Wow on today’s podcast, you’re going to be able to download a free family planning spreadsheet. Ooh, we love spreadsheets. Don’t wait You can grab that at simplepassivecashflow.com slash legacy, and it’s going to be a good one today, but before we get going a little bit recap, Christmas is over you.
Celebrate Christmas. Hopefully we’re all selling in the new year. But right now, in terms of investing things have going pretty well for investors right now that everybody knows about inflation, even the regular people out there, they know that inflation is rising. All the bolts at this point and prices on real estate is just keeps going up commercial real estate.
Hasn’t really gone on the huge frenzy that residential real estate is going. But I definitely see the second half 2023, the commercial prices will definitely be running up along what you’d like. Have you seen with the residents prices? Which means it’s not yet too late to get. As far as apartment goals everything’s going pretty well.
Rents are continuing going up. I anticipate rents that kind of slowed down a little bit, but still be increasing which has healthy,
but as much as I love and investing in apartments majority of my net worth is in that asset class. I’ve been looking around lately and you always want to look for stuff. The contrarian point of view, and what is one of those will tell us, right?
We’ll tell us, get beat up in the pandemic recession, but something I’ve been realizing is, hotels, just like short-term rentals. Everybody’s looking at short-term rentals out. Airbnb VR BL there are discretionary items. That’s something I’ve been learning a little bit of doing my due diligence on this asset class is either there’s a big difference between the two and the three star hotels.
The crappy holiday and expresses that I stayed. And for about five years, the comfort ends the maybe the semi nicer, three, four star hotels, the lore and Marriott’s those types. Those are the ones that are gonna to me, struggle in another pandemic or session, especially as people stop spending money on that of.
Something I’ve realized lately is the high-end luxury stuff. Like your four seasons in Hawaii or a Hilton in Hawaii. And it keeps saying Hawaii, because I think there’s a big difference between investing in 2, 3, 4 star hotels in the middle of a piece of junk Alabama, Kentucky, like these areas that no wonder they want to go for vacation.
Really your only reason you’re going there is because your company tells you, you got to get your butt on a plane. The go talk to some folks in the flyover states, but places like Hawaii, we always beat up on Hawaii. California is places where it’s not a really great place to invest for cashflow, but it is always going to be paradise.
And place where people will aspire to live the dream for their one week of vacation. And the people that are self selecting to going to these places are going to be going to the five or six star hotels. So started to look into buying a hotel in Hawaii, is that everybody wants to do that. What a flip trophy asset that is add that to my coffee and chocolate farm parcels,
but . I started to talk to some developers that I knew and some other folks in the industry and start to realize that if go off on this investment thesis, that I needed to stay to the high-end. So I can go into recession, proof assets that cashflow, I need to be now competing with the institutional operators, which is not going to happen.
It’s the same reason why. There were a few out there that we’ll invest in like Maine Frank computers, but now Amazon is getting into the game. All the little guys are getting blown out of the water with this type of stuff. Same thing with industrial and office space, which is why the average person can’t really get involved.
But, apartments, you can buy , smaller apartments or put together private equity group go after a 40, $50 million. But within industrial and office, you’ve got to get too much huge or scale and very similarly, and maybe to March stream case luxury five star, six star hotels, which are talking now on a magnitude of , $200 million plus, and there’s not very good financing on that.
So you’re talking about it, bigger equity in comparison to the purchase price. Another thing. These are the weird wants to don’t really think of as an investor when you’re outside of the industry. Something I’ve learned is that, developers went to making these really fancy five, six star hotels.
When you look into the PNLs of this stuff, they’re not really cash lying, or it’s not, doesn’t seem too much of a moneymaker, but what’s really, the moneymaker is selling off the timeshare. So if you’ve seen a place like Hilton wine village, there’s it was built in different phases and there was a section of it that gets sold off to the timeshares because the timeshares goes after How do I say this in a nice way, but they are the absolutely worse consumers buying that stuff. So basically you can, if you’re the hotel owner, you create a nice property, a campus, you make a couple of timeshares, you sell it and you gouge those types of unsophisticated investors, so-called investors, but we all know who the people buy timeshares.
