Rants & Gems #18: How to build generational wealth with Sabine Franco

[Music] all right so we're back with another episode of ransom gems real estate podcast my name is matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and my name is kiana watson broker extraordinaire license number three one seven five seven six and today we have a special guest we have my personal attorney sabine franco how are you savannah i am good matt thank you for having me well welcome to rancho gyms you're looking thank you as elegant as usual you know who plays no games i was like no we got to pull out all this stuff you look amazing look you look amazing you pulled out the stops so introduce yourself real quick for the audience for the folks who don't know who you are sure so i'm sabine franco i'm an attorney i'm also known as being the purpose lawyer and my firm focuses on asset protection so we help create businesses protect properties and plan legacies and a practice out of new york with mg right yes i've been practicing for about eight years and you know all the things that i love estate planning real estate all those things to help people just you know continue the generation of wealth that we're always talking about i love it so when did you fall in love with real estate sabine when did i fall in love with really because you love real estate [Laughter] um so i fell in love with real estate back when i was 18 i actually was working at a mortgage company okay and um i i saw this this time he was a top producer he was a agent he was a top producer and his team just got like all the buzz they were making like millions of dollars essentially back in manhattan and new york and when i saw that i was like there's something to this real estate it's up to this realty so that's how i you know sort of pursued my career in real estate pursued moving up in um the mortgage industry and then eventually going to law school to become an attorney to practice real estate dope dope i love it i love it so today's conversation is going to be a little bit different than the conversations we had on rants and gyms today we're going to talk about generational wealth right and the keys to generational wealth and most people you know you hear online oh generational wealth do this do this do that but most people don't even have the right tools in place to properly build the generation of wealth and that's with estate planning right um so before we get to you know trust and wills and estates and things like that let's talk about because our previous episode we were talking about closing costs we were talking about title vesting okay things of that nature so let's have a conversation about investing your title like what are the different ways because this is important um part of the process is when you buy buying real estate whether it's a primary investment property the way you you invest your deed so let's speak from a home buyer who's going to use from their primary residence what are the ways that they can invest their title okay so they're they're like you said there are several ways one way if the person is just you know a single person solo buying a home they're just going to buy the title it's just going to be in their name right there's no particular type of investing it's just them owning it solely right and fully now if they're joint buyers there are a couple of ways that they can do that so one would be joint tenants with rights of survivorship right okay so what happens joint tenants with rights of survivorship correct join tenants with rights of survivorship and that's really important because when you're owning property as joint tenants with right of survivorship when one person passes away the other person automatically takes ownership of that property solely 100 right so if you're not intending for your co-borrower to own your portion of the property when you pass away then you really shouldn't be owning property as joint tenants with right of survivorship but it is a good tool right it's a good tool to to bypass what we call probate which we'll probably get into later on but because it just allows you to sort of have an estate plan in place if you did want your co-owner to just get that property they don't have to do nothing they don't have to go to court they don't need to refile that deed all they need is you know their ownership plus your death certificate and they could do whatever they want with that property at that point so what if the person who passed away god forbid right what if they have children with and what if they have children and now what happens to their heirs right do they have any ownership wait a minute i see what he's trying to say right i'm going there so yeah like i see where we're headed right yeah we definitely want to know that so i'm married this is my man right you know but we have children too but i pass away and now it goes directly to him if i don't have what do we need to have in place to make sure it's equally allocated right so if you're married and your spouse is not the parent of your child then you probably don't want to own property as joint tenants with that person right because they're going to get a hundred percent of that property all of the rights in that property and your children essentially will be left out of that right and it will be left up left up to that spouse to decide to then leave your children something right if they wanted to so you would need to have some other planning vehicle in place with that other person you know with your spouse to be able to make sure that that asset goes to your children or part of it goes to your children so another thing another way to vest real estate which we we had started to talk about as as tenants in common which you could do um you could you could have title as tenants in common so that when one person passes away the interest of each goes to their heir tenants in common tennis in common so that's the way to do