What To Do When You Inherit Money

What to do when you inherit money. So number one you do not want to be a target to the IRS. So stay to the end of this video and I'm going to give you some very specific tips because if you're like me you're getting a surprise basket not a planned inheritance. So I have a lot to say about this. So I'm going to talk about four things. Number one the misconception that people are going to think this is going to cost a lot. I'm going to tell you techniques that it's not going to cost you anything if you do everything I say. Which then goes to number two what structures do you have to have in place for you and your family if you don't have a family? Are you giving it to charity? How are you going to then pass on the wealth that you didn't accumulate while you walked this planet? And then number three what's the number one tax strategy? And they are so significant. And then number four who do you talk to about this? Who do you talk to about the entities? Who do you talk to about the trust the insurance? How does this work? So get a pen and paper this is a big one. Let's begin. So number one the misconception is that this whole inheritance thing is going to cost a lot. Now I have ranges of clients that are 94 years old came with millions of dollars their kids will not get financially literate. So he's giving it all to charity or donating it right he's just going to give it to a whole bunch of people and we're all raising our hands saying he should adopt us. So I have clients that that they're going to spend it while they're on the planet or give it all away. I also have clients that wanted to create generational wealth. Now here's the statistic on generational wealth. It only lasts 2.3 generations. So that would mean that my kids kids blow it right. So how you structure this is pivotal to what you want. So I think that's the first question is what do you want? Number one it's not going to cost you anyone. So let's just dispel that myth right now. Right now the current law and it changes it's based on administrations about every three to four years. But currently upon death you can pass to each heir 11.2 million without tax. As long as you are structured the way I'm going to tell you in just a moment. So let's just put the cost of doing this aside. In fact the other way is if you don't do it. Let's talk about that. If you don't do it I don't care what state you're in there's a few states that are worse like California, Pennsylvania, New Jersey, New York. Horrible states to die in because the state will take it into probate and I've had clients take seven eight nine years to untangle a very messy estate. Because it wasn't in corporate structure it wasn't in trust properly and they individually owned it. Which means the state gets it and they're going to tax that up to 50 percent. So to do nothing is where you're going to pay a lot of money. To do what I'm going to tell you you're going to pay zero and pass it on properly. So for me as a single mom 1999 when I had my son I'm like well I'm going to try this little experiment see if these things work. So from employing him the first time he was born to all the way to 18 getting an LLC and now starting generational wealth. He's 22 my daughter's 15 they're already starting to get transfers. Some of you out there say this is crazy. I know I want to train them during their lifetime. I didn't build this to pass it on and then they have to figure out the maze. I call that the surprise basket and that's how a lot of inheritance happened. That's how mine's going to happen to me when my mom passes we're going to get a surprise basket and I'm sure we're all going to sit around with some lawyer that's going to describe what my mom's wishes were. None of us have been told maybe one brother what we're going to get. Now that is actually a very traditional way that people pass on and it's also why 2.3 years it goes away because there's no commitment there's no education. I have so many clients now that are really on board with this generational wealth that unless their kids either come to my big table or get mentored and coached in these principles they don't get anything. Like why would you hand a bunch of money to a bunch of spoiled kids that have no education on what to do with it besides buy you know cars and tvs and things that are interesting you can have all those things but not without an asset base. So is it going to cost anything? Not the way I'm doing it. So number two let's talk about it. How does it work? Well when you're 18 you can have a legal corporation you can have an LLC. I actually think all your parents should get your get an entity for their birthday and yes they may go off and get a job but any extra money they make you put it inside a business structure so they can activate the tax code of the United States. 81,000 pages of tax code come on people and the only reason you're ever paying taxes is because you don't know this stuff or you're not willing to learn any of this. Now those companies then are held in trust there's two kinds of trusts those are evocable and irrevocable. So depending on how much you want to leave depending on how much insurance you want to leave. See I've had also clients completely have hardly any money really healthy though they got massive life insurance policies. I know one client right now she maybe has a quarter million three hundred thousand to pass on right now plus her house but she's super healthy and she got a ten million dollar health life insurance policy that she will pass to two trusts five million to each kid. We'll set them up for generations if they do it right so we're now working with them. So this is really up to you what's fun about this is you really get to design how it moves on not only from this lifetime but to other lifetimes. Another way that you can do a trust which is really a cool one it's called the non-depletion trust which means the the family or the kids or other people really becomes a family office can take a loan out against the money in the trust just like a bank but they never get to use it. So it never depletes in fact it just continues to grow because the loans are usually eight to twelve percent interest so the it's just a constant movement and growth of the trust money. So it's up to you we love to help you. At the end of this video I'm going to tell you how to talk to you my experts that I use for entities trusts and insurance. You're going to talk to all of them and get this set right. I mean I don't even care if you have a hundred grand if you're in the states that I just mentioned you're giving 50 percent of