welcome everybody to another Main Street business podcast live broadcast on YouTube excited to be here with you my name is Mark koher I'm a CPA attorney bestselling author entrepreneur real estate investor and another American dreamer just like you trying to make it all work I know it's tough out there economy is hard with the uh inflation real estate's holding strong with its values but interest rates are still up it can be a challenge so hang in there and I'm here with you every week trying to share strategies to build wealth save taxes and better structure your business to scale and grow now an important part of all this is your estate plan or a trust a living trust now a lot of people say well I'm not rich enough I don't need it that's for old people no every American at some point is going to need a a living trust and I would venture to say 90% of of you including myself we need it right now the living trust is a very very important document to help Wealth Builders American dreamers if you want to look at a cross-section of my wealthy and successful clients they all have a trust they do and you you can't expect the Divine and the world and the universe to drop wealth into your lap with hard work if you're not organized to receive it and so that estate plan or that living trust is such a huge part part of your structure for Success so today I want to give you the seven reasons why you need a Le a living trust if you check any of these seven boxes you got to have a living trust now before I get to these seven I want to mention a couple things I'm going to first explain what a living trust is about some of you like what the hell is a living trust well I'll explain it keep it simple and easy the second thing I want to say is soon as I run through these seven my time is yours I'm tax attorney practicing uh adviser for so so many clients and we have a just a really robust law firm and a network of CPAs and enrolled agents around the country I would love to help answer any of your questions in the tax and legal estate wealth building Lane and point you in the right direction so if you have any questions about your llc's your tax writeoffs your S corporation your trust your crypto your real estate and you just don't have a lawyer on auto dial I'm here for you today so save up those questions we'll get to those in a minute I also have a couple uh codes and giveaways to our big event coming up in a month uh three to four weeks and would love to uh make sure you get a little special discount at that okay so a living trust what is it a living trust is a an agreement a declaration of your assets this is my living trust and I want all my assets to go into this trust and this trust is going to own these assets so if anything happens to you they all drop down into this trust now while you're alive there's no extra tax return there's no extra cost of really maintaining the trust you might want to update it every five or 10 years but it can provide a lot of benefits first some privacy a lot of times that I don't want your name in the trust have name it Blue Sky trust Green Tree trust whatever it is something that's unique and in most instances you can keep your name off of it as trustee even now owning real property you got to get a little more creative because on the title the property recorded at a county they want to see the name of the trust and the trustees name so you might have to have a kind of a acting trustee for you so that your name stays off public record but other than that the trust can own your llc's your corpor ations we want it to own rental property through your LLC be the beneficiary of your life insurance and your retirement accounts and all sorts of goodies I'm going to give you these seven reasons in a moment but the Privacy is a big deal and when you die it stays private it helps you stay organized when you have a trust the trust becomes a way to really have a bead on your overall wealth and the Legacy you're trying to leave also you avoid probate meaning no court is going to stick their nose into your life when you die and probate can be very expensive in some states as even a percentage of your estate value um next it helps you leave your assets in a creative way so you can be really tricky they call it dead hand control your hand comes out of the grave and just messes with your family so you can put special rules in there that kids get money when they're 25 30 35 when they go to school don't go to school get good grades don't get bad you know just start a business get married you can put all these rules so that money drips out to motivate your family or kids to do things that you want now some of you like well I don't have any kids oh that's even more challenging where does your stuff go does it go to your mom your dad your brother your sister your aunt see the state has a consanguinity chart that tells you no it's a big word consanguinity but the state is going to take over and send the money where they think it should go and that's why you see in the movie sometimes this niece or nephew getting money from their great aunt or great uncle how do I get money from them well they didn't have a plan so the state just divied it up amongst the family so if you're single and no kids you may think well I don't need a trust if anybody needs a trust it's you because where in the hell is your stuff going to go you don't have a spouse there with their hand out or kids out there with their hand out your your stuff's going to go to the state and the state's going to Dey it out based on state law it's not pretty so uh you get to leave your assets in a very creative way and then the final benefit of a living trust is a lot of other pieces come with it you're