that if you want one thing to to point out there is that you cannot disinherit your spouse totally okay okay talk to us you cannot just enhance so what that means is say you're like okay because i get older people who they've gotten separated and they don't speak to their spouse and they're like i don't want so-and-so to get anything and i'm like well you can't really do that because your spouse is entitled in most states to at least 30 percent of your estate really really yes and so if you decide that you're going to plan and you're going to leave nothing to your spouse what they can do is they can go to court and say hey i have this right it's called an elective share and i'm supposed to get 30 or whatever it is what is it hold on what is an elective share an elective share is what a spouse is entitled to when someone passed when their spouse passes away right so the surviving spouse is entitled to their elective share and they're entitled to get a portion of that person's estate when they pass right so you can try to do it and if the spouse doesn't know or doesn't care they don't have to exercise that but by law they're entitled to it wow yeah that's good to know so there's like no override on that mm-hmm there's no override people getting elected shares yes yeah those cheers [Laughter] i think we both like it i see you okay oh man i'm not getting away with it i'm not getting away with it huh elective shares this is interesting this is interesting right because when people buy homes you're not thinking of this right no one talks about this like why do you think people are not talking about this um i think that because this is important stuff here it is it's very important and people don't realize how important it is i think it's just because we're not educated on it you know what i mean like it's just not something that's been you know talked about in our communities and people think that they're that they can just take things into their own hand in terms of passing on their property like for instance i had a young man and i always remember him he called me he's like 20 years old and he's like you know my mom left me left me her house she passed away she left me her house she intended for me to have it but it's in my uncle's name so mom deeded the property to uncle thinking that that's gonna be he's gonna be able to take care of the sun or then pass it on to the sun somehow some way but no that is now the uncle's property yeah right and so now the uncle's like well i want some money to give you this property type of thing you know what i'm saying and it happens you never when you pass away you don't know what people are going to do like people change up you know when money comes into play like people change up quick like kids lose their minds like they're fighting they're arguing and so when you plan you can avoid this type of situation oh good to know so what are the what are the ways all right because you said two ways right now you said tenants in common and what was the tenants right right survivorship um now obviously those are if you have cobalt or if you're adding people onto your d correct in a later standpoint what are other ways you can invest your title are those really the main two common ones yeah those are really the main two common ones the other one is um it's it's called i forget the exact legal term but it's where husband and husband and wife are married you know they they each automatically get uh the share of the others unless you say something otherwise right so it's just like joint tenants with right of survivorship it's pretty much the same except the only other element is marriage so if you don't say like i said where you can put it as tenants in common and then have the share separated if you don't say that it's automatically going to go tenants by the entirety that's what it is oh wow yeah i think i need to take that note yeah by the entirety that means we don't have no questions everything just comes to me as the y yes and then i can divvy it out as i see as you see fit correct [Laughter] you in the audience right now like what's happening here and it's not it's just so you can have you know it's like you build this life together and you just want to make sure you can divvy it out as you see fit you may see fit to divvy it all out yeah you may see fit so hold on to it i'm just saying right so at least you know like the common terms right when they're looking to buy a property and now like this is these are the things that can happen right but what if we always hear what if i have a will so what if i have a will and say no this is exactly what i want what it will trump this or does this trump a will that's a good question that's a wonderful question so actually a will does not trump the way that you leave your investing on your title okay so this is why i'm glad we're having this conversation because when you're buying a house people when you're buying a house make sure you understand investing especially if you're buying it with a boyfriend girlfriend parents the boyfriend you know especially your boyfriend and girlfriend fellas i'm you buying with you with your woman make sure you got your itch together brothers exactly like you know what's going on here because it's very important i see so many times people are buying homes and they're not married right and they don't know what the hell is going on they're just happy to be a homeowner right but they break up and they want to actually keep everybody in the same loop and that's the hardest thing so they're thinking well we're together you know eventually we're gonna do something big so i'm gonna you know you buy this house so you can keep this debt i put myself on your on the d and then you buy this house so we can keep this thing and you put yourself on this deep but you know we're not married but we have a plan yeah we have we have an investing plan but let's just say that that dissolves even if