The Legal Exchange 11-18-17

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Sunday, November 19th
00:54:03

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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. Welcome into the lead it would seem the type muskie I'm season powers clinging to inside there would be armed and size very. I'm enjoying my toddler ski park and the law firm Cushing and Dolan with a masters in town taxation. Todd welcome how are you I tell you where it is now say charges were a lot of the tongues unrelated note oh and I thank you how are you angry they you what do we have and not you have a lot of pages and review we do what you know we have an update for our last week we talked about the pooled trust. Legislation. -- lab so it give you an update on that and tell you where we are and what the next step Sar for that. And then I was reading this thing as a question came up about life insurance and and it really wanna spend some time on life insurance. Not only how to handle it from an estate planning standpoint and how it should be owned was the beneficiary should be. But also how it impacts Medicaid planning now and that differences from on Medicaid planning perspective anyway as. Exist between term life insurance zoos and whole life insurance. I don't think people understand. Life insurance the way they should they think it's tax free and it might be. Income tax free but there's a lot of other components that go with life insurance. So I'm gonna explain that in in the context really and I think some of how it will also play in what the material or given away. And then I also have a case out of South Dakota. A Supreme Court decision out of out of South Dakota where they conserve better so whenever you hear the word conserving her for acting on behalf of award. The disabled person. That means that there was no planning done right don't trust there's no power of attorney there's no health care proxy. Otherwise she wouldn't have a conserve her guardianship. It'll be interesting to see how they want it to change towards estate plan to dis inherit the spouse. In favor of kids from a second marriage. Yeah. Does that sound good. On its face and all explained you how we can avoid that situation from not ever coming to fruition. In of course we have a few questions EU from listeners Todd he and you know what folks if you have not yet requested Todd Scott that he's written. For the month of November I strongly encourage you to do so because were were rounding the bend getting closer towards the end of the month. In tides diabetes or written it is strategies to reduce or eliminate your estate taxes. Yeah and asset tech complaining at the same time you know that and it taxes for me. I hate tax gap but you know and I made even more. Unnecessary taxes voluntary. It's that you give to the states into the government. When you could avoid that by having a trust in place and whether three vocal bowler eerie Vogel. You can redo some potentially limit New York State taxes vote of course you can have your family avoid probate you can protect your assets from long term care. Expenses you can't divorce prove he can protect your kids from themselves may be preserved outfits for. A special needs child or grandchild they're so much you can accomplish. But at a state tax elimination. You've got to have your plane and plays hoax call rate now to receive your free copy of Todd the state tax guide 8668. For eat. 5699. At 8668485699. That new information is in here about the numbers that are going to be coming out at 183 perch when he teen is Welling you know there is different. Estate tax exemption amounts for all of the states and we've included information in here for all of the New England states in the yet guide is allowed numbers are in there as well. So while you can certainly call to get your copy maybe you don't wanna wait maybe you wanna find out how you can reduce or eliminate your state taxes right now you can visit our website legal. Exchange dot com just click on the guides and articles ten. In August tell you what the federal exemption as instruments and I think it's important it's going up from five million for. 45490000. To 5600000. He unsafe. Let's that well that really. It puts me over the over the edge right there. Evian and I just in saying that taught a lot of people probably feel that we because that thing at five. Certainly eleven million dollars from married couple. But you know what. You may have over a million dollars if you live in a statement and leaned exemption. Thing like Massachusetts yes. Yeah or RI 1000005 or on and on so. So those exemptions folks really haven't changed going into twenty gift tax exemption for president or exclusions also going up from 141000. 25050. And a Kenya so that's the amount you can give away every year per person without filing a gift tax return or was out. Even reducing your exemption. You don't have to worry about that. And you know the other comment I really like about this is yours and your talking about taxes in the free gift you can make this state spine not to involuntary gift taxes right. Exactly. One of the things in the guide also is is this the tables that are put together to help people understand. What the tax rates are and how you actually calculates you can run your own numbers. And actually applied. The table there's a table there that tells you if you have this much money how to calculate what the tax liability would be both federally and in Massachusetts so. You know it's it's just an added thing that I think is helpful for people when they're when they're looking at. At this material and they're not small amounts folksy reeling need to pitcher lenient. Now. Let's talk a little bit about the pooled trust yet with their latest auction. We before laughs last reference last we were doing we did our show and then on Thursday. Last week they voted. For