going to get a will Powers of Attorney for Health Care finances pull the plug if I'm a vegetable uh I want a list of all my assets to be uh uh personal property of where it's going to go like the piano the guns there you can also put Provisions in your trust for your pets who's going to raise my dog or my cat 60% of Americans have a dog or cat when you die who's taking care of your animals um guns another big one uh your media assets uh on um your iTunes collection or Prime Video Collection you've got to leave passwords and information for people if you want that stuff to to live on and don't even get me started with cryptocurrency and your keys your private keys where's that list if you died tomorrow would someone know how to get that or is that just gone so the living trust gets you organized it gets you all put together now I'm just going to show a diagram of this and then I'll give you the seven reasons when you need a trust and I'm going to tell you 95% of you listening you're going to hit one of these boxes so what the living trust looks like in the trifecta is your revocable living trust revocable living trust is down here here is your 1040 tax return and we divide your life in half and we put your operations over here and your op operations would either be a side hustle LLC or you've converted it to an S corporation so you've got your company uh ordinary income on this side ordinary income you might be selling a product or a service we want those businesses owned by your trust on the right side which is your assets we want the trust to own your home to be the beneficiary of your investment accounts your crypto I'll put Bitcoin B gold silver um we want life insurance to end up in your trust and then we have your llc's the own rental property and over here we have your 401k your IRA your Roth and your HSA all of those cool Tax Strategies we want every one of those to have your trust is a beneficiary you should own nothing in this equation I want your trust to own everything now there's no asset protection with this type of trust we can add that Bell and whistle later but even my most wealthy clients with intense asset protection always started with the revocable living trust and then they're going to add additional structures and barriers where needed so we can add all sorts of goodies for asset protection but the revocable living trust is revocable you get to change it you are the trustee and this is a symbol for change so you can change it anytime you want so that is the estate plan that's where a living trust fits now drum roll please this these are the seven instances and I'll give a quick reason why these seven situations when you absolutely obvious it's clear as day need to get your freaking trust done now by the way when you get out there I'm going to just say this so you're not worried about it I'm not I don't have some big sales pitched for five or 10 grand to go get your estate plan done and there's lawyers that charge that and more we have a special every year coming up here on Memorial day where we knock a couple hundred doar off and you can get into an estate plan for as low as 1,600 bucks 1,500 bucks um it's all on our website I'll make sure the link is in the description below kkos lawyers but we do estate plans across the country if I have a client walking the door and they're worth $10 million they pay the same price as a young married couple that bought their first home and they're 25 years old same cost $1,500 to $2,500 and if any of you are paying more than that for than a for an estate plan you better have a darn good reason for it all right here are the seven instances or reasons why you would need a trust first you own real estate you own a home home or you own rental property if you own a home or have rental property and you die even if your spouse is on the title you might have that jacked up it maybe tenants in common without rights of survivorship who knows happens all the time you're going to have to go to court to get that real estate divied out according to state law a living trust no court no probate boom so real estate is a big one you want to make sure that it's simple and easy and a living trust okay you say Mark I don't own any real estate okay do you have any children for any of you that have children right now ages 1 to 90 well I don't know you you could be 118 and you have a 90y old child that'd be pretty crazy anyway if you have kids young or old you've got to have an estate plan and a living trust because you do not want to leave an 18-year-old 500 Grand from a life insurance policy or an old 401k or the sale of your home trust me if my parents had died and left me 500 Grand when I was 18 I would not be here today probably be in the Caribbean long flowing hair running on a beach delivering towels and suntown oil to Scandal Cloud okay sorry I was just going off into what my life really could have been but instead I'm a boring tax laer so maybe it wouldn't have been a bad thing anyway okay number two that was children if you have children you need to freaking live and Trust Three you own a business so you have an LLC or a corporation if you have any business ownership at all and you die who's going to handle your business who's going to take that business and collect accounts receivable sell the assets liquidate blah blah blah well a Court's going to get involved and could very well take over so if you have a business okay now some of you may go Mark I don't have real estate I don't have children and I don't have a business okay do you have a retirement account do you have a 401k or an IRA where's that going to go when you die well I named a beneficiary oh is your beneficiary are they just going to get it out