someone remarries and say this is what i want and they put it in the will it does not trump it does not trump so if they never change that deed like say it was jointly and they never changed that deed to say something otherwise it's going to bypass what we call probate and a will is a document that brings you into court and that's the probate process so now that that d that you had is not is never going there so it's automatically going to that person by operation of law is what it's called damn yeah so your will means nothing basically well in that case in that case in that case when we're talking real estate and how your your deed is vested yeah so now if it's tenants um if it's tenants in common where each each um owner's share goes to their heirs then that share would pass through your will right so your will could then say what would you like to happen with that share but if it's just joining tenants with rights of survivorship it's not going to right man that's incredible i didn't know that oh okay i learned something every time i speak to you guys because i did not i always thought your will is your will and these are your wishes and this is it is what it is and i thought that too i thought that if i can say well you know i want this percentage to go this person that percentage to go that person that is what a will is for so to know that this trumps everything right what advice would you give a person especially you know let's let's talk to first let's talk to unmarried people that are planning to build an empire together because it's happening more and more we're like listen we're going to use your job and your income to buy this house as investment one i put myself on the d then your job and my income is vestment too you put yourself on the deed what recourse do you see from that and do you feel like that's a smart move i mean it's not a terrible move except that you just have to have everything in writing and you have to have everything titled properly so you want to make sure if you're buying property with someone and you're not married to that person and this is just like you know a friendship for all intents and purposes right so you want to make sure that your deeds are safe she said if you're not married you're just friends the says you're single so you want to make yes the lord sure that title is tenant in common and yes you want to make sure that you have some planning document in place a will is one type of planning documents we can get into trust as well but a will is the minimum thing that you want to have because then if you have those separate shares now when you receive your share you know if you pass away your family receive your share what's going to happen with that share and your will is going to be the document to say this is what i want to happen with that share sort of how you just described got it damn you know this is a powerful conversation right now yeah and i should say that um with adidas not the only thing that has that feature where it bypasses probate so you have your retirement accounts you know how you have a beneficiary they ask you who's the beneficiary that bypasses probate so if you're if the doc if the information on your retirement accounts is wrong then guess what is going to pass wrong right so what happens is people get married or get into relationships they put somebody as their beneficiary they break up they forget and then they never change it because when do you do that when you first start a job or when you first open the account right they never change it and then they pass away and then the person your ex now gets all of the benefits not your family and there's nothing that's in your your tools your wills and stuff like that right your tools doesn't protect you this is getting real serious this is why this is this is why i've been on my soapbox matt right to tell people like you might want to depending on the amount of assets you have you might want to think about at least having a trust right so if you have over a hundred thousand especially if you have real estate you might want to think about having a trust why because now you can make your trust the beneficiary of all of these assets your retirement account your life insurance and your trust is now going to say how you want these assets to be passed out and you could yeah wait a minute you're going too fast you just told us i couldn't do anything with the wheel yeah but what you're saying is create a trust and have everything i own go to the trust right so then i can tell the trust what to do right so i don't want to say you can't do anything with the will you can right but it's a it's sort of like the minimum planning document right that you should have and the reason why the will is not a fan favorite is because you still got to go to court right the will has to be filed in court it becomes public information anybody could go down to the courthouse in whatever county and find out all what you had kiana and who you left it to and oh what they now just inherited right they now know what mg's children is talk about life after death right so you don't you don't necessarily want that right you don't necessarily want this long probate process where your family now has to go to court has to spend money hire lawyers like i said at invest fest we make more money if you have to come to us with will and we have to take that to court and now get the court to give up all your assets right so now if you don't have a lot of assets then you should at least have a will right but the better planning tool is a trust and that's why i brought that up because now you can put somebody in place who's called your trustee and that person is your trusted person who you know is good with money or is responsible and is now when you pass away is going to now be able to walk out those directions that you gave you know what i'm saying so yeah wow so now that we've touched on that yeah we know a will