Those are the people just get suckered into buying this stuff because they want that dream. They want to feel like an infant. But they’re really just a timeshare person with a bunch of points or whatever, but that’s the play for these large hotel operators, developers that they create the campus and they make their money on that sale of those timeshares, to the sucker buyers.
Another thing too, that I also found is a lot of these bigger brands, like the Hilton. Th these main states, if you’ve heard, they get out of it. And lot of the money is coming in is dumb institutional money. Again, like these are the people who are investing the lazy retirement funds of a lot of folks that don’t listen to this podcast.
The expectations are a lot lower and a lot of times these big hotel operators they’re just lending their brands. So really they don’t have any skin in the game. Just another example of the bigger that you get, it’s easier to not fail and you don’t really have skin in the game.
And as much as I’d love to go on and invest in a Hilton or four seasons, they don’t need private equity money. So it’s not really finding any deals in that type of work. But you can go buy a holiday Inn or just one of these Thor and hotels. But again, like I said earlier, I think there’s a lot of risk into buying that type of discretionary item in the two to four star category.
But anyway, part of this whole idea of investing in hotels and probably not going to do it, but it was just put on because the mastermind that we’re putting on in Hawaii, this next. Pretty much the final week to buy your ‘ tickets. For those of you coming out, or you’re going to have over 80 people there, I’m really excited to see you guys there.
We’re going to have a little less than half are family office, Ohana members or VIP’s, and then general admittance . So looking forward to meeting you a lot of people in person for the first time, but yeah, enjoy the show
hey simple passive cashflow listeners. Today, we are going to be talking to Annette Kam who wrote a book called Wait, Don’t Die Yet! So it’s a complete guide for all things that nobody wants to talk about before, during, and after a loved one’s passing so going to be a lot to do with legacy and estate planning.
If you guys want to check out the show notes to this, we’ll post the video of this, and also a more pertinent information surrounding this topic at simplepassivecashflow.com/legacy and before we get going, I’m going to apologize because Annette is here in Hawaii too. And she is probably going to get me to speak some pretty poor pigeon English, which tends to come up when we get together, but we’re not drinking, so won’t be too bad. But, Annette thanks for jumping on. Appreciate it.
Thank you for the invitation. I’m excited. I’m really excited to be here.
Yeah. So paint the picture for us. What did you do before you really got interested into this topic matter? What did you do for that treaded day job?
Oh, my history wise I like to go back to my history because to me, everything is not a coincidence. Okay. Back in 1968, I spent two months in the hospital with a ruptured appendix almost died, but that propelled me to become a nurse. So for the last 42 years, I was a nurse. I retired five years ago. But within this timestamp, I also came down with an illness called fibromyalgia and it was very debilitating suffered for over 10 years.
But then found this book that changed my life. Connected up with the doctor, started a nonprofit here in Hawaii reached out to the mainland and beyond. And last November, I had to pivot my whole focus in life because of what had happened to me with my in-laws passing and this is what has led me on a new mission.
So I stepped down as president of the nonprofit last November, and I wrote this book to help people realize that they think they have their affairs in order, for passing or their loved ones passing other parents past again, that is such a myth that they think as long as they have the will, the trust and all that. They’re fine. That’s really not the case, basically.
So before we unraveled some of those problems and issues that people don’t think of too much, you spent a lot of your career as a postpartum nurse and we’ve had a lot postpartum nurses or doctors in that arena on the podcast in the last several years and they give some insights into this from their dying patients. Anything before we move on any takeaways that kind of have been impactful to your life, going through that experience with so many patients?
I was a postpartum nurse I didn’t have the death and dying part as much, but I’ve seen the lights. I did an interview once and it was interesting because she said I’ve seen life coming to the world.
I’ve seen suffering because of my family had to go and now I’m helping people in death. That’s a kind of a neat psycho through to be in touch all phases of life.
All right. So let’s get into this typical example, right? So I think the most people that are listening here, mostly accredited investors may be in their thirties, forties, and fifties and they have an older parent that is dying. Most of the people listening are typically first-generation wealth folks. So a lot of our parents, they might have a million dollars now cause you know, when you’re a good saver, anybody can get to a million dollars in 70, 80, 90 years. So not talking about a huge estate being left behind, but what are you seeing as some of the pitfalls or the mistakes that people should be planning for right now? Knowing that the, this is going to happen.