right do you have rules for that are you going to give it to charity you want to give them the the money with Provisions or you're just going to give it to them if you have a retirement account you may want to be creative and intentional about who's going to get your old 401K that you work your ass off for but you don't have that okay do you have life insurance that's number five do you have life insurance who's going to get your life insurance and are they mentally prepared for it financially prepared to handle it why not put it into a trust and divvy that money out over time is that trust money going to take care of your pets take care of special people in your life Wow number six do you have cryptocurrency do you have Investments a stock BR account a Robin Hood account a Schwab account if you have any Investments at all or crypto you want to make sure that your living trust in the appendices or the exhibits has the documentation of where these assets are at and how a trustee can go get them and then distribute them to who you want if you're not organized and you die there are so many assets that are just lost and given back to the state or just disappear so that's number six and number now you may say I don't have crypto I don't have Investments I don't have children don't have real estate don't have a business don't have a retirement account don't have life insurance wow you can't check any of those boxes the final boxes you're old now the question of old is very subjective but if you're old you might want to living trust so if anything happens to you someone can manage you don't have much here so can't check any of these other boxes but they can handle your Affairs your Social Security and just take care of you by having powers of attorney to handle your income and assets if you're a vegetable or incapacitated so that's my seven reasons so if you cannot check any of those boxes well you can just do a handwritten will and wait until one of these seven things happen and then you're going to need a trust so if you've got a little bandwidth it doesn't hurt to get it done now all right so before we go to questions and I'm all yours we can talk about estate planning we can talk about the trifecta but let me just say in three weeks on June 6 in Salt Lake City we are doing a three-day tax illegal Workshop called tax inlegal 360 with parties and food three days of breakout sessions where you the business owner are going to make thousands and thousands of doll dollars getting better organized there's going to be CPAs enrolled agents lawyers financial advisers networking with you is for professionals and business owners where they all come together and work together to get a better result with their American Dream you can watch it virtually online or you can come in person we're going to put down in the uh chat here or the description 360+ one so you can bring a friend for 30% off once you buy your ticket so kind of a BOGO thing and we have 360 premium another uh code that would give you 20% off the premium ticket by the way the general admission ticket is 500 bucks for three days of content 20 speakers it 24 different breakout sessions and eight mainstage sessions panels it is going to be incredible what you walk away with knowledge wise I've said to so many people if I don't save you your cost of coming in taxes in the first year I'll give you your money back is that legit and talk about wealth building asset protection let alone tax savings you cannot afford not to come and I keep it in LAN language that people can understand this isn't a stick up your butt accounting seminar where you want to fall asleep and shoot yourself in the head it's going to be awesome all right so we got some codes there down in the description if you want to get your estate plan done go to kkos lawyers.com let's make sure that's down in the description too and you can schedule to get an estate plan done if you need one all right our first question Zach what do you got all right happy to be on here with everybody so the first question of the day is coming over from Instagram from Big Mac okay he asks isn't a trust taxed higher than an individual for retirement funds uh yes if you have an irrevocable trust and that is not the trust we're talking about a revocable living trust does not pay taxes does not file a tax return everything you own flows onto your 1040 now once you die and if that trust lives on and doesn't distribute everything within the first year and you might keep it and start Distributing it when you want to or not um there are ways to avoid the trust tax rate of nearly 40% the trust does have a high tax rate but that's only for when you have a trust that's going to grow and build and live on after you're dead while you're alive a revocable living trust does not pay taxes it does not even file a tax return but it gives you all these benefits it's beautiful that's why I'm saying every American needs a living trust at some point or another you I would say 95% of them right now based on those seven criteria next question Zach all right next question is from William over on YouTube they ask what are the pros and cons of investing in REITs real estate and dividend stocks well those are three very different things let's see if we get that down REITs those are called REITs and then the other one was just plain old real estate real estate and dividend stocks dividend pain stock well um uh the I I'm going to tell you honestly of all three of these the one that is the most sought after by my wealthy clients the ones that I the what I invest in what I see rich people invest in with the majority of wealthy people invest in what gives you the most flexibility makes you the most money