In this episode of Protecting and Preserving Wealth, we kick off a two-part series on the real estate sale process by focusing on selling a primary or principal residence. We explore what homeowners need to consider—from title and tax implications to planning strategies and insurance coverage—with insights from Bruce and Jason Hosler of Hosler Wealth Management.

📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://www.amazon.com/dp/B0CY2XP8CD

📍 Chapters & What You'll Learn
(00:00) – Selling Your Primary Residence: Key Considerations
(01:35) – Cost Basis & Section 121 Exclusion
(03:23) – Widow’s “Gotcha” & Step-Up in Basis
(07:24) – Mortgage Decisions & Reverse Mortgages
(10:15) – Sell vs. Rent: The Four Ts
(11:47) – Insurance, 1031 Myths & Market Trends

We start by breaking down title options: from revocable living trusts to joint tenancy and tenants in common. Bruce emphasizes that adding children to a home’s title to avoid probate is a common mistake. Instead, in community property states like Arizona, it's almost always better to hold the property inside a revocable living trust to preserve tax benefits and simplify estate transitions.

Jason walks us through how cost basis is calculated, emphasizing that purchase price and capital improvements count, but maintenance like landscaping does not. That leads into a discussion about the Section 121 exclusion, which allows homeowners to exclude up to $250,000 (single) or $500,000 (married) of capital gains if they've lived in the home for two of the past five years. We highlight a major “gotcha” related to this: widowed spouses may only retain the $500,000 exclusion for up to two years after their spouse's death, so timing the sale becomes critical.

We dive into the step-up in basis rules. In community property states, a surviving spouse can receive a full step-up in basis, which can eliminate capital gains if the property is sold after one spouse passes. This makes proper titling even more essential.

When asked whether to pay off the home before selling, Bruce says it depends on the interest rate—holding onto a low rate may be more beneficial. On reverse mortgages, Jason calls them a “Swiss Army knife” of financial tools, valuable depending on the individual’s cash flow and retirement strategy, with proceeds being tax-free.

We also talk about the trade-offs of keeping a home as a rental. If it becomes a rental for more than two years, the Section 121 exclusion is lost. Jason reminds us of the "four Ts" of landlording: taxes, tenants, toilets, and trash, helping clients decide if rental property is worth the hassle and opportunity cost. Jon shares an example of a friend who decided it wasn't.

Insurance is another key area. Bruce stresses the importance of umbrella liability insurance—inexpensive coverage that offers added protection. Jason warns that homeowner’s insurance is increasingly hard to obtain in fire- or flood-prone areas, making due diligence crucial when buying or selling.

Finally, we clarify that 1031 exchanges don’t apply to primary residences, only investment properties, and we wrap up by assessing the current market. It’s still a buyer’s market as of April 2025, but rate reductions could shift that dynamic.

In the next episode, we’ll cover selling second homes and rental properties.

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/

Copyright © 2022-2025 Hosler Wealth Management | All Rights Reserved.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

📚 Get Bruce’s Book: Moving To Tax-Free (on Amazon) https://www.amazon.com/dp/B0CY2XP8CD
In this final installment of our estate and legacy planning series, we dive deep into the two-generation tax-free legacy plan—a strategy Bruce designed to help families with $2 million or more in investable assets leave behind a financially secure, tax-efficient inheritance. Bruce and Jason Hosler explore how this plan offers both control and protection, allowing parents to benefit from tax-free income during retirement while also providing long-term support for their children.

⏱️ Chapters & What You'll Learn
(00:00) – Intro & Overview
(01:05) – Why Taxes Are Likely to Rise
(03:03) – Who This Strategy Fits
(05:32) – The SECURE Act Problem
(06:46) – Parents’ Perspectives on Inheritance
(09:15) – Four Key Words: Tax-Free Income Stream
(10:38) – Asset Protection Benefits
(13:25) – Bringing It All Together

We begin with the foundational question: what do we believe about the future of taxes in the U.S.? Bruce argues, supported by projections around expiring tax cuts and entitlement program shortfalls, that taxes are likely to rise. This belief is central to the value of preemptively planning a tax-free legacy, especially given looming tax consequences associated with the SECURE Act and SECURE Act 2.0, which force IRA and Roth distributions within ten years after death—potentially hitting heirs during their highest earning years.

