021: Making Loans to an Irrevocable Trust Is Possible. Here’s How.
Release Date: 12/04/2018
129: Estate Planning Strategies to Reduce Family Conflict After Death
Absolute Trust Talk
Family conflict after a loved one has passed is very common, but that doesn’t mean it can’t be avoided. In our years of experience in estate planning, we’ve seen many different scenarios play out and have a thorough understanding of the nuances that tend to cause these conflicts. The number one reason for disputes over a trust lies in the feeling that it is not fairly divided. While Mom and Dad or Aunt Sally can set up their estate however they wish, often, a simple conversation with family can go a long way to clarify why certain decisions were made. In this episode of Absolute Trust...
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128: Revocable or Irrevocable Trust: Which is Right for Me?
Absolute Trust Talk
When we first begin working with a client who is setting up their estate plan and, more specifically, building a trust, the number one question we always get is whether they need a revocable or an irrevocable trust. For us, this is always an interesting and fun conversation because as soon as the client hears the difference, they immediately know which tool they need. Not to give it all away, but the standard option is the revocable trust; however, there are certain instances in which the irrevocable trust is needed—there is no one-size-fits-all approach to estate planning. So, which...
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127: Understanding Multigenerational Estate Planning Part 2
Absolute Trust Talk
Welcome back! In our last episode of Absolute Trust Talk, we were joined by expert psychotherapist and certified coach Tess Brigham, MFT, BCC, to discuss the differences between generations and, more specifically, examine the unique dynamics between Baby Boomer parents and Millennial children. In this episode, we continue our conversation with Tess, focusing on the interactions between Gen X parents and Gen Z children. These two generations are very interesting as Gen Xers were heavily influenced by events like the Persian Gulf War, the women’s movement, and high divorce rates. As Tess...
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126: Understanding Multigenerational Estate Planning Part 1
Absolute Trust Talk
The battle between the generations is real and seems to be everywhere. Yes, generational divides even play a role in estate planning. In fact, estate plans nowadays are built around more diverse and multigenerational families than ever before. In this new episode of Absolute Trust Talk, we are joined by psychotherapist and certified coach Tess Brigham, MFT, BCC. Tess specializes in helping young adults discover their unique life path to enter the world and make an impact. Join us as we discuss how the generations are defined, what makes each one unique, and how these factors influence estate...
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125: Cher Files for Conservatorship of Son Elijah Blue Allman Over Alleged Substance Abuse
Absolute Trust Talk
Recently, the entertainment world has been abuzz with numerous high-profile conservatorship battles, and the latest to emerge involves iconic singer Cher. She has initiated a conservatorship petition concerning her son, Elijah Blue Allman, aiming to oversee the financial benefits he inherits from his father, the late Greg Allman's trust. Legal filings state the urgent need for a conservator to safeguard Elijah's estate against potential damages or losses, citing his inability to manage his finances due to significant mental health and substance abuse challenges. Tune into a new episode of...
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124: Beach Boys Founder Brian Wilson Suffering from Dementia as Reps Seek Conservatorship
Absolute Trust Talk
When you think of the Beach Boys, what comes to mind? We’re betting it’s not a complicated conservatorship case. Unfortunately, that’s what’s happening with the Beach Boys Founder, Brian Wilson. Mr. Wilson’s long-time wife had been his healthcare directive, but with her recent passing, it was discovered that no one was ever named as a backup. Now, the question is not only who will pick up her role as Mr. Wilson’s healthcare directive, but how. With Brian Wilson being considered unable to make these decisions for himself due to dementia, the solution is not a simple one. Tune in to...
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122: The Costly Truth of Ignoring Estate Planning Like Jay Leno
Absolute Trust Talk
You may have heard the recent news that Jay Leno filed a conservatorship over his wife, Mavis Leno’s estate. The couple does not have an estate plan, and his goal is to gain special permission from the court to set up a plan for both of them. As Kirsten and Madison point out, the main issue is not what happens if Mavis dies but instead if Jay were to die first. Given that Mavis is already incapacitated, who will manage their assets and decision-making? We hope you will join us for this discussion that underscores just how important it is to have an estate plan in place to avoid the costly...
