Your Last Chance For Legacy- A Million Dollar Opportunity Is Disappearing Soon Feat. Randy Long

Just remember that this guy, Bernie Sanders, this guy wants your property. He thinks that he knows how to spend it, how to use it, how to allocate it better than you do. Step six, Think through gifting options. Your spouse, your children, your charities, whatever you want to give to. But just know that Dynasty Trust is liable to be some type of Dynasty Trust should probably be included here. And then I'll just leave it at this. Whatever you do, please don't wait to plan. Time is of the essence here.

Albert Einstein, you heard of him. He was considered one of the smartest people in the world of the 20th century, maybe of all time. And wise old Albert had to say one thing about taxes. He said the hardest thing in the world to understand is taxes. Now, he was right. And our speaker believes he was right because our speaker had not given his 10 minute talk at that time when Albert was alive. And why is the subject of taxes so important? Well, as entrepreneurs, as business owners, we didn't work this hard to give all the money away to the government, no matter what state or country you live in. Usually in the US we think of taxes with the date April 15th. But today you're going to hear another number. So grab a pen and just write this down because it's even more important than 4, 15, whatever year. And that number is 230. When our next speaker talks about the number 230, lean forward and listen carefully because it's very important. You'll learn why and when you hear this talk about the big changes coming in, the estate and gift tax laws and how they're going to impact you and your families for generations, this talk may be one of the most important ones you hear all year long. And knowing what you can do, you can easily save a quarter million dollars in the long run just on taxes alone. Now, every one of our next speakers clients is ahead of the game just through preparation. And what's going to Happen is for 38 years, our next speaker and his team has held hands with over 317 of his clients who have sold their businesses and protected their wealth by reducing their taxes. One client saved. Wait for it, wait for it. 40 million in taxes from one strategy alone. Our next speaker is a lawyer. He's a wealth manager, a certified exit planner, and he knows what he's talking about. Lean forward, listen closely, remember the number 230. And the name of this talk is Leaving youg Legacy. Please help me welcome Randy Long.

