Strategic Title and Wealth Preservation, with Stephanie Hopkins

0:01 Welcome to the Executorium podcast. I'm your host Bill Gross at Bill Gross Probate and I'm on we have on the call today or on our podcast today a longtime friend from the state of Florida. Stephanie Hopkins is a probate title agent and helps executors get research and understand how title is held and maybe where some research on where properties are, if there's a mortgage, who the mortgage lender at least is when it was recorded, as well as provide some great solutions for building wealth through real estate. Stephanie, thank you so much for joining us today. Thank you for having me, Bill. So, how long have you been involved with title and real estate? I've been in title a little over three years now. Yeah. I have been in the insurance industry in various sectors handling risk assessment for over two decades. And people understand that title insurance is really an insurance product. We don't feel of it that way but really it is ensuring title to prospective buyers and sellers so that transactions can be made. Correct. That is correct. Title insurance protects the buyer and the lender for from any mishaps in the title from any liens or encumbrances that may have been missed in the title search. So that's the reason why title insurance is so important and so we often though and one of the things is in addition to providing the title insurance on transactions is you help us do research before we have a transaction to help us find out what we need to ensure. And so I mean as recently as today you and I were transacting on a case where a family has a deed and the question is whether or not what we have will help us move forward or not. So what I'm not sure what you call that to me that's kind of like the pre-title research and service that title represents like you provide.

1:50 Yes. And I actually provide that work under my nonprofit which is Embracing Life Development Inc. So I provide the research under that entity as well as help the executors with their legal document preparation as a non- attorney. So you also help them pre prepare documents for what estate planning purposes like wills and trusts and such. Yes. As well as even small estates. And how about when people don't get it ahead of time? That I think that's what we're focused on today is primarily when executors don't have the that done. That's where you help out as far as providing the research of what those documents need to look like. Yes. Yes. So I'll look in public records and help find whatever it is that they need for me to do for them. I can do that because I understand from being an executor over the of a of an estate what that can be like, right? There's it's so overwhelming and if you could have someone who understands the process inside and out to be that guiding light for you that's a great thing. Yeah. And like I said I just usually today we have a very sophisticated team and this case a probate almost legal group but they have a deed and the question is you know is this sufficient? I think it was power of attorney there's some sort of question as to the format. Of course, every state's a little different. And the key is you have companies that you take this to and they actually make a decision. Yes, we'll ensure this or no, it's not sufficient or no, it's not sufficient, but you need to do this to get it corrected. That's part of the process. Correct. That is correct. I have a curative attorney on my team as well, and that's exactly what they do. They'll look at the deeds and they will assist with clearance of it, whatever it needs to be done in order for it to become marketable. So, what are common challenges or problems that people have in their deeds that you can help them with that you help them fix? Can you give me an example or two?

3:52 Well, there are some hidden liens, right? Most people don't think about utility bills. They don't think about mechanic liens. They don't think about the PACE liens where they've purchased a HVAC roofing insulated windows. Those are what they call voluntary liens. So once you sign those documents, then it's coming through your taxes. So, if you fall behind on your taxes, they can actually foreclose on your property just for those items that I just mentioned when it's guard regarding the PACE liens. And so, to be precise, a PACE lien is a lien where somebody owns a property and gets a loan that they use to improve the property. And oftentimes they forget about it. I mean, my experience as a real estate agent is people forget that they have these liens. But at some point, they've got to be paid off through the process. And so, that's what you do. That is correct. And what happens is they become what you call zombie liens, right? They don't resurrect themselves until someone wants to purchase and then they come back a lot. So it's triggered, right? And it has to get paid. There's no there's no solution that says we're not going to pay it. At the end of the day, you're either paying it or you're paying it, but one way the other you're paying it. Correct. Right.

5:16 They'll end up paying it out of their proceeds. So that's the reason why you want to make sure that you are evaluating your home accordingly so it will accommodate the payout for those liens. So and obviously people are surprised when they find those and they're not happy when they find them, right? I mean that's kind of a common occurrence. People want to shoot the messenger when you tell them about this. Well, I think what makes it an issue is they don't realize it's a voluntary lien. That's what it is. This I'm not sure if it's being disclosed that it's a lien, but they're like, "This shouldn't be on my, you know, shouldn't be a lien on my house." And it's like, "Yeah, you got this water softener, you know, you did this roofing, this ace, all of it." So, yes, that's voluntary lien. So that's where they get a little surprised at and if in a case of a probate or trust often times mom and dad did didn't tell the kids that's how they got the solar the water heater and yet it's got to get paid and so the kids are in the mind dividing up the proceeds and they find out there's another 50,000 or $30,000 that isn't theirs. So I think one of the things that I recommend to people is as soon as you start working on a trust or probate case to get a preliminary title report to get all these liens out and then you can start working on them if they've been paid or not. Correct. Absolutely. As soon as you identify that there's any issue in title, that's the first thing that you want to address. That's your first due diligence. That's what I always recommend. Because of the days and times that we're living in. We're in a whole new era. You have to work a little differently. We're no longer in the good old boys and shake your hand and word is gone. Right now, people will shake your hand and things will be so wrong with the property. You don't realize it until later. But if you can get a jump on it, that would be the best thing for the families. Another thing too when you mentioned about heirs, so if any of the heirs

7:21 Inherit a home, then they're if they owe any money, that becomes a part of that inherited house. So that would have to be taken care of too in the settlement. Yeah. And so that's part of the process is if you step in as a trustee really you become the owner of the property like your mom or dad was before they passed. So you have all the same responsibilities and obligations that they have going on. One of the other ones is property taxes that you have to continue to make those payments and the title report will provide whether or not the title insurance I'm sorry the taxes are up to date and if not then you can you know start making them or get caught up or if they're up to date you can be relieved or and you'll find out maybe they're part of the mortgage payment process but at least you can find out when you get to title report what the you know the mortgage was if any and the tax status and any other liens like we talked about PACE liens. Let's talk a little bit about reverse mortgages. I think that's one of the common areas that people get surprised on when they step in as a trustee or as a administrator of an estate. Oftenimes people will say, "Well, the house is worth $400,000. There's a loan here for $250,000, but mom or dad don't have $250,000." You and I know that's probably a line of credit. Which is common with reverse mortgages. I think 80% of them have a line of credit established with them.

8:41 How common is it that people have those, you know, those questions to come to you and say, "Hey, this isn't really my lien because they haven't accessed it, but it really is their lien." That must be a common problem or one that's growing. I would think it is. And it comes due quick. They will give the family I believe it is two sixmon extensions I believe. So I think it's a year. But once those interest start piling up, it becomes unbearable. I have seen a house having to be sold in probate because of the reverse mortgage. The children were not aware that the mother had done a reverse mortgage on the house and she had passed a year prior. They did not get an attorney until a year later and that 60,000 turned into a hundred plus,000. M so they end up having to sell the property in order to satisfy the debt. That's part of I guess the sooner you find out the soon you can start taking action on those things. Absolutely. Due diligence that is the best thing that you can do especially in this probate arena. And people get stuck because they don't know. But if you can find someone to call such as myself and I have such a huge network that I can reach out to so that we can get the ball rolling so we can help you get more bottom line.

10:12 Let's talk about you also have a strategy a legacy strategy session process where you help people kind of put together a plan. Talk about that a little bit. I noticed you have a ability to set a time to get together on that on your website. Talk about that process and what service you're offering people. Yeah, so we offer it for my title agency, right? We also offer it for the nonprofit. And so what that does is that you and I would meet we would go over what your goals are, right, with your property or if you're trying to establish an estate, right? And once we gather all of that in information, then I will go to my team, my team of tax strategists, estate planners, real estate attorneys, and we'll come up with a plan based off of our conversation, and then we will meet again for the implementation process where I will give you the layout of the land of what you once did. And so, what are typical solutions you help people take advantage of? So, most people they're looking for, trusts and estates to be set up, right? Because now they've inherited this property and they want to protect it for generations to come. They also want to know about the tax inheritance, right? And the gift tax and sometime they even want to set up a plan where they can just, you know, give money away to the charity. So, we help with all of that.

11:45 So there's things that you can do short of an attorney in the state of Florida. In California, we're very limited in what we can do, but in Florida, you have a lot more leeway. And I think it's interesting that you're professional in title. You see more than most attorneys. You know, an attorney can do not can do zero estate plans their whole career. They can do nothing but drunk driving, criminal work, but they can write an estate plan in California. And here you've been insurance and title. And you see all the mistakes, you see all the problems, you see all the documents, you see what contest did. And in California, you can't write an estate plan, but in Florida, you can help people, I guess, put documents together and help them put together the pieces of the puzzle to help them preserve their wealth. Yes. Under my nonprofit, Embracing Life, I can. Yes. And again, that's also something that when people inherit money, often they need because maybe mom and dad were wealthy and have four or five heirs. I find regularly the kids inheriting don't have the same wealth and also don't have the same plan put together but they need to if you have kids inheriting money inheriting house you need to protect them and so you offer that as a tool in your process. Absolutely. And we explained what this is, right? Cuz as you stated, some have never inherited before and they don't understand that they're still responsible for the carrying costs, you know, on the home such as you mentioned with taxes. You know, you technically never really own the land.

13:10 You just own the structure that's on it. So, if you don't pay your tax bill, then you will lose your property as well as your house altogether because it's fixed. But, we bring we make them aware of these things because they're in a space they haven't seen before, right? And we educate them on what this looks like moving forward. And, if there's any questions that they may have like financial, we even, you know, assist with that as well. Well, look, I appreciate your time today. Your website is [shown on screen]. I'm reading three things at once here. I'm so sorry. Steph and I just did business this morning, so it's not like I don't know her. We're working on my best I put my best client's title in her hand, so I trust you. You should as well. [website shown on screen] I just clicked the button. I don't even read this out loud. I'm like, Black Wall Street Title LLC. Where you can go if you want to have a personalized legacy strife session. This is where she helps you as far as preparing your legacy. If you're an executor inheriting money and you need to set that up, have questions, that's where you go to do that. And then this is the Executorium podcast where we get together and promote the Executorium website which has really four basic features. It has directory of estate providers. It has a directory of government resources which is great to find the forms for both your st your state and your county.

14:42 I was going to say stounty your state and your county and then also information articles and learning on more about the resources. If you go to the service providers and you click you put in your county and for example under real estate you'll see Black Wall Street LLC and this is where Stephanie's link is but she does more than just real estate. She does title, she helps people invest in real estate. She als helps people preserve the real estate through proper planning and help with the documents. So Stephanie, thank you so much for joining us today. I always appreciate talking to you and of course I need to hear back from you when we have chance when our client gets you the documents. Please get back to me about what we're working on together. Okay, I will. I will. Thank you for having me. Thanks so much. And to the rest of you, this is Executorium podcast. We get together every week and review the Executorium website, which is a great tool for executors and for people who are Oops, I lost my spot there. You know, I'm a little slow today. I don't know. I need to fire my producer, I think. Oh, I am the producer. Anyhow, the Executorium Podcast, we get together every week and interview people like Stephanie who help executors and you know, state administrators and such you know, with the t with the task with the jobs. We're professionals. We have a Facebook group if you want to continue the conversation, if you're looking for references, whatever. And then again, go to the Executorium Podcast, our Executorium website that has all the information, the different vendors in your area, the state and local resources, as well as blog and information on how to do business.

16:07 I'm Bill Gross at Bill Gross Probate. Always appreciate you guys. Put comments in if you like it, don't like it. What would you like us to talk about if we can help you be more effective? We're glad to do it. As always, may today your