The BoomX Show: Laws of Money

In this episode of the BoomX Academy podcast, asset protection attorney Darol Tuttle joins Family Leaders to discuss the challenges faced by families with members who struggle with various issues such as addiction, disability, disease, ADHD, bipolar disorder, and autism. These individuals often face unemployment or underemployment, leading to unmet shelter and basic needs without familial support. The conversation highlights a critical concern: the long-term impact on these vulnerable family members after the primary caregiver is no longer around.The episode delves into the lack of consideration for the future well-being of these individuals once their parents or primary caregivers pass away. Darol Tuttle introduces the concept of a Family Protection Trust as a potential solution. Unlike traditional special needs trusts, this trust encompasses comprehensive provisions that not only address the immediate financial and caregiving needs but also provide robust asset protection and a financial framework designed to ensure long-term success and stability for the beneficiaries.Listeners gain insights into the importance of proactive estate planning and the necessity of incorporating both financial and legal strategies to safeguard the future of vulnerable family members. The discussion emphasizes the need for a holistic approach to estate planning, ensuring that all potential challenges are addressed to provide a secure and supportive environment for those who rely on continued assistance.

In this episode of The Boom(X) Show: Laws of Money, we explore the myths and realities surrounding one of the most hyped estate planning tools—the living trust. Our guest, a thought leader in planning and the creator of the Planning Profile Builder, shares insights on how many professionals oversell living trusts, particularly for asset protection, and why this approach could be flawed.Join us as we flip the script on traditional estate planning strategies. Discover the difference between the Money Models—Estate Transfer, Asset Protection, and Family Wealth Building—and learn why a one-size-fits-all solution, like the living trust, might not protect your assets as much as you've been led to believe.Key highlights include:How the Planning Profile Builder helps you create customized solutions across different Money Models.Why traditional estate planning often misses the mark on real asset protection.Practical ways to approach family wealth building with a broader perspective.Listen in and challenge your current assumptions about estate planning!

Three wealth taxes are estate tax, capital gains tax, and a new concept: a tax on your investments. Regardless of what you call them, they erode your family's wealth. This episode looks at how one state, Washington, has enacted two new wealth taxes at a time when thirty states gave back to taxpayers.(See note below).Learn how federal and state taxes on wealth work, and how to leverage the exemptions available to avoid unnecessary taxation.Key Points:- Twelve states have their own estate tax. Ten do not allow each spouse to claim an individual exemption for a total of two. A credit shelter trust solves this problem and is easy to implement.- Seven state legislatures have bill proposals to tax wealth. One state hopes to assess a 1% wealth tax on non-qualified investments wherever located in the world.- Capital gains tax is an income tax but assessed against the value of the property when sold. In this sense, it taxes wealth, reduces your net worth, and leaves less to leave as a legacy.Resources and links:Three State Wealth TaxesEstate Tax Masterclass Case Study: In November 2022, the Washington Department of Revenue reported a 6% increase in its revenue. It now sits on a $15 billion dollar surplus, the largest in state history. Major General Fund-State (GF-S) revenue collections for the December 11, 2022 – January 10, 2023 collection period came in $87.8 million (3.9%) higher than forecasted in November. Cumulatively, collections are $83.3 million (1.4%) above the forecast.

The best place to express your desires for health care is within the four corners of a legal document, to wit: a health care power of attorney, advance directive, and a records release. Learn why in this episode and how you can create your own set of documents. You will also learn why care costs are so expensive and what that means for many patients. The reason the medical services industry is the most frequent target of cyber break-ins and theft also explains why so many go broke in retirement. Protecting yourself and your assets require and understanding of why care is so expensive. The Law has solutions but it takes effort. Health Care Documents - intro to 18:00especially the Power of Attorney and Advance Directive. Will a Power of Attorney help you end your pain if your state allows physician-assisted suicide? Medicare Part D and the cost of prescription drugs - 16:00Median net worth - 19:20Think strategically about care - 22:10Definition of plan at 23:00Hacker answer at 23:20What happens when you are sick and can't afford care? 24:30 oneLearn more about Medicaid: https://tinyurl.com/3fm4md2r