that to the government to probate. Why would you even begin any of this if you don't do it right and it doesn't cost that much to get this set up it costs more to have it unplanned and unprepared. So other things to know about the corporate structure is from your LLC to your S corp to your C corp how those are structured together and contract to get together will depend on how you pay tax. So let's talk about the tax code of the United States and yes those of you that are watching my YouTube channel from other parts of the world in principle all of this is the same. Here's the big difference I'm married to a Canadian right so we have 81,000 pages of tax code in the United States they have 3,400 pages of tax code in Canada which is similar in Australia and New Zealand similar in the UK and similar in South Africa. So the difference is just the volume of deductions that we're allowed versus other countries and then the names of our companies are different. But a trust is a trust is a trust all over the world by the way and you want to have a trust you want to have that as the pastor without a trust and you have just the corporation the LLCs or the C corps and S corps you're still going to probate. The trust is what keeps you out of probate so to have both without the LLCs you can't activate the tax code without the trust you go to probate right so you've got to have it all and it's got to be layered properly. So the way we begin is we just have an initial free conversation we say what do you want what do you have right now I mean I do a lot of work with student-athletes and we'll be doing more and more as we move into this next decade of my life and what's interesting is they're on you know an NCAA scholarship their intent is to probably go to the league and they have now NIL right so they have name image and likeness so even at 18 years old the money that these athletes can make and this isn't just talking even though my son's a football player this applies to any of the student-athletes I mean you women golfers out there and women basketball players you are crushing it if you do it the way that I'm talking about it but you have to have an LLC to put all that extra money in otherwise you're being taxed at the highest rates so when people say that they're getting back it like you know right now we're filming this around March 2022 it's interesting how many people are so excited about getting a tax return and my response to them is why did you pay in the first place why did you even you should wait corporations and trusts we file tax in September and then personally in October so April doesn't apply to you if you're in the millionaire strategies that I'm teaching you so again let's take a little pause I want you to be here every day we have committed to this YouTube channel to be the place to teach financial literacy we're going to be here five days a week I need you your friends your family your spouse I have a new client that just came on yesterday he's in the middle of a messy divorce I said next time we'll have you prenup and then your prenup can also be done through a trust so there's lots of strategic ways that are totally legal to help you organize and keep your not only your wealth safe but then pass it on to generations the way you want to do it and those conversations for me are some of the funnest creative ones is what do you want to do now let's put one more big messy piece in here blended families all right I have a blended family I have two kids two different parents my husband has two kids two different moms it's an interesting batch right so they're all going to get the same no it's fair is not equal so we're having those conversations it depends what they actually contribute what do they do what do they want to do so these are fun conversations don't back off from them lean into them and I want to leave you with one horror story before I end and again if you forgot to subscribe and hit the notification button go back and hit the notification because I'm going to every morning I'm going to be with you 10 to 12 minutes that's all I'm asking for financial literacy and I want to do it for at least a year and see how I change your life now the story that is the most compelling he is now a partner of mine but he came to me he had a partner in Kansas he had a flooring company a construction company real estate company I don't know they had about five or six companies and the the older gentleman said I will match your pay he had a huge job six-figure job and we'll just become partners 50 50 I'll do the money and you do the work so away they went for years doing this well one day the gentleman died and my partner woke up to nothing it all went to the state so part of was in Kansas Missouri I'm not exactly sure where it was but he came to me saying I've lost everything because the paperwork wasn't done I used to have these cool t-shirts that says do paperwork would be poor so the paperwork is critical to the entity so we had to help him regain entities buy it back from probate buy it all structurally back reset it and then put it back into trust for now his family and his legacy so this is serious stuff folks I have fun with it I enjoy it I want to help you get your family legacy set right and make sure the inheritance is coming to you properly so you aren't taxed at all with the right trust and banking structure it just passes through you go into the ground or cremated or wherever your choices are and your family just continues to move and they aren't shut down for a long time most deaths shut down a family for six months and I have a client as long as 34 years they're still trying to untangle so don't be those people be smart so what I want you to do right now is I want you to go to my financial personality quiz I want you to take the quiz I'm putting you into one of four buckets that tells us a lot about you it's a profile and then it's going to be followed by an application this application is a little different so I'll have my team take notes is you're going to be able to check the box to say I want to talk to somebody in corporate structure trust structure and insurance I don't care where you are in the world we have these same resources all over the world I have extraordinary resources in Canada the UK Australia and South Africa and we'll help you find them if you're in other parts of the world but click on the link below go take the quiz get in the application have the conversation all of it's free no obligation until you say I'm going for this I want to live this kind of life and let us help you be the team to do that so we'll talk to you tomorrow