the pooled trust legislation. And it passed the senate. That's an Anthony really going to be voted to keep it voted to keep pooled trusts. What that means is it's gonna now go to this to the house represents a course and it's got to go to the governor. But at least or beyond one hurdle. And that's a huge win because. It in English folks what this means is that that if in fact. You have a proposed regulations that came out. In a year ago. It whatever and when he says it completely changed and Medicaid they were one of the one of them any changes in the proposed regulations which are the rules we have to follow as practitioners and as people. In order to become eligible for Medicaid. And and what date one of the changes that they put in there was that they wanted to remove. The ability for people all over 65. To me use of a pooled trust last minute to say assets from the cost of nursing home care to get rid of it. Well turns out that we've had it for a long time I believe it exists federally in the federal regulations and so. The state we've been lobbying and arguing. About how much of a bad idea this is. And rather than roll the dice and just let the proposed regulations do what they wanna do and become final. There has been action taken in this is what they voted on in the senate to legislate. Not propose ranks not Medicaid regulations. Actually pass a law in the state that. Puts in place pooled trusts for people over 65. Therefore. The regulations. That would be passed could not trump the law god. So that's a big difference that he news. And so that's passed that one hurdle and just quickly so I understand again what a pooled trust is and why you might need it why I think it's so darn important. Is if you if not done any planning. And you find yourself going into long term care facility. And you wanna save some assets and usually won't do this for a married couple folks it's for single people little people don't you know except. You can take money any amount. Take it. Put it into a pooled trust. It does not constitute a five year waiting period so you're not penalized. It's a immediately. Considered not an asset for Medicaid. So now you have less than your 2000 dollars that you need to should tucked everything in there and you apply for Medicaid and you're eligible. The why it's a win for everybody. Is the applicant is now on Medicaid saving money. The applicant has the ability to use that money to live on the war in joy or take get better care provided for them. And there's a payback provision for the state so whatever the state pays out on behalf of this individual will be paid back by this trust. And you've got to give 10% to charity if that this is after the individual dies 10% to charity. If you're in there for less than two years 20% if you're in a nursing home for more than two years before you die and that balance goes to the family. And used paid instead of 141000 you went to 6000. For the Medicaid rate vs the private pay rate. So everybody wins here. Including the state they are made whole. Why would we take us away you know I'd hope they're not gonna. It works now as of today but don't count on one of these last minute strategies to protect your assets. Put your trust him poisoning you don't have to worry about what happens going forward. Todd article that he's written for the month of November we'll show you how to protect those assets as well as how to reduce and potentially eliminate that's right eliminate. York estate taxes call right. Right now for your free copy of Todd the state tax guide 8668485699. 8668485699. Visit our web site legal exchange showed dot com you can download your free copy there. He miss any of today's show you can always download our podcast and listen I your convenience you can also submit your questions for Todd out there. You are listening to Todd black ski a partner with the law firm of Cushing and don't. I'm Susan powers a financial advisor with Armstrong advisory group. Bring in and take a quick break but will be back in just a few minutes here on the legally exchange with Todd black ski. Securities offered 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 pushing in on the Armstrong advisory group to legally exchange and the securities America companies are not affiliated. Essay claiming to never many benefits especially if it's done early this extremely important to protect your assets that you worked so hard to attain. But I bet you didn't know that if you do you're claiming the right way you might also be able to eliminate estate taxes sound too good to be true it's not Todd let's do a partner with the law firm of Cushing and Dolan is an expert an elder love and has been helping families with elderly claiming for more than thirty years he's written a new guy that's out this month called asset protection strategies and it can learn how to protect duress that's kick them in your bloodline avoid probate and increase your beneficiaries inheritance while reducing and in some cases eliminating your state taxes let's do leads an experienced team at Cushing in Dolan which has been helping families like yours -- there are state planning and he can help you to call right now to get -- new guide called asset protection strategies at 8668485699. At 8668485699. Or you can download the guide break now from our website legal exchange showed dot com that's legal exchange showed dot com. The stock market has been on fire for the majority of this year the Dow NASDAQ and S&P have consistently set new records yet uncertainty about future. Performance remains and fears of an impending correction continue to worry investors hi this is very Armstrong and I want to alleviate any fears you might have your portfolio won't survive a market correction clearly we can't predict the wins and yes but we -- prepare and that's the focus of my brand new guide this month I've identified seven key factors to