is a starter point so like a will is like hey you guys i'm in the i'm in i'm in jv yeah yeah but in the game but but but the trust is we're in varsity we're we're varsity okay so let's talk let's talk about what what an actual trust is so basically you know now that we know that it will you know i'm jv you know i'm junior varsity i got a wheel right and now when i get up in the league and i'm varsity yeah i'm a starter yes i need to get a trust can you explain to us what a trust is yeah sure so a trust really what it is is really just a piece of paper right it's a document but it's a document with a lot of details so everything that you can do as an individual you have to give your trust the right to do those things so we're talking about you could go to the bank you could file taxes you can invest you can you know what i'm saying you can do all these things and also you have to give it directions on how do you want your wishes to be walked out like when my children turn 21 i want them to be able to buy a car maybe i want them to you know go to school or take vacations or what have you i want them to have financial literacy like you get to leave all these rules and directions that you would not be here to implement wow yeah and so you put somebody in place called your trustee so somebody who you trust who is responsible and who can handle these type of responsibilities to be able to walk out your wishes in the trust and the trust is illegal um it's a legal sort of like i don't want to say like institution it's like a legal thing where um similar to how a business entity is you know how a business entity lives outside of here so is it like let's just like like an llc we make up a name so we trust does it have to be a whole nother name or is it just this is my trust it's yeah no watson's trust yeah you're definitely gonna name it right i don't typically recommend that you name it your full name just because your business there you go she's learning you know listen i told you i'm taking notes i'm publicly private anyway i want nobody so when something goes down you want to trust that's an ambiguous name yes and the trust is going to say listen i want that dollar to go here when that person turns 21 they can get 15 yeah exactly that's how we go exactly what are the different kind of trust that's available sure that's a great question too matt so there's the overarching different types of trust is a revocable trust and an irrevocable trust so there's lots of different trusts but there's the difference between the two sure yeah they're all going to fall into at least one of those categories so a provocable trust when you're somebody who's young you're still building your wealth and you're doing um you know different types of investments and you're moving money and moving assets you're probably going to want a revocable trust because it's something that you can change is very fluid um it's still owned by you it's still governed by your social security number but it's you you can make changes to it right you can decide i want to put these assets in here i want to give it to my cousin oh no she's acting up i want to take it back i don't want to make her the beneficiary anymore you know what have you you can make all those different types of changes now with the irrevocable trust it's the type of trust that you want to now tuck assets away that you probably don't need access to right it's it's a type of trust that you cannot change and you also are not um in control of it so with the revocable trust you are in control of it who's in control of the other so you are yeah so so the revocable trust you're going to be the trustee during your lifetime you're in control right but the irrevocable trust you're going to name somebody to be in charge of that trust and the reason why the law requires you to do that is because you can't have your cake and eat it too right you can't take this asset out of your name um it lowers your tax liability right and still have you know be able to have access to all of the assets within that trust so you name someone as a trustee you have a beneficiary somebody who's going to benefit from those assets eventually when you're not here um the reason why people do that they'll put like a legacy property that's going to stay in the family forever and they're not looking to sell or what have you or if they are in a position where their assets are starting to creep up above the taxable limit we'll just say right for now the assets are starting to creep up and they want to keep that low because they don't want to be taxed by the irs if they die right so if there are some assets that they can move outside of their outside of their estate then they tuck that into the irrevocable trust you just said something very intriguing so if there is an asset and you don't want it to be taxed by the irs you can put it in the trust yes but it's the revocable trust irrevocable trust the one that you can't touch and someone else is in charge of what's the limit how much assets can you put in here that'll be tax-free basically okay so let me let me break that down a little bit yeah we need to know yeah so when when someone passes away there's something that's called a death tax if you will right and so everyone gets taxed forty percent of what they own when they pass right that's what the loss is your mistake before it gets to your ears right but there's always a credit or or an exemption right i think ms business talked about this a little bit when she was here so the exemption is that if you may if you have less than 11.7 million dollars on the federal level if you die with less than that you don't pay any taxes on that so trump instituted that um before that it was at 3 million i'm sorry was that 5 million when he came into office he raised it to 11.7 so now it's 11.7 for now on federal some states have state tax um some states don't right so new york has um a state tax at 5.7 million