Table of Contents

• My Mom’s Money Wisdom

• Noyack’s Estate Planning Series, Part 2: …

  • Designating Your Legacy: Beneficiaries, Guardians, …

• ⚖️ Disadvantages of Revocable Trusts vs. Wills 

Happy Mother’s Day!

In this Mother’s Day edition of Noyack Wealth Weekly lets remember Mom’s practical wisdom. In the back half of this Mother’s day edition comes Part 2 of our Estate Planning for High Earners Series.

My Mom’s Money Wisdom

My Mother was an immigrant from Italy and like all immigrants, her financial wisdom was self-taught. And while my Dad was the family CEO, Mom was the Chief Strategy Officer. Here is a summary of my Mom’s lessons to my sister and I:

And here is some Financial Savvy from Other Moms…

Doug Lebda - CEO, LendingTree

“Mom told me there was no free lunch. If I wanted to do all the things my friends were doing, I needed to pay for it myself – so go figure it out. Since my parents weren’t giving me any money, my mom encouraged me to earn it. As a result I had various activities like mowing lawns and cleaning pools, and that inspired me to become an entrepreneur.

Once I did earn some money, she told me first to save it – 10% off the top, always. Then set some aside for giving, and then you can enjoy spending the rest. The third thing she told me was that anytime you can, to try to own something and not rent it. So when I was 24, I bought a $55,000 condo – and after getting that mortgage, was when I got the idea for LendingTree.”

Pam Habner - CEO of U.S. Branded Cards, Citi

“My mom’s most powerful financial advice was to bet on myself and double down. Be an independent woman with the resources to take care of myself – no matter what.

So, when I was eight years old, she took me to the local bank to open my first savings account, which I grew by depositing birthday money, babysitting earnings, and then job money to fund my future – primarily my education. Through these savings (as well as scholarship money, student loans and several part-time jobs), I put myself through Dartmouth College, paid back my college loans, and saved enough to go to business school. My mom’s advice was life-changing. If you’re not betting on yourself, no one else will.”

Alex Rodriguez - Chairman and CEO, A-Rod Corp

Be industrious

“There was no one in my life growing up more industrious than my mom. She worked two jobs – as a secretary during the day, and a waitress at night – to support me and my siblings and allow me to pursue my dreams.

She taught me through her actions the value of hard work. There is no replacement. I have carried this wisdom with me throughout my professional life, on the baseball diamond and in the boardroom, and know firsthand that giving it your best effort pays off.”

Allison Klein, founder and CEO of Rose & Rex

The best purpose for making money is to afford to give to others

“It might seem counterintuitive, but the best piece of financial advice that my mom ever gave me was to prioritize making money in order to give it back to others. She helped me understand that when you are motivated by something bigger than yourself, you will have more passion, work harder and ultimately become more financially successful.”

Elizabeth Dunn - Chief Science Officer of Happy Money

Time is valuable

“When I was a student scraping by on minimal income, I would spend many hours sitting around an airport between flights rather than just paying an extra fifty bucks for a direct flight home. My mom encouraged me to spend just a little more to buy myself time. I found her advice really valuable, and when I became a behavioral scientist, I helped conduct some of the first scientific experiments demonstrating that she was right all along.”

Kimmie Smith, Co-Founder and style director of Athleisure Media

Create multiple income streams

“Ever since I could remember, my mom always talked about the importance of having multiple streams of income. Real estate is one that she always insisted on being in the mix. Growing up, her grandmother owned investment properties and various family members inherited these. Regardless of what happens, changes in jobs or whatever times we happen to live in, investment properties are key to being included within your portfolio. It’s definitely something that I believe in as well.” —

Send us some of your Moms’ sage financial nuggets to [email protected] and we will publish a compilation in a future edition.

Noyack’s Estate Planning Series, Part 2:

Designating Your Legacy: Beneficiaries, Guardians, and Executors 

In case you forgot, here is the series titles.