If you look at the history of what I went through in my book my father-in-law was very organized. He was 99 when he passed had both of his checkbooks, your balance to the penny and 16 years before he pass you actually educated us one Sunday night when went over there
and he told us exactly where the safe was, where the key to a safe was. This work is we always trust the best directives, power of attorney he had all that stuff. So we thought when he passed and my mother-in-law told me, you take care of everything. We thought it wouldn’t be that much of a problem because he had all this paperwork, but then we found out.
It wasn’t just the paperwork that was enough. It was all the other mundane things that people just never think about. Things like the secret safe he had a secret key that he showed us. We went to get the key. Here’s a key instead of one key on a key chain there’s 20 keys on the key chain. All unabled.
So this is little things like that just makes you that’s a little harder when you follow up with somebody who passes. Just little things like that had mentioned about utility bills with the telephone company where, 10 days after my father-in-law passed, my mother-in-law’s phone broke, but online that’s the one that communication with us.
And you think it’s so simple, I just call the telephone company up. They can fix the home, but it took me three months, 29 phone calls and getting the better business bureau involved because she was not on the bill so she didn’t have the authorization, even though we have to still pay the bill, she wasn’t authorized to get it fixed.
How simple would it have been just to add on the second name and people don’t think of those little things, just little things like that and location of words, your motor vehicle registration, who’s on the registration. And how do you sell the car if your name is not on it? Yeah. So these are the things that I captured in the book.
When I started going through all this, not knowing what phone numbers to call, who to call, what to follow up on, what happened is I started making a list and I gave this list of to friends. Cause we’re all baby boomers and we all have parents that are passing or spouses that are sick actually with the age responses or sick.
And everybody, I gave this to told me you got to get this out there and that’s why I wrote the book. It was to help people to avoid going through what I went through, basically. That’s a basic premises is just getting them through. But the book itself is not just about the things you do beforehand.
It also takes you through everything to like caregiving, and a file system what to do after that, there’s even a section on transitioningif they need a carehome . What are you looking for? These are the thing that people just don’t think of, basically.
Yeah. So we’ll dive in today, the care home and the assisted living portion here in a little bit, but just to close the loop on all those, the laundry list of things that you should probably be looking for Annette’s book, we’ll get you guys access to electronic copy later.
I’ve got a laundry list of things and a Google sheet form for that we use in the family office group at simplepassivecashflow.com/legacy . But my suggestion would be, yeah. It seems really annoying for a lot of us because on the parent’s passing, like our time is very valuable, right?
We are the sandwich generation. We have to take care of the older folks’ affairs close it up but also we got the younger generation to take care of. So if the older generation could just spend granted, it takes them a long time to do this. But Hey, they have time, at that point in their life, print out the Google sheet or whatever, put it on paper for them to hand write it in.
I think everybody over a million dollar net worth should have an executive assistant scan it and then put it into your Google doc form. You don’t have mom and dad do that. But to me, that’s a best practice, but any other best practices you’ve picked up.
The book itself has my story in it and everything segues into the guide book that is a free downloadable also and people think I don’t have time to do this at all, but actually in reality, it takes maybe two weeks to fill it out because then you’re not gonna fill up the whole guidebook at once. It’s really not the pipe that you’re living through at the moment and it just has all the important information.
So you just got to tell your heirs where the information is you fill it out, basically download the guidebook, you fill it out and then you just update it once a year. I recommend using a erasable pen because things change, you’re adding properties, you’re adding more assets, you sell properties, and so these things have to be updated obviously, but it’s easily done with this guidebook that I included.
And it tells everything, basically if you have a mortgage, who’s the mortgage with, who’s your agents for insurance, it covers everything that I could possibly think of. I don’t know. It’s just a great resource, I think and I just want to help people out basically.
Checklist manifesto, because I’ve read that book fly a plane without it.
Here’s something that I’m not really familiar is like the parents get to that age where they can’t take care of themselves. Maybe walk us through that issue.
Yeah. I went to that with my father-in-law and then my mother-in-law actually, my father-in-law was going through your possibly passed away too soon, but then my mother-in-law got sick a little later and there’s nothing like, one thing that really pertinent is that a lot of older people once they fall, that’s the downhill trend.