Hello, everybody. It's good to be with you today. The purpose of my talk today is to introduce you to alert you about a bill proposed by Bernie Sanders. That bill is intended to amend the gift estate tax and income tax rules in this country that we've operated under for a long time. I talked to Tony Rose just recently and some others about this and, and it looks like the bill has a decent chance of passing, but certainly we hope that it will pass with amendments to it because it's, it's pretty draconian, unfortunately. So if you're not already ready and already doing this planning, you're behind and we need to get started here. So I'd like to, to talk to you about this through the sort of the lens, if you will, of how we view building wealth and transferring wealth to the next generation. Exit planning as we see it is the way we approach this. And so for everybody, whoops, there we go. We want you to be able to bulletproof your exit through this vein of how we see it. We're going to talk to you, just bring briefly, give you an overview of it, and then we'll get to the particulars of this bill. Step one, we want you to build a sellable company. And the reason I want you to build a sellable company is because the company is worth more and it is the way that most Americans create wealth that becomes generational kinds of wealth. Secondly, we want you to strategize to protect your business and your family from tragedy because unfortunately, tragedies happen in this world and we want your wealth protected for your family when things go bad. Thirdly, we would strategize and create ways to maximize the use of the business for the family and basically make the business work for the family as opposed to you just working for it. Fourthly, we want you to sell or transition the business successfully because everybody's going to exit one day. We want to do it well, and this is the way that you can realize your life's work, if you will. And then fifth area is the idea that we would like to turn your business wealth into generational wealth. This is, hey, this is to remind us that this is serious, that this, this bill is actually a threat to your ability to create wealth and to maintain it to the next generations. So let's go through the pieces here. The big point is that I think the window could be closing on gift and estate planning opportunities that we've used pretty much for my whole career. And I say there's 230 days left. That would be 1231, 20, 21. That is, you need to be finished with your planning before this date. Because we expect that the date of the new law, if it passes here, will be January 1, 2022. So there are five basically proposed changes that I want to talk about. The first one is the estate tax exemption. Now I'm going to try to go slow here with, for you on all this stuff because I want you to keep up. This is, it's pretty important stuff. Currently the exemption is $23.4 million per couple. In other words, in America here we have the ability to transfer during lifetime or at death $23.4 million tax free. And that's a good thing. The proposed exemption though is to reduce that 23.4 million down to only $7 million per couple. In other words, your estate taxes would start on the first dollar above 7 million instead of the first dollar above 23.4 million. So if you did the math in your head, this is approximately 16 million dollar reduction in the amount of that you can transfer to your heirs tax free. That's a lot change. Number two that's proposed is the estate tax rate is proposed to change. Currently the estate tax rate is 40% roughly on excess over the 23 million. So once you have transferred 23 million to your heirs, the next dollars above that are taxed at 40% roughly. The proposed rate though is 50%. So it's 10% higher on the rate. But remember this, it's applied on the excess over just 7 million. So it turns into a huge tax increase on your estate. Thirdly, the annual gifts. These are called annual exclusion gifts. Currently under the law, you can gift $15,000 to as many people as you want every single year. No, no. Limit the proposal. I'm sorry, I forgot. I was going to ask Uncle Joe if he might want to give each of us $15,000 because we won't pay tax on it and neither will he. It'll just be a gift between friends. Hope you're listening out there, Joe. Okay, the proposed annual exclusion gift amount is proposed to be reduced from 15 down to $10,000 per year. And it's only going to apply to two people. Not as many people as you want to give to, but just two. Step number four, stepped up basis. Under the current law, there are no capital gains on inherited assets. Zero capital gains, that is. The proposed law is that heirs would be taxed on the capital gains at your death. So when your kids inherit from you, you would actually pay a capital gains. I'm not talking about estate tax, but capital gains on the gains in the property. I'm going to give you an example. Let's assume that your dad 30 years ago bought this little place up on the hill for $100,000 because it happened to be overlooking Santa Cruz beach. Now that $100,000 has grown into, let's say, a million dollars in value. So again, simple math here. You bought it for $100,000 and now it's worth a million. Under current law, when you inherit that million dollar house from your dad, there is no tax due, there's no capital gains to pay on it. But the proposed law would tax that $900,000 gain would become taxable at your death. Your heirs would owe $360,000 nine months from the date of your death. It's pretty draconian. Number five, the long term capital gains rate is, is intended to change. Currently the capital gains rate is 20%. That means if I buy a stock for $10, let's say, and I keep it a couple years and then I decide to sell it and I sell it for 20 bucks, that means I've got a $10 gain. So that would mean then that my capital gains rate today would be 20%. I'd pay $2 of that $10 gain. The proposed proposed rate for capital gains though is 40%. So now the $10 gain I have on the sale of my stock, I've got to pay four bucks on. So what's the impact of this whole bill scheme, if you will, should it pass in its current form? Well, it could be, how I see it, the end of generational wealth because it will eliminate a lot of the tools we have. It'll make it harder to, to build wealth and it'll make it harder to keep wealth to the next generations. So. And I also think it can be a hollowing out of the middle class businesses because the super rich people, they already have this, this work done. They've got their stuff in dynasty trusts. They're, they're finished with all this. It is those in the middle class, the farmers and those of you have businesses that will have to pay huge estate taxes potentially on your assets so that there is less to transfer and many of the businesses won't be able to be transferred intact. So what can I do now?

Hey, I hope you're enjoying this video and I want to let you know that I have a new book that's come out and if you'd like to get it absolutely free, there's a link below in the description. Or you can wait till the end of this video or you can simply go to J. Joe's free book.com and you can get a copy there.

Step one, you need to start planning now. And if you can't get it going yourself, you need to hire somebody to manage this with for you. Secondly, you need a competent estate planning lawyer. And let me tell you, people are lining up to get in just to the competent estate planning lawyers now. So you need to get in line too, or else you're going to end up having to work with somebody like this dude who doesn't know what he's doing. Third, hire an appraiser. Appraiser. Good appraisers are even more rare than good tax lawyers. And so the lines to use these guys can be long and many of the people will not get their work done in time. So I encourage you to get going. Step four, consider taking long term capital gains now and talk to your CPA and see whether or not there's some gains that you should take at a 20% rate before the rate goes up to 30 or 40%. Step five, call your congressmen, your senators to oppose this bill. Bernie calls it the 99.5% bill, but from my perspective, it should be called the 0.5% bill because what it does, it protects the super rich and guys that have the huge companies. It protects them from having small and medium sized businesses now to be able to grow into those kind of, into those kind of businesses for competition. So I think the bill is completely misnamed. Just remember that this guy, Bernie Sanders, this guy wants your property. He thinks that he knows how to spend it, how to use it, how to allocate it better than you do. Step six, think through gifting options. Your spouse, your children, your charities, whatever you want to give to. But just know that Dynasty Trust is liable to be some type of Dynasty Trust should probably be included here. And then I'll just leave it at this. Whatever you do, please don't wait to plan. Time is of the essence here. Thank you. Okay. All right. There you go. Am I on?

You are on.

