Shanae Hustled Her Way Out of Almost $100K in Debt! (Hour 2)

January 14, 2022

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Mhm live from the headquarters of Ramsey Solutions, it's the Ramsey show where daddy's Dunham cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. Welcome to the Ramsey Show, Rachel Cruze Ramsey Personality three times. Number one best selling author is my co host today. Open phones at triple 882552 to 5. We'll be talking about your work, your relationships, your life, your money, it's all intertwined right here all day. Today we'll talk about you right in front of you. The phone number is triple 882552 to 5. Hannah is with us in Jackson Mississippi Hey Hannah, welcome to the show, Hey Mr Ramsay, how are you Better than I deserve? What's up? Okay, so I mean baby secretary paid off all my loans and I'm working on my stage and I was wondering what would be the, what, what should I focus on saving more on now? So his retirement or a house, it's a great question Hannah, where, where are you in life for you? Are you married?

How old are you? Um kind of, what's, what's your current status? I'm 27, I'm single and I live at home with my mom, I'm currently a teacher And I don't foresee getting married within the next five or 10 years and is buying a home something that you that you want to do soon. Is this something that you're looking at you like I would, I would love my own place with you know, just the situation of your living, what do you want? It was within um probably a couple of years, not immediately. Um I'm kind of wanting to stay home for like a year or so, we had a tragic event that happened in our life recently, so I'm not trying to get out of the house right now, okay, Is it just you and your mom? Yes, okay. Um and then I think that's wise. Um especially when something big happens, a big change in life, um pausing and and waiting I think is good too to kind of grieve or or go through that process before jumping into a big purchase like a house. So for you knowing that it's there on the horizon, um I would I would map out and look to see, okay, what kind of home would you look at, what is something that you think you would probably settle in, what is that going for right now, even though I know this could change in two years uh and kind of just run some numbers to say, Okay, how much would it take to save up? 10% of that, Would it take a year, Would it take five years and map it out because that also could give you part of your answer because if it's going to take, you know, three years to save up for a down payment then you may say, okay, I'm gonna just start saving for that right now and hold on for retirement because I know in three years I probably will pull the trigger and you know go ahead and buy a home. But if you think okay I You know, I don't even want to do that right now, you could go ahead and start dipping into retirement and putting 15% of your income there and then pausing that down the road when you think, okay, I really do want to save up and pay for a home.

Um 27 what's your income? Um I'm a teacher, I make about um 2000 a month. So I bring home about 24,000 years. As soon as you finish your baby Step three I'd start saving for a house. Okay right now I do have 31,000 in savings. Okay Is that not your emergency fund? And that's a big emergency fund. Well you know kind of with the event that happened, my mom was able to give my brother and I each the money. So after I paid off all my debt, That's what I had with, okay I would I would separate that out between down payment for a house and emergency fund and you're done with baby stage three You just allocate some of that as your emergency fund. Um maybe I don't know 10,000 of it or something and you got 21 towards your down payment on your house and then I would just work on your house. Down payment for the next two years after two years if you still think it's gonna be a while, you could stop saving for a house at that point. And uh but your income is so low that you're gonna want to go ahead and start chipping away at this down payment thing.

Okay. And are you positioned where that income is going to change pretty dramatically quickly? Ah Well um that sounds awfully low for a teacher, it is. The set of earth has one of the lowest teacher's salaries. Um But the I think the house is voting within the next few days to increase it And if that goes through my salary will increase by about 6000 a year. Okay. Alright. Yeah I'm I'm gonna keep working on that side of the equation as well if I'm you but there's not a lot you can do to actually make it happen. But that that's that's a concern. That's a concern because the average household income in America today is $65,000 And you're sitting at 24 take home pay which means you're making about 30. And so um you you know that that's what you're looking at. So yeah I'm gonna go ahead and start piling up money out of this.

I mean if you if you were making $150,000 a year or something. We might say you can wait until later to start saving for your down payment because you don't know when you're gonna buy. But you've got enough, You know, it's gonna be a big enough hill to climb for you to go ahead and start working on it now. Good question. Thank you for joining us. Elizabeth is in Boise Idaho. Hi Elizabeth. How are you? I'm good. Thank you. Have a question about um reverse mortgages. Do you have an opinion on those?

