Welcome to Metcalf Money Moment, where hosts Jeb Graham, Ethan Hutcheson, and Eric Wymore welcome Erik Rome from Sage Law to discuss the ins and outs of estate planning. In this episode, Erik dives into key aspects of managing an estate, from avoiding probate and understanding the role of wills to the complexities of trusts, durable power of attorney, and healthcare directives. They also explore the importance of appointing the correct individuals in your planning—whether a family member or a corporate trustee—and why reviewing your estate plan regularly is crucial. Tune in as Erik shares practical advice on ensuring your estate is in good hands, and your wishes are carried out seamlessly.

IN THIS EPISODE:

• [2:42] Erik defines probate, how to avoid it, and what the will controls
• [6:56] Trusts and why they are created
• [12:03] Discussion of trusts, durable power of attorney, healthcare directives and involving the children in the planning
• [17:29] Conflicts of interest and do you need a corporate trustee, and how often should you review your estate plan
• [23:03] Reviewing an older estate plan

KEY TAKEAWAYS:

• A will only dictates how assets that go through probate are distributed. Suppose you have designated beneficiaries or joint owners on assets (like bank accounts or property). In that case, assets bypass the will and probate, meaning the will won’t impact how those assets are handled.
• To avoid probate, you can use joint ownership (e.g., with a spouse), beneficiary designations (for accounts or life insurance), or a revocable trust. Properly titling assets and ensuring beneficiaries are in place for all relevant accounts is key to avoiding the lengthy and costly probate process.
• One common mistake families make is appointing individuals to roles like trustees or executors based on birth order or profession rather than considering whether the person has the right temperament and qualifications for the job. This can lead to conflicts or mishandling of estate matters.

RESOURCES:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

Sage Law - Website

Erik Rome - LinkedIn

DISCLAIMER:

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial. (154-LPL)

GUEST BIOGRAPHY:

Erik Rome practices law in Kansas and Missouri in estate planning, estate and trust administration, and business and tax planning. He helps clients develop and implement comprehensive estate plans for various estate sizes, assets, and objectives. Understanding that every client’s goals are unique, Erik works closely with each client to create a custom plan to accomplish their goals, such as minimizing taxes, making charitable gifts, accounting for periods of incapacity, and planning for the eventual transfer of...

Hosts Jeb Graham, Ethan Hutcheson, and Eric Wymore dive into why starting your financial planning early in the year is essential for achieving long-term success. In this episode, they explore critical strategies like maximizing retirement account contributions, understanding tax law changes for 2024, and consolidating 401(k) accounts for a streamlined approach. They also break down the benefits of 529 college savings plans, the importance of harvesting tax gains or losses, and key insights into managing stock options and restricted stock units. Whether you’re planning for retirement, considering a Roth conversion, or optimizing your tax strategies, this episode is packed with actionable tips to help you make the most of your financial opportunities all year long.

IN THIS EPISODE:

• (:54)Start your financial planning early in the year
• (2:17) Discussion of IRA contributions and tax law changes for 401ks and consolidation of 401k accounts if needed
• (7:42) Tax breaks for a college education with a 529 Savings Plan and discussion of Harvesting Tax Gains or Losses
• (12:45) Discussion of stock options and restricted stock units
• (16:22) Discussion of the distribution phase and a Roth conversion
• (22:38) Planning for retirement

KEY TAKEAWAYS:

• January is the ideal time to review and plan financial strategies, including maxing out retirement account contributions and deciding on charitable donations. Early planning allows for a more balanced and practical approach throughout the year, avoiding last-minute decisions that can feel rushed or incomplete.
• The maximum 401(k) contribution for 2024 is $23,500, with an additional $7,500 for those over 50. From ages 60 to 63, the catch-up contribution rises to $11,250, offering a unique opportunity to boost retirement savings during those years.

The contribution limits for Roth IRAs and traditional IRAs remain at $7,000, with a $1,000 catch-up for those 50 and older.

• Consider tax-loss harvesting to offset capital gains and reduce taxable income while maintaining long-term investment goals. For corporate employees with stock options or restricted stock units, plan strategically to manage taxes and avoid over-concentration in company stock. Diversifying these assets can improve portfolio balance and risk management.

RESOURCES:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

DISCLAIMER: This information is not intended to be a substitute for specific individualized tax

Metcalf Money Moment the Podcast, Jeb Graham, Ethan Hutcheson, Eric Wymore, Financial Planning, IRAs, 401ks, Retirement Planning, Metcalf Money Moment, IRA Contributions, Tax Breaks, Stock Options, 529 Savings Plan, Roth Conversion, Charitable Donations, Tax Law Changes, Portfolio Diversification, Financial Strategy, Investment Goals, Tax-Loss Harvesting, Financial Decisions, Contribution Limits, Estate Planning, Ethan Hutcheson, Jeb Graham, Eric Wymore

Welcome to Metcalf Money Moment, where hosts Jeb Graham, Ethan Hutcheson, and Eric Wymore explore the world of charitable giving with special guest Annie Burndrett from the Greater Kansas City Community Foundation. In this episode, Annie shares insights into the foundation’s mission, its unique donor-advised funds (DAFs), and how they help individuals maximize their charitable impact while minimizing taxes. Annie explains how charitable giving can be planned around taxable events like business sales or IRA distributions and how strategies like “bunching” donations can help donors take full advantage of tax deductions. They also discuss the power of multi-generational giving and the numerous scholarship opportunities available to support students. Tune in to learn how to make a lasting difference in your community through strategic charitable giving.

IN THIS EPISODE:

• (1:04) Shares the purpose of the Kansas City Community Foundation and the different funds they have for charitable giving and philanthropy
• (2:50) Tax strategies for the donor-advised funds
• (6:35) Preplanning for a taxable event
• (8:38) Annie defines the term bunching, designated funds and the hundreds of scholarship funds they have and the service they provide to students
• (13:04) Annie describes how to get set up with the Greater Kansas City Community Foundation

KEY TAKEAWAYS:

• Donor-advised funds (DAFs) are a powerful tool for tax-efficient charitable giving. High-income earners can maximize tax deductions during their peak earning years by contributing to a DAF, growing those assets, and earmarking them for future giving, such as retirement donations. A common strategy is donating appreciated stock, which avoids capital gains taxes. For instance, if an investment bought for $20,000 appreciates to $100,000, donating it to a DAF eliminates the $80,000 capital gain tax while allowing a deduction for the stock's full fair market value. Contributions can be distributed to charities over time, providing flexibility and maximizing impact.
• Bunching is a strategy in which donors contribute more significant amounts to a donor-advised fund in specific years. This enables them to itemize deductions and maximize tax benefits while disbursing funds to charities over multiple years, which can result in significant tax savings and more effective philanthropic planning.
• Greater Kansas City Community Foundation offers opportunities for multi-generational giving, where families can continue philanthropic efforts across generations. Additionally, donors can establish scholarship funds to support students, with the community foundation handling all aspects of the fund management and scholarship distribution.

RESOURCES:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

Annie Burndrett - LinkedIn

To Apply for Scholarships by Community Foundation - Website

Greater Kansas City Community Foundation - Website

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