In this episode of Protecting and Preserving Wealth, we move to topic 3 in our estate planning series by tackling a critical but often overlooked topic—how to properly title assets. Previously, we discussed beneficiary designations, but today, we dive into why the way assets are titled can significantly impact taxes, probate, and the distribution of wealth.

One common issue we see is with married couples who assume their assets should always be jointly owned. While joint ownership works in many cases, certain assets, like IRAs, must remain in an individual's name. Instead of joint ownership, the key is to designate the spouse as the primary beneficiary, allowing them to roll over the IRA upon death while maintaining tax benefits.

Another crucial factor is understanding community property laws. Arizona, along with eight other states, offers unique tax advantages through community property rules. If a couple holds a property as joint tenants instead of in a community property trust, they may only receive a partial step-up in basis upon the first spouse’s passing. This could lead to significant capital gains taxes if the surviving spouse sells the home. By properly titling the property, they can eliminate unnecessary tax burdens.

We also discuss the importance of utilizing trusts. While some attorneys argue that trusts are unnecessary for estates below the federal estate tax threshold ($13.6 million per person), we believe that avoiding probate and ensuring a full step-up in cost basis outweighs any minor costs involved in setting up a trust. Trusts also provide a streamlined way to manage multiple financial accounts and ensure consistent distribution to heirs.

Improper titling is a common mistake, particularly with joint brokerage accounts. If a highly appreciated investment portfolio is held jointly, the surviving spouse only receives a half step-up in basis rather than a full step-up. This can be avoided by transferring the account into a trust. We frequently guide clients through these changes, ensuring their financial plans align with their long-term goals.

Of course, not all assets belong in a trust. Cars, for example, are best kept in an individual’s name to simplify insurance and liability issues. For day-to-day checking accounts, adding a "payable on death" (POD) or "transfer on death" (TOD) designation is often sufficient. Even the DMV now allows for beneficiary designations on vehicle titles, making it easier to pass on assets without probate.

On the other hand, primary residences, rental properties, business ownership interests, and taxable investment accounts should generally be titled in a trust. This ensures that upon death, these assets pass seamlessly to heirs without court intervention. For business owners, holding an LLC in a trust is an effective way to protect the business’s value and avoid unnecessary taxes for the surviving spouse.

Personal assets like collectibles, gold, firearms, and artwork can also be included in a trust. If these items hold significant value, listing them in trust schedules ensures they go to the intended beneficiaries without legal complications. We even assist clients in setting up specialized trusts, such as gun trusts, for properly transferring firearms.

Ultimately, proper titling and estate planning can prevent costly mistakes and unnecessary stress for heirs. If you're unsure whether your assets are structured correctly, it’s never too late to make adjustments. At Hosler Wealth Management, we work closely with attorneys to ensure trusts are properly funded and structured for maximum benefit.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we continue our discussion on estate and legacy planning, focusing on the critical role of beneficiary designations. Beneficiary forms take precedence over wills and trusts for certain assets, including retirement accounts like IRAs, 401(k)s, 403(b)s, life insurance policies, annuities, and pensions. Bank and brokerage accounts also allow for direct beneficiary designations through Pay on Death (POD) and Transfer on Death (TOD) forms. In Arizona, real estate can even have designated beneficiaries through Arizona beneficiary deeds.

We emphasize the importance of keeping these designations up to date. Failing to update them can lead to unintended outcomes, such as an ex-spouse inheriting an account despite a revised will or trust. Some exceptions exist, like certain IRA agreements that automatically replace an ex-spouse with a current spouse, but generally, financial institutions will follow the beneficiary form as written.

We also discuss cascading beneficiary designations, where assets flow through a primary, contingent, and tertiary beneficiary structure. This setup allows for flexibility, such as a surviving spouse disclaiming an inheritance in favor of children or grandchildren, ensuring assets go where they are most needed. This approach also allows for strategic tax planning, particularly when including charitable organizations. A charitable IRA, for example, enables tax-efficient giving by directing pre-tax retirement funds to a nonprofit, avoiding income taxes on those assets.