S 3 EP 35 The Spousal Protection Trust and How to Fund ItAs part of Academy weekly Office Hours, Darol answers the following questions asked by a Family Leader: “what happens once you have everything protected in a trust? Is it readily accessible to the surviving spouse or the person in charge of the estate?”Darol answers this question in-depth and goes further by explaining why the Spousal Protection Trust is what most couples need, its advantages, and how to fund the trust. Authorized by federal law, this trust holds the assets of the spouse who died first for the benefit of the surviving spouse. This trust must be created by a Will. As such, a probate is necessary. There are many advantages to probate, which Darol summarizes. If implemented correctly, the assets in the trust are not subject to Medicaid spend downs, the five-year lookback period, transfer penalties, and Medicaid liens. Darol also explains the parts and parties to any trust and compares a trust to an estate, which refers to the assets of a deceased asset owner. Darol also explains why he advises that family’s avoid appointing a family member as the trustee or executor of the family trust and probate executor.

Coordinating retirement accounts, e.g., an Individual Retirement Account, a 401(k), Self-employed Pension, etc., with your overall estate plan is difficult. Retirement accounts, also known as “qualified accounts”, must be handled with care. Generally, if the account owner designates his or her estate as the primary beneficiary, the non-natural person rule is triggered, and the entire account balance is treated as paid out as income. This causes the distribution of the entire account as income and is taxed at a higher or the highest tax rate possible. Other complications include the fact that retirement accounts are included in the taxable estate when the decedent lives in a state with a separate estate tax. Worst, retirement accounts do not enjoy an adjusted tax basis. In this episode, we lay out these rules and answer questions about retirement account trusts, and they can coordinate with the Spousal Protection Trust. Darol also discusses resources that are available to all Family Leaders at the BoomX Academy. Although this episode includes technical information, it is part of many episodes that put it all together.

The best podcasts are conversations between people who are authentic, proficient in their subject matter, and willing to share their knowledge to help others. This episode is just that, a candid conversation between two experienced asset protection attorneys. Join us as Darol interviews James Cunningham, founder and CEO of Cunningham Legal, a California personal and business planning law firm, and author of the Savvy Estate Planner. Jim and Darol hit it off, share stories about their careers, and lay out solid tips to help families grow and protect their families’ wealth. You can check out Jim’s law firm by going to his website at www.cunninghamlegal.com. You can also purchase his book, the Savvy Estate Planner, on Amazon. Here is the link. (The BoomX Show and its host, Darol Tuttle, receive no compensation or affiliate commission of any type by providing this link.)Some of the topics Darol and Jim discuss are: Differences in Medicaid laws between California, Florida, and Washington.How lawyers help their clients understand income and estate taxes specific to each state. The benefits of a Trust Protector and why every family leader should include Trust Protector provisions even if proposed trustees push back. What to look for when hiring a financial advisor to include the benefits of a true fiduciary.

Estate planning overemphasizes the transfer of asset title to a qualified heir when the asset owner has died. Estate transfer has value but not to the asset owner while they are alive. Asset protection has a different focus. Asset protection defends wealth against the modern threats to wealth, i.e., 1) unreimbursed medical expenses, 2) unnecessary taxation, 3) mismanagement, and 4) lawsuits and judgments. This video lays out the ways property transfers at death, the pros and cons of each method, and when to use each. There are three ways in which property transfers when the asset owner dies: 1) probate, 2) operation of law, and 3) transfer on death deeds and beneficiary designations. If you do not have time to watch this video and are married, learn all you can about a 42 USC trust. This trust holds the estate of the first spouse to die for the surviving spouse's benefit, and the trust's assets are not subject to Medicaid liens, spend-downs, and transfer penalties. Federal law requires this trust, a Spousal Protection Trust, to be created in a Last Will and Testament. For this reason, transfer-in-death deeds, beneficiary designations, and living trusts will not work. These asset transfer methods do not protect wealth from medical care costs, death taxes, or mismanagement. The only value proposition of such transfers is the avoidance of probate. The use of a Spousal Protection Trust does not apply to singles unless they intend to leave their estate to a loved one who is disabled. In that case, a single may use a stand-alone supplemental needs trust or the same trust described in the video.

It is impossible to fully understand some advanced topics merely by listening to one podcast episode. Most listeners have questions about each episode and, possibly, feel frustrated that they cannot clarify specific questions in their minds. Taken from BoomX Academy weekly Office Hours, this episode presents the questions asked during the live session of Episode 38. If you had lingering questions about probate, living trusts, Sposual Protection Trusts, and Medicaid liens, this is the episode for you. In particular, the following questions are answered: Question 1: What is the difference between a Spousal Protection Trust, and a Medicaid Asset Protection Trust? Question 2: If you create a Medicaid Asset Protection Trust, do you have control over the money? Do you pay your own bills? Question 3: How do Medicaid liens and penalties work? What is the five-year rule? Question 4: Why is Puerto Rico so loud? Question 5: When you create a trust, are you required to declare the purpose and intent of a trust? Question 6: What is the best document to lay out your asset protection/retirement plan? Question 7: Why does probate get such a bad rap? The entire presentation that constitutes 38 and 39 was published on YouTube. Here is the link. https://youtu.be/cJSnbhwrcqIThe Nest Egg Course can be found at boomx.biz.

Darol chats with Anne-Marie Murzin, a personal and business planning attorney with the Virginia law firm General Counsel, PC., about the history of probate law and its origins, the current Supreme Court, and an important tip for business owners. To learn more about Anne Marie, check out this article about her, her practice, and her background. https://medium.com/authority-magazine/top-lawyers-ann-marie-murzin-on-the-5-things-you-need-to-become-a-top-lawyer-in-your-specific-48572a1ef624You can also learn more about her law firm here. https://www.generalcounsellaw.com/Old Bailey, mentioned in the conversation, is a criminal court in London and has operated since the 16th century. For efficiency, Newgate prison was located adjacent to the court until its closing in 1902. The judges of Old Bailey imposed death sentences frequently. The convicted were marched down a path called Dead Man's Walk on their way to their public executions. Along the way, crowds pummeled the condemned with insults and filth such as rotten fruit. Dead Man's Walk became the final resting place for many who were simply tossed in pits after the spectacle. You can learn more about Old Bailey and read actual court transcripts by visiting oldbailyonline.org. The Supreme Court case discussed is Dobbs vs. Jackson. Here is the link. https://www.supremecourt.gov/opinions/21pdf/19-1392_6j37.pdfThe portion of the opinion discussing stare decisis can be found in the opening paragraph, to wit: "The critical question is whether the Constitution, properly understood, confers a right to obtain an abortion. Casey’s controlling opinion skipped over that question and reaffirmed Roe solely on the basis of stare decisis. A proper application of stare decisis, however, requires an assessment of the strength of the grounds on which Roe was based. The Court, therefore, turns to the question that the Casey plurality did not consider."