on a return on investment gives you the most control can we go whiteboard when I'm writing over there and so of these three the one that outperforms all the others and is the most profitable the most flexible the most common with my wealthy clients You See It Coming real estate now that could be single family homes long-term rentals short-term rentals commercial rentals storage units it could be be a variety of real estate in different asset classes but people The Tax Strategies are insane they're awesome and the ROI is incredible compared to stock dividends now Warren Buffett says you know what I love get rich slow Warren Buffett's like we don't get rich quick we don't get rich fast we get rich slow by just investing in stock that we believe in companies we use and if they pay dividends we reinvest them in the long run there's nothing wrong with that and I'm not saying don't buy stock whether it pays dividends or not but a stock it's dividends your rate of return might be 5 to 10% at best and that's it there's no creativity no tax benefits no Tax Strategies so it's that's number two on my list and it is way way down on the list the last of these which I am not a fan of is the Reit that's a real estate investment trust you know why these were created so stock Brokers could make money selling you real estate that's all it is it's a structure that owns real estate multifam condos commercial buildings billions of dollars are in reats and all these little people now here are like shareholders of stock and you can buy into this Reit that owns real estate and get a rate of return that you have no control over again if you do I would be shocked if you had a 10% Roi on a Reit compared to even the S&P 500 so they're there you can't 1031 these things they're just whatever I'm just not a big fan of the Reit I that'd be number three on my list if if there's probably someone that's got a pro but I've got a long list of cons the one I would want all of you to focus is right here just real estate buy that cute little rental down the street start a Fix and Flip start a rehab start using and learning about real estate that's what rich people do so easy shmey next question all right next one is over on Instagram from lgrc they ask do my wife and I need one trust or separate ones oh great question I would say most commonly a revocable living trust is a joint trust husband and wife I'd say 80 to 90% of the trust we do here at the law firm are a joint revocable living trust husband wife the times we do separate trusts is for uh a prenup or a postnup so let's say both couple uh both parties come come to a marriage they've got their own assets they already have trusts and it's just easier if they each keep their own trust and then they C maybe even create a third trust for Stuff they're going to build together so one has their trust for their family one has trust for their family and then a joint trust for everything else and that can work um but I would say that's 10% of the time because you're going to have a situation where it's a second marriage and a or or a prenup not that second marriages are aren't common they're very very common but a lot of times uh unless there's a prenup it's just easier to combine everything and do a joint trust uh there you might be doing a separate trust for some asset protection but that's very challenging too I so I I just say 80 90% of the time you're just going to do a joint rlt it's the way to go next question all right next question over on YouTube from Harel um they're asking essentially will they be violating any self-dealing regulations if they invest their solo 401K in their W2 employer via private placement so they essentially want to know are there any are the regulations different for Ira um uh I will say it's not self-dealing what you're looking for is the word called prohibited transaction it's literally called called prohibited transaction self-dealing is a whole other that word's used in other instances so I'm going to rephrase the question for everybody can my 401k or IRA or Roth invest in the company where I get a W2 and work and maybe they're doing a private placement that's called a PPM maybe they're creating an ESOP maybe they have it's a publicly traded company and you work for them as long as you don't own more than 50% of the company uh your 401k or IRA can invest in that company or whatever it's doing once you have control of the company and you're getting a W2 from it as well your irn 401k cannot invest in that company that would be a prohibited transaction um if you're asking this question you're right up the alley of self-directing which we love and get over our podcast the directed Ira podcast directed Ira podcast you will love it watch the first 10 to 15 episodes on YouTube or on it listen on iTunes and we break down the basics of self-directing and cover questions just like this you'd love it um next question all right next question over on Instagram from revon they ask when does a revocable trust become an irrevocable isn't it not at death when you die when you die now if you're married and your spouse is the surviving spouse of the trust it will live on revocably that's typical you'll you husband dies wife gets the trust she could run it for another 20 years then she dies then it goes irrevocable at that point now there are Provisions that we can add this is where his hers and ours kind of a second marriage it's a joint trust but it says oh when the husband dies he wants to carve out a certain amount of money for his children from his prior marriage and say okay that becomes irrevocable and everything else is revocable and goes with the surviving spouse so you can carve out some irrevocable Provisions but um