1. Estate Planning Basics: Wills and Trusts

2. Designating Your Legacy: Beneficiaries, Guardians, and Executors

3. Advanced Planning Tools: Life Insurance and Real Estate Trusts

4. Healthcare Decisions and Powers of Attorney

5. Asset Protection and Medicaid Planning

6. Understanding Estate and Gift Taxes

7. Estate Administration and Closing Your Estate

Hey there! Welcome back to our estate planning journey. In this second installment, we're diving into some super important roles—beneficiaries, guardians, and executors—and how you can make sure your assets and loved ones are looked after just the way you want. Let's break down how to pick the right people to uphold your legacy. 📝

The following information is brought to you by Christian Zebicoff, a noted Trust and Estate attorney with the firm Romer Debbas LLP . When I entered the ICU at the onset of Covid in 2020 and I thought I was on my way to joining my late parents, Christian was there on a late Sunday night to take care of the living will I neglected to do.

🏡 Choosing Beneficiaries: Who Inherits Your Assets?

When it comes to beneficiaries, it's all about who gets your assets after you're gone. This isn't just a big deal for your legacy; it's huge for their future too. We're talking about making thoughtful choices that resonate with your personal values and give your loved ones the support they need.

👶 Appointing Guardians: Who Looks After Your Dependents?

Got kids or dependents? Picking a guardian is one of the most heartfelt decisions you'll ever make. This person will step in to raise your children if something happens to you, so you'll want someone who aligns closely with your values and lifestyle. It’s a choice that deserves deep thought and consideration.

💼 Selecting Executors and Trustees: Who Will Manage and Execute Your Estate?

Executors and trustees are the MVPs who will manage your estate once you're not here. Executors will handle your assets per your will, while trustees take care of any trusts you set up. Choosing reliable and competent individuals or institutions for these roles is critical—they’ve got to handle things wisely and respect your final wishes.

+Death. Without a trust, many jurisdictions limit your flexibility in this regard. Also, it is usually easier to make amendments to a revocable trust than to a Will. 

+Avoidance of Probate. Because probate can be costly and time consuming, the avoidance of probate is often cited as one of the primary benefits of a revocable trust. How much of a benefit it may be varies from one place to the next. Nowadays, the probate process has become lengthy as a result of the pandemic and the slowdown in the New York courts. Also, avoiding probate may be a significant benefit if you own real estate in more than one state, because you avoid multiple probate proceedings. Since each jurisdiction's probate process is different, it is necessary to consult local counsel to determine which, if any, disadvantages of probate apply to you. Revocable trusts also exist outside the purview of Surrogates Courts when successor or replacement trustees are required.

+Availability of Assets at Death. Assets in a revocable trust at the grantor's death are available to raise cash to pay estate taxes, administration expenses and debts immediately after death, without waiting for a probate decree or issuance of preliminary letters. If the trust is funded prior to death, the property in the trust remains in the trustee's name before and after the death and is immediately available should the need arise. 

+Lost or Destroyed Originals. When filing a Will for probate, all original Wills must be provided to avoid a presumption that the Will was revoked. Typically only one original is produced at death. Because revocable trusts are not probated, multiple originals may be signed and one original may validate a transfer property held in the trust at death. Having a revocable trust, therefore, may ease the transfer of property at death if the original Will cannot be located or has been destroyed. 

Assuming the assets were previously transferred into the trust's name, there is no need to re-register securities after death. In addition, depending on the cash needs and investment objectives of the grantor's estate, there may be no need to develop a new investment strategy. 

⚖️ Disadvantages of Revocable Trusts vs. Wills 

There are a few very minor disadvantages that may apply to using a revocable trust instead of a Will. 

Re-registration of Property. As noted above, in order to be included in a revocable trust, property must be re-registered in the name of the trust. This may be cumbersome and may involve other costs such as filing fees. But these fees would eventually be incurred upon death, when individually-owned assets would have to be re-registered in the name of the Estate. 

Additional Cost. The fees to prepare a revocable trust and pourover will typically exceed the cost of a traditional will. There can also be additional costs to re-title assets to a revocable trust. If the grantor owns a cooperative apartment, such costs can be significant. 

As we roll through this series, remember, it’s not just about securing your financial legacy; it’s about making sure your loved ones are set for the future. Getting your beneficiaries, guardians, and executors/trustees right means your wishes stand strong and your legacy lives on.

🌈 Stay tuned for our next chat where we’ll dive into advanced planning tools that protect your assets and save your family both time and money. Let’s keep this legacy conversation going!

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