She didn’t break a hip, but she did fall at one was supposed to be a short, we have since ended up being three months. And then all of a sudden you don’t realize that these rehab centers can tell you next week she’s gotta be out of here. And then what do you do? So then you have to go find out carehome or a nursing home, whatever.
And what I found out, and I was really fortunate because the social worker helped us. But what I found out is that you have to be very careful about your carehomes. You think that when you’re looking for a good care home or that you’re looking for a place that’s safe it’s clean, you have RN running a place on those activities.
But the book goes into a little bit more of that because I interview caregivers and I was really lucky because the caregiver I chose, she had been doing it for 16 years. Before I even introduce it to my mother-in-law, we had sent there, she had already gone there to interview her and find out what her favorite foods were because can you imagine going to a care home and not being able to eat the foods that you want?
In my mother-in-law’s case, all she went over, talk about tacos, burger king, Coca-Cola a hot cocoa, sushi. So if she had that once a week, she was happy.
I’m actually general partner in a deal where we’re building some assisted living and we’re building them a pod. This is on the mainland. Every pod is supposed to be like a different ethnic group. Older people that they like to live with their own ethnic kind of group, whether it’s right or wrong, it is what it is. It doesn’t matter, but they have different like food offerings.
Yeah. So the transition part is there’s a part in the book about going through the transition part where I’ve interviewed caregivers, whether or not you’re going to be the caregiver for your parents or you don’t have room and the caregiver has to go outside of your home. It’s just some guidelines.
Things like if you think about like my girlfriend, she brought her mother and her to her home and forgot about the prologue, I guess what she fell and broke her hip s o these are the little things that I covered in the book that are not really little things, actually big things.
If you really think about it is wow, there’s a lot of things, people think about like pen rail, safety, stuff like that, but they forget the little things now.
So, at what age should like my generation be like, Hey mom or dad? At what age do they hit that you should start to have this conversation like, all right, the next five to 10 years, what is the plan?
It’s already rough thing because it’s a sensitive topic and really when you’re in your thirties, forties, your parents are in their fifties, sixties, and they’re like, I almost 70 and I’m doing well, but if I didn’t go through this and somebody who’s brought it up Hey, tell me about what’s what you got pat, and, down the road, you don’t, it’s not a subject that people like to bring up because it’s not an easy subject to bring up because the personal thing.
I’m not even at that point where I’m sick or dying, so why we’re bringing it up now, but people just don’t realize just how important it is to be ready ahead of time, because things can happen at any time.
One of my friends just texted me, emailed me the other day that his brother who is only two years younger, he was like 68, just passed away suddenly. Nothing in order. So that propelled him to really take a look at the book and say, I got to get my things in order for my family, because you think you’re 67, I’m still young and I still got time. That’s all we associate, we have a kind of a long lifespan, so you think you have a lot of time, but the death has no post mortem. When it’s going to happen, you’re either going to be ready or you’re not basically that’s bottom line.
I haven’t thought too much about it. We haven’t had a thought yet, but you got several options and maybe add on to find missing anything, but your first option is t he parents, they own their own house so they’re already living in somewhere, they age in place, right? This is typically what most folks want to do cause you know, people don’t like change, change is bad.
And they got all their crap all there they don’t want to go through it, but it’s the cons are obviously right it may not be set up to be medically, the best place they could trip and fall and they don’t have the medical staff there available.
So you’ve got to have somebody come and help them out, or you gotta be a person to do it, which in my opinion is not the highest and best use, especially if you’re listening to this podcast right now. The next option is, you have a series of different assisted living, semi assist like maybe can you break down those different options?
I know here in Hawaii, it’s interesting because there’s assisted living facility, but you also have to think ahead because they’re nice places, wonderful places, but then you have to think about down the road once they need more care, can they stay there?
And many of the places here, they’re not an hour once they need skilled nursing care, they’re outta there. They’re fine as long as they’re ambulatory and they don’t have any major medical problems, but once they hit a certain benchmark and they need more skilled nursing care, you have to find another place. I think there’s only in Hawaii. There’s only three places that let you w hen you get in, you can stay until you die. Cause they have the care that they give you there.
