The Legal Exchange 10-21-17

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Sunday, October 22nd
00:54:00

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This is the legal exchange which John let's keep from the low for a look Cushing and Dolan and Susan powers of the Armstrong advisory group. Each week Todd and Susan we'll discuss many topics including estate planning how to avoid probate and protecting your money from a nursing home. If you need assistance in any of these areas for have a question about another issue that may affect your future. Call 8668485699. To make an appointment that's 8668485699. Operators are standing by now here are your host Don let's game and the season for hours. Welcoming to illegal exchange photography. I'm season powers I think he took sides of arms hung inside street group. And I'm joined by Todd lets be a partner with them off from Cushing and talent but the masters in taxation. Todd welcome how are you never veteran U I am great thank you woody have lined up for us today got a lot of talk a little bit about Medicare part B premiums cost of living increases and 2018 okay and how it sounds good maybe 2% on hearing on hasn't been announced yet. But might not be boom that you think it is when he talked about the other things that are arising in and a lot of discussion about that I wanna spend some time on that. And I really wanna tie it into a tax reform discussion. As to you know trumpet is trying to figure out how to change the tax laws and reduced rates and X better not a lot of details still given yet so I can't really offer to too much on it. But they already know that they're gonna need to generate 2.4 trillion dollars in lost revenue over the next ten years. Let me share with you some amazing insight on where they think they're gonna get that money from from cans and white tax cuts are not always the panacea. That people think they are and who. And then I wanna go over at Tennessee lost will. Think about capital lost will what governs as the copy of the will govern. Is it a lost will statute that governs. Where the assets go if you can't find your will and so I wanna explain that Tia. And then I wanna head over to North Carolina we got a case where I've guardian and and atrocity. Were removed. Because of self dealing look at too much self dealing and we're gonna give you some tips on how to not have that happen with your trust. And we have some questions from listeners for you as well tied eighteen and folks. You know what did the female at this month is gonna be over and Todd Skype is written. For the month of October it's designing the perfect income only carry vocal tracks. In if you put up doing complaining because you weren't shore. Really what to look for what should be in your trust what shouldn't be in your roster how these trust my operate on a dated babies. Put it off no more because tot guide that he has written. Includes deet tails about all of those important link which paragraph that must be included in your trust. And maybe more importantly that language that absolutely must not be in your trap. If you would like to receive a copy of Todd to guide designing the perfect Harry vocal contrast. Log onto our website at legally changed to dot com. The only way you can get the skies online so log on right now to legally exchange showed dot com go to the guides and articles page and you can download your free guide instantly. If you missed any of today's or any of our passion as you can also. Download our podcast and listen at your convenience. So there's a (%expletive) about Medicare part B you probably know more about it and I do. This situation is is it looks like cost of living increase is going to be him out 2% I'm hearing in the grapevine nothing official yet but that's what the speculations yeah and also living for Social Security Social Security which we haven't seen and how long the net. We've been struggling with flat to know who who increases. At all so cost of living could be going up however you read further in this article and says yeah but physician services are going up. So that's gonna wipe out your cost of living rent increase and you know we're learning that over since 2000. Buying power of seniors. And there's a lot of them. Went down by 13. Because. Since 2010 now we'll move there's been zero to no cost of living increases or very small group. And it can't keep up with the cost of inflation right in the years that they do get a cost of living it's eaten up by the increases in making. And partly the proof is in the pudding because in 2000 there were four million people over 65 still working. Now there's nine million. So that's an increase while I'm not a big fan of just pure stats because I say yeah that's fine. But in 2000 we didn't have 101000 baby boomers a day turning 65 right. But we have for a long time now yes and so there's obviously more people. Over 65 now than there was in 2000 in the air yeah justify the numbers. There are a lot more people living a lot longer life expectancies have gone up so maybe a lot of people are of the ninth inning a lot of my clients are singing a lot. We're gonna a year ago because I'm gonna live probably a lot lock it in the longevity and their family so it's yeah you know it's it's really concerned and I agree and and I think some people are working because they just want to Yahoo! board. You know it's nice to have something to get up and do share every day even if it's part time so I'm not. Overly shocked by that statistic I think we do need to understand that it's expensive this is the message here is that you know. Health insurance of any kind is is very expensive now in this country and and the other problem we're seeing is that not only are they working longer because they're not saving as well the savings remember has been shifted from the employer to the employee. Whose. And you know people in general week week. We tend to just not safe no more pensions can't rely and that they'd fixed income you're gonna get in addition to essential air right. So it's it's one of those things where we just don't. We don't always say if we do so that's a little bit of that discussion but it kind of led me right into this tax reform discussion here's the shocker. So we know that that you know with a thumbnail sketch that we have of of Trump's. Tax reform it looks like he's going to a three tier personal income tax bracket and no money speculate on exactly what those are. And a heavy focus on corporate. Tax reduction chair and I think that's really where you're seeing it. And they'll possibly some changes to the estate tax rules may be elimination of peaking again. So that's a thumbnail sketch of what they're trying to do well. Scaling back all of those is gonna result in lost revenues. Chairman and as much as we say we want to stop spending you know there's always gonna stop spending on the military. That's not gonna happen and so that's really where you have to cut in a lot of the cuts and spending isn't gonna happen so. They've predicted I guess via an accounting board predicted. About a 2.4 trillion dollar increase in revenue will be needed after that tax cut so that we don't. Continue to increase the enormous deficit just a little tiny little prickly and fortunately at least that's over ten years we have already so it. So they said well here's a nice idea and the shocker. Is that it's both parties. Are thinking this. 401K plans. We just got done talking about how the onus of saving has been placed on the union Italy India and now they want to eliminate the 401K. Benefit when I say you can still contribute to your 401K. And it will still grow tax. There'll actually be like Iraq we will grow tax free. Inside the 401K but your contribution. Will be taxable so not deductible on your taxes right so if you're put in twenties and how much can you put in Italy out. So let's say the average worker can put away 23000. Dollars a year. That's normally 23000. It doesn't show up on the WTO. Right yeah. And it just finds its way into the 401K. Tax. Free tax deferred tax deferred for an hour come out tactically right. What they're proposing here is that we eliminate. That. And that if you wanna put that same 23000. And now I don't know if they're gonna change the limits on how much you can hate. But if you wanna put that same 23000. Dollars and it will be taxable first. It will show up on your W two. And annual put it and so query now in order to be able to put 23000. Dollars. Into a 401K. You probably need to earn close to forty. Or thirty depending again depending on yeah browbeat parity so let's say you have to earn 30000. In order to be able to shelter 23 after taxes. To put that India for a one K answer me. What do hideous idea right as it is folks we just got done talking about how seniors today are working longer living longer. Not saving as well gluten and the burden is on the employee to save and now we're gonna. 'cause the employee tapped. Make it harder for the in Italy to save race because we need 2.4 trillion on a tax cut. Took to make up the difference folks tax cuts aren't worth it if that's the result for me I'd rather pay the higher taxes. You got other people who are looking and it's thing well if I'm gonna lose some of my deductions as part of his tax plan not even thinking about the farm okay. That this is even camping out they're saying well you know what. I'm gonna contribute one McFarland came reduced income well maybe you know yeah. And I think the Davis just says that we need to save more as quickly as we can especially sheltering at from. You know taxes probate nursing homes medical expenses yeah because that's what these two discussions are about her tied together. Yeah you know what they'd every all that's Iraq every ten is an administration change all bets are off to what you think you're going to be able to do we you know we can still do what you can still do your estate planning folks position yourself. With the waste it we know that works right now. This state history ending every application for Medicaid however. They will work in protecting your assets and when your trust our draft improperly that's the key folks drafting your trust properly. The right paragraphs must be included the wrong paragraphs absolutely must not being your trust. And Todd put together a guy that DTL's all of those paragraphs in what should an absolutely should not be in your trust. If you're interested in getting Todd sky designing the perfect eerie vocal trounced. Log onto our website at legally exchange you dot com. The only way you can get this guide is online to log on right now. The legal exchange showed dot com. Go to the guides an article page and you can download your free guide instantly. You're listening to Todd lucky apart with a lot from Cushing in talent. I'm Susan Paris I think until it by two at the Armstrong advisory group we're gonna take a quick break and we'll be back in just a few minutes on the lead. Exchange with Todd black ski. Securities opera through securities America ink member and that SIPC an advisory services offered through securities America advisors think securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation Cushing and Allen the Armstrong advisory group illegally exchange in the securities America companies are not affiliated. It's been an incredible year for stocks with the Dow NASDAQ and S&P all reaching high water marks yet in spite of this tremendous success there remains concern about a market correction hi this is very are strong inviting you to join me on Tuesday November 14 at Bertans grill in Burlington for special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will there be correction if there is I'll help you prepare forward to reserve your spot call 80393400. Once have joined the Armstrong advisory group and the voice of Boston AM 680 WRKO. On Tuesday November 14 at Bertans grill in Burlington Bertans girl your life your style our food space is limited so call now 803934001. That's 803934001. Securities are for two securities America incorporated members in SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. And he spent the last thirty or forty years building your financial planning business. He worked hard and your clients rely on your. What about when you retire. Every dot about a succession plan for your clients our firm the Armstrong advisory group is a regional firm based in Massachusetts and we are looking to build our business through acquisition. We are affiliated with an award winning broker dealer RI AA and we have superior service capabilities we work with clients and all six New England states and offices throughout the region making it easy and convenient to set up meetings if you're interested please contact us through our web site Armstrong advisory group dot com or call 803934001. Our advisors have over 100 years of combined experience in the financial services industry. Call us today at 803934001. Or visit us online at Armstrong advisory group dot com securities offered to securities America incorporated member and SIPC and advisory services with the securities America advisors incorporated Gary arms are representative on an advisory group the securities America companies are unaffiliated. You're tuned into the legal exchange we've done let's do and Susan powers if you're dealing with a loved one who may need nursing home care. Don't delay Coleman at 8668485699. And let us help guide you through the process while protecting your assets that's 8668485699. Welcome back into the league in exchange with Todd let's keep. I'm Susan Harris I think into the side to the Armstrong advisory group and enjoying byte public ski apart with a laugh from of Cushing and go in with a masters in taxation. On today's show we have Todd diabetes written for the month of October. It is designing the perfect income only eerie though Kabul tracks. In folks you really need to have a nine credit state clean in this guide will help you review your existing trust. To make sure you don't have any and that language that can be quite frankly. Useless to your plan. And if you don't have a trust already this guide will educate you in the language that absolutely must be included in your tracks. It also provides an overview of how these trust operate on a day to day basis. If you are interested in getting tired guide designing the perfect eerie workable trust log onto our website at legal exchange showed dot com. The only way eaten at this guide is online so log on right now to legally exchange showed dot com. Go to the guides an articles page and you can download your free died instantly. You know Susan I I do like it this particular guide because. You know. You say you you don't know if your trust has done right or wrong Renny and if you can lay out some some paragraphs that help people plus. A lot of them don't understand because I'm saying this to the kind of leads me into the story about this this Tennessee appellate court case where they had lost the whale of news and and it makes me think about. Not just gonna give you the details of the case but it makes me think about how important. Telling the world where you want your assets to go is when you run into. A situation where. There's no way short and and what kind of turmoil. It's created who who when you don't have it so it is important but but like a stand on this material it. It also gives you the you know the pros and it gives you that pros and cons of the of the trust but more question and answer as to how to. How to actually. You know how it works to share and a lot of people don't understand how these documents were Canadian held up on from doing anything quite frankly they audio minutia. And you know what they think oh I can't change my mind currently things I can't get rid of my trusty you can ask for permission I can't sell my house. All of those things you're not true in this guide really shows that folks in illegal exchange showed dot com you can download your copy any time in. So let's let's talk about this. Tennessee appellate court case so. Oh called ruby ruby created a whale in 2007. And then it was last seen put in a safe in their house in 2012. Between 2012 and 2015 she had diminished capacity had a conservative and guardianship appointed for her so clearly. She had some kind of you know. Either alzheimer's or dementia our other diminished capacity in 12015 she died. Guess what nobody could find a well then magically lost interestingly enough though the person who was entitled to the farm. Said I found a copy of the whale. And presented it and it seemed to be determined to be a valid copy and the court approved. Well. Of course the other people who weren't getting farm rate. Weren't so happy. About this and said known I don't know the lost will statute should apply. And this is a lost will you couldn't find it therefore. It's not it's not gonna work. The court said that is the general rule when you have a lost well it's deemed that the Willis re vote. Which is interest in other tennis is in Tennessee but remember every state has one of these share. I don't know every state but I can tell you that probably not that different I mean it makes sense that if you've. Lost the will and you can't find it can be presumed that it's remote into ends Keyon. Trying to copy any that's. Okay in this case there apparently was valid testimony at trial. There was a copy of a whale the seem to be enough supporting facts. As the appellate court said that this is a read audible presumption. Which means that if you can show otherwise. That this is. I considered. A valid copy of the original will. Then it would be okay. And plucked out of the appellate court I don't and they said that no what's not revoked it's gonna stand up. And your. Gonna get the far. The it was a nephew. That was getting the far. So it worked but look at the turmoil. That was created. When there's someone that dies in you don't tell people. Where you want the asset ago. Right is that they did did booty just stuck in the save and didn't have a copy to give to the nephew that was an actually get farm. He know about it. Look what happened people who need be conveniently helped her lose her well. That's me you'll know I mean it's just think about about you know who's getting what you wanna make sure your wishes happen. And so I think in this case of the message here is that what what what do we do it Cushing and all. While we give you a copy of we give you a copy of the document review and we give you thumb drive again and explain a little bit more about our safety procedures as well. In you know up folks it is so important to have your wishes and place not just for the whale. But if you have a trust and faith it's hard to contest that. When you have gone to so much trouble to lay out how you want your assets to be divided up when you pass away. Because I'll tell you everything changes when someone dies and that bag of money is put on the table just happy if you avoid. All of that nonsense if you put off doing your cleaning you're not sure how these trusts worked pods guide is written for the month of October. It's designing the perfect income only here able Coble trust. We'll show you how these trusts operate on a date to DP says he's also included information about the important language that must be included. And that troublesome language that absolutely must not be included in New York trust. If you would like a copy of Todd designing the perfect carried a public trust guide. Log onto our website at legal exchange showed dot com the only way you can get this guy is online so log on right now to legal exchange showed dot com. Go to the guys and articles page in you can download your free guide instant. You know Susan we've. We've actually had clients who Alaska you know all too I get my original documents. We have out there yours I mean if you want your original documents are absolutely entitled to them look like 99.9. Percent of the time. We would hang on to the originals are safe keeping we would put them not only that we also scanned everything in so we have all scanned in. X acute in documents so now we've got them in our system. We've got the original book we've got them scanned into our system of course they're backed up numerous places care and we give decline book. And we give decline thumb drive. So they can back it up and stored in print them off so the likelihood of losing the whales right. Losing the documents is greatly diminished tight and dare I say it's never happened. To mind when you knock on some wood here. We don't streak going we don't lose things and so. But but the point is that it's great yet you you know you've got you've gone somewhere where you've got your state planned on it's also going to be stored and who now. Just focus on and on on the whole idea of getting it done outlook here in this case. All they had was a whale. What are some of the negatives well of course if you lost it that was a negative share. Went to probate because everything they had and a whale. Coast approach might keep people don't realize that they still come in and say well I got a whale. So not really worried mom all sat right is not as if they did transferred into the name of their Willie they would in the name of a trust to show all looked or something else they are legal document behind the I love and they say I'm all set out Arnold that means via what does that mean all set and I will lead. And I actually think it's important that we learn from this Tennessee case not only that they could be lost in that when their luster have all these problems. As to where your assets go in the fighting that that you know follow was even after that. But more importantly that Willis really won't write it it didn't help this poor person avoid probate because everything you dying your own name. And that's a probate asset those are what's governed by your whale so he would avoid probate. Likely with a whale if you're married. You're going to each other either but I call I love you whales. That's not avoiding estate taxes if you happen to have them do that in yours either in your state. Or federally depending on the size of your state again Federer is a little bit larger with a five million for ninety. But Penn State. That your rain could could have that problem. And more importantly maybe we don't have the estate tax problem we wanna protect them from the nursing on this farm would have easily been taken. Had this person gone into a long term care for sharing so. I think if if you have wishes. Like this person had and you go so far as to duel will because you want at least. The will accomplish directing where your assets go continue to look a little further and say. I really want that to happen maybe I should have a trust to make sure those assets are there. When I time. Two goal. Where I want them to go so you know a little bit more thought needs to be put into it but I I didn't want to just talk about how. Lost documents. Impact here. Not your life you're gone but. Your your family's. You know up folks may have done your estate plan you know gold star for you but how do you know if you're playing is done. Correctly Todd guide Diddy is written for the month of October it's designing the perfect income only here able Kabul trust trust. Goes over those clauses that are so troublesome nothing but headaches at these Iran. Purpose clauses termination clauses trigger language. Silent since the distribution of principle the trustees' how to lend money to beneficiary and more there's so many things that cannot being your trust. How do you know what they our request Todd guide. You Embree you can visit our website legal Eckstein showed dot com this is the only way and get this guide online. So log on right now to legal exchange showed dot com. Go to the guides and articles page and you can download your free I instantly. While you're a big you'll see there's an asked podcast where you can submit your questions for Todd which is what we're gonna be addressing when we return in just a few minutes. You're listening to Todd let's keep a lot from Cushing and Dolan. I'm Susan how is from the Armstrong advisory group and we'll be back on the legally exchanged we Todd black ski. Time now for Wall Street week in review a look back at the market's performance last week here's Susan powers and Michael Armstrong. We've seen some pretty tremendous stop marketing this year and we just hit another big milestone. In the Dow Jones Industrial Average hit 23000 this week which is an all time highs in gained a thousand points in just 76 days from the August 2 mouse between 2000. It is the big blue chip household names that we all though you know McDonald's Disney Coca-Cola Boeing caterpillar Wal-Mart all part of that index. The average got up by roughly 17%. Year so what's driving the growth this year do you think you know I would there are down to three common themes so first we have a pricks are pretty strong economic strength GDP growth expect to be 3% this quarter. Expect to be at least that through the first half of next year. We have corporate earnings growth we've seen double digits through the first half of this year in Q3 is looking good thus far so we'll likely have double digit earnings growth for the full year 2017. Finally consumer sentiment in the University of Michigan survey for October and a thirteen year high. And found that Americans think that the economic situation is quote as good as it gets a really economics and earnings are helping the sentiment is huge drivers well. So where do you think the Dow goes from here with your crystal ball price rise gray were off your hopeful and optimistic but does pay be cautious and equity valuations well above their averages and hitting highs only seen just before the Great Depression in the dot com crash of 2000. Since 1926 bull markets on average of last round nine years and were now about eight and a half years in the this investing in Briscoe and hand. So it's good. For investors to be optimistic but also important be cautious were paying particularly close attention to valuations and focusing on sectors that appear to be undervalued relative to others. Think tonight folks if you have questions about the markets more about your per Foleo please visit Armstrong advisory group dot com. You've been listening to Wall Street week in review with Michael Armstrong no back to the legal exchange with Tom Lipsky and Susan powers. You're listening to the legal exchange. And it's time for. Ask. The segment where time will answer your questions about anything and everything that's included in the estate planning process once again here's time let's PN's Susan powers. Welcome back to kind of keep questions from listeners or. First question comes from edging cranes and in and writes my daughter pre deceased me leaving behind two children I have one living son now. I would like to make sure my daughter's children partake in Europe after aipac. Would it be best if I leave out at all to my son with the understanding that he has to take care of his niece and nephew or should I leave it for my son in law. And that's what did the trick question. Just let out this is a trick question because there needs to be another option there isn't any above the and then see should be none of the about both but at the. You're absolutely right Susan their needs idiocy on this one. So and we're joking but but you know none of the appropriately. I'm I don't like either of the east and I think it's so important let me explain a little bit because cook calls from clients. That'll say you know all I lost mine. My daughter son and then you know now I gotta change my state. And I ask one question I'd say. Maybe. I ago. Let's put. And I look at it and I say it says that you're treating your kids equally. And it says to divide and allocate the assets into his mini course airs is there are children of viewers than living. Or children of yours then deceased. Leaving issues and living. So in inflate at English at. From a lawyer's speak English speed and in English that means that if a child has died before you. But left children. They're gonna get that child share. And then it says generally will have language in the trust that says that child share are now going. To their kids sure grandchildren. Is going to be held in trust for the benefit of those grandchildren. From that deceased child until they're thirty years of age and so what that and you know we now have on tore uncle. Who's living right to sibling who was living. Will take care of that money in the service trustees that yes they want. And so that's an essence doing what you're saying here allowing your niece or nephew. Right out of the uncle taking care of the nieces and nephews which are your grandchildren. Usually has language saying that trustee. Can take it and make distributions to. Your grandchildren from that deceased child. For their health education. Welfare and sport. So now what does is that one. For keeps in the blood and share first and foremost which I think is and exactly what you want to have happen here. Two. It doesn't expose those assets to your. I guess it is leave it to my son in law which. Certainly one that's not keeping in the blood line number one so. But if it's for him for the grand kids where's the risk without well because if it's left in his name and it's it. We can do whatever he wants he doesn't actually have to do anything it just assets and his name with the understanding. That he's gonna take care of his niece and nephew. So he go in spend it on his team attack. That's a big problem or can have a divorce Laurie can have any get remarried right married and divorced. So lots of bad things giving it to anybody. Not to mention the fact that even if it's an upstanding person upstanding in law who you gave the assets to. Every time they would make aid distribution or a eight. Just I guess a payment to. To go to that nieces and nephews that you want taking care of a big gift rainy days subject to gift tax issues so you know you certainly. Don't wanna put anybody in that position. Whereas if it's if it's already built into the trust is right tell my clients and they Colleen oh my gosh I have to change you know you say well we're really sorry for your loss but. You might have to change a document to Harvard. So it stays in the trust the one year remaining children. Who are the aunt and uncle of children from the deceased sibling. King. Make these distributions so stays in the blood line. Not causing more harm than good by dumping a ton of money into what might be on miners hand rain. Depending on how old grandchildren are when when you as a grandparent dies. Again assuming you've lost when your children. And not only to keep the bloodline allows the distributions to be made for good reasons health education welfare. Without causing any credit problems to any of the other siblings are risks of credit problems to the other siblings. And. Any gift tax problems it's just distributions and then finally when the youngest of that group of grand children from that deceased child of yours dies. Then ought not dies reaches age thirty. That would all be paid out if it hasn't already been used for their education. That's the way to go not age or be in your situation. Yeah and you know what folks if if your concerned about how these trust war in you know what whether it's remote alert area of ugly you can still a comedy for these same. Dispositive provisions in your trust planning. Todd sky that is written for the month of October focuses on the Erie vocal ball. Income only trust in each show you how they work it shows you how you can not only protect your assets and those long term care expenses. But you can make sure your past that stage in your bloodline whether it's to protect from divorced me via a special needs child or grandchild that you're concerned with. Maybe you just concerned about eliminating or reducing estate taxes you can accomplish all of this if you have your trust in place. If you are interested in getting a copy of tides guide designing the perfect hearing remarkable traps. Log onto our website at legal exchange showed dot com the only way you can get this guy is on line so log on right now. To illegal exchange showed dot com go to that guides and articles page and you can download your free guide he instantly. Todd our next question comes from Ron in Boston mass and Ron writes. Can every move my trusty after I create in Erie about global trust also can I change how I leave my assets. Later on. We you know the answer to both is yes very common questions. Very common Sorgi be the quick answer yes but I think a little explanation is needed. You know people say Wallace at a Massachusetts lie in fact I I remember there was someone who's who's asked these questions before they're like well. You know. Is it written into the document. You have to look for language in the trust you we are giving away guide was then paragraphs that need to yeah there you know. Is there is there language written in the document giving the power to the trustee to remove and replace or is it simply aim Massachusetts. Trust lie uniform trust code adopted by Massachusetts. Isn't that trust along that just happens now. It's written in the document is not a general rule right. You need to be specific about what your trustee can do and can't do you need to be specific about what. Powers are given to the dole nor is of the trust. And this is an explicit power in the trust given to the don't door to remove and replace. Now caution as there always is when it comes to drafting documents which is again why we try to give you these articles. It should say that the dole nor the mom and dad's of the world can remove and replace the trustee. But they can never. Replace them with themselves. OK so make sure they go on in the drafting of that power to say it can never be. You know that don't nor can never service trust either don't know or spouse can never serviced us why is that time just as. As a practical matter for Medicaid purposes now and I guess I should clarify that for revote couple trusts this is no problem. Can you would be year old trustee re absolutely and your spouse would be when you pass but for the irrevocable trusts. And and as Medicaid challenges have evolved over the years. You know we we've gotten away from letting use their best trustee we've won. Even when you serve as trustee but it's just one of those challenges where they sale if you can be the trustees and you just do whatever you want while. That's their argument. That's not true that much is the more conservative than just a more conservative approach it and it's clearly not true it as a trustee no matter who you bar. You still have to follow the terms of the trust and your fight do she airy obligations. According to that trust document so. Even though you're the trustee. They're not winning that argument and how about changing your mind how you leave your assets later on me that yeah you absolutely can't it's called a test and Terry power of appointment again this. These kinds of paragraphs are spelled out for you in this. In the guide but more importantly. It's something you exercise. Through your will so that when you die you've changed the beneficiaries. Of your trust. But it's limited in right in the name it's called limited power replace many cannot be back to yourself to your state. To the creditors of your state to the globally kick it can only go to the class of people that you specify in the beginning. Generally. Children grandchildren charities nieces nephews siblings charities. That's generally who waited so limited to that group but a great. Flexibility built into the east trust them last. Folks if you question you'd like to ask Todd visit our website legal exchange showed dot com and click on the asked Todd camp. Mean you will be able to read your question on the air and hopefully his answer will stop you from being one of his next real life story is. Why you are out there I encourage you to download Todd guide that is written for the month of October. It's designing the perfect income only you're able Coble trust these troublesome paragraph that he's mentioning these important paragraphs. That he's talking about our holiday included in DTL. In his sky that things that need to be in there in the things that absolutely should not be in your trust. Download a copy on our website it's the only way to get it folks legal exchange showed dot com. Go to the guide and articles page and you can download your free died instantly. You're listening to Todd black ski a partner with the law firm of Cushing in Dolan with a masters and taxation. I'm Susan power is a financial advisor with the Armstrong advisory group. We're gonna take a quick break but we'll be back in just a few minutes on the legally exchange with Todd black ski. Many of you who've listened to talk amongst you for years on the legal exchange radio program are probably had a near retirement age and if you're one of his core listeners you know always an expert an elder law and estate planning if you been thinking about starting the estate planning process or just under way. It takes five years to secure that protection and you need to make sure that you aren't wasting your time in your money on legal documents that don't work. This month Todd has written a brand new guide told designing the perfect income only irrevocable trust. They contained the specific language that must be included in your trust in order to protect your assets from probate. This guide is available exclusively. By visiting our website legal exchange showed dot com. That's right the only way to get this guy did is online so head illegal exchange showed dot com click on the guides and articles tab and download your guide. That's a legal exchange showed dot com. It's been an incredible year for stocks with the Dow NASDAQ and S&P all reaching high water marks yet in spite of this tremendous success there remains concern about a stock market correction this is very Armstrong inviting you to join me on Tuesday November 14 at -- grill in Burlington for a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will there be a correction if there is I'll help you prepare for and you'll also hear from Todd -- -- about how a correction might affect your estate plan to reserve your spot please call 803934. Zeros -- ones who joined the Armstrong advisory group and the voice of Boston a M 680 WRKO on Tuesday November 14 at Bertans grill in Burlington -- -- your life your style our food space is limited so call now 803934001. That's 803934001. Securities are. There's American corporate member and as a BC and advisors or opera or there's American advisors incorporated burials are represented a. You're listening to the legal exchange with Susan hours and time let's game. Understand and help taxes can affect yours they play and is critical to building a successful plan if you need help in this area told us right now and make an appointment. 86684856. No night that's 866848569. And. Welcome back instantly. He I'm Susan powers they need to resides in the eyes. And I'm joined by Todd black ski apart with a lot from Cushing in talent with a masters in taxation. Talk has written a guide this month vote that is designing the perfect income only eerie vulnerable tracks in if you put off doing complaining because you weren't sure. How these trust operate on a daily basis. We no longer because Todd hits included in this information. An operations guide that shows you how these trust operate on DD DP says it's inning nice question and answer format. So you don't have to wary about translating things in English because he's already done it for you. There's also information in here about those troublesome paragraphs. That will just to be an issue if there are included in atrocity. If you have RD canyon trust cleaning this is the Greek checks and balances. About how these trust operate in you can you can compare them here existing legal war. If you are interested. In getting hot sky designing the perfect eerie Bob Coble trust. Log onto our website at legal exchange showed dot com the only way you can get this guide is online so log on right now. To illegal exchange two dot com. Go to the guides an article page in you can download your free guide. Instantly tied it when asked about one of those troublesome paragraphs that are currently included in your guide here of you know if folks aren't thinking about doing their trust plane telling you what to look for what not to be greener talked to me about trigger a language and why that is such an issue. When you have which I trust that strapped what is it and why is it a problem. You know the trigger language is where you'll see language in there that says and I can just kind of ties in with the termination language right. Trigger language might say something like well. You know there's no access to principle no access to income you know unless you are in a nursing home more unless you are. You know there's some some in there that says unless it's needed for you don't let. I guess the best one is. Unless you know this is somehow preventing me from qualifying for nursing home care or yeah and that's gonna triggering your ability to get to the principle right right you don't want that it's surprising that would be in there but really that's what what a lot of people before the cobra 93 this was a big 1993. Lot change these these trigger trust worked. You know they say you know. For the first 36 months of the trust. Discretionary distributions of principal and income could happen after that. No access to principal. Things like it used to work. To get past what was then the three I would back ray guy and he has seen it they said it was a the first five his help doesn't work anymore folks and know trigger language and termination language kind of goes hand in hand with the trigger language like. You know the dirty case was a big one where they they put language in there that says you don't know access to principal good. You have the right to the income I'd like that that's good paragraphs. And then you know way back on occasional. Thirty of the trust paragraph 25. It says. Oh by the way the trustee of the trust becomes too bigger to a smaller operator economically function. That the trustee has the discretion to terminate the trust and pay everything out. In that trustees' discretion to though beneficiaries. See something as simple as that sounds painless. But if Europe client. The creator is also in income beneficiaries. Who minutes as it can be paid out to beneficiaries. The problem now looks like you're saying on the one hand principle can come out when you terminate the trust to all beneficiaries income and principal beneficiaries. That's a problem then causes the asked that causes that crack in the ice if you will that allows access to the principle under some set of circumstances. Thereby violating the any circumstance test who's making the asset count. For Medicaid in this is why folks you need an expert to explain to you what she admission being your trust again. Download a copy of tides guide designing the perfect income only Jiri vocal appearance. Go to our website legally exchange shoot dot com click on the guides and articles page and you can download. You are free died instantly. So those are troublesome paragraphs about distributing language displeased one about. Principal distributions what happens if he won the the items you haven't hear is silence. As to the distribution of prince I would think that okay you can't have these babbling which our press conference about right how to not let let's just learning and talk about principle what. The issue is that funny you're right I mean I don't I don't look at it that way year presenting it often Susan but but that might be the easiest way to look at Hewitt say. You know if something might be bad. Let's just stay away from it yet and we should be safe yeah. Unfortunately again and that kind of assumption that does not work. The problem with that case lies. That because it said during a lie if you could have the right to income. In the end the very next sentence that upon death here's what happens and we wanted to read that part because that's what happens after your debt. We're stuck here in the during the life paragraph. And up here it just as you have the right to incoming doesn't mention. Whether you can get principal and so then what happens under the uniform trust code is. Take a look at all the trustee powers that are listed in the trust document and there is a broad array. Of you know trustee powers things that you can do when. None of them say outright distribution of principle two is individual. But also there's nothing preventing. So under the uniform trust code which has been adopted by numerous New England states. Certainly I know it's been adopted in mast. But. The problem with that is is that the uniform trust code seems to say that. If you are not prohibited. From doing something. And you couple that with broad discretionary trusts powers to do a lot of other things. You must be allowed to do re so if it's not prohibited they're gonna error on the side of allowing. The action. And so in that case the trust what's considered completely accountable for Medicaid eligibility while and it's a really bad thing so. Probably the single most important paragraph in the trust. And easiest one for all of you listeners that might have already done this to a spot. It's a paragraph that simply says that trustee is prohibited. From distributing principle to that dole nor. Period. Very easy. To spot yeah if that's not in there you need to race back. Two year lawyers that drafted. Or respect you and other lawyer to figure out in May be knows what they're doing. How about to you talking about absolutely no principled to. Don't nor Todd but. For a lot of people. They wanna be able Q. Give money or lend money often times that their child witches typically beneficiary. One of the paragraphs you have been here discusses the trustees power to lend money to that and this year. He had an issue. You know. I trust each candle and money to a beneficiary. However and it is it is a tough it's a tough comparison make sure you have language in there that says. You know in the trustee power such that we are just talking about a broad powers. Yeah we have a trustee power section that says. They can make secured unsecured loans and lend money to beneficiaries that's okay yet so if if a child needs a down payment on a house that. You know that the parents as I can and in need my money to live on route. But you know what I have the money so I'll give it to you if you give me a stream of income back. Okay and that's stream of income back is the payments share write what shall might include a little interest who knows. Depending on what the parent wants to do but who's doing it. Trust rent so the trust now took money that would have been invested maybe an a mutual fund and instead invested it. By lending it to a child and took back a promissory note okay that's a form of investment pressure to an asset. And now the trust is receiving these dollars from the child. Which perfectly okay. And the piece of the receipt of the money that really represents interest. His income. And that income is allowed to be paid out to mom and act. OK so the principal repayments go back to the trust yeah. Where the principal came from to begin right that's not payable and income goes to mom and dad just as if they bought a stock or something exactly like that OK so yes they're allowed to do that but what I must caution you on. Is the language in that paragraph or what we do is to. We have all these lists of powers at the trustee has. And at the very end we put a little paragraph it says. Notwithstanding the foregoing. Nothing listed herein shall be construed to allow the trustee to lend money to that dole nor or that don't or spouse okay no role or not lending to the person who created the trust. But to beneficiaries be very clear that that pro have this year in on lending to the donor or that don't or spouse mom and dad's. Is in there otherwise you could run into problems. Really really important information in this guide this month folks whether you are thinking about creating your trust and if you have already. Created your trusting you one affinity to act to make sure that the important paragraphs that must be in the air are actually in your trust. In May be more importantly making sure that there was paragraphs those troublesome classes. Are absolutely. Not included in your trust documents. Folks you need to be able to educate yourself to make sure you have the right clean and for you in your family that's going to hold out. When it comes time to making sure that it is working. If you are instituting getting a copy of Todd sky designing the perfect Jiri vote global trust. Log onto our website at legally exchange you dot com the only way you can get this guy is online so log on right now. To legally exchange you dot com go to the guides and articles page. And you can download your free died instantly you'll also find our podcasts out there in the section read and submit your questions to Todd. Todd black ski. From the law firm of Cushing and Dolan thank you so much I'll thank you Suzanne always a pleasure I am Susan power as a financial advisor with the arms on advisory group we thank you for listening he will be back again next week. On the legally exchange with Todd black ski. Securities opera through securities America ink member and that SIPC an advisory services offered through securities America advisors think securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation Cushing and on the Armstrong advisory group to legally exchange in the securities America companies are not affiliated. Retirement it's something we all think about and all of us look forward to it after many years of hard work but are you ready for mentally perhaps but there's much more planning required if you wanna rest easy in your later years hi this is very are strong and this month my firm the Armstrong advisory group is offering a brand new guide called retirement readiness unit you'll find information that can help educate you on what steps to take to enjoy a safe and prosperous retirement such as how much money you'll need to maintain your standard of living and don't forget about health care costs and tax considerations it's all in this brand new guide which includes your own retirement readiness checklist you can get the guide by going to our web site Armstrong advisory group dot com that's Armstrong advisory group dot com learned today so you can plan for tomorrow download the guide right now at Armstrong advisory group dot com. Juries are for two securities America incorporated members in SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. It's been an incredible year for stocks with the Dow NASDAQ gained Essen PL reaching high water marks in spite of this tremendous success there remains concern about a market correction on Tuesday November 14 that burdens girl in Burlington. Ari Armstrong will host a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group. Will there be a correction if there is they'll help you prepare for it and you'll also hear from time bloods. 803934001. That's 803934001. To join me Armstrong advisory group and the voice of Boston AM six AB WRKO on Tuesday November 14 at Bertans grilling Burlington. Burdens grill your life your style. Our food space is limited so call now 803934001. At 803934001. Securities offered to securities America incorporated members and SA DC advisory services are for your securities America advisors incorporated Barry Armstrong represented at Armstrong advisory.
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