Infinite Banking refers to a method of cash management using a carefully designed whole life insurance policy. A whole life policy distributes cash to the beneficiary when the insured dies. The insured, usually the policy owner, does not directly benefit for an obvious reason - they are dead. This begs a question - is there a reason to store cash in a whole life policy other than a tax-free death benefit? Proponents of Infinite Banking would answer "yes." In addition to a tax-free death benefit, all whole life policies also store and pay dividends or accrued interest on the deposited cash, i.e., the "cash value." A portion of this cash pays for the guaranteed death benefit. The unused portion of the cash value grows on a tax-deferred basis. Do not forget that twelve states impose an estate tax separate from a federal estate tax. Estate planning attorneys often set up irrevocable trusts to pay for imminent estate taxes at a discount because the trustee purchases a whole life policy on the life of the trustmaker. When the trustmaker dies, the death benefit pays the estate tax. The amount of premiums paid for the insurance is far less than the death benefit, which corresponds with the estate tax liability. This is a way to pay a future tax with pennies on the dollar. In addition, all trusts grow and protect family wealth for more than one generation. Trusts must have cash to distribute to help the family, e.g., college tuition, business start-ups, or even unreimbursed medical expenses. Unfortunately, an irrevocable trust pays the highest tax rate on investment returns. To avoid this, trustees favor tax-deferred and tax-free investments, such as life insurance, annuities, or municipal bonds. This episode makes the case that Infinite Banking works well in trusts to reduce estate tax and meet family goals generationally.

An investment is a lump sum deposit in exchange for income in the future. A business differs from investment because a business generates immediate income for its employees and dividends for its owners. The operation of a business is more time and labor-intensive than an investment. What if you could have an investment that generated immediate income without demanding time and labor? In this episode, Darol interviews Dustin Heiner, who explains how to do just that. Dustin quit his job at age 37 because he purchased several rental properties but outsourced the properties to reliable management. You can learn more about Dustin and take his free masterclass by visiting https://www.masterpassiveincome.com/freecourse You can also take Darol's free masterclass on asset protection by visiting https://boomx.biz/courses/asset-protection-masterclass/

Legal documents help you grow and protect your wealth, establish family decision-making, and successfully transfer your property to the next generation without unnecessary loss or stress. Illness or advanced old age may render you unable to manage your health and finances alone. In such a case, medical providers require the following legal documents:Health Care Power-of-AttorneyHIPPA-compliant medical records releaseAdvance Directive Financial Institutions require a Financial Power of Attorney. When you pass, the property you once owned will transfer to your loved ones by one of the following methods: Last Will and TestamentRevocable TrustTransfer on Death DeedBeneficiary DesignationIf you are married, the only way to leave your property to your spouse and protect it from Medicaid spend-down and liens if they become ill is by funding a Spousal Protection Trust. Authorized by federal law, this trust also captures any estate tax credit afforded your estate. The following states have a death tax: ConnecticutDistrict of ColumbiaHawaiiIllinoisMaineMarylandMassachusettsMinnesotaNew YorkOregonRhode IslandVermontWashingtonFederal law requires that a Will creates a Spousal Protection Trust. If you are married and wish to avail yourself of the most powerful asset protection trust in American jurisprudence, you must have a Will. Avoid living trusts or transfer-on-death deeds.

The best podcast episodes are those in which two people who sincerely want to help others connect, share stories, and lay out solutions. In this episode, Darol interviews Sarry Ibrahim, a young financial professional from Chicago, and they do just that. Sarry shows listeners can protect their privacy and assets by using a unique investment vehicle. This investment reduces risk, rows tax-deferred, and holds cash so that the investor can pay down debt to include current or future tax liabilities or leverage to diversify their portfolios.  Darol applies Sarry’s perspective to asset protection planning. In the estate tax arena, lawyers recommend lifetime gifting to an irrevocable trust to 1) reduce the value of the taxable estate and 2) pay for a future estate tax bill with pennies on the dollar. Lawyers draft the trust. The trust, however, needs an investment that appreciates tax-deferred because irrevocable trusts are taxed at the highest tax bracket. Also, the trust needs a tax-free pay out to the estate to pay for final costs, including tax. This kind of trust, in a sense, is a replacement for the amount that the estate shrinks due to the tax paid. Wealth replacement can also be used to pay back long-term care costs retroactively for the benefit of the surviving spouse. This episode will challenge your thinking. Fact-based from the experience of three and a half decades of combined experience, Darol and Sarry make the argument that listeners can build their own family bank that can grow family wealth for generations.Learn more about Sarry Ibrahim and how he can help you grow more wealth using this link: https://finassetprotection.com

In this episode, I interviewed a great attorney in Minnesota, his name is Andrew Ayers. He is a business planning and personal planning attorney and is also licensed in New York. We will give you great tips on what to look for when you are hiring an attorney in your state, or in your community, like the hidden secrets of picking a good lawyer from the perspective of two lawyers who have no dog in that fight, really. We will talk about rental properties and LLCs, and even if you do not have a rental property but just trying to figure out whether you should bother with forming your business as a limited liability company and making that all-important tax selection for S-Corp. Listen in to old salts talk about law, talk about the weather, and yuk it up.To learn more about Andrew, you can go to ayerslawtv.com.

In this insightful episode of the BoomX Show Laws of Money Podcast, host Darol Tuttle and special guest Mayra Perez, a licensed sales agent specializing in Medicare Advantage plans with SelectQuote, delve into the intricacies of social security and Medicare retirement benefits.Key Topics Covered:Social Security Claiming Strategies:Mayra clarifies the various options for claiming social security benefits, explaining the impact of claiming as early as age 62 versus waiting until full retirement age or beyond.She emphasizes the potential benefits of delaying claims up to age 70 to maximize monthly payments.Medicare Enrollment Process:Understanding the crucial '3-1-3 rule' for timely Medicare enrollment to avoid penalties.Importance of adhering to the timeline: three months before the 65th birthday, the month of the birthday, and three months after.Medicare Advantage Plans:How these plans work, offered by private insurance companies approved by Medicare.Addressing concerns about potential conflicts of interest and the wish for a simpler system to better assist clients.Client Hesitancy and Personalized Service:Tackling client hesitancy and the importance of personalized service in assisting individuals with their healthcare plans.Recognizing that each client's situation is unique and requires tailored advice.Varying Benefits of Medicare Advantage Plans:Explanation of the varying additional benefits between different insurance carriers, including vision, dental, hearing, and wellness programs.Importance of carefully examining the benefits summary of each plan to ensure it meets the client's needs.Darol also shares his plans to create a dedicated podcast episode about Medicare, underscoring the necessity of accessible and understandable information for clients. The group highlights the significant variation in individual needs, stressing the importance of considering various plans before making a choice to avoid unexpected costs and ensure alignment with healthcare needs and financial situations.Tune in to gain a comprehensive understanding of these crucial programs and learn valuable strategies for maximizing retirement income and selecting the best healthcare plans for your needs.

A decade ago, BoomX Show host Darol Tuttle aired his first radio episode. Unconfident, he took the airwaves by interviewing two of his clients who had found their stubborn, aged mother unconscious in her garden. The weather that day was below freezing and she was near death. At the time, Darol was skilled in elder law but still found himself moved by their story and the lengths to which they were forced to go to manage their mother's care.In the episode, Darol laid out the costs of care as they existed in 2011. Then, he analyzes the levels of care, the increase in prices in just ten years, and gives listeners an important resource to learn how they can avoid the mistakes this family made.Darol also announces the launch of "How to Protect Your Nest Egg: How to Pay for Unreimbursed Medical Expenses Without Paying High Insurance Premiums or Hiring an Expensive Lawyer." This course also gives students access to an easy-to-use drafting app so that they can walk through a guided interview and have the legal document they need to start a true asset protection plan delivered to their Inbox in seconds. To learn more, check out the new BoomX Academy.

In this episode, Darol gives insight, tips, and resources to solve the problem of asset loss due to unplanned care costs. An important resource can be found at the BoomX Academy. Go to www.boomxacademy.com for more information. Financial planning aside, Darol interviews Lisa Doyle, the owner and operator of Cay Care, a care assessment, management, and placement company. A registered nurse, Lisa lays out the value of a separate assessment before making any care decisions. She succinctly summarizes care options, ways to include and empower the aged patient, and a framework for successful decision making.