Additionally, we cover why individuals, rather than trusts, should generally be named as beneficiaries of retirement accounts. Trusts often force distributions on a shorter timeline, increasing tax burdens. However, naming a trust as a tertiary beneficiary can serve as a backup plan to prevent probate if all primary and contingent beneficiaries pass away simultaneously. This strategy avoids delays, public scrutiny, and creditor claims against the estate.

Finally, we stress the importance of working with knowledgeable advisors to structure beneficiary designations properly. Not all custodians or advisors offer the level of detail needed to maximize financial and tax benefits. To ensure proper planning, we encourage regular reviews of beneficiary designations and consultation with qualified professionals.

For those wanting more guidance, Hosler Wealth Management can be reached at hoslerwm.com or by phone at (928) 778-7666 in Prescott and (480) 994-7342 in Scottsdale.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In the second installment of our estate and legacy planning series, we highlight the critical role of beneficiary designations in securing and managing wealth. Estate planning goes beyond wills and trusts; proper beneficiary designations on accounts like IRAs, 401(k)s, annuities, and life insurance determine where assets go upon death, often bypassing wills and trusts altogether.

I emphasize the nuances of Individual Retirement Accounts (IRAs), particularly their "individual" nature and the implications of beneficiary designations. Primary beneficiaries, usually spouses, receive unique advantages, such as the ability to roll over an IRA into their name and defer Required Minimum Distributions (RMDs) based on their age. Contingent beneficiaries, often children or grandchildren, are next in line, while tertiary beneficiaries—commonly overlooked—provide an additional layer of security to ensure assets avoid probate in unexpected situations.

We also discuss the potential pitfalls of outdated designations, such as an ex-spouse unintentionally remaining a beneficiary. Jason, Alex, and I stress the importance of regularly reviewing and updating these designations to reflect life changes, like marriages, divorces, or the addition of new family members. Naming individual beneficiaries is generally preferable to designating trusts, as it simplifies the transfer process and helps avoid complications that could lead to unintended tax consequences.

A key focus is the tax implications of inherited IRAs. Under the Secure Act 2.0, non-spousal beneficiaries must withdraw all funds from an inherited IRA within ten years, which may occur during their highest earning years, resulting in significant tax burdens. Converting traditional IRAs to Roth IRAs during the owner's lifetime can help mitigate this, ensuring heirs receive funds tax-free. However, beneficiaries cannot convert inherited IRAs, highlighting the importance of proactive planning.

We conclude with advice on leaving IRAs to charities as part of tertiary beneficiary planning. This strategy allows families to avoid taxes on inherited IRA funds while supporting philanthropic goals.

Regularly reviewing beneficiary designations is essential, as it allows adjustments without the need to amend trusts or incur additional costs. With thoughtful planning, beneficiary designations can ensure wealth is preserved and transferred efficiently, aligning with the owner's wishes and minimizing potential tax burdens.

Disclosure: Ed Slott's Elite IRA Advisor Group is a private IRA study group of professional financial advisors.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this Protecting and Preserving Wealth episode, we’re kicking off our six-part series on estate and legacy planning. We dive into the critical steps of preparing for the Great Wealth Transfer—an estimated $84 trillion passing to the next generation by 2045. Of that, $72 trillion will go to heirs, making proper planning essential.

We talk about the importance of being ready for this transition. Will your heirs be prepared to manage your wealth? Will it be protected or lost to taxes, poor decisions, or unforeseen circumstances like inflation or bad marriages? These are tough questions but answering them now ensures your legacy is preserved.

One tool we highlight is the revocable living trust, which is especially useful in community property states like Arizona. It avoids probate, simplifies financial management, and offers significant tax advantages. For example, it can protect a surviving spouse from hefty capital gains taxes by ensuring a step-up in basis for both halves of jointly owned property. Plus, it lets a successor trustee manage your finances if you’re incapacitated.

Of course, a Trust isn’t the whole story. We also explain why a will is crucial, especially for naming guardians for minor children. Other must-have documents include Durable Financial and Healthcare Powers of Attorney to manage your affairs if you can’t manage them, a Living Will to clear your end-of-life wishes, and Arizona’s unique Mental Healthcare Power of Attorney. This last one is significant for situations involving dementia or other mental health challenges, ensuring your family can advocate for you without needing costly court intervention.

