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Below is a transcription of the Ask Gregory Podcast 91: Do I Need to Have a Will in Place?
Gregory Ricks 00:00
Hey, welcome. I’m your host Gregory Rick’s a financial advisor here to answer your questions and help you win with your money.
Podcast Intro / Outro 00:10
On today’s episode of the Ask Gregory podcast and Gregory is going to be answering the question, do I need to have a will? Don’t forget, we also have a complimentary download waiting for you on this topic. If you go to gregoryricks.com/podcast91. Again, that is gregoryricks.com/podcast91
Gregory Ricks 00:29
Mike, for Norco, welcome to winning at life. How can we help you today?
Yes, sir, first of all, to say thank you for doing your show. It’s been a pleasure listening to yours. I just wish I could listen more. You were doing a show on estate planning. And I never got to hear the answer. It’s just my wife and I and we only have one child. So I didn’t get to hear the answer as to whether or not we really need to do a will. And everything. We just want it all to go to our daughter. Is that smart?
Gregory Ricks 01:04
Yes, you should do it. Well, you’re living in a community property state, you definitely should do a Will everybody every couple should have a will. Simply put, it depends on the state like regarding estate planning, and wills. And there’s a certain order, you know, if you don’t have a document that kind of spells out your wishes on how things are handled, then there’s a plan for you that and each state has their plan. And some of the rules and regs that the laws that the states have your if you have a will, it creates clarity, specially blended families, really, really important that you have a will, you know, for example, Mississippi joint tenant with right of survivorship. Meaning if you’re a husband and wife, and with children, the a spouse dies, joint tenant with right of survivorship that that property is going to the other spouse, Louisiana, for example, has community property, state, it does not work like joint tenant with right of survivorship. A poor a spouse dies, a portion of that other spouse’s community property that died is getting split up among the kids and you so they have rights that are protected. Once they reach age, a majority, you could alter that with a will that can set up a situation like joint tenants with right of survivorship if there’s other if there’s no children, what about family members of that spouse?
I just believe you need clarity from that. And not only that, one of the things that we think is really important. And let’s say you know, you’re and you’re young, and the previous caller sounded young. So unless some accident or something happens, they’re going to be around a long time. But what we’re also looking at is other documents that probably will help things. And one of them is a power of attorney, also a medical power of attorney, you know, stating your wishes regarding health. But most people have qualified assets.
That’s where majority of the money saved is in 401 K’s it’s in IRAs. And if you become incapacitated for a short period of time or any period of time and money’s needing to be altered, changed, updated. That spouse cannot make those changes to your IRA account. I know you said well, it’s community property state it’s half my money. Yeah, but the IRS looks at it as one person’s account not it’s not a joint account. You notice your 401 K at work doesn’t have your spouse’s name on it, your Aure your Roth account does not have your spouse’s name on it. So for for changes to be made and in that situation or emergency situation. It’s not going to help And that spouse, when do they get control of that? 401 k or IRA that’s in your name when you die? But not in the incapacitated part. And there’s other reasons to how have that, but I think that’s really important. And are you likely to have a situation like that come up? Maybe later in life, it might be that car accident, you know, I always say the most dangerous thing we do every day is we get in a vehicle to go somewhere. I you’ve driven anywhere much on the highways or something. You know, it’s like, oh, my gosh, that was so close. Like they could have racked. I see this all the time.
And people don’t realize what they think is fun. And video game like on the driving is is actually very scary. Cars don’t like to be bumped, or nudge, they will go out of control. If you don’t believe me. They’ve got a car race on NASCAR go, what the go look race drivers that are bumping into each other. And what happens? What’s the same impact on the highways, those cars, our cars aren’t meant to be bumped, you’re going to have a wreck or run into and people die from this or get injured? So yeah, I think I’ve made the case most dangerous thing we do is get in the vehicle. Things happen. People die from that, along with getting sick, cancer, heart attacks and stuff like that impacts us we don’t know when that’s going to happen. And that’s where kind of have your stuff in order for the what if something happens, hey, for life insurance. That’s that’s another reason for what if something happens. We live long enough, we’re going to die.
We just want to live a long time but we’re also talking about the what if. So back to the POA. That’s one reason when a person becomes a client of our firm, that’s something we make sure it’s taken care of is a power of attorney so that there’s clarity on if a spouse is needing to do something or help with something in that situation. And POA is can be activated by certain events. You could set up a active POA or you can have one that’s activated by certain events. But we that’s something that we think is important, and it’s a part of our process out there. But yeah, I think that planning is important, and even at younger ages, because what if something happens and that’s why you you want the will to set up and have a plan for how things are going.
Podcast Intro / Outro
Thanks so much for listening to Ask Gregory where we answer your financial questions. You can find us anywhere podcasts can be found and on YouTube and Facebook Live every Saturday from 10 to 1. Subscribe! Leave a review And tune in next time! don’t forget we’ve got a complimentary download waiting for you on this topic. If you go to gregoryricks.com/podcast91. Again that is gregoryricks.com/podcast91.
Gregory Ricks & Associates is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Gregory Ricks & Associates are not affiliated companies. Gregory Ricks & Associates, The Total Wealth Authority is our trademarked tagline, it does not promise or guarantee investment results or preservation of principal nor does it represent a certain level of skill. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. This radio show is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Gregory Ricks & Associates is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Gregory Ricks & Associates. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by those owners of Gregory Ricks & Associates is stated or implied Gregory Ricks & Associates has a strategic partnership with tax professionals and attorneys who can provide tax and/or legal advice. AEWM, Gregory Ricks & Associates, WJ Blanchard Law, LLC, J Heath & Co. and Mortgage Gumbo are not affiliated companies. This show is a paid placement.