That's great to hear! Thanks for leaving a comment.

Interesting points about the use of fossil fuels and cars. I'll have to include that in a future webinar. Thanks for sharing!

Wonderful! I'm glad it was helpful.

It's true, because California is so large and so diverse, the amount of money you feel you need to retire will vary depending on your desired lifestyle, healthcare needs, and where you live within California.

Happy to hear!

You would be surprised! Social Security, Muni bond interest, life insurance proceeds, worker's comp benefits, inheritances and gifts are not taxed​. California has MediCal and a graduated tax system, so if you have less than $50k in income, your taxes are relatively low ($1,626 in 2024). Other states, like Oregon, have higher state income taxes ($3,528 in 2024 on $50k). The cost of living is higher, but some argue that it is rightfully so, since the access to healthcare, weather, and culture of California is spectacular.

Agreed! Thanks for leaving a comment.

That's what we covered in the webinar! We hope you enjoyed it.

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Unfortunately @teriteri9406 you must be 55 or over when you sell the property, assuming you don’t otherwise meet the victim of wildfire or severely disabled. You can buy a replacement property before that age, however.

That's wonderful! Thanks for sharing your story.

Thank you for your question @brothersministries52­94. As a graduate of an Augustinian High School, I will do my best to give you a concise answer. This appears to be a type of Charitable Trust where the donor (you) keeps an income stream for a specified term of years (up to 20) or for one or more lifetimes (you and maybe a spouse or child). This sounds like a Trust that the Catholic Church or affiliated order might facilitate (that is, pay for) and the thing of value (typically stocks, real property, art, collectibles or other non-cash things of value) is sold on a tax-free / tax-deferred basis and the cash invested to be used for specific charitable purposes. Here’s a recent video on how a Charitable Reminder Trust works: kzbin.info/www/bejne/Y3O6q4FqrNOmm5Ysi=_gP6v4hc6evTU4H3 The trust can also be set up where the Church gets the payments for a specified period of time then the donor or the donor's family gets the balance of the trust when the trust ends (either after a term of years or death).

A great start would be meeting with Jeff. You can let him know you found him on the CunninghamLegal KZbin Channel! He can be contacted at 949.510.9404. His contact information, including email is at 1:00:10

Thanks for sharing!

Yes. You should contact your local county bar association for a referral to a special needs planning lawyer or go to specialneedsanswers.com/oregon-special-needs-planners

This is a GREAT question @doyle-s6m and thanks for posting it. Bear with me, this is not an easy answer. The answer is the filing requirement might stop, or it might continue depending on many factors, one of which is the title of the property in the other state. This also is NOT Tax or legal advice: it's a recitation of what the law is and should not be intended to apply to your individual situation. The November 2021 issue of Spidell's California Taxletter dated October 27, 2021 (Spidell) reads “[a]ll taxpayers are required to file Form FTB 3840, California Like-Kind Exchanges, if they exchange a California property for a non-California property in a tax-deferred IRC §1031 exchange. The return is required to be filed in the year of exchange and every year thereafter until the deferred tax is paid (emphasis added).” Spidell cites this requirement from California State Controller's Office Press Release PR21:13 (September 9, 2021). One the FTB’s website it reads "Form FTB 3840 must generally be filed for the taxable year of the exchange and for each subsequent taxable year until the California source deferred gain or loss is recognized.” California Like-Kind Exchanges (FTB 3840) letters, July 2020 Tax News, reads “FTB 3840 must be filed in the year the like-kind exchange occurs and every year thereafter as long as the gain or loss is deferred. The reporting continues until … [t]he property is transferred through inheritance, eliminating the deferred California source gain or loss” When a spouse dies, all community property gets and adjusted cost basis. This “magic wand” of sorts, does not result in payment of deferred tax or recognition of gain. This arguably comes under the inheritance exception provided that the property is community property. If a California married couple owns property in another state that is not titled as community property (perhaps because that state doesn't offer or recognize that titling as an option) this may result in the property NOT getting a 100% adjusted cost basis (either 0% or 50%) in which case the FTB 3840 filing requirement would continue. What if a taxpayer fails to file? Spidell reads "According to the Form 3840 instructions, if a taxpayer fails to file the Form 3840, the FTB may issue a Notice of Proposed Assessment on the amount of income deferred, essentially accelerating the gain recognized on the deferred exchange into the year the form was not filed. "But that's a little misleading. The law only allows the FTB to accelerate this gain recognition in a tax year if the taxpayer fails to file the Form 3840 and also fails to file a California return for that year. So California taxpayers who file a return but fail to file the Form 3840 would not be subject to this accelerated gain recognition. "The law was primarily designed to address non-California taxpayers who fail to pay the tax to California on the deferred income from the California property sale. Residents are likely going to file a return and be taxed on the income anyway. But chances are nonresidents or former California residents are not filing a California return, and unless the taxpayer files a Form 3840, there is no easy way for the FTB to track down the sale." Again, this is not legal advice in your individual situation. If you aren't currently represented we would be happy to meet with you to discuss this issue one on one.