Special guest Patrick Palace discusses the state of the legal profession, the ways Covid has changed expectations, and the benefits of a virtual-only law firm. Patrick is the owner of the Palace law firm, located in Tacoma, Washington. He is also a frequent guest on podcasts through the Legal Talk Network, active in his local bar as well as the American Bar Association, and a respected contributor on topics related to technology and the law. You can learn more about Patrick by visiting his website www.palacelaw.com.This episode gives listeners a peek into a values-driven law firm but also a project BoomX Show host, Darol Tuttle, is launching to reduce legal fees to just $40.00 per month. This project, the BoomX Academy, gives users access to his firm's drafting app, live meetings weekly, an online community of students, document storage, and more. You can learn more by visiting www.boomxacademy.com.

Most retirees are concerned about long-term care costs. Yet, most people take no steps to mitigate the risk of high costs let alone develop a solid strategy to finance those costs. In this episode, BoomX guest Brian Ott of 525 Advisors explains the ins and outs of long-term care costs and solid tips on making the right choice. Brian Ott is a Retirement Income Certified Professional (RICP), i.e.a financial professional who specializes in retirement income planning. RICPs advise retirees and near-retirees as to the best way to use the assets they have accumulated for retirement to live comfortably within a realistic budget and not run out of money prematurely. You can learn more about Brian and his business by visiting www.525longtermcare.com.This episode is sponsored by SC Financial Group, LLC, located at 1417 116th Ave NE Suite 202, Bellevue, WA 98004. You can reach SC Financial Group by calling (425) 451-2950 or visiting their website at https://scfinancialgroup.com. (Securities and Advisory Services offered through Cadaret, Grant & Co., Inc., a Registered Investment Advisor and Member SC Financial Group LLC and Cadaret, Grant & Co., Inc. are separate entities.)SC Financial Group, LLC, was founded by Shane Cloninger. Shane Cloninger has over 30 years of experience in financial services. He is a co-founder of SC Financial Group, LLC and a registered principal of Cadaret, Grant & Co., Inc. Mr. Cloninger graduated from Southern Connecticut State University in 1990 with a Bachelor of Science degree in Economics/Finance.He is currently a co-host on the ‘Retirement Freedom’ radio show, a live call-in talk radio show developed to help the average investor gain clarity on a very complex financial world. ‘Retirement Freedom’ is in its 9th year on air and can be heard live Saturdays at 10am on 820 AM KGNW, simulcast on 1590 AM The Answer. The show has been on other stations in the past including KVI 570 AM and KKOL 1300 AM. You can obtain a FREE retirement planning roadmap mentioned in this episode by clicking this link. In this episode, you will learn that there are five levels of care. Home care, Assisted Living Facility Care, Memory Care, Group or Adult Family Home, Skilled Nursing. Parenthetically, each Assisted Living Facility offers services by their own "levels", usually one through nine levels or "ala carte". Ala carte refers to a menu of services a new resident can select, regardless of the level. You can pay for long-term care in one of three ways: 1) private pay, i.e., your own funds, 2) government benefit programs such as Medicaid, state waiver programs, or veterans' benefits, or 3) insurance that pays for long-term care. Long-term care is defined as custodial care after 100 days. Medicare does not pay for long-term care. Medicare is a government-sponsored chronic insurance program for people over 65. Part A of Medicare will cover part of the first 100 days of skilled nursing care if certain conditions are met. Medicaid is the national benefits program for long-term care. Long-term care is either premium-based or asset-based. Premium-based policies are analogous to car insurance policies in which the insured pays monthly premiums for a month of coverage. When the premiums are not paid, the coverage lapses. Policies vary in cost depending on the health and age of the insured and the levels of care desired. Asset-based policies are structured as lump-sum deposits in which the initial premium is invested by the company and the return is used to grow the value of the deposit and also offer long-term care benefits if the insured becomes ill. Unlike premium-based policies, an asset-based plan can...