that doesn't automatically happen unless you do it so great questions everybody are you having fun woo let's hear it man I love it it's a good stuff next question all right yako on YouTube asks uh they're a soul proprietor and they just opened an LLC this week should they close the so proprietor uh there's no way to close a soulle proprietor it just dies um now if you're let's say you're talking about a DBA uh a DBA is not a so proprietor a DBA is a registration that says you have the right to use that name if you go open an LLC the LLC takes that DBA and the name is now gone it's no longer a DBA the name goes with the LLC okay so that's Point number one a DBA is not a so proprietor it's like a trademark in a local state and that DBA could be transferred to the LLC so that's so when you set up the LLC by doing so it automatically kills the DBA you don't have to do anything the second thing is you say you said we have a s proprietor we just formed an LLC do we shut down the so proprietor the better way I would phrase it is the so proprietor's operations are going to be transferred to the LLC so from now on your sales and income and expenses are going to go through the new LLC and its bank account so to shut down the sole proprietorship the only thing you do is file the final tax return which will be a schedule well no because you're going to have an LLC now so it's going to be the same schedule C the last thing you do is probably just close down the bank account so you're going to transfer the bank operations of the Soul prop to the new LLC Bank account you can't use the same bank account because an LLC gets a tax ID number so the LLC bank account's going to take over and it's going to get rolling and you're going to report it on the same place on your tax return and remember people an LLC does not save you taxes an LLC does not save you taxes it's going to going to give this couple protection from a potential lawsuit and now they can convert it to an S corporation which can save them taxes but um the only thing you have to do to close down the so prop is just close down the bank account it's there's that there's nothing to do at the state or fed um next question next question is coming in from Facebook from Cole Jones they say I recently won a lawsuit and I'm worried about people coming out of the woodwork were trying to sue me would this type of Trust cover my back should this happen no it would not a revocable living trust is not about asset protection it's not so if you just want a big lawsuit and you're sitting on 500 Grand a mill 2 mil 5 mil whatever it is you want to meet with an asset protection lawyer right away and we want to know where you're deploying this money what are you going to use it for where can we put it to try to protect it from a potential lawsuit and you're still going to have a revokable living trust but the revocable living trust is going to be coordinated with your asset protection plan now the attorneys at my office please please be careful do not rush out there and buy the first freaking Wyoming Company Nevada company Delaware structure from a influencer that's not even a lawyer trying to sell you this garbage get a second opinion from anyone that promises you amazing asset protection they're going to go oh you can the trick is to you know control nothing but own everything oh we're going to set up an irrevocable trust and hide it here or there we're going to set you up offshore we're going to do you are going to get sold so much garbage that's why I've written a book trying to protect people from this crap and they're going to charge five grand 10 grand 15 grand or 20 grand I can't remember the last time I charged a client more than 10 grand and we must have thrown in 30 different projects and hours and work we just it's it it's crazy with these asset protection ripoff artists will charge you can tell I've got some angst here so before any of you go out and spend that type of money on some promise of freaking asset protection and they're going to smooze you hard hard they're going to make me sound like I'm cheap and don't know what I'm doing and they're better and smarter please get a second opinion if you call our Law Firm KQ lawyers you can have an asset protection comprehensive consult for $1,500 or less and we'll give you every fent option on the planet to help protect your assets and then you can choose what you want to do you may set up a couple trusts maybe a few grand here a few few grand there you're done there's not that many options be careful next question next one is coming in from YouTube from Isabelle and she wants to know your take on self-insured life insurance or mfta Insurance mfta oh I love it another acronym some insurance company dreamt up to sell freaking life insurance the same crap that's now not Insurance isn't crap just saying it gets oversold Max funded tax advantage life insur you know what you mfta D you know what the acronym stands for Max funded tax advantage life insurance it's whole life it's the same that's been getting sold for the last 50 years and they just came up with a sexy name for it oh I got something special a Max funded tax advantage life insurance uh yeah is you vul variable universal life iul index universal life whole life or a variation thereof now before any of you financial advisers life insurance agents get pissed and send me hate mail I'm going to say this I love life insurance as an investment strategy as a death benefit strategy for the clients that can afford it in perpetuity and have the wealth and assets to sustain the ongoing premiums or a one-time premium but the problem is all these crappy life insurance agents that sell life insurance to every Tom Dick and Harry as