BiggerPockets Money Podcast

533: What Even We Didn’t Know About “Protecting” Our Wealth

May 31, 2024

Estate and elder attorney Jenny Rozelle shares valuable insights on wills, trusts, and estate planning. From napkin wills to protecting heirs from divorce, she debunks common misconceptions and emphasizes the importance of updating wills. Topics include verbal promises of inheritance, revocable vs. irrevocable trusts, and safeguarding wealth for future generations.

35:08

Episode guests

Jenny Rozelle

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Highlights

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Episode notes

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Quick takeaways

Revocable trusts are common unless for asset protection or tax planning, where irrevocable trusts are suitable.

Estate planning takes time; advanced plans may need several months while basic ones can be done in a month.

DIY estate planning is risky due to legal complexities; seek professional help and communicate openly with family.

Deep dives

Benefits of Revocable and Irrevocable Trusts for Estate Planning

When considering revocable and irrevocable trusts for estate planning, the key distinction lies in asset protection and tax planning purposes. Revocable trusts are commonly used unless asset protection or tax planning is necessary, where irrevocable trusts come into play. The estate tax limit of 13.61 million per person impacts the need for irrevocable trusts. Trust planning can take a few months due to the process of transferring ownership to support the trust document.

Reviewing Your Estate Plan with Family

01:31

The No Contest Clause in Estate Planning

01:01

Introduction

6min

Navigating Communication in Family Estate Planning

4min

Navigating Fairness and Complexity in Estate Planning

9min

Evolving Financial Planning Decisions and Communication Transparency in Estate Planning

6min

Navigating Complexities of Inheriting Property and Wealth

8min

Navigating Financial Planning and Asset Protection

3min

Are you working towards FIRE or building a financial legacy? Then DON’T skip this episode! What’s the point of creating generational wealth if it will be lost after you’re gone? Jenny Rozelle, estate and elder attorney, is back on the show to answer some of our most pressing questions about wills, trusts, estate planning, and everything in between! She’s got some answers that even personal finance experts Mindy and Scott didn’t know. And if you’re just starting to think about preserving your future wealth, this episode may shock you, too.

From “napkin” wills to bad inheritances, protecting your heirs’ wealth from potential future divorce, and whether or not you’re owed millions after your tipsy Aunt promised you her vacation home, Jenny clears up all the misconceptions that most Americans have about inheritance and estate planning.

Plus, if you’ve got children or loved ones you’re planning to pass your wealth on to, it’s crucial to follow Jenny’s advice on updating your will. Neglecting to update your estate plans or planning around the wrong people could put your wealth at risk!

Check out Jenny’s part one episode here!

In This Episode We Cover

Whether or not a verbal promise of inheritance will hold up in the future

Revocable vs. irrevocable trusts and the ONLY two situations you’d choose an irrevocable one

When to update your will and why Jenny DOESN’T keep a set timeline

Protecting your heirs from losing their inheritance to divorce

What to do when you get an inheritance that brings you more headache than it’s worth

Why communication is critical in estate planning and who you should estate plan with

And So Much More!

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