Cary Estate Planning - December 2023

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The Cary Connection DECEMBER 2023

Cary • Raleigh • Wake • Forest • Chapel Hill

BEWARE OF TRUST SCAMS How to Protect Yourself From Estate Planning Fraudsters

It’s the most wonderful time of the year, when people focus on giving to others and spending time with family. Unfortunately, it’s also a season when we tend to see an uptick in scam attempts, and they’ve gone beyond phishing emails and fraudulent phone calls. Now, estate planning scams are becoming increasingly common, particularly in the form of sham trusts and trust mills. Trusts are an effective tool for many people’s estate planning needs, and estate planning attorneys often recommend them to clients. People out to make a quick buck at others’ expense often use this fact to sell products that aren’t what they seem. More clients have been coming to us with questions about these offers. A sham trust is unlawful and usually created to evade taxes, defraud others, or hide assets. Many people learn of them at real estate conventions or mastermind events. The fraudster usually sells the trust as a tax shelter to save the client significant money. Unsurprisingly, no estate planning attorney is involved with the product. If sham trusts could legally accomplish what fraudsters claim, every estate planning client would have one. But sham trusts ultimately cost people money to create without paying anything in return. The government can prosecute someone with a sham trust, which is even more reason not to get involved. Trust mills tend to involve an agent (not an attorney) who sells some investment under the guise of estate planning. Sometimes, the people running these operations work for an insurance company. They may also have a business entity dedicated to churning out fake living trusts. They often use promotional flyers and brochures or give talks at senior centers.

The goal of a trust mill is to convince seniors to cash in retirement investments and use them to purchase an annuity, under which the selling agent gets a commission. The agent, who may call themselves a trust advisor, senior estate planner, or even paralegal, attempts to convince people they have bad investments and can do better for themselves. But that’s not what trusts are for. While trusts are excellent estate planning tools, a qualified professional will be clear about their limitations. Trusts are not a magic bullet. As with all things, if the description of a product or service sounds too good to be true, it probably is. We hope you will spread the word among your friends and family and continue to come to us with any concerns. What if you or a loved one may have already been caught up in such a scheme? Cary Estate Planning does not do litigation, but we can answer your questions and provide guidance. We’ll also gladly refer you to a trusted third-party attorney if necessary. Unfortunately, we probably won’t stop scams entirely, but I hope we can help prevent you or your loved ones from becoming victims. Never attempt to create or modify a trust without a licensed estate planning attorney. And when in doubt, call us. We’ll always have your best interests in mind.

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-Paul Yokabitus

CaryEstatePlanning.com • 1

MONEY WORRIES KEEPING YOU UP AT NIGHT?

EXPLORE EXPERT FINANCIAL ADVICE THIS HOLIDAY SEASON

“The Total Money Makeover” by Dave Ramsey, a New York Times bestseller, is all about practical advice centered around the beginning of someone’s financial journey. He teaches readers how to successfully dig themselves out of debt, how to create a budget that doesn’t leave them starving, tips for creating an emergency fund, and more. Middle-Aged Adults (40s and Early 50s): ‘Your Money or Your Life’ by Vicki Robin and Joe Dominguez By this point in most people’s lives, they’ve established a career and have regularly occurring costs they’ve learned to manage. But isn’t there more to life than that? This book is for those who want to break out of that monotony and finally achieve financial freedom. However, the most significant benefit of this book is that it helps people who have already been stuck on the financial hamster wheel step off and look at what they want in life, set goals for those dreams, and use their finances to achieve them. Pre-Retirees (Late 50s, Early 60s): ‘The Four Pillars of Investing’ by William J. Bernstein Individuals in this age range can see retirement on the horizon. They’ve built their career over several decades and likely have a retirement account waiting for them. However, the fear becomes the thought of running out of money once the steady stream of work income is gone. In that case, setting up a diversified portfolio is a good idea. William J. Bernstein, dubbed “a hero to frustrated investors everywhere,” is an American financial theorist and neurologist. In “The Four Pillars of Investing,” he uses what he knows about people, our brains, and investing to create a practical and easy-to- read guide for anyone looking to start their investing journey and create that perfect portfolio. Retirees (65 and older): ‘How to Retire Happy, Wild, and Free’ by Ernie J. Zelinski At this point, work is in life’s rearview mirror, but that doesn’t mean money is, too. But retirement isn’t just about someone watching a bank account to see how much they have. Retirees want to do the things they love, like the trips they’ve been waiting to take or the hobbies they’ve been meaning to start. Ernie J. Zelinski, an international bestselling author and life coach, agrees. In his book, “How to Retire Happy, Wild, and Free,” he offers advice on making the most out of retirement, including managing finances while pursuing hobbies and passions.