so if you're at the 5.7 million or the 11.7 say you're in new york right if you're at the 5.7 million and you have more assets than that number now you're like okay whatever i have above that number is going to get taxed at 40 so if i want to keep that number low i could put some in an irrevocable trust so that if i pass they don't tax that at 40 percent so if i have if i have 20 million dollars in assets essentially i can have two trusts going i could have a revocable and an irrevocable trust and i could put 10 million in each correct basically yes and then if god forbid something happens to me my family is good except for if i live in the state of new york because i'm gonna get taxed on both of them because it's above 5.7 right you'll get taxed on that portion above the 5.7 the difference basically so i'm like what's that almost four million dollars i'm gonna get my my estate yes we'll get taxed on on both of my trusts because it's only on one of them they're only on one of them interesting because the one that's in the irrevocable trust is not even in your estate it's not even um owned by you right so that that is one of the tools and strategies that we use for people who have high net worth right and there there are other tools and people should what i try to educate people on is to keep track of what your estate is what your assets are so that we can do and make these maneuvers when it's needed for you now sometimes people are just starting out and they're like well i want to not pay any taxes and i want to figure out what are all these strategies but it may not be relevant for you until you know you're faced with these type of things and different different strokes for different folks right because your assets are going to be made up of different things so let [Laughter] and it's great to kind of just have a pass through so that way things can easily get turned over when you pass to whomever you choose right in the order that you choose it yeah because we see all these things especially on television when they're 21 they can get a car and then i'm going to give them 5 000 every year until they're 30 and then the 30 they can get 2 million yes like those are things that you see and trust but that's not a will exactly that's not a will because when you leave it in a will once you pass away then the courts eventually are going to distribute those assets right so now whoever you left your assets to they're going to get it all that money day one and even with like a life insurance policy when you leave that to someone they're gonna get all that money at one shot like the life insurance policy they're not trying to like oh wait we gotta wait till you know she graduates college or something no so that's why you would leave that to a trust life insurance is wonderful and we all know so make your life insurance but the beneficiary is the trust absolutely okay so let's talk now we know we all need to trust yes kiana needs a trust an ambiguous name and um when you're looking to get a trust so how is that process okay now i feel like i'm at a point i have enough assets that i want to create a trust what what are three easy steps that i'm going to to need to get my trust started okay and start maneuvering all my assets in the name of the trust i love that so the first thing that you're going to do is that you're going to gather all of your assets so you can create a spreadsheet like what i do is i give my clients a spreadsheet right and so what they'll do is they'll write down all of the bank accounts that they have and how much it is and what institution it's with um all of the investment accounts that they have same thing how much what institution all of your real estate that you have you know all of this information gathering of what your assets are because most people if you pass they don't know like like you said you're publicly private so who's gonna know what you have no one right so the first step would be to gather all of that information the next step is to find you a good attorney in your area right where you're located who's licensed in your state and then have a conversation with them the next thing to do is to make sure that you're paying attention to what the attorney the conversation that you're having they should be discovering as much about you as possible because this is not a one-size-fits-all type of thing like you know we use similar tools and you know things like that but it's not a one size fits all and depending on where you are in your life in your journey what your goals are we that has to be tailored for you you know what i'm saying so those are the three steps you're going to gather your assets you're going to um find you an attorney and then you're going to pay attention to what questions are being asked and make sure that something that it's being tailored to you your life and your goals great three steps oh yes if i have a trust why do i need a will so a will now um is a nice companion to a trust because okay your trust needs to own all of your assets in order to be in control of it right or whatever asset you want it to control it needs to own it if it doesn't own it then it has no authority over it right so you're moving and shaking in your life right you're you know acquiring things there may be instances where you haven't yet transferred it to your trust and so the will now is sort of like a safety net in that case because now okay worst case scenario we have to go to court but at least we know what to do with this asset that did not make it to the trust so that's basically if you got your trust everything is finalized right you keep getting money you're doing what you got to do you're building up your net worth and your assets but you don't update your trust on an annual basis right and god forbid something happens to you so now the will is there to kind of like be like the safety net to make sure that okay we still have this it's not going to just go to some probate or just exactly wander in the states yeah we don't we don't need the court to figure out what yeah we know what it is so we have the will in place to catch whatever the trusted and god forbid something happens and you're not proactively updating it exactly exactly and that's called a poor overwhelm a poor overwhelmed yeah so it's pouring whatever you didn't have in your in your trust i like your trust kind of pour everything back yes put it back i didn't have time like your assistant put it back i didn't know what the world is like the assistant yeah yeah i love that okay so how much is always gonna cost us today because you're talking a lot of ish right now i really was just gonna say that so if i i want to because most people they oh it's going to cost so much i want to establish a will i want to establish a trust what is the easiest way to do so what is the estimated cost okay so keep in mind if you have a ton of assets you're a state planner you'll see [Laughter] so and you know every state is different every attorney is different so i would say on the low end you're probably looking at two thousand dollars that's probably not a plan that's going to give you a trust right but it's something that you could build on on the high end it could be as much as 15 20 000 now you're talking about somebody who has tons of assets we got to use a lot of different tools and strategies to sort of make sure that things are um are covered you on average you're probably looking around the four or five range you know for for a comprehensive plan and so that's why you like fill out the spreadsheet personnel determine what the cost is going to be based off our fees based off of based off of everything you have sort of like i still my clients still pick sort of what they want to pay in a sense because we have different plans and i say if this is what you're looking for based on what we've just gone through this is where you'll fall they still get to decide like i have people sometimes say you know what i want to just start with the will because i want to get something in place and i'm like wonderful right we do a will we do a healthcare proxy or power of attorney those are sort of those are documents that allow people if you're alive but you're not able to make decisions for yourself to step in and do that for you like run your business you know make health care decisions like how does how do i want to be treated if i'm not well this is so dope this is so great information because we never think about the what if like we're so busy running around and you know we're running all these businesses everybody's doing great and nobody thinks well what if like what if something happens what if you need to depend on someone to think for you or log into your business accounts and all of that stuff so uh even when you're doing this and you're doing this estate planning let's say you own four different businesses you can take all those businesses and put them under one trust absolutely so that would be the biggest benefit that would be the biggest benefit because now your trustee can step in and make payroll you know or like you know do move and shake do all the things that you need to do to keep your businesses running or tap someone on the shoulder who needs to step in you know because it's just like a lot of businesses fail because somebody got sick right many small businesses failed because somebody got sick just because no one could be there to like connect the dots and that's like sort of the last thing you want to do because your business is probably one of the big one of the biggest assets other than real estate that you're going to pass on right like if they if your family can continue to run it why do you think banks real estate associations you know mortgage banking associations why do you think they don't make this mandatory that everyone who purchases a home should have a will at closing like shouldn't this be a part of your closing course shouldn't this like be like automatic like yo you're buying a house protect yourself like here's a pick your attorney like this should be part of the process in my opinion i agree because like you said what if right no one thinks that what if and we've all been in the business for years now we've all heard stories and known clients that purchase homes and then they died immediately right i've had so many clients that have been to so many clients that's happened to where a spouse died someone died within 12 months i thought they purchased a home or two years you know and they didn't have nothing in place so why do you think that this conversation is not happening more within the real estate realtors loan officers you know why is this not why is this not a conversation you think it's happening on a regular basis one thing that i think is is true and i don't know i don't think it's not happening for all communities i think for certain communities it's not you know on this channel i think that it's not happening in the black community enough why because when because one real estate is power wealth is power right how has um our counterparts been able to build wealth and scale for many years that we were not even able to own real estate right we're not even able to own real estate so now passing on that wealth empowers the next generation passing on that wealth doesn't leave us at zero in 2053. you know what i'm saying so that's why it's not a you know a conversation because the less people who pass on wealth the bigger the gap the wealth gap right and it allows the rich to get richer because what happens the property's going to foreclosure their friends at the courthouse is letting them know that there's this property that you know somebody died and it just you know went into foreclosure and now you know they're getting the deals and so that's why this conversation is not happening when you get a home protect your assets make sure it gets to the