out pretty well. We Act as kind of the quarterback. If you're a football fan, there you go, yes, that, see, that's good, because you're yeah, you, because you're calling the shots and putting the people in place to help people understand. So so everybody, this is this is me speaking, and I'm not even a financial advisor like you. I tell everybody everybody needs to have a will, bottom line. You got to have that. But then, in addition to that, having a trust of some kind set up, even if you don't have a top what you would perceive as a ton of assets. But like you just at a house, if you got a house or...

...you're building equity in a house, there are some assets there and you need to look into what type of trust you need. And again that's where John Comes in and you can read his book. You can get them a call. Are there other things we need to know, John About these? You help may understand that living trust is the same as a revocable try. I didn't know that. It's just another name. That confuses me. So thank you. Well, I mean there are other trust to I mean there's a charitable remainder trust, is a really interesting way to go, depending on what you're trying to accomplish. If you've got a cause or several causes that you want to support today and then too the future, that's a that's a really good ways to protect from some taxes and you know there are some expenses with those that you could charge off. And there's all sorts of different ways you can use a chaired or bull remainder trust. In one of the favorites and is if you happen to have a special needs child or an adult and and...

...or if you know somebody who does and you would like to set up a trust for them, you can set up what they call special needs trust, and not not just you can contribute, but family members can contribute to that and it helps support that special needs person further on in their adult life. Should I happen to pass away and I've got a special from child, I want to make sure they're taking care of and that gets very expensive. So having a special need stress set up is something that we like to talk to those sports about and make sure they've got it set up and funded, and we even have some ideas as to how they might be able to get additional funding into that trust. So we help them with that also. That's very cool. Okay, and and that's a neat thing. I know we've got a couple in our community group that have one of their daughters has some kind of autism disease. I forget what it is, but she's she may or...

...may not need long term care, living lifetime care right, and that would be a great thing to set up at a young age. People can contribute to it and that would help pay for that care longer. I didn't even know that was available. That's that's very cool. Yeah, Huh. Well, see, that's why you're so important, John, and that's why people need to get a copy of your book. Lots of different kinds of trusts. That are okay well, and I'm sure we could talk for hours on trust. But how about we just let people get a copy of your book and trust you to guide them in the right direction. So let me just go to Guardian rockwealthcom. You can, you can learn about John and his team and learn about how to build your life as well as your portfolio, billy, but get a copy of his book, reach out, have a conversation with him and talk to him about trust and your situation and how he can help you, because he can. So John Thanks again for enlightening me, helping me become a little little bit more educated than I was just a...

...few minutes ago. So thank you, brother. You're thinking. All Right, talk to you letter. Have a great day. All right, we'll see him by money really is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that could help you build the life that you want. If you like, John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day.

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