the next best thing to SI spread with people that are in debt they get people to drain their 401K in retirement account to go buy life insurance they these people don't even have uh savings or a funded Roth or a funded 401k or a rental property you may go well life insurance is better than rental properties really I'll go toe-to-toe on that one because I can sell that rental I can do a 1031 change I can get tax benefits I can grow it I can build it I can improve it life insurance yeah let's talk about the big winner there and anybody that's selling you a plan like this is someone that's getting a freaking commission to sell you that policy go talk to someone about the mfta that gets no benefit from you buying it and who has a fiduciary duty which means a lawyer or even a CPA to give you the advice that's the best for you you'll get a different answer now is mfta whatever the hell they're calling it this week bad no but you better have about nine other things your life dialed in and have money coming out of your ears before you go do this thing man I'm fired up today I'm sorry yeah you are love it all right freaking a next one is on Instagram from hudok uh they're asking should someone's escorp be separate from the multiple businesses someone owns for instance the law firm separate from a consulting firm from the main escorp someone uses so should they have different entities for different operations and they want to know if they should have multiple s corporations should someone's escort be separate from the multiple businesses someone owns yeah uh let me state it this way and I and I agree I'm I'm just going to say it a little differently so if we go to the Whiteboard and let's look at our Trifecta when you talk about an S corporation we already know we're going to be on the left side so we're talking about operations we're not talking about Holdings s corporations are about operations so your option one is you're going to just have all these businesses being ran out of one ESC Corp uh you got URLs you got trademarks you got um dbas um you've got all these different operations services and products and widgets and blah blah blah you can do that but but the person asking is saying seems a little messy I've got all these different operations flowing into one escorp and what I do like is you have one escorp last thing I want is a different escorp for any every one of these options so that's option one now what I'd prefer uh and the person asking this question is right on so I really like this is we're still going to have one parent S corporation and then that parent s Corporation is going to own subsidiaries now I put subsidiaries above the es Corp so you might have an LLC that does Land Development an LLC that's a law firm an LLC that's a restaurant um an LLC that's an online marketing business an LLC that does your books so you can have all these different llc's flow into one escorp now you're getting protection from one another and you can uh exit these in a creative way you could have other partners of certain ones maybe you have a partner of this one and that one these you own 100% And you can have a game plan that's built around each one of these uh that's unique to that structure and then they all flow down into your ESC Corp where you take a W2 and a K1 so this is what I prefer and it sounds like that's what you were asking and that definitely is the way to do it talk to one of my tax ERS and they can build a trifecta a color diagram and go through the protocol for you to do the same thing all right well we'll go ahead and finish up with these last two questions here uh this next one is coming up from stir up knowledge over on YouTube they're asking can a mortgaged house be placed in a Medicaid trust um yes uh in fact I thought you were going to say a living trust so if we go back to our whiteboard here you might have a revocable living trust and you're going to have it own your home now your home might have a mortgage that's okay you're going to deed the property that was it was in your name or you and your spouse's name you're going to deed the property over to the trust there's no do on sale Clause you don't have to call the bank and ask for permission just freaking do it and the bank's not going to care I have talked to so many banking attorneys over the years and I've never had a client uh face the do on sale Clause this is such a normal process so you're going to use a grant deed in the state of California a warranty deed everywhere else that's normal and you're going to get this property transferred from the person to the trust now they added a Twist they said a Medicaid trust ooh now sometimes you can have a Medicaid trust right here or you can replace this with Medicaid trust now a Medicaid trust is a whole other ball of wax um a Medicaid trust means you're trying to hide assets essentially or spend down Mom and Dad's or Grandpa and Grandma's assets so the government the state will give them Medicaid now let me repeat this some of you may think oh my gosh I I don't want Grandma and Grandpa to drain all the money in their bank account for hospice and the old folks home I want that money so I'm going to get Mom and Grandpa and Grandma on Medicaid or Mom and Dad on Medicaid and let the state pay for everything do you think the state's thought of that strategy before so what lawyers have tried to do in the elder law planning arena is they take Grandpa and Grandma's assets and put them in a Medicaid TR TR to try to lock them down and use the look back provisions of three or five years depending on the state you're in and try to hide assets or or lock down assets so the state does not see them as Grandpa and Grandma's assets anymore we're trying