next generation no they don't want that you know what what you just said and you said it really quickly but that's really important if you get a home you have to protect the asset and that's the vehicle that gets it to the next generation absolutely what's missing is the middle we get we're getting the home yeah and we're just thinking i got the home now i'm building generational wealth but if you don't protect it then you're not right because you don't you're not getting it to that next level exactly so they really go hands in hand so we need to ask that protection that's what you need why how do we how do we get this message out to our community like like what what are the steps that we take as all professionals here to make this happen in your opinion um you know sharing it you know sharing the information letting people know that it's not automatic that your assets go to your ears the way that you in in your mind think that it's going to go it's not automatic you have to do something more than the law is not really there to protect you it's not really on your side in that in that case so you have to take some steps to actually do something about it i love it yeah all right taking the steps and i mean doing things like the rants and gym show and really putting down here i can tell you i put a lot of things into perspective and i'm looking for i'm now about to i need to set these things up yes you know we're building a lot of businesses and a lot of assets and i'm and certain things like in my mind i'm like this is how it's going to go right i got an insurance policy so this is what they tell me to put so i put this percentage here this percentage of this percentage there this percentage here this percentage there is there but i never thought let me put it in another vehicle but and and that's being quite honest i even though i hear about it really having someone break it down the why right you've broken down that line wow and um i'm hoping that not just myself but anyone that's watching this like you really start looking at it like it goes hand in hand absolutely so when you're searching for a real estate broker and you're searching for a mortgage officer a loan officer you need to also be looking for an asset attorney yes and you need to do all of them mm-hmm yeah sure to pass on the generation yeah it doesn't make sense to be working as hard you know what i'm saying making all this money building up all these assets and if god forbid something that happens and then now the courts are the one deciding yeah what's really going to happen to your hard work and then ultimately you don't even want to leave it to the chance for the people you want to leave it to because they may sit here they don't respect your hard work right right what you did to get there now we all heard stories getting grandma's house getting this and getting that i remember and they blowing everything they're selling everything they're blowing it yeah or they wound up being broken yeah that literally happened to um and she got this lump sum of money and she just didn't know what to do with it right i do remember what we did with it we had herringbone chains [Laughter] and everything i think about it i see why people are like no i'm gonna give you this a little bit of money at this point and this money at this point or if you finish this task then you'll get this yeah exactly and um that is how a trust will protect your assets for your heirs and for you so it's like you know we all watch power yeah it's like power when ghosts died and you know he had to go to college tariq had to go to college yeah he got to finish two hits he got to go to college he has to graduate with a certain gpa in order to get a little bit of a money and then you get that little bit then you gotta wait a while and get another that's a problem exactly works but she did but see she didn't miss mrs st james patrick didn't get the elected because she was not able to get here she didn't get her elective share and now they were but so that's what i'm saying she had no elective shares she had no right to any money nothing no that is just see that was sad that was sad that they planned that stay planning and look we can't be naive to these things because you can't think oh this person is going to take care of me exactly you got to know you got it you're in some sort of relationship you're getting money you got to know what the hell is really going on because at the end of the day you could be sol yeah and sometimes people like they'll say i'm going to leave some money to my mom and my sister because i know they'll take care of my kids that's their money they don't have to take care of your kids you know what i'm saying like it doesn't happen like that but you know there's no responsibility for them to take care of your kids now if you leave it in a trust there is a responsibility the trustee has to take care of your kids you know the finances have to be there for your kids so it's it's it's it's really important that these things are sort of like paid attention to you know kind of 100 yeah you you've been liking me you haven't enlightened me yo she did my trust listen i'm sitting here now i'm like you know do you do you do you practice in the state of georgia i'm not licensed in georgia yet but i do have an amazing you know i'm and i'm quite i'm very serious about it because i was doing a different policy i'm like in this whole thing i want to keep building all that yeah and i'm putting all these divvies out but let's get this bill a trust and let's really be legit yeah yeah we can't be working as hard just because just to be working as hard as people do whatever they want exactly so we you can't leave here without giving us a rant in the gym about your industry okay all right so let's just start with the rent because we want to always end on a high point about your industry um okay so people think lawyers are magicians okay i like how this is