Financial planning for your family and your future can be daunting. If you’re overwhelmed by how much you feel like you don’t know about financial planning, my new podcast, Wealth and Wisdom, is perfect for you.
Each episode is less than ten minutes, and I keep things honest, clear, and simple, so that there are no barriers. Everyone deserves financial literacy, and that’s what this podcast is for.
Every week, I sit down with a local expert and share how to grow your wealth and live your best, most successful life.
Our first episode features Sonia Munoz Gallagher, probate and estate planning lawyer and owner of Family Wealth Law. Our conversation addresses probate, types of life insurance and financial powers.
In today’s blog, I wanted to share some of our conversation. As a former probate lawyer myself, it was an engaging conversation for me. I believe the information we shared is really important for folks to understand.
So picture us sitting at a table in a cozy corner of a quaint Italian restaurant…
Michael: So we’re here today at one of our favorite places to have Italian food. Both of us love restaurants, and we are foodies. Sonia, what are some of your favorite foods?
Sonia: I’m like Garfield. I love lasagna. Yum! And I love to cook paella.
Michael: Ooh! And you promised to make that for me. What hobbies do you have?
Sonia: Well, it’s hard to have hobbies as an entrepreneur and as a mom of two and as a member of the sandwich generation, caring for an older mom. But when I am able to, I do yoga, I meditate, and I’ve been kickboxing since I was 18.
Michael: Don’t mess with her!
Sonia: And I love being with my cats and reading. So, I guess I do have hobbies!
Michael: Yeah, that was a pretty good list.
The problem with probate
Michael: Sonia, I hear all the time people talking about probate. What’s the problem with probate? Why do people want to avoid it?
Sonia: That’s a really good question. I hate legalese, so I’m just gonna break it down in plain English.
In Florida, if someone passes away with a will or without a will, the probate process works the same way. The survivors still have to go through the probate court system.
So why is that a problem?
First, it’s expensive. I can tell you that my fees as an attorney are actually higher in probate than in estate planning, which is why I try to tell people to do estate planning.
Second, it’s stressful for the family members.
Third, it can be very time-consuming depending on many different variables: how many siblings there are, what the properties are, where you pass away and where your survivors are, what the bank is like, among others.
But all of these problems can be prevented.
How to avoid probate
Michael: OK, so how do we avoid probate, Sonia?
Sonia: The best way to avoid probate is through a revocable trust, which is basically a private agreement that stays out of court and allows the individual or the couple to structure their distribution in a way that makes sense to that family. There are all kinds of ways that they can do this, because every family is different.
Michael: People hear the word “trust,” and they think really wealthy people.
Sonia: That’s a really big misconception. People tend to think that trusts are for people that have millions and billions.
The truth is, a trust is for anyone who has assets like a house, a few thousand in the bank, and life insurance. You establish a trust so that you can protect yourself and your family from predators.
Michael: Yes, and if you opt for a revocable trust to avoid probate, you aren’t giving up any control of your finances during your lifetime. You can change it however you want.
Sonia: Yes, exactly!
The convergence of expertise
Stay tuned for the full episode of the Wealth and Wisdom Podcast! My hope is that you learn a little something to help you think ahead and plan for your future.
As a former probate attorney, I’m always thinking about the bigger picture as I help my clients determine what they need as far as insurance and protections for the future.
If you want to start your plan, let’s schedule a time to sit down together and take a holistic look at your financial situation. Today is the day to start thinking ahead!