But it’s like a jacked up system, right? Because it’s a life of lottery like you pay in and if you die early, then the house takes the money. If you happen to live the most. Then you eat off of the other person who’s died off their funds that they put into the system. Yeah. I mean it, no, I don’t know. The way we do business, it’s carried interest to me. I don’t seems to me that they make money when the person does not live long, which doesn’t seem to align interests. But anyway that’s just how it is, but is that pretty much the gamble that unsophisticated money people have to make.
But you know what to do because s ome of them here that I hear, I haven’t checked out myself is that, yeah, you got to put it in like a million dollars. You have to put in 5,000 just to be on the waiting list, which is like four or five years long. So you have to think way ahead.
And most people who are, hoarding cash in their house only have sub million dollar net worth and they have to either sell the house and they don’t want to do that because they want to live in place as much as possible or do a reverse HELOC first mortgage, which is in a bad idea in some cases.
But I don’t know. It’s worth the discussion because it gets complicated like this, typically the house wins, right? The sophisticated operators win off and then the uneducated consumer gets screwed at the end.
So now, with your listeners here with this network of what we have, including myself, it’s nice to have all these other properties and you can still end up going to a really nice place that will take you all the way until you pass away because you can sell one of your properties. At least here in Hawaii, you can, and you can get back a million dollars from one or two properties so that’s one thought. Yeah, you don’t have to give your whole network away if you have only one property. Yeah. That house has got to go when it’s time for you to actually get there. And that’s the only way to get there is by selling your house.
Can you stay in the house and then assign the rights to it at a future date? Does it work like that? Or do you have to totally commit?
Yeah. Once they say, okay, we have an opening, you got to take it now. I think you got to take it and then you have so much time to get the money in, to pay for the rest of your stay there. Yeah. That’s how I understand it. I’m just talking to different people who are in the process of doing it.
My brother-in-law, I have a friend that is doing that now. Just getting prepare, but yeah, this is a really interesting situation that you find yourself inside, especially here in Hawaii it’s not cheap. That a nursing care home will probably cost you anywhere from eight to $10,000 even more a month and people aren’t prepared for that.
I don’t know if you can speak to this, but for some people maybe under half a million dollars net worth, probably on or under millions is still a thought, is the strategy sometimes to exhaust all assets to be a warden of the state.
Yeah, I think two years but it might be more now where you have to exhaust everything and then there’s this gap of two years or more now. In order for you to qualify, to go under state care.
That said you don’t really want to go to the state care.
Some people have to. The private care home as I found out are not actually bad. They’re much cheaper and it’s not bad, getting like maybe four people, enough resident home, we’re really fortunate here in Hawaii because we have that culture like that. There’s a nice Filipino culture that they do this for the family and they do this for others.
So that’s what happened in my mother-in-law’s case and I was really happy with what we ended up with.
Yeah. My personal way I’ll do it, but it’s technically legal to sanctions right, we all know that but that’s just how people do things in Hawaii. And I guess what we’re talking about folks, most of the listeners here on the mainland, but here you’ll get somebody who everybody’s got side gigs here in Hawaii
cause it’s so hard to make ends meet. So you might have a nurse that works their job, and then will also part-time live in somebody else’s houses, stay in caregiver. Best of both worlds right. You get people who like love the client, gives them the best care and it’s a win-win for both.
We do have our big box assisted living and care homes here in Hawaii, but not as prevalent as the mainland, as things on the main things are typically.
Yeah, you can pour it a lot more too. That is one of the things where, nice to live in Hawaii. If you know the right people, right? It’s all your network, is your net worth, or your networkers who watches your mom, what’s your opinion between some of those smaller let’s call them boutiques versus the big boxes. What’s your personal opinion?
Say, a personal opinion, depends on what kind of setting you want your parent or you want yourself to be in. Some people like to have this nice setting where they go through the dining room to eat, and then you have all these friends there, versus staying in a home where you’re eating with two or three other people.
Yeah. So this is a personal opinion and also you have to look at what kind of activities do they offer? If you’re just going to sit and watching TV all day in this home, that doesn’t make any sense, but do they have activities to keep you busy? Whatever it is, it could be, do they have shows to watch and do they have classes or art or whatever.
Those things are things that are part of a assisted living facility. They do have these things and that’s pretty impressive when you actually go to visit them and you see what they have. Aside from they have, some of them even have a beauty salon or pickleball courts, it’s crazy, but they do offer those things.