No matter the economy, time of year, or stage of someone’s life, money is on people’s minds. According to a July 2023 report from LendingTree, “56% of Americans say they’re worried about their future financial situations, with 35% losing sleep over money.” The study further breaks down the percentage of this financial fear per generation. It found that over 50% of every age group, from Gen Z to baby boomers, were worried about their finances. Gen Xers (ages 43–58) had the highest majority at 61%. So, can we do anything about our financial situations, or will this fear haunt us forever? Of course, many resources advise cutting back expenses and saving more, but with the average American holding $21,800 in personal debt, doing so is easier said than done. Luckily, financial experts who understand these issues have written books containing far more effective, realistic, and actionable advice than “spend less, save more.” This holiday season, you may find yourself with more downtime than usual — a long plane ride ahead of you to visit family or time off your job. Whatever the reason, the extra time is the perfect opportunity to read the advice from these financial experts and take control of your financial present and future. We also understand that the financial issues a 20-year-old faces are far different than those a 65-year-old might face. So, to help you find the most effective book for your situation, we’re giving you the best books to read this holiday season, categorized by life stage. Young Adults (20s and 30s): ‘The Total Money Makeover’ by Dave Ramsey When young adults are first entering the workforce and beginning to build their careers, every penny counts. Wide-sweeping advice about investing in real estate or the top stocks to buy may not always be realistic, especially with student loans, rent, or a first mortgage on someone’s plate.

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THE FINNISH SNIPER WHO FROZE SOVIETS IN THEIR TRACKS When the Soviet Union invaded Finland on the eve of World War II, it held a stunning battlefield advantage. While the invading Soviet army numbered 750,000 troops, Finland’s military was only 300,000 men. But Finland had a secret weapon: “The White Death,” a sniper who killed at least 505 soldiers in less than 100 days. Simo Häyhä was an unassuming man who stood only 5 feet tall and likely would not have left Soviet troops shaking in their boots. But what he lacked in stature, he more than made up for in skill. Häyhä grew up competing in sharpshooting competitions and often targeted skittish birds that would fly away at the slightest sound. His marksmanship and stealth were not the only reason for his success. He shared an advantage with other Finnish soldiers thanks to white uniforms that made them difficult to spot in the snow during the winter war. But Häyhä took additional measures to conceal himself from sharp-eyed enemies.

SKILLET CHICKEN POT PIE

Inspired by TheModernProper.com

Ingredients

• 1 tsp garlic powder • 1 cup milk • 2 cups chicken stock • 2 cups peas • 4 cups cooked chicken • 1 package frozen puff pastry, thawed • 1 egg

• 1/2 cup butter • 1 cup chopped onion • 1 cup sliced celery • 2 cups sliced carrots • 1/2 cup flour • 1 tsp salt • 1/2 tsp pepper • 1/2 tsp celery seed

Directions 1. Heat oven to 425 F. 2. In 12-inch cast-iron skillet over medium heat, melt butter, then add onion, celery, and carrots. Sauté for 5 minutes. 3. Add flour, salt, pepper, celery seed, and garlic powder to pan and stir. Sauté for 2 minutes. Slowly incorporate milk. 4. Add stock and bring to a simmer, whisking until mixture thickens. Add peas and chicken. 5. Roll out pastry sheet into 16-inch square on floured surface. Cut into 3-inch squares and place overlapping onto chicken mixture. 6. In a small bowl, whisk egg with 1 tbsp water. Brush egg over pastry and place in oven for 25 minutes or until golden and bubbling.