started because they have a problem that you're gonna be able to give them the exact solution that they want and what we're there to do is to diagnose your situation and give you the best solution that we could give you based upon where you are so if you sort of mess things up and you come to me with the mess it's very hard for us to you know get you to the place where you want 100 we're always going to be able to give you a a solution right but it may not be 100 what you envisioned in your mind so just just remember that when you're walking into an attorney-client relationship and it's a relationship like let's be clear it's a relationship you don't come tell me what to do we converse let's do the tango and we figure it out that's a rant so what's your gym so um my gem is that your legacy is much more than just your assets right so we talked about here today about you know how your children might you know get your assets and waste it and spend it or whoever whomever you leave it to but we can start building that legacy now by you know teaching them educating them you know finding out if they actually do want your business or your assets and if they don't you could put something else in place where somebody can now sell that asset and put it into whatever it is that they are interested in but this only happens with having conversations conversations about your hopes your dreams like what did you envision for them you know how you got to where you are all those little stories they do way more than like point in a finger right you know what i'm saying like letting them into the process of how you got there and that sort of can help them to see the vision going forward and then when they do receive these assets when they do receive you know whatever it is that you're leaving for them now there's a deeper connection to it you know what i mean so i think that's something that everybody could do with zero dollars right you know leave these little um these investments into the next generation whether it be your child or your niece and nephew whoever it is that's mine that's a job that's that's a that's a good gem now for the folks who want to reach out to franco law firm yes how can how can they find you because look we got to make this a part of our everyday conversation asset protection is just as important as acquiring assets and making money right so how can how can they find you today sure so um i'm being the purpose lawyer on instagram on youtube i also have a youtube channel and you can find me at my law firm is franco dash law firm dot com what states can you work in new york and new jersey new york and new jersey but i do have a vast network of estate planning attorneys who are amazing so if you guys want to reach out and i will certainly connect you with my my circle i love it this was a phenomenal episode sabine thank you for catching the red eye yeah and coming and coming down to wakanda yes we appreciate you you know i had to catch the red eye too to come to wakanda but we definitely appreciate your presence um this was great yeah this was a great episode the vesting part was really interesting you know yeah really interesting like i didn't really understand how the two kind of like correlate with each other right but that's the most important part in the beginning step is when you close yeah how you're investing your title and no one's thinking about that no it's like i bought a house i'm building generational wealth it's like wait a minute oh yeah just one second that's good every real estate agent every loan officer that's going to watch this to have this conversation with your clients during the pre-approval process during the process make sure before they go to closing make sure they they spoken to an attorney about estate planning because especially if you look like us yes you have to this is a challenge it's a challenge the estate planning challenge estate planning challenge yeah the way my mind works i literally was just saying you know what the same way soon as you close we say okay now you're going to get this discount on your home settings look out for this we should be passing over and now that you own the property congratulations you have to plan for your estate yeah don't do this on your time you do this tomorrow right because you're not building generational wealth if you're not planning your estate because you don't know where your wealth is going to go because your estate isn't playing absolutely absolutely we the the transactional folks realtors loan officers i challenge you we need to be having these conversations with our clients understanding the importance of generational wealth and how to really truly build generational wealth is you need the right tools i agree um in your toolbox to do that all right this was great all right all right so there we go there we there you have it in my rashad voice [Laughter] this has been another amazing episode asset protection with sabine franco i think that's gonna be the title too we don't have to add anything extra that's enough that's enough so look like comment share subscribe go to apple go to spotify if you're an apple rated five stars leave a review subscribe listen to it on audio folks that's how we make ransom gems the number one real estate podcast in the world all right so this is matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and i am kiana watson broker extraordinaire license number three one seven five seven six and i just wanna say thank you guys for tuning in for another episode of the rants and gym show hey yo hey see ya [Music] i can do it we discovered all the kings and the queens [Music] claiming all the equity dropping rates and gyms we got more those flipping real estate

Channel: Earn Your Leisure

Views: 5,311

Rating: 4.9802957 out of 5

Keywords: earn your leisure, business, finance, sports, entertainment

Id: RIgQy_FIhh8

Length: 47min 46sec (2866 seconds)

Published: Wed Oct 06 2021