Transcript
Ian (0:00)
Estate planning, very big, yes. When we talk about wills and we talk about putting beneficiaries on things, things of that nature. What are some things that. Life insurance, stuff like that. What are some things that people need to be aware when developing their estate plan.
Tiffany (0:15)
So when it comes to your estate plan, I want you to think about a will, potentially a trust and beneficiaries. Those are like the core components. So a will is like the bare bones. You don't necessarily, if you're 25 years old, you ain't got no kids, you got nothing. You don't necessarily. A will. Right. Well, let's start even before that. Beneficiaries, right? So no matter what, even if you are 21 years old, you got a bank account, you got an estate, you got life insurance, you have an estate, you know, so put your mama, your cousin, your best friend, your sister, your brother as a beneficiary on your bank account, on your life insurance policy, if you have one. That way, if something should happen to you, that is what estate planning looks like when you really don't have much. But. But it's still something. But you want to be mindful. Because if someone is a beneficiary on your bank account, let's just say you put them on when you're 25, your sister, and then at 35, you got kids and a significant other and you have a will and all other stuff, but you never updated that form. If something should happen to you, what's on your beneficiaries form trumps everything else. It doesn't matter what's in your will or your trust.
Ian (1:25)
So.
Tiffany (1:25)
So that's really important. I remember, like, so my husband, when I met him, he had a daughter already, she was seven. So he and her mother were together. And he had. He has, like, he works for the city, so he has a pension. So the other day he was like, babe, my friend is trying to figure out how to change his beneficiaries on his pension. And I was like, all right, well, you know, let's update. Well, let me show you how to log in. Cause I do all of our financial stuff. So we log in to changing beneficiaries. And I'm like, hold up. It don't say Tiffany on here. It said baby moms on here. Now don't get me wrong, me and baby moms is real cool, but not that cool. I said, bruh, what if you would have died and left your pension to her? I would have had to raise you up from the dead, kill you back dead again. But I just say all that to say respect. It's so important to make sure those forms are up to date. So then next level will. If you have children, you have to have a will. Who do you want to raise your children? It's not enough to be like, oh, that's my godmother. No, no, no, no, no. Legally, you have to assign because you know us. That's definitely the conversation. Yes. Like, oh, that's a grandma. If something happened to me. No, no, no, no. And this is all in my ridiculous money. And so, yes, you want to make sure that you have, you know, like, you legally have some papers drawn up to say, this is what happens to my minor children when I'm not here. Because let's just say you're Muslim, right? And your parents are Christian, and you really don't want your parents to raise your kids or your sister to raise your kids, because you want your kids to be raised in a Muslim household. So you really want your brother, you know? But if you want that to happen, you have to put that down. So a will is bare bones, but a will is not going to save you from probate court. You know, you are still going to pay them taxes on tax. On tax on taxes. Right. But I will say this. If you have a trust is not for someone, I would even consider a trust because of the cost. Unless you have at least $100,000 in assets, right? Because 20,000, it doesn't make sense for the cost of a trust. Now, if you have assets of 500,000 or over, you must have a trust because the amount of money you're going to lose in probate court, plus probate court is embarrassing. It's like ringside seats to like, oh, how much Ian got. Oh, okay. Oh, Ian got what exactly? You know what I mean? And so that part is important. So a trust. What makes a trust so special is that a trust locks things away behind closed doors so no one can see unless you decide to share. Unlike a will where everybody can see. But also, trust is like a person that never dies. When money goes passes from one person to another person because of death, there's a tax involved. But a trust is like this person that doesn't die. So money, if it's held or your assets are held there, even if you pass, the trust stays alive. Even if someone else passes, the trust stays alive. So you don't have to worry about the tax incurred going from person to person. But you want to be mindful what kind of trust that you want to have an Irrevocable trust or revocable trust. An irrevocable means that it cannot be broken or changed unless everyone who's involved in the trust says okay. Right. So, for example, Kobe Bryant had an irrevocable trust. Right. So the problem was that he. So he and his wife every. When their children turned one, they added that child to the trust. But we all know he passed away when his baby was still younger than one, so she was not in that trust. All of that wealth he had set aside, so she had to petition the courts to say, I know this is irrevocable, but let's be real, Kobe would not want the baby not to be in here. So they granted her that. So you just want to be mindful, you know, what kind of trust you want to have. But estate planning, we tend not to do it. But it's actually more expensive not to, you know, like, it just is. And so if you. If you have just a little bit of something, you want to put something down, you want to get it notarized, and you want to fund it and sign it. So if something happens to you, everybody knows what your desires are. Don't be like Prince. Yeah.