Yeah. You like the thick of all. That’s a thing now. Here’s the big question is like, all right, mom and dad are getting to that age. Who do I talk to? Is there a date, like a website with, let’s like a directory, like where do I go to figure out number one? What are those big boxes and how can even start to find some of those smaller boutique?
The first step obviously is communicating with your spouse or your parents. You have to get the communication open first to even talk about something like this. And then once they see that, yeah, I should start thinking about this and, long-term care or whatever, maybe we should start looking.
When my mother-in-law was at that point, we had to scramble to look for different places. So we went to visit different places before we settled on one, I think being able to have the conversation and then actually going out to visit the different assisted care facilities is a big help because then you have open communication.
Yeah. I don’t mind being here or I don’t mind staying at least they have input rather than if they get sick and they’re forced to do something because that’s the only place that’s open at that time, which is sad. So planning ahead is important. Like many of these places you can reserve a spot for down the road know, and it cost you maybe a $2,000.
Where do they get the list of places first?
Well, hospital’s setting, Rehab center, a social worker will help you do that. There’s the private ones and then, the state run ones and then the more private ones, a more exclusive ones, I think it’s on their own basically. Hey, get up to yellow pages, do an internet search, there’s many out there.
It’s better for you guys to do the searches. If not, you guys would get head hunted with a bunch of sales reps. We’re bringing it to the ones that just are good with marketing.
Yeah, and you got to do it early. You got to be prepared. It’s sad to say that you have to think of this so in advance, but you really do because you just never know. Tomorrow your spouse could have a stroke and then what?
So getting off the topic of care homes, any things that you’ve seen, like a lesson learned, or maybe this has happened that should have been avoided somehow it’s a little bit proactive planning we want to mention.
Yeah and that’s what the guy looks about. Cause the guy just step by step and apply the book. It’s just little things like. Say something happens to your spouse and I ended up in the hospital. Okay. Would you know exactly what meds she’s on? How much the dosage, how often is taken what’s for, who her doctor is, or the doctor’s phone number?
The guide will guide you through all that stuff. So that there’s no question and all you do is update it. You can just grab this book and go, Hey, this is what it is, or make a copy of that part of the guidebook and take it to you with that too, at a hospital. But those are the things that are important things like you can have insurance, but okay if you pass away, who’s my agent, like I have some whole life insurance policies and when I looked up on the website, okay, who am I contacted this I four different numbers. So then I got to my agent, I said, okay, I know you’re the first contact.
What’s the second contact in case I can’t get hold of you and that’s in my guidebook, so I put it down. When I went through this whole process of my mother, my father-in-law, I can only tell you how horrendous waste of time staying in the phone, especially with Hawaii being six hours on for three to six hours
the mainland is closing and we’re waking up and I have to get hold of all these important people or departments and you have to go through a long list of okay go on the internet, find out the number, call the number, and then you’d get transferred and transfer. So those phone calls took me anywhere from half an hour to an hour, just to get to the right person.
So this, the guide book had every phone number in there, the contact person, so he can go straight to the number, if something should happen to you or your heirs can go straight to it. There’s people don’t realize how many places have to be notified. Your pension, your social security or insurance, all kinds of stuff.
Everybody’s gotta be notified and they all want your death certificate. So that’s another thing you have to think about how many death certificates are you going to order when your loved one passes. People don’t realize all these little things that they need to end up doing, and, they need time to grieve. They don’t need to be thrown into this situation of having to handle all this in the middle of a loved one passing so this is just to avoid all that basically.
We’re known for the simple, passive way of doing things. So if we pay a little bit of money, not overpaying, but we just pay for time. Like when people get married and, spouses have to change their name there’s consultants for that, we pay consultants to book our rewards travel or our credit points. The other thing. I paid people to negotiate cars for me. I never go to the dealership. They just do all that stuff for me.
I pay them a little bit, but there should be somebody who like, there’s a huge service for somebody who like does this stuff for people. So I don’t know when I find that person, I’ll put it into that webpage for you guys and there’s gotta be somebody or you guys out there have found lift up these private consultants that do this.
