John, good to see you. A really important topic today, the five documents every wealthy client needs to preserve their family legacy. And this is vitally important when it comes to intergenerational wealth transfers. For the wealthy, the stakes are often higher than the stakes are magnified and all members of the family have an incentive and often the means to litigate if things don't go their way. So your first document is that you need an updated estate plan and there's a lot that goes into this right, John?

Yeah, well, even before the updated state plan, Erin, can you believe it? I think it's about 68% of people have no estate plan at all. Yeah, we're trying to change that. We are trying to change that, we're on a mission to change that. Especially if you own property in California, you have to understand the cost of probate is through the roof. So we really encourage our clients to at least have a will and a living trust. And once you get that living trust, you know, oftentimes it's a transaction between attorney and client, you have to understand that you have updated that trust and every year we look at our clients beneficiary documents, and trust that everything is still current. But you should update and review your trust at least every three years. You need to be aware that trusts can change with tax laws. If you have a big family event like a birth, death, marriage or divorce, or if there's a falling out with somebody, you have to update your trust because you don't want the wrong person being a power of attorney, Health Care Directive or inheriting or disinheriting your loved ones.

Right. So important. And I'm glad you mentioned trusts because the second consideration would be to evaluate various trusts. And this is advanced planning though, this really is for wealthy clients. Explain this, please.

Yeah, so this is where you're really getting into a lot of tax planning and the most insidious tax to pass on is the estate tax. It is the worst in tax rates and we're talking about, you know, the once you've crossed the estate tax exemption, which is now down to just over $6 million per person. Now down from 12. Could this go even lower? Yes. But for the ultra-high net worth people, this becomes an issue and this is where you have to look at different types of trusts– irrevocable trusts, insurance or Eilat trusts, grants or retained annuity trusts, charitable remainder trusts. There are a lot of different advanced planning trusts that you know, can specifically target your current tax situation, and potential future estate taxes.

Third, you say these clients need a legacy letter. What is that? Exactly?

Yes. So we give all of our clients what's called the family legacy organizer, which involves the family legacy letter. This is not a legally binding document, but it really focuses more on the emotional aspects of the relationship outside the legal trust. And really what this is saying is, first of all, it gives you the opportunity to write a goodbye letter. Oftentimes, people don't get the chance to say their goodbyes, they have a sudden or tragic passing. So this gives you the ability to say what you want to say. It also gives the ability to, you know, tell your children, your wife, your grandchildren, how much you love them and for them to be able to go back to that when they're missing you. But it also, and I speak and this really came with the passing of my best friend, when we were grieving and we were planning his funeral and having a go…the little arguments of what his favorite songs are who's going to be the pallbearers. You can determine all that, and that really does take a lot of stress off your family.

Just giving them the space to grieve as opposed to plan is so important. Next, you suggest a family governance plan.

Yeah, and this is more what we would like to say at conflict management policy and this is really where you're going to get the roles and responsibilities to your children. Or or whoever you're leaving money to, and really spell out their rules so there's no confusion. And again, it's all about protecting the family for that added stress and potential added in-family in-fights.

And then last a succession plan for the family business.

Yes, if you are a business owner, this is critical. You must have a business succession plan, especially if you have one child that may be part of the business and one child that isn’t. You have to spell out their roles that that business going forward, and you know the proceeds of that business, so you must have a business succession plan.

John's are really important steps. And some documents are more complicated than others. If somebody has questions about getting any of this set up, what's the best way to reach you?

If you have questions or are looking for more info, always visit our website www.gosecurus.com. We have tons of videos and resources and podcasts on there for you to look up. And while you are on the website you can go to the Contact Us Tab and you can either schedule a 15-minute conversation where we can answer any questions you have. Or you can schedule a complimentary clarity and vision consultation. If you don’t want to do it on the website and prefer the old-fashioned way, you can give us a call at the office (858) 935-6210 and we will get you on the schedule.

John, thank you so much for your time today.

Thank you Erin