Good.

Well, my friend, I've got 12 things. You did great and just two suggestions. So this was a marvelous presentation. You're going to see that in the discussion we're going to have. I think there's going to be a lot of questions, not about what you said, but about what they can do. So let's look at some of the things that worked. You started full face and this is something you need to do. And I should have reminded you earlier that these comments for the speaker are really for you in the audience. That if this was your presentation. So when you're using a virtual presentation and you're using slides, don't open with your first slide. We have to connect with Randy first. So we had a minute and six seconds of you, full face on that screen, looking at that beautiful smile of yours and listening to that wonderful, soft, kind, wise voice. That was number two. Number three, you put the visuals there and the words in a box. Don't put visuals over an image because you can't see all the words. You numbered the ideas so it was easy for us to find. And then you had December 31, 2021. We talked about that on the phone and making the 230 days kind of a mystery. And Alex had it in the introduction. And then you hit us with that date. Then you had the constant image of change for each of the points that you had. And that's a technique that you should use when you're doing something, use that same image each time, the single thought on a slide. There was no confusion here. So many financial advisors put all these charts and graphs together. This was so easy to follow. You, you had humor in there with Joe giving us 15,000. That was pretty good. The other thing that was very clever is the current rates were in green backgrounds. The changes were in red backgrounds. Go.

Stop.

Good, bad, very creative. Number 10, simple examples, easy to follow. Dad selling the house, stock sale, going up. Great examples that we could understand. Number 11, at 8 minutes and 27 seconds you said, what does this really mean? The end of generational wealth. And there was your impact close to get us to do something and everything you asked us to do. Hopefully as you watch this presentation, you said, well, I can do that, I can do that. And he told you, don't wait. And he showed you those lines. So this was a great example of a very clear presentation. Two suggestions. Step number five, which was the, the generational wealth didn't come in till 2 minutes and 49 seconds. We have a 10 minute talk. So 25% of that message was spent setting it up. Suggestion. Put that up a little earlier and then I'm going to spank you. We've worked on many presentations together. No, thank you. Don't end with thank you. You just saved us all of this money in taxes. Why would you thank us? Here's the great example. As you're listening to this, imagine as you're heading home from this meeting, wherever you are, or going out for dinner tonight, you stop at a light, there's a homeless person, they want food and they're begging. You rush out of your car, you hand them a hundred dollar bill, you head back to your car and as you're about to get in your car, you turn around and say to the homeless person, thank you. They would think you are nuts. You just gave them $100. You just gave us all these great ideas. The audience thanks you. Don't thank them because then they're thinking, boy, Randy's going to make a lot of money on us. We're going to hire him. We're going to be able to exit planet. Okay, I glad you're reacting that way. Now let's open it up to your questions, comments and thoughts. This was a great example of how to make a 10 minute talk impactful. So Tana, I'm going to give you first reign there. You take charge. And who would like to make a comment? And I'm going to look at our group here and see who's we already got one here with. Laura's going to be next on that. So you can kind of come up. Okay, who do we got?

Darna, we've got Ms. Renee Nelson and then Tim Khan and then we'll go with the person there in the room.

Okay. Hi, Renee.

Hi, Joel. Randy, great presentation. Great presentation. Really dynamic information and it's going to impact almost every American right now. So thank you for putting together a timely presentation. Question Is there a way to put the real estate into a family trust so it gets past generation to generation and doesn't get that tax consequence?

Yeah. Part of the reason that I'm trying to get everybody to look into this quickly is because under current law you could create. There are different kinds of dynasty trusts. One of them is called a slat, which is basically one spouse creates a trust for the other spouse and children. But I don't want to get into too much detail about this. The point is dynasty trusts will work. And another thing which I didn't talk about, which is also intended to change, is the discounts that we usually take on minority interest gifts and also not unmarketable gift. And also what's the other one just left me. Anyway, there's two discounts that we get that we take off. So in other words, if I was going to transfer a piece of real property worth $10 million and my husband owned half of it and my wife owned the other half or whatever, you know, then if you have less than half of that. So in other words, let's say a kid's got 1% and each of you have 49.5 when you're at 49.5%, you're a minority owner. So you get a minority discount and a non marketable discount because it's not traded on an exchange. And so then you can take get a discount, maybe that'd be 35%. So that your $10 million gift into your trust turns out to be only, what is that, 66,000. I mean, 6,750,000. You follow? Because you got a big discount. So there's a lot of planning that goes into this. Also, if you've got businesses that you're going to transfer into this, the appraisal both on real estate side and also the appraisal on the business interest side becomes a very important piece because you may have to defend it to the irs. You don't want to do it yourself.