This is what entrepreneurs do, they find that need in the community and they fulfill it and they monetize it. But it’s a little bit of a public service here. Just off the top of my head, if you guys have wills, you guys don’t want wills. You guys want trust so you can skip probate.
To me, if your attorney gets, you probably need a new attorney because that’s not what you want. I like to know your opinion on this so like my opinion, I just see so many clients, they go through so much battles, even when all the surviving siblings can still get along to liquidate assets.
If you guys are already at that point, or your parents are urgently liquidate this stuff and get rid of the stupid things, because it’s like all this crap about like sentiment of vow was just going to piss people off at the end of the day.
You’re so right Lane because right now, I know so many people who got along with the siblings until the parents passed and all of a sudden they want to sell it and one person holds off. You don’t want to bring the one sibling to court, to settle this, so things just go on for years.
Whatever reminds me of is that boss at work would never like to be the enemy and always wanted to play both sides. At the end of the day, all their employees get pissed off at each other and the team falls apart anyway. So you parents out there, you guys need to be the bad guy and make the unenviable decision just to making a call for everybody so we can just all move on and focus. That’s my rant.
I agree and I’ve seen this in my family is broken up. Sibling getting along and then all of a sudden, not getting along, not talking to each other.
Or they get cute with, oh, somebody gets the sports car, somebody gets this, dude just liquidate everything and just a math exercise. I think part of it is if you’re older and why not give away the things now? Why wait until you die to give away everything?
Okay. Folks be careful there. Do not give properties away.
I got property, what’s wrong with that? You give it to them while they can enjoy it.
Of course, we all want to be on the up and up, 15,000 exemption, whatever. Yeah. I agree like those smaller things give it away now, but like properties, the reason why you guys don’t want to give properties away is your kids will not get the step up basis and they’re going to absorb the base that you have and they have to pay huge capital gains. So I’ve seen this happen two or three times where a family has like a $500,000 property bought in Los Angeles and now it’s worth 4 million and the parents just so kind in their heart to give it away, but dude, don’t do that. You screwed them over.
Oh yeah. After your parents died or whatever, I think that you’d probably agree with me on this is that you do an appraisal. So that’s your cost basis for tax wise and you don’t end up paying up, crazy taxes, with the appreciation.
Yeah. If the estate is over five, $10 million, you probably should consult an attorney because it may make more sense to put into irrevocable trust, a dynasty trust, but if it’s less than that keep it, that should be pretty simple.
But I will say, to be prepared you have to get a good attorney and a good accountant. I was fortunate because I had and they spoke with each other. So that was really nice, so I got things done, which would have been very difficult if I didn’t have someone I trusted.
Any other last tidbits of advice?
All I say is, get prepared, take the first step. I think the book that I have is pretty, pretty comprehensive and whether or not people think they need or not, it wasn’t hard to download it because it’s free, it’s Annettekam.com, A N N E T T E .com one word, you can download the book for free. You can download the guidebook.
If you think, nah, I think I got everything covered. I encouraged them to just go on Amazon, look at the reviews because I get emails, I look at the reviews and I know that something as simple as this book and it’s not difficult, you can probably read it in a couple of days, but as something as simple as this can impact so many people, that’s what I’ve learned.
People that have all of a sudden said, okay, yeah, I’m ready to do this. Tell me I’m doing it and it’s changing our lives because I’m communicating with my husband, so that’s important thing is communication, get prepared, do the first steps, just one step at a time. If you don’t make the first step, nothing is done.
So folks go to Amazon, pick up the book, Wait, Don’t Die by Annette Kam there’s a 123 five star reviews, which is pretty awesome. People are so negative these days either to see the two or three stars so that means it’s pretty good. Her website, she has the free electronic copy of this.
You guys can read it, but Hey, I would pick up the hard copy for mom and dad. You know how they don’t trust anything that’s electronic these days. They don’t think it’s legitimate. So like the 20 bucks you guys pay will be worth it. That’s like a one hour of some new college aged kid, maybe you guys hourly rates for way more than that.
So just pick up the book, buy two for them put it on every John that they have, so the parents can read it and maybe it sends a message that way. We’ll put this in the show notes at simplepassivecashflow.com/legacy. Thanks for jumping on Annette.
Oh, thank you for having me Lane. Appreciate it.