Okay, Well I have um a lot of home repairs. I'm in my Middle 70s and um because my home is older, There are a lot of repairs and renovations that just seem to be piling up. And so for $50,000 I could probably have this house and you don't have any money. Well I I have a fairly decent pension and income stream but it pretty much gets eaten up with medical, but you don't have, you don't have any money, you don't have that. You don't have any savings. Well, I have a Roth that would pretty much pay for a project that is. Um How much is it? How much is in your Roth? 25,000. And that's your only nest egg. Right. My financial guide didn't want me to use that because that would be my you don't have any money emergency.

I have about $10,000 in savings. And how much is your pension? I get about 66,000 a year. How long have you lived in this house? 20 years. So could you be more specific about why reverse mortgages stuck the foreclosure rate on them is tenfold. The normal mortgages and the interest rates are unusually high. And the fees that are built into them are predatory. Uh, it is an industry that feeds on the elderly and it's, it's a predatory industry. It's horrible. Uh, and you are going systematically into debt and you can't borrow that much anyway. So what's this house worth?

About 650,000. I'm gonna give you some heartbreaking advice that you're not gonna like If you were my sister. I'm 61. I would tell my sister, I love you sell your house. I wouldn't repair it. I would sell it. I would move into a nice Modern $400,000 House and Bank 250. That's what I would do. Mm hmm. Yeah. Mm hmm. Uncertain world being a good steward of your money is more important than ever.

While some circumstances can't be controlled. There are items within your budget. You can take charge of such as your health care costs for nearly 40 years. Christian healthcare ministries or chm has provided a budget friendly means of sharing for medical bills when our members needed, learn more by visiting ch ministries dot org slash budget. That ch ministries dot org slash budget, christian healthcare ministries, Rachel Cruze Ramsey personality is my co host today as we talk about your life and your money? How would you feel if you knew you were going to retire with dignity that you'd leave an inheritance to your family. That'd be freeing, wouldn't it? And the truth is you can have that kind of life. You actually can become wealthy, you can become a millionaire this year, take control of your money and start building lasting wealth with the best year ever bundle in this bundle. You get financial, peace university and the premium version of every dollar to resources that will help you take back control of your largest wealth building tool, your income and you'll use a copy of the brand new book, baby steps millionaires to learn the right way to invest to get to a million dollar net worth and what you do right now is impacting the kind of life you're gonna have later. So the good news is you get to decide what that life looks like. Get the best year ever bundle going to Ramsey solutions dot com slash best.

That's Ramsey solutions dot com slash best. This is the Ramsey show Rachel Cruises with me today. We're talking about your life and your money open phones at triple 882552 to 5. Mark is in Miami. Hey Mark, welcome to the show. Good afternoon Mr Ramsey, thanks for taking my call. What's up? Also I have a question regarding my and my wife's student loan situation. The best way to, to approach it. We do have a large amount of student loan debt. It's just around $400,000 combined. Good Lord.

Who's the doctor? Well I'm I'm an attorney and I've been out of school for about six years and my wife just graduated from nurse Anesthesia school this december. And so I have approximately 250,000 and she has about 150,000. And please tell me both of you have wonderful incomes as a result of this. Uh I think we do, we have a combined income of just under 300,000. 295. Good. Okay. Alright. We're on our way and hers is probably going up from there maybe maybe faster than yours depending on what kind of law you're practicing definitely faster than mine. Yeah. Well, well no, I was gonna say, I mean that's that's part of the ray of hope and the story with $400,000 in debt though, is that your income?

It's a big shovel. You guys have a big hole but you got a big shovel and so being able to attack the debt with this, you guys will make good progress um In a much faster obviously period of time than you know, the average household income in America is 65,000. Right? Yeah. No, we're definitely in a good spot. And I just, I know but my point is what if you lived on that? That is a good point. Yeah. And and and that would be like $200,000 a year towards your student loans and you'll be done in two years. Yeah. So that, that's a very good point. A very good way to look at it.

Um Yeah, it didn't sound real convincing. It is. But you signed up for this trip brother, What's the other factor? Mark II interrupted you. You were about to talk and I interrupted earlier. So is there another factor? Yeah, it was just um, how to, how you all would recommend approaching it because we have two sets of, of loans and, and as you all are aware with these loans are individual per semester, per section of the school. So they all have different principal amounts and different interest rates. And is there a way that you would recommend approaching that as opposed to I would just listen the smallest smallest loan, the largest loan, but more than anything, what you guys need to do is you need to really say, say to yourself, do we want to screw around with this mess for 10 years or do we want to go scorched earth where our lawyer and doctor friends think we've lost our minds and be done with this fast. I will tell you that your probability of getting out of debt and becoming extremely prosperous increases by every year you cut off this, get out of debt plan. So I would be, I would be if, if I woke up in your shoes, no one I know I'd be band aid off, rip it off the guy. I'd be, I'm I'm we're doing nothing.