We wrap up by discussing how to title your assets correctly to avoid probate and protect them from unnecessary risks. Whether you put real estate into your trust or use Arizona beneficiary deeds, these decisions are key to preserving your estate. Mistakes like retitling retirement accounts into a trust can lead to unintended taxes, so getting professional advice is critical.

Download our Estate Legacy & Beneficiary Planning document, which is included for your benefit and to help you follow us in this six-part series.

This series is relevant to everyone over 18 and emphasizes the importance of being prepared. In our next episode, we’ll discuss beneficiary designations, but feel free to reach out with any questions in the meantime.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we dive into managing the challenges posed by concentrated stock positions. When individuals hold significant investments in a single stock, such as Apple, Nvidia, or Tesla, they may face considerable capital gains taxes and financial risk. To address these concerns, we explore a range of tax-efficient diversification strategies to help reduce risk and optimize income without incurring immediate tax consequences.

We begin by discussing the benefits of community property laws in states like Arizona, where spouses can receive a step-up in cost basis upon one spouse's death, reducing the tax burden on appreciated assets.

Next, we examine exchange funds as an option for diversifying concentrated stock holdings. By contributing a stock position to an exchange fund, investors can gain exposure to a diversified portfolio, such as the S&P 500, without triggering capital gains taxes. After a set period, the investor can retrieve their original stock or maintain diversified holdings. This strategy, however, requires the investor to meet "Qualified Purchaser" qualifications, which includes having a net worth of $5 million. While exchange funds provide diversification, they will not protect against broad market declines. Investors must remain in a fund for at least seven years before redeeming shares, and those who leave prematurely may face penalties and only receive their original shares back.

For broader tax efficiency, we discuss direct indexing, which enables investors to hold individual stocks within an index, like the S&P 500, and harvest tax losses from underperforming stocks to offset gains from concentrated positions. Over time, this allows for a gradual reduction of concentrated positions without significant tax liabilities. Similarly, unified managed accounts (UMAs) combine individual stocks, ETFs, and mutual funds in a diversified, tax-efficient portfolio, enabling strategic loss harvesting and active management.

Charitable giving also serves as an impactful tool for managing appreciated stock positions. Donating stock to a *donor-advised fund, for instance, allows investors to receive a tax deduction on the appreciated value, which they can use to offset other income. Additionally, charitable lead and remainder trusts provide income benefits and deductions, with the added impact of supporting charities over time.

By implementing these strategies, investors can navigate the complexities of concentrated stock positions, achieving tax efficiency and diversification. For more personalized advice, listeners are encouraged to reach out to Hosler Wealth Management for guidance tailored to their unique financial circumstances.

* Generally, a donor-advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it; however, the donor, or donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode, we continue our discussion on the economic implications of a second Trump administration, focusing on interest rates, tax policy, government efficiency, and immigration’s impact on the economy. With Bruce Hosler, Alex Koury, and Jason Hosler, we explore how these factors might shape financial decisions for individuals and businesses.

We begin by analyzing the Federal Reserve's approach to interest rates amidst strong consumer spending and near full employment. While a potential rate cut may occur in December 2024, higher rates could persist in early 2025, impacting sectors like housing. The conversation touches on how existing low mortgage rates dissuade homeowners from selling, contributing to reduced housing supply and elevated home prices.

On tax policy, we examine the possible extension of the Tax Cuts and Jobs Act through reconciliation. This could lock in current rates until 2028, providing a window for strategies like Roth conversions. We stress the importance of maximizing tax efficiency, particularly for retirees with tax-deferred accounts, while acknowledging the looming challenge of the national debt, which now incurs over $1 trillion in annual interest.

The creation of a Department of Government Efficiency, led by Elon Musk, sparks hope for addressing budget deficits and wasteful spending. Musk’s private-sector expertise could drive cost reductions using methods like AI implementation, potentially easing the federal debt burden over time. However, this remains speculative as we await tangible outcomes.

We also address the potential risks and rewards of Trump’s tariff policies. Tariffs may incentivize domestic production but could lead to short-term disruptions and higher costs. Combining these tariffs with initiatives to bolster American self-sufficiency and technology, however, could benefit the economy in the long run.

Immigration policy is another focal point. We discuss how stricter enforcement and deportations might affect sectors dependent on immigrant labor, potentially leading to higher consumer prices. Some undocumented individuals may opt to self-deport to preserve their ability to re-enter legally. This approach balances enforcement with the recognition of immigrants’ economic contributions.