You're correct- Currently with the 2024 elections, Republicans will win the US Senate majority and have 53 seats in the chamber. The Democratic total of 47 includes two independent senators who caucus with the party. The Senate has 100 members, two from each state, who are elected to serve for a term of six years.

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Thank you for posting a comment @TianaManeO. You raise some interesting questions. A Certified Financial AdvisorTM can be a great resource when it comes to making investment decisions, especially when they involve saving for retirement and reliance on future (or present) government sourced benefits.

@Beezb-d9j thank you for your great question. When tearing down a home and rebuilding, that sounds like a major rehabilitation. The California Board of Equalization has guidance on the tax effects of a major rehabilitation www.boe.ca.gov/proptaxes/newconstructionproperty.htm You should check with your local county assessor they should be able to answer your question. Hopefully, your project will be completed ahead of time, under budget and free of hassle :)

It depends! If the WY LLC is "doing business" in California, it must register as a foreign entity. While just having a manager who is resident in California THEORETICALLY may be viewed as insufficient to trigger the registration requirement, in practice it simply isn’t the case in the real world. An LLC is involved in "business activities” in California when a manager handles management activities within California, has employees or contracts labor in California, or signs contracts in the state of California. If so, the LLC must register as a foreign LLC with the California Secretary of State and pay the state's annual franchise tax, even if the LLC is and remains a Wyoming LLC. More importantly, a Court can take the view that a person (manger of WY LLC) who disregards the law (fail to register) should not be allowed to invoke it (the protections under the WY LLC) for their benefit when it suits their interests. For these reasons, most lawyers will recommend that the WY LLC register in California. If a manager fails to register the WY LLC in California, and later seeks the protections of a WY LLC in a California Court, such failure to register can significantly undermine the manager’s (or other’s) ability to get benefits. Please note that this is not legal advice, and it is information only!

We have several videos on Prop 19 that discuss several different strategies. You can watch the video here: kzbin.info/www/bejne/inbbYYqEYrd3Z7c

Thank you for your comment @olgacontreras1409. Although there is no statutory (legal) requirement to notify the credit bureaus, you still can. Notifying all known or “reasonably ascertainable” creditors is required in a “formal” probate proceeding.

Texas and Florida are hot as hell and getting hotter, and quality of life is a lot lower.

Absolutely! Thanks for mentioning that.

You can schedule a phone call here on our website: www.cunninghamlegal.com/book-your-appointment/

Great question @narendraswamy4649.The property would be rented and rent collected, which rent is reportable on Able and Baker’s Form 1040, Schedule E. In this example, the property is not in an LLC in this example and remains in Able and Baker’s names.

@@CunninghamLegal Consquently impact their 401k withdrawal amount to fill that tax bracket. Understood.. Thanks.

All what’s the benefit of that llc for equity holdings

@@narendraswamy4649 Some institutions prohibit a U.S. citizen who is no longer a U.S. resident from maintaining in their own name a U.S. brokerage account. These institutions often have policies that restrict non-U.S. residents from holding accounts due to regulatory, compliance, and operational concerns. Some people use a U.S. LLC to hold the brokerage account and name a U.S. resident as manager of the LLC. An alternative structure would be use of a trust.

We just did a webinar on the Trump Tax Plan. I'd encourage you to take a look: kzbin.info/www/bejne/ZnaYlKago7WKns0

Project 2025. Right out of the old dictator playbook.. Chapter 1: Turn the WH counsel, which is supposed to give the president independent LEGAL advice into an "activist force for the president's agenda." Chap 2: Root out anyone in the National Security Council, or the office of Management and Budget who's to woke (well informed) or isn't aligned with the president agenda (a loyalist💋who bend the knee a king) Chap 3: Replace thousands of career civil servants 4ktotal from the Argentina dictator playbook) with MEGA loyalist 💋. Chap 4: Radically increase the defense budget, expand the nuclear weapons production, lift restrictions on arms sales, (increase weapon crime murder) and expel all transgender people from the military. Chap5: Ramp up deportations of undocumented immigrants including dreamers (established Daca recipient), make it easier to detain kids in detention camps and allow ICE officers to arrest migrants anywhere in the U.S. without a warrant. Chap 6: Defund the Palestinian Authority, bring back Trum's remaining Mexico asylum policy, and restrict funding for international health organizations like the W.H.O. Chap 7: Ramp up the use of covert ops (to conceal the identity of the responsible party. Like assassination of foreign officials, overthrowing government that is what creates more migration, destruction of property and institutions subversion of elections, (voters suppression, election denail, disinformation, intimidation, legal or illegal attempts to not count or disqualified votes.) And use the CIA to, "implement president agenda." Chap 8: Defund "leftist news organizations," like NPR and PBS a free public brocast (stops information backup by fact and data to be air to the peasants, while the right to include X gets away with pushing conspiracy, and propaganda.) Chap 9: Get rid of all climate policy from our foreign aid programs. Chap10: Restrict food stamps and free school meals in low income schools district (on ethical cruel and immoral). Chap 11: Abolish the Department of Education. Chap 12: Gut renewable energy program and vasty expandour naturalgas infrastructure (drill drill drill that'll increase consumer poor health outcomes. Ouch, Elon 🐍.) Chap 13: Shrink the EPA and shut down the office of environmental Justice. Chap 14: Get rid of Head Start for low income family (if you are not born with silver spoon, u are FK) and ban the abortion pill Mifepristone. (All thanks to the white evangelist religious colt 💰. ) Chap 15: Ban all non-citizens from living in government subsidies housing (tent city growth)even if they're living in a family with citizens. Chap 16: Weaken the endangered species act (destroy our national natural parks with more fracking, drill, drill) and significantly expand OIL drilling in Alaska. Chap 17: Empower the president to investigate his opponents (Nixon dream) through the DOJ and eliminate the FBI's independence. Chap 18: Make it easier for businesses to discriminate on the basis of religious freedom and, of course, RACE. (Keep wealth inequality alive.) Chap19: Restrict the EPA's ability to regulate CO2 emissions from cars. Chap 20: Force the Department of Veterans Affairs to cease abortion services and gender affirming surgery. Chap 21: Focus the Minority Business Development Agency on "the evil of socialism and Communism." (Stops the Debunking of rightwing, conspiracy, propaganda.) Chap 22: Increase taxes on millions of low income and middle-class households. (Trump supporters advocate against their own self-interest.) Chap 23: It's just a long rant against China. Chap 24: Should we bring back the gold standard? Chap25: Punish planned Parenthood for getting 19 relief loans for getting Covit relief loans (a convicted felon hypocrisy) Chap 26: Give more of congre power to make trade agreements to the president. Chap 27: Abolish the Consumer Financial Protection Bureau (Elon baby), which has saved tens of billions of dollars. Chap28: Limit content moderation on social media platforms (allowing more rightwing conspiracies and propaganda). Leave HATE speech along.(X) Chap 29:Take away the Federal Election Commision's power to prosecute election and campaign law violations (no overside ethics committee, etc.) Chap 30: Go after companies with ESG, DEI, and other corporate social responsibility programs.