keep an eye on that could contribute to stock market correction including overvaluation of the market and rising corporate debt to receive your free copy of my new guide seven signs of the stock market correction call 803934001. That's 803934001. Or you can download the guide right now at our strong advisory group dot. Com securities offered to securities America incorporated members in SIPC and advisory services are there securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. You'll tune 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 Welker did. RSS that's 8668485699. Welcome back into the legal exchange with Todd black ski I'm Susan Harris financial advisor with Armstrong advisory group. And in doing by Todd let's key partner with the law firm of Cushing in talent with a masters in taxation. On today's show we have tot guy did he's written for the month of November. It's a state an asset protection cleaning strategies to reduce or eliminate your estate taxes. Even if you don't have a taxable estate folks this guide we'll show you. How do have your feeling avoid the nightmare probate how to keep your money in your blood lines and you can protect future inheritance is from divorce. You can protect your children from themselves you can reserve assets for your grandchildren may be of a special needs child are green and child. You can accomplish all of that if you had your steep clean and place called right now for your free copy of Todd the state tax guy. 866848569. And that's 8668485699. If you prefer you can always download your free copy on our web site legal Eckstein showed dot com just click on the guides and. Articles tap. Now Susan I wanna spend a little time on life insurance because I think it's a very strange product that people don't always understand how it fits into their state planning world or their asset protection planning world you're gonna burst a lot of people's bubbles who think that life insurance is completely tax free hand. So I think we're gonna look at both from a tax perspective and from a nursing home planet terror driven it all came from this. This question I get this this article I get every weekend in this this publication and there's always questions on their for the group. This was inching does it said. You know if the owner of a life insurance policy has maxed out on the loans. Available against the policies I guess you can borrow against these pop cash value share. But nevertheless has a substantial cash value above the loan balance. Is the policy considered available or exempt so they are single capped out what you can take consulates on the use around numbers there's a 100000 cash value they've withdrawn the policy allows for borrowings 60% yet so they get. 40000 in the last 60000. Partake in now bar. So that kind of a situation. And you know I I found it as as an interest in question but. I thought the answer would be pretty straightforward. Folks here it is let's first look at this. A life insurance product from eight nursing home planning perspective to a lot of people take out insurance thinking. That's gonna cover my spouse. If I get sick and go to nursing home and we lose money. Yeah when I die that policy will pay out to my wife and replenish her but the money we spent. On nursing home care yet it doesn't always work that way right and that's because like this question here. If there is any cash value in the policy views they want you to take it out right and pretty much throw away the policy. Wish a lot of people also relies and that Terry please pension income when one. Or add it whether it's voted NASA that are out Sunday. It it it replenish is what would be taken away from the house. Yeah your right. And and so in this case if that if the death benefit on the policy is more than. 15100. Dollars c'mon ray I cute can have a death benefit of that of less than. Then any cash surrender value must come out and likely have to throw the policy. So. That means that policy is not going to be there to do what you thought I was gonna do replenish money for that healthy spouse after you die. Number one and so how does this work so for her whole life policies. Any cash surrender value that exists. Is that risk. And if you wanna try and protect our whole life policy in advance of going in the nursing home. You can really only do it. If it's paid up. Why is that you can't put to life insurance policy owner and beneficiary the irrevocable Medicaid trust if you gonna continue to pay premiums on something you don't own. Because every time you do that and you create a five year waiting period. From etiquette in May never be eligible rainy. To every buyer with some money. It kind of a calm and kind of ballpark what you could you should be the only other way you can do that is if you put enough money into the irrevocable trust along with the policy. And then have the trust pay the premiums that would be OK okay now there's a work around. Two that would end young lady in and they rank that would be a way to protect and name. But her life insurance is entirely different and how is that treated her life insurance is simply. Not at risk for the nursing home because there's never cash surrender value. Wary so the term policy would always be not at risk. Somebody still has to pay the premium yes otherwise it will lapse in you know what folks tie. Odd sky duties of written you might be in a situation where you haven't given much thought to your term policy because it's just hanging out there but that term policy in and of itself. Maybe causing you'd have a taxable estate in you don't realize it because you're under the misconception that it is tax free. You need to have an estate plan in place hooks to accommodate for these assets. Call right now for your free copy of Todd at state tax guide to learn how you can reduce or even eliminate. Your estate taxes. 8668485699. 8668485699. You can also download your free copy on our website legally exchange. You dot com. And let's just take one more example of whole life and how works with a community spouse 'cause that's again that's why you're doing so to help these yet so if you have a healthy spouse and the six bass goes in the nursing home in the six ounces the one that's in short news. And I think it's a 500000 dollar policy when it with a cash surrender value of fifth picture it's reasonable. What can you do well one thing you can do to protect that last minute would be changed the owner and beneficiary. Two that district probably Carty was communities spouse. But changed the owner to the community spouse that's okay. Transfers between spouses and then the community spouses allowed to keep up to a 120900. Dollars. Of mass day that we would allocate a 50000 in the cash surrender value towards. That community spousal resource allowance of 120000. 900 says they need signing there 70010. Total OPEC but what if I don't I've really leverage that because when he died and half a million right. So there's a way to say that last minute but just remember that term life insurance. No cash value. Always protect it from the nursing home as long as somebody's making a premium payments right. Whole life policies at risk for the nursing home if there's a cash surrender value can't transfer to a trust unless there's enough money in the trust to pay the premiums. But could say that last minute for community spouse that's a little. Still around on with that policy in the cash value in the whole life would that also be subject to the scene five year look back period now. Because you're transferring it to make community spouse but if your if your -- trying to little advance planning not last minute Aaliyah W wanted to rise to the trust with that cash and take five years to protect that yes it one oak ever no way around the five years is you're always trying to find a way I'm Ali let them for a loop all the talk to us about the estate tax implications of this. Yes so the estate tax implications are little different whether you've got a revoke oval or an irrevocable trust which we talked about an hour material. Doesn't matter. Right if your goal is to reduce estate taxes the importance is to get as many of these assets into this trust. Whether it's revoke bowler irrevocable as you can at death so that we can cram down. And gobble up if you will make use of York federal endorse state. Estate tax exemption in the trust so getting assets in there is always important so. The primary beneficiary on a whole life for a term policy. Four and state tax purposes should be that. The insurance. Trust OK I always OK I don't see ever reason why that would be it a downside. To the extent you can't you can change the owner but you really need to as long as you make the beneficiary. That trust would the beneficiary. Whoever re seen out whether it's you're trusting your kids or your spouse that's tax free is it not yet so let's deal struck by the tax ability of this and why we do it so we would we're putting that the death benefit. Into the trust. To help utilize your state taxes. But what people don't. Realizes that life insurance is taxable on his state level and not on the income tax level but on the state level so. If you got a million dollar policy. And nothing else. The Massachusetts exemptions familiar a million you're right there right you're right there. Throwing a house a vacation home when your 401K in your investment accounts and your well over the Massachusetts million dollar exemption. Now simply because you own life insurance. Changing the beneficiary isn't gonna get it out of your state it's gonna help but she was at first state tax purposes in these trusts and for planning. Getting life insurance to make it completely estate tax free. If it's costing your estate to be taxable. And you need a whole another animal called an irrevocable life insurance trust. Then the owner and beneficiary. Could be that it would be Audi yours take an air there are ways folks. To keep that here state into reducing even eliminate your state tech that you don't have to have a taxable estate. Just because you have a life insurance there are ways to do up in need to get some advice on how to. Reduce or eliminate your estate taxes call right now for your free copy of Todd is the tax guide. 8668485699. 866848. 5699. If you prefer you can also download your free copy of Todd sky on our website legal exchange showed dot com just click on the guides an articles tab. And you can download your copy there you can also find our podcast if you missed any of two days or are patch and with. He and you'll find the asked Todd tap where you can submit your questions for Todd and hopefully we'll get a chance to read on the air for you. You're listening to Todd black ski a partner with the law firm of Cushing in Dolan. I'm Susan power is happening until it by doing the Armstrong advisory group and we'll be back in just a few minutes on the legally exchange with 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. Mike human is approaching quickly but we're starting to think of the year and cleaning what are the top priorities you're discussing with your client this time that he. Now the number one priority is to yours definitely required distributions if you just turned seven in in there and deal with this before reaching double check. The rules are that anyone over the age of seven in half by a year and must take a minimum distribution of their retirement accounts as mandated by the IRS. It and fails to meet this requirement can be it was pretty stiff penalties. There are few exceptions the rule if you're still working but played safe and if you're not sure you're required to take something out talked to an expert what the year and topic is it time to consider. Just lots of different issues around taxes you know if you're considering converting some of your IRA into a rock that must be done before your end. To a take advantage of the new masters state income tax deduction for fracturing and plans that it's also got 1231 deadline. But dead a really big one is tax harassing them marked bugs to performed tremendously well this year. And are looking pretty substantial capital gains bills so if you have any holdings trading at a loss that may be a good time to take a look and see if you wanna realize that loss in 2017. To offset some of those gains. Silver linings to losses right. So it seems like there's a lot to keep track and how to individuals he NCA. Is a lot to follow obviously when you're younger just thing about savings but I tell you is if you're overwhelmed by the stuff. It makes sense touch professional world look at this every day were dealing with it for a lot of different clients and we have the. The knowledge based deals to advise people especially if you're over seventeen you have folks there's a lot more to keep track of thinks night if you have any questions about the markets about the economy or your portfolio. 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 time muskie 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 he is time lets PN's Susan powers. Welcome back tot have a few questions from listeners or you. First question comes some clean air in Har which port masking Clare writes. My mother passed away in July and had our assets in an eerie though Kabul track. There is around 600000. In investments Dylan her trust are there any guidelines on how long we can wait until we distribute the assets. My sister is in the throes of a divorce in she'd like to week are. Heard distribution. Well. Right off the bat I'm thinking I wanna start at the end of this question and not the beginning of the end of this question is. Wonder what the trust's acts. So annual maybe that's that you are referring to a pair are there any guidelines in the trust us to win these assets need to be distributed so. I will let you in on couple of secrets. First of all. This is what we talked about. When we talk about divorce proofing assets one family members so. In this case if we had met your mom Claire. We whatever asked her okay when you pass away how do you wanna treat your children. A hole they would generally stay I wanna treat my kids equally well okay that's fine if lifting. Is and you say OK well. Do we want the next sentence in the trust this would be the guideline peace. Do we want the next sentence in the trust to say. Take the assets that are in there divide them into pockets and pay them out. Give them to the kids free and clear of the trust's. If you say yes to that are Claire if your mother says yes to that and we do that. Then these assets and if that's what her trust says I don't know what her trust says. If her trust says that and technically these assets can be paid out immediately there's no probate waiting. There's there's no mandatory reason to wait and also somebody who wants them condemning and damn you. If they sit in there there's no penalty. Right other than the fact that there. Growing inside a non grand tort trust which would be taxable at the trust level on an income tax basis unless the income is distributed out to. Beneficiaries. So there's no penalty. But certainly if somebody wanted it they could romantic as it says pay it out. Well guess who would definitely be demanding the payout. Guarantee that they'll force going on her that seem to be ex out so whoever that soon to be ex spouses is likely to say I demand and a distribution of my payments. Of a half so if that piece comes out to the person who's getting a divorce they're gonna lose half of that in the divorce. To this X-Files. This is why we divorced proof if we divorce proved that we would've had guidance or language in the trust that said hey. This is held in trust for the benefit of the kids and an independent trustee. Has the sole discretion. On making distributions to either of the kids. As beneficiaries. So when soon Thabeet. Ex spouse. Says I won half. To the other spouse who's the kid when the kids can say ask the disinterested trust me if you can have it because it's not mine. And then disinterested trustees. And I'm pretty sure that disinterested trust he's gonna say today is not a good day for that distribution run along. And that's exactly right run along. And so at the end of the divorce. This person who would like to wait doesn't have to light to wait it's not her choice. It's independent trustees choice. Which provides the protection from that divorce so this is an excellent example of why we divorced proof. Art trusts. Whether we talk about him is like in our guide whether we're talking about revote couple or irrevocable trusts. When your both deceased if it's husband wife for when the survivor. Of the planners are deceased. The trusts are all to revoke right and this divorce proof language would protect your sister Claire. In this case still short of that it's going to be at risk so what hats so it fits if there's no divorce going on and we don't have this inherited stressed link which Todd is there a certain time framed it let's just say it the trust's NOK you can pay it out. Yet there's something that says you've got to pay it out within nine months a year two years five years is there any I mean they're trust police and now they can set that can be paid out right away do you give someone demands it even if they don't command and it's allowed to be paid out right away so there is no requirement. Gillick think she might have going for her and her truck in this trusses it was a crushing and don't trust we do give the trustee even in payouts discretion. If it's not the right time to make the distribution. Nice seeing yellow caveat that they have little help there but divorced proof your trust stay away from this prompt asking you know up folks when we talk about asset protection cleaning it's not always about the nursing you're protecting from it could be creditor protection. Those few two divorces mean you wanna protect your kids from themselves think they're spendthrift. You can do all of that if you had your clean and place you call right now to receive your free copy of Todd with the tax guide it is written. For the month of November. 8668485699. At 8668485699. If you prefer you can always download a copy on our website legal exchange show dot com Todd our next question comes from John in Melrose mass and John writes. My parents sold their home in Massachusetts and moved to Florida where they buy a Condo my father passed away in November. Their Condo is worth 300000. Mom now hands around 700000. Higher res and a hundred thinking cash and moms planning to sell her Condo in return to announce now that she's way to. Should my mother gifts and assets away before the end of this year so that she is worth less than one so it looks like in total she's got. One point one million. You she'll be in Massachusetts resident but I heard it sounds like gadgets passed away. And I'm guessing that passed away without the trust documents. In places that affair I but I guess I would assume so he doesn't mention that there's anything in place so probably the house that they sold in mass was joined the money went to bulk album they've bought a Condo to its joint in Florida. It is now work 300 and there's the balance of the money. Sitting in her Ira and then hundred cache is so she probably just got everything on his death race and folks that's what happens when there's no planning down and hurt anybody on the first death but look it's put her over the million. Now in mass Sino they were in Florida so that probably didn't think about it but remember I see it all the time this is an example of what we see all the time. People move to Florida to avoid Massachusetts a state tax. And then one dies and they moved back then the survivor moves back so when I'm I'm. Fairly used to that's. So now what if they had done planning in advance and they had these trusts and plays this is that voluntary tax that. Estate tax that Susan was talking about earlier. Because she's now north of the one million dollar exemption in mass even though it's only by a 100000 dollars. The whole one point one would be subject to tax when she dies as a mass resident ray. Had they done some planning and put to house the initial house in the trust. I'm guessing that probably more than half of the money of this million probably 500000 of it would have been in the house. Sure that would of been tucked away in the trust. In on the first death. That what do carved out let's say 500000. Views so she wouldn't be worth. A 1000001 now she'd be worth 600009. Because we carved out 500 so that would have been no tax when he died. And no tax when she dies even though she's moving back to mass. And they're by no reason to be giving away a hundred grant the group. I know that wasn't the question but I want to explain why there's a problem here to begin with and that's because there was no planning done don't trust to work. Done which is what we're all about this this this this month. Saving these taxes. So now the real question is can she make against Russians got cash. So yeah she wants to give away cash you can't here's the problem. You give away a 100000 dollars of cash. It's not a it's a taxable gift that won't create attacks federally can show lead up or exemption. But in Massachusetts should lead up a 100000 of her million dollar exemption. So now he'll have a million dollars with a 900000 dollar exemption that it's still not so. It it doesn't always work the way you think it works so she's welcome to make the gift my feeling is. Probably no reason to spend the money use it on your care make yourself you know enjoy your life. Before I just give it away you know have for the little bit of benefit that you'd be saving so. But I think the message here is loud and clear decision clean planning done in advance on the state this next. If you have a question you would like to ask Todd visit our website at legal exchange showed dot com. And click on the asked Todd tab may be will be able to read your question on the air and hopefully. His answer will stop you from being one of his next to realize stories in the meantime if you are concerned about. Perhaps reducing or eliminating your estate taxes. If you're concerned about asset protection. Planning whether it's the nursing home or protecting your kids from themselves. Put your trust in place in you can do accomplish all of those objectives. By using a tracks call for year free copy. 8668485699. At 8668485699. Or you can download your free copy of Todd the state tax guide by visiting our web site. Legal exchange showed dot com click on the guides and articles tab. You can also download our podcast if you miss any of today's show. You're listening to Todd black ski a partner with the law firm of Cushing in Dolan I'm seasoned power is he financial advisor with the Armstrong advisory group. We're gonna take a quick break but would be back in just a few minutes on the legally exchange with Todd black ski. The stock market has been on fire for the majority of this year the Dow NASDAQ and S&P have consistently set new records yet uncertainty about future per. Performance remains and fears of an impending correction continue to worry investors hi this is very Armstrong and I want to alleviate any fears you might have your portfolio won't survive a market correction clearly we can't predict the wins and ifs but we -- prepare and that's the focus of my brand new guide this month I've identified seven key factors to keep an eye on that could contribute to stock market correction including overvaluation of the market and rising corporate debt to receive your free copy of my new guide seven signs of the stock market correction call 803934001. That's 803934001. Or you can download the guide right now at our strong advisory group dot. Com securities offered to securities America incorporated member Finneran 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. You have a team of dedicated professionals who will care for your clients in the same fashion as you do. Every dot about a succession plan for your clients our firm the Armstrong advisory group is a regional firm based in Massachusetts and we're 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 have offices throughout the region making it easy and convenient to set up meetings if you're interested please contact us through our website 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 service is opera securities America advisors incorporated aerial tour representative or advisory group in the securities America companies are unaffiliated. You're listening to the legal exchange with Susie powers and Todd let's game. Understanding have 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. 866848569. Night that's 8668485699. Welcome back it's completely clean it up he. I'm Susan power is a financial advisor with the arms and advisory group. And joined by Todd lets the apartment block from Cushing and Dolan with a masters in taxation. Until they show we have Todd guide is written for the month of November just time for the holidays spokes people show you how to not only reduce. A potentially he eliminate your S state taxes talk about a great present for your family. He is included information. For every one of the New England states because they all have their own tax exemption amounts. And he's included the brand new tour when he eighteen. Exemption announced that federal as well as we keep being announced that you were allowed. You who call right now for your free copy of Todd the state tax guide 866848. 569. Earning that's 8668485699. If you prefer you can always download a copy. On our web site legal sixteen shoot dot com just click on the guides an article tap every member if you missed any today's or parachute you can always. Download our podcasts and listen at your convenience I. I don't know season while this may be a great gift I don't know that I wanna come to your house per. For Christmas cystic hate how remote call your game and act leaning daddy did all last minute shopping all it's in that they. So let's head down to assess South Dakota. And downer across her upper where we're going over theirs about the tortoise and a slap in the court decision. It deals with a conservative ship folks and guardianship earlier conservative ship. When you hear the words conservative or ship or guardianship. You need to remember right off the bat that there's no planning on not bringing in this is another example guests of no planning. And and it gets beat it's better now at least the courts involved so I feel a little better you would think. And so this conserve order was acting on behalf of the ward. The award is the disabled war. Disable the person who's incompetent and not able to act on the girl anymore and that's how you get a conservative ship. Somebody hasn't reached the stage of their life where they can no longer make financial. Or medical decisions on their Earl. If you had a power of attorney. Or health care proxy a super simple super cheap document that can do and in being in advance. Then that person that appointed as power of attorney could pay bills and access account as we need to conserve ownership. And it. If that person who's appointed for healthcare proxy could make all the medical decisions and I wouldn't need it guardianship. In just to put that in perspective. These and these documents we gloss over quickly yet there couple hundred dollars for those documents but what does it cost you to go to court and petition for carting out cancer partnership I would also at least 3500 bucks to get your conservative ship in place 3505. Grand. Assuming nobody can test right so that's I mean those. Documents are simple but our very powerful on exactly so you don't wanna lose sight of that. So those are basic documents that clearly aren't here and certain Lee. I can assume there's no. Trusts here re okay. So what does this conservative the conservative goes to the court and says. I'd like to petition to do an estate plan and changed awards estate plan this inheriting his current spouse. And leaving the assets to that kids from a prior marriage to this is that in that situation yeah up and up second marriage so pretty sure I'd love to know who you can terrorist he probably a child I really saying marriage yes. So it that court actually allowed it and I ain't even though there was no. Exhibit's. Note testimony. Something to show. That this is what toward. Intended. So bore wanted courts allowed this inheriting that turns out. Until they appealed to the supreme court of the state. In the Supreme Court said. Now. That's not right right so they reversed and they said you can't do this conservative are. With out some exhibits. Or some testimony. That shows the intent of the award. Was too it just inherit his palace in bits so we have a conservative ship that's when they're still living so the war. It's before any doubt they haven't I Darrell. OK I bet you are not confident it's not competent to say what they're absolutely alive not content in talk about anybody dying here yet. The spouse just said I'm gonna appeal. In this hour peeled and one because there was no exhibits no testimony no evidence that this was towards wish. And I think you need to act and you know what folks if you had your estate polian in plays. People would be hard pressed to prove after you went through. The process of putting estate in and anybody that wasn't your intention of what you wrote down in the itself. You know what don't wary about last minute shenanigans. In complete and don't which are only through death. Call for your free copy of Todd guide it will show you how to leave those apps at the way you want to as well as a bonus round reducing or eliminating your state taxes. It's your free copy of Todd the state tax guide right now by calling 866. 848569. 866848569. And get holiday shopping done right now website Leo exchange showed dot com. Download your free guide. So right way let's let's get the lesson you kind of alluded to are already Susan you alluded to the lesson but I'm trying to teach from this case. It's great that I told the case but what can we glean from what can we take away from it well. First and foremost. It was no trust on nevermind that basic documents right. There was no trust on here especially folks out there with circuit marriages. Right you gotta pay attention this. If you put it trust together. The likelihood as you said Susan first like you'll if you didn't trust your probably not gonna have a conserving our guardian because you're gonna have a health care proxy in a power returning. And it never trust in place and the ability to go change that trust which clearly shows. Well all the persons living nature's the Tressel called the award in this case. Even while that's persons living the ability to change that trust well the ward is still living. You're gonna have to prove. Exhibits evidence testimony something as this case stands for why we should not do what this person. Already spent time money effort and most importantly flocked. And true. How they're leaving their us. Because the trustee. Does not have any discretion over how things are lap that I don't that's mom and dad agreeing that's our. Who decides and the only one thinking changed their minds about how they leave things correct in that would be the war in this case right. And so you write the trustee can't just go in and change it you know how returning you know power of attorney can't it would only be the war. Or the dole nor the person who created which is now the award in this case has the power to change that so you would really need to show why. We want a change this document when in fact we have a ward who put that time and effort into doing me. Not to mention that folks. When you have this that would be no need to be just inheriting a spouse in to begin with you could actually have your trust in place. That provides the language. That says. Hey this is a second marriage again. I have kids from mine Mary she's got kids from her marriage but when I die I wanna take care of my spouse. In the language in the trust can say income may be. Distributions of principle as needed ten perhaps maintain her standard of living that she was accustomed to when when I died. So that money's available already race but with some strings on it. And then when she died she doesn't have the power to change this document for a so. Whatever is left will go to my kids in the manner that I want it to go to your blood my blood run news so. I think if you got that laid out. Now you have even harder reason for anybody tick to over or I should say a more difficult for anybody to overcome this and say. Like in this this case were talking about South Dakota to say hey. I I wanted to saharan my spouse and leave it to my kids. No I've already shown that I want my spouse leave it to Mike can you went to the trouble of putting your trust document. Others the best of both worlds here you really do now so op I don't know why they you know that's really what's missing I think in this this Supreme Court to sit there this. This situation and spin in the South Dakota in you know what you've you've. Got you know that the need to have that is steep clean and place when it's a first marriage and share the children. But even more so when you have that different hanging the only dynamic where. You've got a second marriage you've got kids from from separate Mary do still wanna take advantage of the spouse to reduce estate tax. That's huge deal and it acts and you know what it's your premium please folks any objective that you have you can accomplish. But you need to have your trust in place to do use Todd Scott is written. For the month of November it's a state in asset protection cleaning strategies to reduce or eliminate your estate taxes. We'll also show you how to avoid that nightmare probate for your feeling. And keep your money in your bloodline whether it's a first marriage or a second marriage you can accomplish those goals folks. Call right now for your free copy of tied the state tax guide. 866. 84856998668485699. Visit our web site legal exchange showed dot com you can download your free copy there you can download our podcast. If you missed any of today's show and you can submit your questions for Todd where hopefully. We will stop you from being one of his next real life stories. Todd let's keep a lot from Cushing and Allan thank you so much thank you Susan always pleasure I am Susan powers a financial advisor with the Armstrong advisory group. We thank you for listening today and we will be back again next week on the legally exchange with Todd let's keep. Securities opera through securities America -- 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 Alan Armstrong advisory group illegally exchange in the securities America companies are not affiliated. He spent the last thirty or forty years building your financial planning business he worked hard and your clients rely on you what about when you retire. You have a team of dedicated professionals who will care for your clients in the same fashion as you do. 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 opposites 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 of an SIPC and advisory service is offered for securities America advisors incorporated every arms are represented if Armstrong advisory group and securities America companies are unaffiliated. 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