Okay, don't leave. Renee, you didn't follow the rules. Give us your 3G card. I know you're in real estate, so tell us what you do.

I'm sorry. I'm Renee Nelson. I'm a commercial real estate boutique owner that helps high net worth individuals buy and sell commercial real estate. I give my clients strategy to avoid paying capital gains. I get them results by guiding them through the process and avoiding pitfalls. And I want help doubling my revenue and attracting high net worth individuals.

Now we understand the question even better. All right, Laura, come on up.

Renee, are you in, Are you in Phoenix, Oregon?

I'm in Oregon.

Okay.

All right.

Excellent.

Hey, Randy. My name is Dr. Laura Schwalach, and my husband and I have a group called Business Builders. It's a mentor mastermind group that helps business owners to double and triple their business without working harder. And one of the things that we were working on is a wealth mastery for our members. And so your talk was completely relevant to what we're up to. My question for you, Randy, is.

Is.

It possible to create, like for example, keeping in line with generational wealth, Is it possible to create a charitable organization, perhaps for each child that each child runs and is property or money, whatever it might be, stocks that are put into that charitable organization, does the estate tax still apply to those?

Okay, I will say I'm not a quote unquote expert on charitable planning per se, but I. But if you create your own foundation as an example that the kids could run, we like to transfer assets into those kinds of vehicles that have capital gains in them that we're going to have to pay if we sold so that if we give it to the charity, we never end up paying those capital gains. And the government never gets them. Just the whole value goes into the. Into the trust. So, yes, they're deductible. They reduce your estate. They're not included in your estate when you die. And then depending on how you write the charter for it and what it's supposed to accomplish, and then whatever decisions your kids make, the charitable trust side can be a way, and there are simple versions of that, like donor advised funds, if you've ever heard of that term, which is a way that you can create. You can put money or assets into a donor advised fund without setting up a big entity and kind of go under the umbrella of another one. And then you can just direct it over time and you can leave that. Your kids in charge of directing how the money is paid. That's a really cheap version. The other one is a pretty expensive one.

The foundation.

Yes. So we can talk about that. Thanks for the question, though, Laura.

Oh, thank you. Thank you. Appreciate you.

Good to see you. Good to see you.

All right, we got another group coming up. Patty and Robbie.

Hi. So Patty has a question to ask, but she has to have me. So sometimes there's a state trust and then sometimes there's.

What do you do? What's your partner trust?

So here's. You want. Oh, you want us to do. Oh, she has a qu. You want to do.

No, no, you got to tell us who you are.

So I'm Robbie Stahl, this is Patricia Stahl. And you want me to go.

No, sit down and come back. Go get your card.

No.

Then you bring it up there. Those are the rules. Now, I can do that with Robby. I can't beat him up, but he's been my trainer for 20 years. So we go way back. We spend a lot of time together. 2000 sessions together, plus. So get your card, get ready. Trying to take over. We're not wasting time here.

Let's go over to Scott with Freedom Street Partners and then I think Tim Khan, if you want to turn on your video to let us know you're there and you've got your question ready. But Sc, Scott, let's take it away.

All right, Scott and Tim and then Robbie and Pat.

I'm going to make sure I follow the rules because I don't want to get told to leave the stage.

Oh, you better.

So Scott Danner, Genius Member Since 2018, I've got freedom Street Partners that serves clients and advisors. We specialize in succession and acquisition. Average advisor, 62 years old. So we do a lot of work in that field. We give financial Advisors, life and wealth optimization. We get them freedom for their next chapter in life. And ultimately, this is more of a statement in that I have had the pleasure of working with Randy directly. We met a couple years ago at Genius Network. We went to dinner, had a great time. We have been working together to build value in our practice, in our enterprise. And Randy, not only did he deliver great information, but he's also just a great collaborator. We don't always have all the. He doesn't always have all the answers, and I don't always have all the answers. But working together has been a really, really big benefit for my business, for my partners, for all the advisors that we work with. And I just think it's important sometimes when we do the work with people in Genius Network that we take a moment to tell everyone how great the person we're working with is. And I just wanted to kind of give Randy a round of applause and also a huge celebration because he's done great wonders for us in our company. So thanks.

Thank you, Scott. That's so kind of you.

The whole thing of connection, so much fun. Such a great thing that you've added, Scott. So thank you for bringing that up. That's the key. All right, Tanu, is it Tim Conn next?

It sure is, Tim.

What up, my friend?

All right, thank you, Randy, for a great 10 minute talk.