Thank you for your feedback @hummersd . Our goal is to cover a wide variety of topics- some of which apply to wealthy individuals. We have a large amount of content relevant to middle class families. Many of our clients want to keep the benefits of proposition 13 for their family, want to buy out a sibling after a parent passes away and keep the parent's low prop 13 taxes, or want to learn how to pay for long-term care for an elder. These are all topics that are important to a broader set of viewers. Thank you again for watching and feel free to post comments in the future.

It may be possible to transfer your low prop 13 tax base to a new property. If you buy a property in California that is not more expensive than the current property that you are in your taxes stay the same. We have content on this on other videos that I would encourage you to check out. When you're ready to seek advice, feel free to reach out to us if you are not already represented by other counsel. www.cunninghamlegal.com/california-law-offices/contact/

No, part of the TCJA was lowering the tax rate from 45% to 40%, so if it sunsets the rate will return to 45%

@@cacophony6963 OK... maybe the ChatGPT is wrong. Thanks

If the TCJA is not extended, the estate tax rate goes form 40% to 45%

@@cacophony6963 According to ChatGPT: "The Tax Cuts and Jobs Act (TCJA) of 2017 is scheduled to expire at the end of 2025. This expiration will reduce the federal estate tax exemption amount to pre-TCJA levels, adjusted for inflation. However, the federal estate tax rate is expected to remain at 40%. The TCJA did not alter the top estate tax rate; it has been 40% since 2013. Therefore, unless new legislation is enacted, the estate tax rate will not increase to 45% after the TCJA sunsets."... is ChatGPT wrong? Wasn't the estate tax rate being 40% in 2016 before TCJA was implemented?

That’s a big one, isn’t it? A lot of people think a trust is just for the super-wealthy, but it’s really about making sure everything you’ve built over a lifetime goes exactly where you want it, smoothly. It’s also a huge way to protect what you have from being drained by unnecessary fees and delays after you’re gone

Exactly. And what’s tricky is making sure the property’s properly titled in the trust. I knew a friend who thought her house was secure, but she hadn’t transferred the deed into the trust.

We're really sorry to hear that. Living Trusts have saved countless heirs millions of hours and untold millions of dollars. It is a proven strategy, and everyone should consider creating a revocable Living Trust.

@@CunninghamLegalbaloney our parents Trust cost a million in litigation and the $15000.00 Estate Planner who promised peace of mind ran from the Plan. The next time we will be getting the Latin Law Crime Interdiction Administration Trusted Advisor’s and Allied Legal Professional Trust Guardians to fund, record, defend, validate, and Certify NICER Forgery Proof Title Holding Entities. And Paying the Prebate Nickel to spare our grantees the Estate Plan Crime, Probate Dime, and the Trust Litigation Quarter.

@@Churchillhump2268 What are you an Estate Planner? 9 out of 10 times it doesn't go smoothly, because of all the Living Trust administrative steps the Estate Planners know nothing about, if it went smoothly the Estate Planners wouldn't be adding up all the mistakes. Our family paid half the Estate in Trust Litigation, next time around we'll use NICER approved Inheritance Administration Trusted Advisors to include the dozens of services our parent's Estate Planner who ran from the plan left out of the administration.

We handle a range of clients, so for us, it is normal. Sometimes, for advanced planning, we focus on those with $5M to $10M in investment accounts and total assets. Other times, we just do foundational estate planning- often for clients with less than those figures.

@@CunninghamLegal I applaud your success. But a "net worth of $5 million or more, places a person within the top 1% of wealthiest households in the country." Your examples are hence for an extremely limited audience to begin with, certainly much smaller given the typical You tuber demographics. SO sure, I wanted to know the true cost of retiring in CA but tuned out when you nonchalantly used a $10,000,000 property sale as your scenario. I find that hilarious. You couldn't use a more realistic example? 🤣

@@Mattxwill1 Thank you for your comment. We do have other examples in other videos with smaller numbers. One advantage of using larger numbers is that we have a “graduated” tax structure. Put simply, the math is easier to understand with the larger numbers. The point of these videos is to teach key concepts rather than nuts-and-bolts math!

Not yet! But you can take advantage of a free 15 Minute Trust Administration phone call with one of our Trust Administration Specialists (offered in 2024). Just contact our office and ask to set one up.