We're not going on vacation. We're broke. Yeah, we're a lawyer and a doctor or nurse anesthesia is but, but we're broke. We are $400,000 in debt. We are broke. And this is the way I start talking to myself and go, no, we're not buying a car. We're broke. No, we're not going on vacation. We're broke. No, we're not going out to eat. We're broke. We're gonna live on 65,000.

I don't really care what your stupid friends think. I'm getting out of debt because dude, if you get rid of this, you know what you got, you got a 300,000 going on a $400,000 income with no debt, you're gonna be so stinking wealthy. You're gonna be able to do anything you want to the rest of your life. That's how I would approach. That's how I'd approach. I appreciate you looking at the the long game. Looking at the end of the endgame. And the problem is in your world it is so in lawyer world dr royal nurse world, it is so normal to walk around for a decade with this backache when you make more money than 98% of people out there walking around and they just, they, they, I gotta tell you man, I meet broke attorneys all the time. Mm hmm. And they just because they've normalized it that this is okay. And when other people in other industries look at it and they just freak out going, oh my God, he's got, you know, but in your world it's just normalized. And you, if you're not careful man because you're running around with a bunch of people who on the financial side of things are stupid.

They're stupid. Uh, and and they're keeping these loans around and then it's just a way of life. It's just part of it. And they walk around with this backache, man, you ought to get, you ought to get fired up and I want you to be a weird lawyer. And it would be, it would be interesting Mark, the exercise of getting just a investment calculator out and saying what if we invested our student loan payments. So say we had, so just say you did this plan right? You went two years scorched earth paid it all off and then you took, what is your student loan payment every month and put it in an investment calculator and just play it out. It's tens of millions of play it out and just see, okay, what, what could it look what it's costing you and for for a short term sacrifice for what you guys could do. I mean, it's, it's amazing. And I think that would be hard to, is with this income, the pain probably isn't really there, it's not like so so you have to almost create this urgency even though you're not feeling it, like I even hear in your voice, Mark, there's not an urgency, there's not an urgent nous. So you so find find the why, what is it, what is it about this debt that's gonna piss you off and say man if we had just paid it off earlier, what would we have done? Right?

Like like run all the scenarios, Look at all of it because you can you guys can have a lot of money, which is awesome because you can do a lot of fun stuff, help a lot of people your life could really be different if you just said, Hey, what if we got rid of this debt this massive. The difference in what I'm talking about and what you're thinking about is $10 million. That's the difference. You need to get that in your dad gum headman because you're gonna you're gonna screw around with this thing and you're gonna normalize it and you're gonna keep your stupid law, your lifestyle while you're broke And you're going to take 10 years to do this versus two years to do this. And the difference is $10 million. That's what's that's what's gonna cost you in what the money should have done this fabulous income should have become what you could have become, but you've got to pay a price to get there and here's the interesting thing you do have you and your wife have the unusual ability to delay pleasure for a greater gain. We know this because you went to law school that's while everybody else was finished their undergrad and went to work. But you delayed pleasure for a greater game. She went to Anesthesia school. You delayed pleasure for a greater game. And that's all I'm trying to get you to do is apply that that level of maturity to the math on this money situation. And if you do that dude.

But if you get dr itis where you come out and have to look like your dad young rich lawyer when you're broke in, Miami may not help either. You're not living in des Moines. There's a there's a flashiness to Miami was just fun. But the culture to it, you're gonna push back, you're gonna get a lot of work to stay out of Miami beach. Yeah, this is the Ramsey show, Rachel Cruze. Ramsey personality is my co host today on the debt free line. Shani is with us in laurel Maryland with her debt free story. Haitian, e What's up? Um Nothing. I'm fine to be talking to you. Dave to you too. How much debt have you paid off kiddo?

A little over $93,000. Good for you. How long did that take? Two years and 10 months? All right. Like it. And what was your range of income during that time? Well, I started off at about 64 I finished at 170,000. Ho what happened to your income? I started my own business and uh it did really well. What are you doing business? Um I actually am an herbalist.