The heart of the two-generation plan is to carve off a portion—say 25% to 40%—of an estate and structure it to produce a tax-free income stream for life. This stream benefits parents during retirement and then shifts to their children, who receive an asset-protected, steady income instead of a lump sum. This structure helps prevent heirs from losing inherited wealth to taxes, divorces, bankruptcies, or lawsuits. It also ensures that a safety net is in place, one that could potentially keep children from ever being financially desperate.

Importantly, this strategy is flexible and isn't an all-or-nothing approach. The legacy plan is dialed up or down depending on a family's goals, financial position, and desired impact. It isn't suitable for everyone—especially those without substantial assets or those indifferent to the future financial burden on their heirs. But for families who care about asset protection, legacy continuity, and tax efficiency, it's a planning path worth considering.

We wrap by encouraging anyone interested to consult a professional. Bruce and Jason emphasize that true legacy planning requires coordination between legal, tax, and investment disciplines. For families who want to ensure their wealth benefits multiple generations without being eroded by taxes or liabilities, this approach offers clarity and control.

Bruce explains the concept in his book, which came out last year, Moving to Tax Free: https://movingtotaxfree.com/

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/

Copyright © 2022-2025 Hosler Wealth Management | All Rights Reserved.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of Protecting and Preserving Wealth, we continue our estate and legacy planning series by focusing on charitable giving and charitable legacies. Charitable giving occurs during one’s lifetime, while a charitable legacy ensures that assets are left to charitable organizations after death. Understanding the right tools and strategies can maximize benefits for both the donor and the recipient.

⏱️Chapters & What You’ll Learn:
(00:00) Intro & Overview
(00:56) Qualified Charitable Distributions (QCDs)
(03:34) Donor-Advised Funds (DAFs)
(05:16) Best Ways to Leave Assets to Charity
(08:57) Common Mistakes & Tax Pitfalls
(12:35) Strategic Charitable Planning

We begin with Qualified Charitable Distributions (QCDs), which allow individuals over 70½ to donate directly from their IRA to a charity, up to $108,000 in 2025. This strategy provides a tax-free way to fulfill charitable goals while reducing taxable income. A new provision under SECURE Act 2.0 allows a one-time $54,000 QCD into a charitable remainder trust (CRT) or a charitable gift annuity, offering an income stream while ultimately benefiting a charity. This change provides flexibility for individuals seeking both income and charitable impact.

Next, we explain donor-advised funds (DAFs), a powerful tool for managing charitable giving. By contributing cash, securities, or other assets to a DAF, donors receive an immediate tax deduction while maintaining control over future distributions to charities. This approach allows individuals to donate highly appreciated assets without triggering capital gains taxes and can be used to engage family members in philanthropic decision-making. Importantly, DAFs do not require annual distributions, allowing funds to grow tax-free for future charitable giving.

When planning a charitable legacy, we emphasize the importance of proper beneficiary designations. IRAs and tax-deferred annuities are ideal for charitable bequests, as charities receive the full value tax-free. Naming a charity as a contingent beneficiary allows a surviving spouse to disclaim assets if they are financially secure, ensuring tax-efficient wealth transfer.

We also discuss common mistakes in charitable estate planning. Many attorneys simply include charitable gifts in a trust without considering tax-efficient alternatives. Instead, leaving tax-deferred accounts like IRAs to charities ensures maximum tax savings, while preserving tax-advantaged assets for heirs. Additionally, donating highly appreciated assets before death allows donors to secure a tax deduction and avoid capital gains taxes. Conversely, failing to sell depreciated assets before death results in a lost tax loss, underscoring the importance of strategic loss harvesting.

Finally, we stress the need for personalized planning. Charitable giving strategies vary based on individual circumstances, and tools like charitable remainder trusts (CRTs) and donor-advised funds can be tailored to meet both philanthropic and financial goals. Seeking professional advice ensures that charitable intentions are met in the most tax-efficient way.

In our next episode, we’ll explore the Two-Generation Tax-Free Legacy Plan, a strategy for preserving wealth across generations. To learn more or discuss your estate planning needs, visit Hosler Wealth Management or contact us directly.

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/

Copyright © 2022-2025 Hosler Wealth Management | All Rights Reserved.

#ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler