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

In this episode of Protecting and Preserving Wealth, we continue our estate and legacy planning series, focusing on strategies to leave assets in a tax-advantaged or tax-free manner. Bruce Hosler, Alex Koury, and Jason Hosler from Hosler Wealth Management join Jon Gay to break down key approaches to optimizing wealth transfer while minimizing tax burdens.

⏱️ Chapters & What You'll Learn
(00:00) – Intro & Estate Planning Overview
(01:37) – Tax-Advantaged Assets
(03:17) – Tax-Free Assets
(04:32) – Repositioning Assets for Tax Efficiency
(10:51) – Real Estate, Step-Up in Basis & 1031 Exchanges
(15:28) – Beneficiary Designations & Avoiding Probate

We start by distinguishing between tax-advantaged and tax-free assets. Tax-advantaged assets, like traditional retirement accounts (IRAs, 401(k)s, and 403(b)s), allow for tax-deferred growth but are taxed as ordinary income upon withdrawal. This can result in higher tax rates, especially when withdrawals are made in retirement. On the other hand, tax-free assets—such as Roth IRAs—offer significant advantages by eliminating federal, state, and capital gains taxes on withdrawals. However, certain investments, like municipal bonds, can impact Social Security taxation despite their tax-free status.

One way to convert taxable assets into tax-advantaged assets is through tax-deferred annuities. These allow for capital gains deferral, meaning taxes are only due upon withdrawal. Moreover, these tax-deferred annuities can continue to provide tax advantages even after the original account holder passes away. To transition tax-deferred accounts into tax-free assets, Roth conversions are a powerful strategy. By paying taxes upfront, investors secure tax-free growth and withdrawals for themselves and their heirs. Additionally, life insurance retirement plans (LIRPs) provide another alternative, allowing for tax-free income during retirement and tax-free wealth transfer to beneficiaries.

We also cover the importance of the step-up in basis, a tax rule that can eliminate capital gains taxes for heirs on inherited assets, particularly real estate. Real estate investors can also take advantage of 1031 exchanges to defer capital gains taxes while maintaining income-generating properties. Given Arizona's community property laws, properly titling assets in a revocable living trust ensures maximum tax benefits for surviving spouses and heirs.

Beneficiary designations are another crucial element of estate planning. Regardless of what is stated in a will, financial institutions usually honor the beneficiary designations on accounts like IRAs, 401(k)s, annuities, and life insurance policies. Properly structuring these designations, as well as using pay-on-death (POD) and transfer-on-death (TOD) instructions for bank and brokerage accounts, helps avoid probate and ensures a smooth wealth transfer.

We wrap up by emphasizing the importance of reviewing estate plans regularly to ensure they align with current tax laws and personal financial goals. If you're looking to optimize your estate and legacy planning, reach out to the Hosler Wealth Management team for expert guidance. Stay tuned for part five, where we’ll discuss charitable giving and legacy planning strategies.

*A life insurance retirement plan (LIRP) is a strategy that uses the cash value of a permanent life insurance policy to hold retirement assets. The policy must be properly structured and managed to avoid becoming modified endowment contracts; distributions from modified endowment contracts are subject to tax rules and penalties similar to non-qualified annuities. In addition, withdrawals, and loans plus interest on them, lower both the cash value and the death 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/

Copyright © 2022-2025 Hosler Wealth Management | 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/

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/

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/

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