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123: Why Can't I Change My Trust After My Spouse Passes Away?
Absolute Trust Talk
At Absolute Trust Counsel, one of the pieces of advice we like to shout from the roof tops is that people need to keep their estate plans up to date! We constantly find people who fail to do so. In many cases, we can fix the challenges that arise, but sometimes, it may not be possible, and we must navigate a more difficult path. In this specific episode, we are going to focus on AB Trusts and the issues that typically arise. It happens more than you might think - often, when a spouse dies, the widow(er) later finds out their joint trust is set up in a way that requires them to split the trust...
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121: What Happens When a Trustee, Executor or Beneficiary Dies?
Absolute Trust Talk
If you’ve been following along with our show, you know that we can’t stress enough the importance of estate planning and setting up a trust to make things simple, cost-effective, and less time-consuming for your heirs. But even with the most comprehensive and well-thought-out estate plan, wrinkles can be thrown into the plan. It’s a lot of information for all parties involved to consume, and there are many moving parts. One curveball we’ve seen a few times before is a beneficiary, trustee, or executor dying before the will or trust is enacted. Everyone tuning in to this podcast has...
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120: Solutions to Common Real Estate Issues
Absolute Trust Talk
Have you ever had a pesky neighbor encroaching on your land? Or perhaps they have decided to put a cell tower in that directly blocks the beautiful view that you bought your property for in the first place? Or maybe you’ve recently inherited the family home but share it with your siblings and cannot agree on what to do with it. How do you resolve these types of challenges? Do you have a friendly conversation? Do you engage a lawyer and go to court? In this podcast episode, we sit down with Steven Kahn, a civil litigation attorney who focuses on real estate and business disputes involving...
info_outlineDid you know it’s possible to make a loan to an irrevocable trust? Many people don’t know it is, and even though conventional lending firms might say they do it, they don’t truly understand and often force the borrower to take the loan out of the trust – negating the benefit. Jim O’Dea, a broker associate with Redwood Mortgage, a private money lender, has been with Redwood for over 14 years and has over 40 years of commercial real estate experience. Jim has made the irrevocable trust loan transaction a niche of sorts and, at Redwood alone, has originated and closed over $150 million in loans.
In today’s episode, Kirsten and Jim discuss why making loans to irrevocable trusts is such a difficult transaction, why it happens in the first place, how it is completed and why it is such a tremendous opportunity for families to take advantage of. This is an educational episode of Absolute Trust Talk not to be missed.
Top Takeaway From Episode #021:
- This type of loan transaction is a benefit, an opportunity, and an educational experience for many families, and many people don’t know that it’s out there as an option.
Time-stamped Show Notes:
3:11 – Jim discusses why making loans to irrevocable trusts is such a difficult transaction
7:06 – Jim talks about a typical scenario in which clients are referred to him and his business
13:28 – Kirsten asks Jim to give an example of how the loan amount is calculated
24:21 – Kirsten asks Jim to share an example of tax benefits to the family doing the loan to an irrevocable trust
25:38 – Jim shares how he got into this specific loan business
28:40 – Why families often miss this loan opportunity
31:28 – Are there other opportunities to make loans to irrevocable trusts?
33:35 – Could this type of loan transaction take place if there is another type of property, other than the family home?
Episode #021 Freebie: Excel Spreadsheet – Deriving Loan Amounts on Irrevocable Trusts
Didn’t know that making loans to an irrevocable trust was possible, but it is. Absolute Trust Talk guest Jim O’Dea has helped many clients make this difficult loan transaction possible, and he’s ready to help get you started too. Jim has developed a special Excel spreadsheet that lends a hand in determining the potential loan on an irrevocable trust loan. In addition, it serves as a handy checklist, taking into account the many variables that could impact the loan amount. Click here to download your copy of this specially developed spreadsheet.