I saw herbal tea but I kind of do it with a hip hop flair and so I just got a lot of other interested people and just really worked on my marketing and boom. Hip hop, herbal tea is big in Maryland. Oh my gosh girl, I like it. This is very cool, good for you. So what kind of debt was the 93? Um well 73,626 was student loan um and about 11,000 was a car loan and then the rest were some credit cards, wow. So what happened, what happened three years ago that woke you up? Uh Well honestly um I was sharing a bank account with someone and they had a judgment against them and they they took the money out of my account and so I was really in a rut, I didn't have any money for anything and I realized man, this really sucks. Um and so I got more serious about paying off my debt um and just realizing how much more money I would have if I wasn't putting out so much to debt and other bills that it was, I was just working to pay bills like I didn't have anything at the end of it. To the point where when I had a mistake I lost all the money, I didn't have anything. So um it was like a scare but I got serious about my finances. Um um The total money makeover, I used it to pay off my very first car after college.

Um And then I guess I chucked it away dave and I got more debt and didn't use it for paying off my student loans. Um But it worked to pay off my my first card. So I said let me try it again even though I'm worse off now it should work. Okay good, good, good for you. How old are you? Can I ask? I just turned 34. Congratulations. That's amazing. Absolutely incredible. And from start, I mean like what happened to you three years ago and your bank accounts wiped out? I mean all of it, I'm like whoa!

I mean you started from the ground up. I mean you really you've done this, it's amazing and started your own business. I mean it's incredible. You have an amazing story. Oh thank you. Then when you put God first nothing, you can't do that right? That's good for you. Good for you. Well done. Okay. Now that you've now that you've done all of this, will you, will you go back in debt again. Oh I need therapy.

I've got pTSd I need like you need some good herbal tea way I know a girl by the way she can hook you up. Yes. Oh man, I'm done. I'm done with that now forever and you're done combining accounts with people that haven't got their crap together. Yes, I'm, I'm more than done with, I got a feeling there's a story there. Oh my gosh, So what was the hardest part for you as you're doing this? I mean you started from basically nothing like you said with your story at 31 you and you did it. So what during the journey, what was, what was the toughest part? A lot of it was just kind of feeling like I would never get out of debt. I think that was like the most crushing blow. Um it's just feeling like I really screwed up and there was no way out. But um there is a way out.

You just gotta work the plan and work your hardest to make more money and be diligent about paying off your debt. Um but in those dark moments man, it's like, oh you have nothing to spend, you have only, you've got, you learn to be grateful for having your car note paid and your rent paid and having food in your refrigerator. You know, you really learn to be appreciative of those moments and not thinking about man all the extras and what everyone else is doing on social media and where your friends are going. Um you can really feel like you're left out and not doing the right things but if you work the plan you'll realize that in the in its it all works out for the good heart of gratitude to which is a big piece of this that you have. Well I like that you decided this answer to your equation was entrepreneurism. I mean you went after it. Um Yeah I did. I you know you've been working, you've been working, you don't accidentally do this. No you you gotta work hard. Even on the days when you make no money or the days you lose money you gotta work like you made a million dollars definitely work. Yeah I can tell, I can tell you've been busting it. I mean 170,000 is a lot of t.

Yes and taxes. Yeah. T. And taxes boston tea party is on the horizon. I'm just saying wow look at you, look at you well done. Okay so what do you tell people the key to getting out of debt is um you gotta make more money, you gotta do what you gotta do. Whether that means getting more skills, whether it means finding a side hustle, um whatever you gotta do you gotta make more money because once you get to my point there was nothing else to cut you know so I had to make more money to pay off those significant student loans. They weren't going down. Some of the best businesses ever in the world were started by someone that had to get something going, you know, and you're just, you're, you're amazing. I and I got a feeling this is going nowhere, but up, you're, you're like a force of nature, I'm proud of you. Well done, thank you. Thank you.

Well done. Well done. We've got a copy of baby steps millionaires that will send to you because that's definitely the next chapter in your story. For sure. How ordinary people build extraordinary wealth and how you can too. I think you'll be in Being that list of people that did this thing and also send you a copy of the total money makeover that you can give to somebody so they can pay off their car loan and 11 years later decided to do it all again. Yes, hopefully they will be better than me. Don't fall off the wagon again. Don't make me come to Maryland, I can't do it. I can't, I can't do it. I love it. I'm proud of you.

You're something else. Very well done. Alright. It's shiny and laurel Maryland 93,000 paid off in two years and 10 months, Making 64 to 1 70 count it down, let's hear a debt free scream. I'm debt free. This is how it's done. Ladies and gentlemen, oh my goodness, that's fabulous, I love it. I love hearing people's stories because either the equation of cutting expenses is a big part of their story or making the income because some people are like oh gosh we're spending that we just cut nothing and we had all this money, we were able to throw out the debt paid off and for her she's like I cut everything but I had to make more money, you know that it's interesting which part of the equation people uh gravitate towards or for their specific situation, what they need to do the most of it, but we don't know what happened with that account that that got messed up. But what we do know is is that there's a whole lot more happened with shiny and they're usually is than simply going, oh I think I need to pay off some debt. Her whole way of looking at life was transformed. It had to be, I mean she had to get different people in her life and get the wrong people out of her life than right right people into her life. She changed her way of looking at her career and her income boom, here comes this business out of these ideas, this is a whole abundance idea rather than scarcity thing, which is exactly what you're talking about there and you talk about that and know yourself know your money as a matter of fact, but she transformed and then as the debt was leaving and it was necessary for her to do that for the debt to leave.

It was a whole lot more than simply I'm going to change the way I handle my money, her whole life turned over and in a good way. And that happens so often and it runs parallel. That's why we hear people losing weight while they're getting out of debt. We hear people whose marriages are healed while they're getting out of debt and and it's not that that getting out of debt is magical. It's just that you're, you're affecting your relationships and your behavior so positively all at one time and there's this massive, massive move in your life. Good stuff. This is the Ramsey show. Mhm, mm hmm. Yeah, mm hmm, Rachel, Cruze Ramsey personality. Bestselling author is my co host today. Open phones at triple 882552 to 5. Anastasia is with us in new york city.

Hi Anastasia, how are you? Hi Dave and Rachel, I'm better than I deserve. Cool, how can we help? So me and my husband were huge fans. Uh currently we are refinancing our 30 year to a 15 year. Um we've been working with a lender. We signed an initial disclosure with them in December. They got back to us with a 2.75% interest. Our current bank is offering us the same or possibly a lower rate, but we also get a schema Tax which adds up to about $7,000. My question is should we um is it moral to stop working with the bank that we've been working with since December and stay with our current bank and get that ball rolling? Or should we um not take the free money for some reason. What is the free money from your bank?

I didn't understand Sema is a in New York state there's like a transfer tax. So if we want to stay with our current bank we don't have to pay the $7,000 transfer tax. That excuse me, we would have to pay with any other bank. So to record the mortgage, it's like a transfer text. You're not transferring anything transfer texas if you sell the house. Are you sure? Yes. I'm sure because we've also talked to another lender who was trying to get us to schema but he said that our bank is slow on it and that it would take 12 weeks to close and we don't know what the rates would be like in 12 weeks and to lock in the rates for 12 weeks might not make sense to pay the transfer tax. Is that what you're saying? Yes but they're also not going to pay all of them. So the best, the best option that we've come to after talking to three lenders is either staying with our current bank and doing the whole application and everything from start or to keep going with the bank that we're going with. That we started going with your current bank?

Really shouldn't have a bunch of applications and stuff. They've already got a loan on the books. Right. Who's your who's your current who's your current lender? Our current lenders M and T. Bank. And so it's $7,000 cheaper for the same mortgage. But you have to start the process over. Yes. So and is it moral to like stop now before we locked in the rate that we're talking sure you haven't closed on alone. You haven't signed a contract with a mortgage company. You just were you're trying to get a loan worked and you've got a better deal.

Right? But then like can they charge us attorney fees or anything? We haven't paid anything. No, no, you don't you didn't sign a contract. They just are you just running a loan application and you decided you didn't want the loan, Right. We find an initial disclosure. That's fine. A disclosure just means they disclose to you what the rates are. That's all that means that's that's not a that's not a contract on your part that says I'm contracting too close. I mean, they're gonna be disappointed. They're gonna lose a deal. But um you're just shopping loans and you found a better loan?

That's all it is. I mean, there's not there's not a moral dilemma here. Okay. And I do have another question. I would try. I would try to give the current bank the opportunity to match it. But I don't think they can No, they can't match a team alone like that. $7,000. Yeah, I know that's why I doubt they can. But I just go, look, this is this is what's driving this, you know, we weren't mad at you, we were ready to do this, but 7000 bucks. I mean, what would you do? And they gotta go, well, yeah, that's what you should do.