to get them away from Grandpa and Grandma we put them in this trust and yes you can de a property with a mortgage doesn't matter here's my cautionary point before you go down this path of setting up a Medicaid trust this weekend just take one or two hours choose three um assisted living facilities go walk in walk around and when you walk in ask them is this a Medicaid supported facility and how much does Medicaid cover for the hospice and the care if I was to admit my mom or dad or Grandpa or Grandma I will tell you nine times out of 10 you're going to be shocked probably moved to tears and physically jolted at the care you receive that Medicaid will pay for it is not pretty Medicaid is a need based benefit for poor people that's what it's for I'm not trying to be rude or mean but if you're trying to structure your life so you can live on Medicaid I wanted to say something quite rude I won't think twice try to figure out a better way to take care of your own long-term care your needs or Mom and Dad's or Grandpa and Grandma's than having them live under Medicaid Provisions it is not not anything you would wish on your worst enemy it's not pretty so planning your life around Medicaid is something I will not do our firm does not do it I don't believe in it but people that need Medicaid I want them to get it because they need it trying to help someone shoehorn their life into it uhuh use your own damn assets to pay for your stuff am I going to get hate mail today probably maybe I don't care um well we'll go ahead and wrap it up with a good one from the than good a good question yes over on YouTube um they are 24 married with a 65 case salary they have a Coverdale school account created by their parents with over $140,000 what kind of account Coverdale school account Coverdale with 140k that's what they say what is the best way to keep as much money when withdrawing uh they're 25 they are 24 married with a 65k salary okay and are they still going to college can you get that um uh Nathaniel if you want to clarify that in the comments below yeah I need a little more uh help here um and uh here's the thing I love coverdell um and um Nathaniel just said uh they're out of college oh oh okay um and Aston Nathaniel well his parents set it up for him I'm sure um okay a coverdell is meant to be used for college um if you don't use it you're at age 30 it's distributed to you and taxed so uh you can just sit it out until age 30 if you take it before age 30 I believe you're going to pay a penalty plus tax so you want to um uh now what I just confirmed here this is correct I'm like this um your parents that set up the Coverdale can change um the um beneficiary of the coverdell and this is what I'd recommend you do you'd go to your parents and go hey I'm done with school we got a 140k sitting here can you change the beneficiary to our now our little granddaughter or grandson they they have a kid right you said they have a kid didn't they said they had a child married they are married they do not but no kid okay so the next snowstorm or you know night you're going to get it on and 9 months from now you're going to have a new beneficiary for your Coverdale that's your game plan yes I'm an advocating sex and procreation here for your tax plan so I want you to have a little baby and then you're going to go to Mom and Dad and go hey take that Coverdale and kick it down to our kid and they can change the beneficiary the person that set up the Coverdale to anyone underage 30 that is in their lineal line which includes their spouse child grandchild sibling parent niece or nephew son-in-law daughter-in-law d d da now I would be careful going to your parents and say hey we're not going to use this money before age 30 you can change the beneficiary they'll find out real quick they could change it to a niece or nephew or someone else you don't want that you want the money to go to your kid so make sure you get pregnant have a child then bring this up with your parents you got five to six years to get it done then once you have your second or third child your parents can go back and change it to a three-way beneficiary now you want to know the coolest part here is you're really creating a legacy you're going to have this account live on for your grand your children which are your parents grandchildren and the coverdell can be self-directed you could do hard money loans you can buy crypto you can buy real estate if that coverdell is not making 15 to 20% you need to get on it so they're Coverdale is a self-direct account they are so much better than the crappy 529s so this this $140,000 Coverdale holy crap you could have it worth a half a million in the next 15 years now your kids are going off to Harvard or wherever so please learn how to self-direct that Coverdale have a couple kids and have your parents change the beneficiary to the grandchildren oh my gosh this is probably the most best the exciting most exciting colle I've had today so this you got a lot of opportunity there meet with one of my tax fers to get some advice on the process and move your Coverdale to directed ira.com go to our podcast directed Ira podcast to learn more about how to self-direct your Coverdale well everybody thanks for being here get over and sign up for the 360 event of the year it will be in Salt Lake June 6 7 8 and N three four days of parties and education in the tax and legal space 500 bucks for a general ticket it's a tax write off to come business owners tax professionals legal professionals around the country it is growing like wildfire each event has grown by 30% this is going to be a big event we excited to see you there look down in the description for some discount codes keep living the dream