I'm Tim Conn.

I've been a Genius member Network member since 2017, I believe it was. I've got a janitorial franchise marketing company. We sell franchises and help them grow their business to whatever size they desire. And what we're looking for is ways to generate more franchise leads and prospects to sell more franchises. My question today is, because we're a privately held company, obviously S Corp. Would it make sense for estate planning purposes to transfer some stock to my two kids that are involved in the business? Because obviously the value of the company will only go up over the years, which would then create a larger taxable event for them.

Yeah. Do you have children that aren't in the business? Can I ask that first?

No.

I've got two kids.

Both of them are involved in the business.

Both of them are in the business. Okay. So is it your desire to transition the business to the kids or just the wealth?

The question is, is it their desire for me to transfer the business to them? Because, you know, they're involved in it now, but will they want to be in five years or 10 years? That's a big question.

Yeah. In general, the answer to that has to do with what you're worth, what your cash flow. Because when you give away S Corp stock, as you know, you're giving away the income that's associated with that when you're paying out your distributions. So to the extent that you have plenty for you and your wife, then it makes really good sense to start pushing down some of that to the kids. Give them a sense of ownership, a sense of family, a sense of. It just changed the dynamic of the relationship in a really positive way, frankly. But don't give away control. No. Just to be. Thank you very much.

Okay, do we have another? We have one here local, but we'll go to you, Tanya, if there's another waiting.

Wouldn't go with the one local. And then let's bring it.

All right, Robbie. Come on, Patty. They got the 3G card now.

This is not my computer, this is Patty's. So we've got a fitness company that produces world class fitness training services, equipment and products that gives people breakthrough knowledge of how to train their body based on their own unique biomechanics that gets them the most badass body they could possibly have by elevating their quality of life, decreasing their feeling of age by 20 years, and achieving everything more easily with less pain and restriction. And we also are heavily involved in multiple types of investments. And really, that has to do with our question. Here's our question.

So, okay, bear with me, okay, Because I'm thinking, okay, we have all the stocks, we have all these cryptos, we have all these wallets. So I'm thinking, what if we move the current assets that we have stocks, crypto into a place like a safe haven, that we don't pay taxes.

Can I add to that? So her question is really based on. We're talking about estate planning, but what about now? What can you do? I don't know if that's even. Your area of expertise is, you know, what can you do now? What can we do now with wealth we're building and creating to help offset taxation?

Yeah, it's. Unfortunately, I can't give specific advice without actually reviewing your case, but we do. I would encourage you to chase that some because working inside the business to try to make. I talked about making the business work for you for the benefit of you now. So there are some tax benefits within the business that a lot of times people don't use because they don't know they're available. So, you know, you've got to find some competent help to help you design this. But there are ways to minimize the taxes Currently, as well as to minimize estate taxes in the future and capital gains, for that matter, too. So in the tax part of this is it's just the one piece of it. There are all the other pieces that. The point of my talk really is that all these other pieces, they all impact each other. It's not about just, oh, let's, you know, solve the tax issue. Because if you're only trying to solve one issue, many times you're creating others that you don't really realize. It's the law of unintended consequences. You know, so having having somebody work with you that has a macro view of everything that you have, where it is, why it's there, how it's working, how your business functions, you know, what your kid's situation is, it's all very much tied together.

Yeah, we have. We have that. But I was just curious if you had some unique strategies around, like offshore stuff and that type of thing.

Yeah.

We do work with some lawyers that do offshore planning work. But like I said, I apologize, but I can't give specific, you know, stuff when I don't know it.

And the capital gain, the 40% is in any amount. Oh, is this.

Well, the capital gain is proposed to be 40%. Now, it may be that it'll be reduced. Maybe they'll get 28% or maybe they get 32%. But the proposal by Bernie is a 40% capital gains rate from the 20% that we have right now. So my potential advice here for you and I wanted you to check with your cpa, is whether or not there are some assets that. That you don't really intend to keep long term. And if you could sell them this year versus next year, this year should be the year, if that makes sense. I've sold some of my own properties and stuff that I didn't want to hold long term because I didn't want to deal with the possible increases in these capital gains rates. So I've sold off a couple things this year.

Thank you.

Thank you.

Welcome.

Thank you, Randy. And especially for demonstrating the fact the best answer sometimes is I don't know. And that's what you did to that one question.

Okay.

I hope you found that video awesome and useful. So if you want to get a free copy of my book, I want you to click here. And if you want to watch some more videos that will be useful and awesome, click here. Go ahead.

They're over here.

Do it now.

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Thank you.

Watch them.