In conclusion, while Trump’s second term offers opportunities for economic growth and reform, significant uncertainties remain. We emphasize proactive financial planning to navigate potential tax changes, interest rate shifts, and broader economic trends.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In the first part of our two-part series, we discuss the economic implications of Donald Trump's second presidential term, focusing on markets, regulation, energy, and inflation. With the election concluded, markets have responded positively to the reduced uncertainty, reflecting a renewed sense of clarity. We highlight how a Republican-controlled House and Senate could further enhance this stability. Drawing from Trump's first presidency, we examine his policies on deregulation, their stimulative effects on businesses, and their potential for deflationary outcomes, particularly in the energy and industrial sectors. With Trump advocating for increased oil and natural gas production, energy is a key focus. While this could lower fuel costs and stimulate economies based on distribution, we also note its potentially deflationary impact on the profits of oil companies. Natural gas could serve as a geopolitical tool, especially with proposals to export excess liquefied natural gas (LNG) to Europe. This increase in production would help reduce reliance on Russia and bolster U.S. influence abroad. Implementing these plans will depend on overcoming regulatory barriers and building necessary infrastructure, such as Gulf Coast LNG facilities.

We explain the concept of a "melt-up," in which rising asset prices are driven by the fear of missing out and the reallocation of sidelined capital. We explore the broader market implications, suggesting diversification as essential for navigating an environment where gains have been concentrated in a handful of tech giants—the "Magnificent Seven."

We also anticipate a market broadening in 2025, encouraging a shift towards other growth-promising sectors. Inflation remains a persistent concern, which we address from multiple angles. While increased oil production may help temper fuel costs, broader inflationary pressures, such as rising energy demand driven by AI infrastructure and housing shortages, pose significant challenges. Building adequate global infrastructure to support AI's growth requires long-term investment in utilities and materials like timber, which keeps costs high. Trump's policies aim to tackle inflation, but their success will depend on reducing government spending and addressing structural economic demands.

Don’t miss What To Expect From Trump's Second Term – Part 2, of this discussion where we delve deeper into these themes and address listeners' questions about the economic outlook for Trump's second term.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we dive into the changes introduced by the SECURE Act 2.0, which has made significant modifications to IRA and trust regulations. Bruce Hosler and Alex Koury from Hosler Wealth Management explain the complexities and implications of these new regulations.

The conversation begins with Bruce explaining the updated requirements for trusts designated as IRA beneficiaries. Previously, the law mandated that documentation, including copies of the trust, be provided to IRA custodians by a set deadline after the IRA owner's death. Under SECURE Act 2.0, however, this requirement has been relaxed. Now, instead of submitting full documentation, the trustee only needs to provide a list of beneficiaries and the conditions of their entitlement. For trusts listed as IRA beneficiaries, documentation requirements have been removed entirely, simplifying the process significantly for trustees.

Alex follows by highlighting the second key update, which allows for separate accounts in trusts under certain conditions. Previously, IRA owners could not allocate separate accounts for multiple beneficiaries within a single trust. This limitation meant that multiple beneficiaries inheriting through a trust would share a single account. With the new rules, separate accounting is now permissible for see-through trusts under specific conditions, including those for beneficiaries with special needs. This change allows beneficiaries within a trust to inherit assets based on their own life expectancies, potentially stretching the distributions over a longer period.

Bruce then describes a third important change concerning Required Minimum Distributions (RMDs) for inherited IRAs within trusts. Previously, all beneficiaries of a trust would have to follow the distribution schedule based on the oldest beneficiary’s age, limiting flexibility. Now, the new regulations permit RMDs to be calculated separately for each individual beneficiary based on their own life expectancy, offering potential tax advantages and allowing younger beneficiaries more flexibility in managing distributions.

Throughout the episode, Bruce and Alex underscore the importance of consulting professionals to navigate these complex changes. While these new rules provide increased flexibility and potential tax benefits, they also demand a precise understanding of IRA and trust structures, especially for those with multiple beneficiaries. For anyone affected by these changes, they stress the value of working closely with wealth management professionals who understand both the regulatory landscape and individual client needs.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler