The Wisdom and Wealth Podcast

Are your Heirs Prepared? Episode 87

November 02, 2023 Joshua Klooz
The Wisdom and Wealth Podcast
Are your Heirs Prepared? Episode 87
Show Notes Transcript

In the past few episodes, we've walked through several of the different questions that I walked through in the planning process with clients and prospective clients. I use these as an opportunity to gain a better sense of what a particular person or family might want their money to accomplish for them. Everyone has a vision. But not everyone feels emboldened to proclaim that vision. Simply put my reason for being and purpose in this this life is to help others fulfill their calling by helping them harness their financial wealth to their life's purpose. For some folks this can be a scary or intimidating task. Others may think it’s a foregone conclusion, but they haven’t communicated this vision or collaborated with anyone else in their family.  See below for more on today's podcast. 


  • The importance of understanding one's vision and purpose in life and helping others do the same.
  • Focus on your heirs. Are they prepared, so that your wealth is an accelerant for good? 
  • Pass on the first principles, first! Life experiences, and stories are a great starting point. Consider a family history. 
  • Discussion about planning ahead to avoid unprepared heirs and estate taxes.
  • Highlight of the potential changes in estate tax exemption after December 31st, 2025.
  • Invest in the lives of heirs through experiences or opportunities.
  • Suggestions for supporting charities, helping children or grandchildren purchase small businesses, and investing in professional development.
  • Use your wealth as a source which allows your family to build and dream and  for the future.
  • A personal goal of helping a great-grandchild buy a business.


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JOSH KLOOZ, CFP®, MBA
WEALTH ADVISOR

Phone 281.719.0036
Text 281.699.8691
Fax 281.719.0156
jklooz@carsonwealth.com

1780 Hughes Landing | Suite 570
The Woodlands, TX 77380

Music by bensound.com




Speaker 1:

Hello and welcome again to the Wisdom and Wealth podcast. In the past few episodes we've talked through different questions that I walked through in the planning process with clients and prospects and used to try to gain a better sense of what a particular person might want their money to accomplish. I say often that my calling in this life is to help others fulfill their calling. I do that by helping them harness their financial wealth, their life's purpose. One of the ways that I find that's critical in accomplishing that is asking the question are your heirs prepared or have you given any thought about who you are going to be leaving your financial resources to once you've passed away? And backing up from that a minute, are there life principles, are there life experiences that you want to make sure you pass on to the next generation, irrespective of a dollar amount, that are worth far more than money? That's where the genesis of what our weekend edition of the podcast called the Intangible Balance Sheet comes from. But when I bring up, are your heirs prepared? The reason I ask that is because money is an accelerant. It can be an accelerant for good. It can be an accelerant for ill as well. It can assist, it can breathe life into a situation. It can also be an anchor. It can drag people down, depending on how they view it, their situation in life and where they're at. And as a financial planner, as a wealth advisor, I would be remiss if I didn't lay that out in front of folks. So I want clients to ponder what they envision their wealth financial wealth doing for its end recipient. Before we ever get there. I try to remind clients that paying estate taxes could be a possibility if prior planning doesn't take place. I always joke with people that if they have three kids, they've actually got four and the initials of the fourth child or IRS. They tend to be a little bit hungry to the tune of call it, 40% of the resources, and of course I say that in jest, of course, but the fact of the matter is that what I uncover in the marketplace is a lot of people that haven't had the long-term planning and projection work done for them, so they don't even know what their portfolio and their resources, their net worth, could look like over time of a, say, 25, 30, or maybe even 40-year period, and so they're not thinking long-term, they're not thinking in terms of the dollar amounts that their assets may grow to. Maybe those estate tax exemptions are rather high On December 31st 2025, they go back to a very low number and if you're not sure what that number is A or B you don't know if that applies to you. You need to figure that out quickly and typically do that with some help. And again, that's part of the planning process that we walk people through is how best to retain as much control as you possibly can over your resources, but also how to shield them from needless estate taxes, if you've already got the plan going forward of how to shield those assets. But those are just tactics. The true value comes from knowing that the end recipient whether it be your kids, charities that are important to you, that you're passionate about, making sure that they're aware of your intent, and then asking the simple questions of hey, what do you envision these resources doing for you? How do you envision these resources being put to use and dreaming with them, at a minimum? The next question that I try to get clients to ponder is are there experiences or opportunities that you could invest in today, in the lives of your heirs? I'm talking irrespective of whether it is your children, your grandchildren or a charity that you are interested in or that you are passionate about. Maybe a charity that you are passionate about needs to revamp a building or buy a building or hire a new person. What if you could actually be a part of helping that organization take the next step? What if you could be a part of helping your child or grandchild purchase a business a small lifestyle business and be a part of their growth process? I find that there's often a lot of planning that goes into educational planning, but far less goes into the types of opportunities that are out there for someone who wants to invest in the professional development of their heirs. This is again some of the planning that I want to help prospective clients walk through as they envision the future, as they walk forward and as they envision what they want their wealth their financial wealth to accomplish. Hopefully, they understand that their financial wealth doesn't have to stay there. It doesn't have to be something that passes on only after they pass away. Obviously, there are limitations to everything, but there are options. The planning process is where you get to actually dream, develop and work through what those options could be like and model how they would affect you or not affect you. I never want clients to walk away from an engagement, wondering if they can afford something. I just want them to know. Hey, this is how we marshal resources in order to accomplish what we believe we need to do. At the end of the day, often, the clients overall picture and their creative process starts simply by just asking us, asking a few questions. Once they get that process rolling, it's incredible what they will see, what they will think of and what they will dream forward, especially when that's done in the context of working with their second generation or maybe in their third generation. I know for myself personally I've said this a time or two. One of my goals is I want to help one of my grandchildren or, lord willing, even great-grandchildren buy a business. Now, I know I'm probably going to have to be well over the age of 95 in order to make that happen, but I'd love to be that crusty old geezer walking around still mixing it up in the game of business. That's my goal. I want to be the coolest old person that my family's ever met. Hey, if it keeps me going and keeps me active, what better way to do that? When the time comes, I think there comes a point at which people think that they have to give something up rather than invest in their family. I don't think that those two things are necessarily at odds with each other. I think you can do depending on a person's situation. They might be able to do one by gifting early, or two they may be able to just invest in their family's business, whatever they are looking to buy in the process. Hopefully this has given you some food for thought. Hopefully this has given you permission to think through your current situation and what it could be and what you want it to look like going forward. As always, please like and rate the podcast, as this helps us reach additional listeners and serve additional listeners. As always, please know that we're wishing you and your family continued truth, beauty and goodness on the road ahead.