He refused to use a scope, convinced the glint of the sun against it would give away his position. Häyhä also hid himself

in snowdrifts where the enemy could not see him and melted the nearest snow on the ground with water so his shots wouldn’t send powder flying. He placed snow on top of his rifle to avoid steam rising after firing and even held snow in his mouth to keep his breath invisible. Häyhä once killed 25 soldiers in one day and struck fear into the heart of his enemy. Due to his seeming invisibility, the Soviets began calling

TAKE A BREAK

Chimney Christmas

Gifts Igloo

him “The White Death.” The opposing army made many failed attempts on his life. But after spending 98 days on the battlefield, the Soviets finally hit Häyhä in the jaw with an exploding bullet 11 days before winning the war. Though the bullet destroyed the lower half of his face, Häyhä miraculously survived an 11-day coma and 26 reconstructive surgeries. He never looked or spoke the same way again, but his disability did not prevent him from living a long life. Häyhä participated in competitive shooting and moose hunting for many years, eventually dying in 2002 at 96. Today, he still holds the record as history’s most successful sniper.

Mistletoe Ornament Parka Reindeer Sleigh Snowman Wreath Yuletide

CaryEstatePlanning.com • 3

Ask about our Financial Planning services at your next review meeting, or call Cary Financial Planning at 919-694-6945 to learn more!

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Inside This Issue Cary • Raleigh • Wake • Forest • Chapel Hill - new location! 155 Parkway Office Ct., Ste. 200 Cary, NC 27518 919-726-0896 • www.caryestateplanning.com

Can You Spot a Trust Scam?

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Your Holiday Reading List: Expert Financial Advice for Every Generation

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Skillet Chicken Pot Pie

The ‘White Death’ Sniper’s Mark on WWII

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A Truck Driver’s $14,000 Christmas Miracle

Truck Driver Received an Emotional Secret Santa Surprise

in gratitude when Eaton announced he had one more surprise left. He then handed Carl a cashier’s check worth $10,000 to spend however he wanted. “Thank you so much,” Carl replied emotionally before trailing off, “You don’t know …” It’s unclear how “East Idaho News” and their Secret Santa chose Carl as the subject of this generosity, but the selection was no accident. Carl had lost a leg above the knee 37 years prior but still worked four days a week at age 72, sometimes clocking 14-hour days. He’d also suffered more recent setbacks; his wife died from a brain aneurysm in 2010. Meanwhile, he had three COVID-19 infections in less than three years. Despite worsening health and pain caused by his amputated lower leg, Carl continued to begin work at 2 a.m. while also making time to attend his grandchildren’s sports games.

When truck driver Carl opened his trailer door to a news crew in 2022, he did not appear to be in the mood for company. The 72-year-old East Idaho resident initially seemed standoffish and skeptical of the unexpected correspondent and his camera, asking several questions about why they were visiting him. But when reporter Nate Eaton handed Carl an early Christmas gift from “an anonymous person,” he warily relented and invited the crew inside. When he opened the gift box, Carl found a stack of gift cards inside. He appeared surprised and puzzled, so Eaton explained that four gift cards were worth $500 each for gas for his truck. Another $2,000 was included on four additional cards from a local supermarket so he could purchase groceries. In shock, Carl responded, “Holy crap!”

Carl explained the gift meant he could finally retire.

He repeatedly requested the identity of his Secret Santa, but “East Idaho News” refused to say. So, Carl instead thanked his anonymous gift-giver through the camera. His hard exterior melted away, leaving only gratitude and awe behind. In his last words in the broadcast, Carl promised to “pay it forward” by finding a way to help someone else.

He began to tear up at the unexpected generosity and shook the reporter’s hand

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