I honestly, I'm not familiar enough with new york. Uh law, real estate law to know what you're talking about. It's a very, the thing you're describing is very unusual on a national level, but hey, it's new york. I mean, of course it's unusual. It's like California is like saying it's California. Weird. Yes, of course it's weird, you know? But I mean, weird laws, weird laws in both states, uh, and taxes taxes, you know, that's, and this is yet another taxes. I don't know of another state where you, when you refinance your mortgage, you get tagged By the by attacks. I didn't know, I've never heard of that in any state. I didn't know that happened. So I'm learning something in this call, but doing this show for 30 years, I learned something almost every day.

Steve is in Chandler Arizona, hey steve. What's up? Hey, Dave and Rachel, nice to talk to you guys. I'm in baby steps seven and I have about, yes, thank you. Um So I have about $65,000 to uh that I got from an inheritance and I fully funded by ross for 21 20. What should I do with the 65 k. It's a fun question Steve, what do you do with $65,000 in baby steps 7? Well when you're at this point, I mean that's why I can give you lots of destinations you can go. You know I mean it's you know at this point you really do three things with money. You give it, you save it, you spend it. And so with this amount I mean I would do that. I would I would take a little bit.

You can be generous with some of it. I think some of it you you put away maybe you take some of it out and say hey for for retirement next year I can I can stock some this way or maybe your um I don't know if you have just even a just a mutual fund open outside of retirement, you can throw some in. Um but saving a little of it and then I think enjoying some of it. Where did it come from? Yes, but like a family member. Yes. And where are you married kids? No, no no no wife, no ex wife, no kids. Okay. Yeah. So I mean that I mean if I were you steve that's what I would do. You have no payments?

I would I would give some of this away. I would put some away for, you know, the next year or two if there's something you're saving towards and then you can enjoy some of it. Exactly. That's what uh Sharon and I do we get uh lump sum checks from publishers occasionally from, you know, some of the books are still paying royalties over the years and that kind of thing. Even even Old Financial Peace, I still get a check on it from the nineties occasionally. And so when we get a check in, what were what were we have, the practice of doing is we're always gonna we take percentages and we say, all right, we're gonna tithe on it were an evangelical christian. So we're gonna give 1/10 and then we're going to do another chunk of giving a percentage. We're going to enjoy a percentage, spend it on something guilt free. Um And we're going to invest a percentage. And of course in our case we have to set aside, you don't have an inheritance, but we have set aside 40% for taxes. So before we even start talking about this. But that's you know, that that you just we teach people that um high net worth people when they get lump sums like that to always just give every dollar an assignment and it helps if you're gonna be doing this regularly and hopefully you're not gonna be getting inheritance regularly.

That would mean bad things for your family. But um but I mean the uh you're gonna get a lump sum regularly, folks, you just apply, set yourself up a formula. So I've already got a formula set that you know when I get a check in, it's like that percentage goes there, that percentage goes there. So if it's you know, no matter what the amount of the check is it still laid out? Okay, so that's a good point you make, you said yeah you're not gonna get tax on this inheritance. What it's like there there's no tax on inheritance. Uh But the gift tax, there's gift like what like the different there will be a gift text if somebody gave you money. Yes. Yes, but that's on the giver, not on the receiver, the giver. Yes. Okay. So they're still not taxable from an income tax perspective and inheritances.

And is there like a lot, what is what's around that to protect an inheritance that it's not? Well the there is a there is a tax on inheritance tax, but it's up if you're over $20 million dollars on the estate, there's an estate tax. Federal estate tax. Now, local Uh most states have a probate tax as well when the will is probated. Um and that sometimes can be as much as like 5%, which is pretty substantial sometimes. So uh but but again that when the estate is settled that money is paid out of the estate. So when you send a check to the person who inherited money, it's already netted out. Yeah. So you still don't have any taxes in that case. Um, even the federal estate tax, you don't have it. But um, but it does come out of the estate before, you know, it should come out of the estate before you distribute to the heirs. Um, but land is different though, right?

Because I, but when you inherit land, you have to pay the tax on it. It's, it's um, what's the whole thing? I mean, I feel like I know about family members that have inherited land and they can't keep the land. They can't pay the taxes on it because it's too much value. But that's different. That's different. And an inheritance, that's the, It is inherited. Well, they can't pay, they can't, if it's, if it's like a huge family ranch, like these huge ranches are being broken up family farms because they're worth over 20 million. Oh, but it's got to be over that point. And that taxes can be as much as 55%. So because we must punish rich people. It is a rule in America, this is the Ramsey show.

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