The Legal Exchange 5-20-17

Weekend Shows
Sunday, May 21st
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. Revelers welcomed into the league in exchange with Todd lucky I'm Susan our Stephanie took sides of the unfunded country group. I'm joined by let's be a partner with the law firm of Cushing info and with a masters in taxation. Todd welcome our U. I'm never better and you I am great thank you we have on me agenda for today. We've got no interest thing we would be talking about cyber security. In light of all the lack thereof of cyber security. Out there but Social Security's going to be upgrading their security so I think everybody needs to know what they are gonna need to do. Going forward on on this. And I got a couple of interest in cases one that is out of Ohio and Ohio appellate court case. Where. A nursing home bill. Was not required to nursing home itself was not required to pursue. The state of the decedent to was in the nursing home. For the bill. Before they pursued. The wife who's living. Well to payback and yours too so interesting that there it'll be interesting spend a learn about how that plays out but more importantly. Just you know what we can do to prevent these kinds of things from happening because they pursue you couldn't really do. In addition we've got a a Massachusetts appellate court case. Dealing with life estate deeds. How often do we talk about like the state. The wrong way to do them will explain both of those ways and then this new way they did it. Which is a combination of an enhanced life estate. But still on the wrong way so it's an enhanced wrong way. Of to bring a life at stake it's extra bad they basically reserved a special power of appointment in the deed which I'd like. But. They still gave the remainder interest of the kids. And I'll explain how when they exercise the power of appointment cutting out one of the kids in the and the lawsuit you can imagine swallowed to translate that into English forest so we'll go through all that great and then we of course have you know past time. I was tied it we don't have our guiding you know what thugs. Do Todd sky did he is written. For the month of may it's dean mystifying the world of the state claiming it is truly complete guide it will help you understand. Eight the most commonly utilized the steep meaning trust. In it's going to help you decide what type of guy is right for you in your family this guide covers revoke Coble trust eerie vote global trust nominee ability tres special needs traps like insurance trust inherited stressed. Pooled trust in sole benefit trust I think we need the while didn't think trust while to being compass there as well you get your free copy of Todd sky deep mystifying the world the mistake cleaning. By calling 866848. 56 99. At 8668485699. If you prefer you can always download a copy on our web site. Legal exchange you know dot com just selector guide the articles tab in if you missed any of two days or any of our cash as you can always download our podcast. And listen you're convenient liked it it's funny how you rattle off all those when you rattling them off one after another there are a lot of there are a lot of and so trying to make sense of what's the best option for you based on your objectives I think this is agree Guidant in really laying the foundation in the deep you thousand. Helping people figure that out. I do because you know not. Not everyone of them is for everybody I know take a special needs trust for example let's not for everybody but it you've got a child that is estranged child or grandchild or family member in general yeah absolutely might be important. Even pooled trust not for everybody editor angering owners to me like it's great to know wind. These trusts are appropriate and then how they work once you determine that that's the kind of trust is right for you. Okay. On the left to cyber security yes while it again it that the timing is is interesting I suppose if nothing else. S Marvin note than anything else for you folks because effective June 10. Right around the corner wouldn't. Social Security acts a counts excuse me Social Security accounts. Most of you have them now because haven't they've been going to note checks a while back and years ago it when you're in no product. To direct deposits. So you're Social Security accounts now if you need to access them you're gonna need your password and username which I'd get. That he does this ill handling this in your online. Information so if you log on to so right pretty dot that's it talking about OK adding you can walk in your bank and and route access this didn't have anything to do with your bank is is actually when you set it up online if you if you wonder inquire about anything. Right from that accountant so you can have a Social Security account where that money goes online. Not for money it's just our user ID at the user account. So it's like logging into your employer retirement and are logging in to your fidelity or logging in to your bank account. This is yes you've set up an account and I ID. Social Security dot so you and I can go okay now yep we could enter our information creek registrar. Aren't online account OK so that I could estimate what I'm gonna receive for Social Security when I retire. And just keep following model racket yes absolutely make sure that they've received my employer information about contributions to Social Security that I need. So to make sure that all my information is accurate if you do that now. You username and password to log in to the Social Security website okay. So it sounds like they're adding some more secure they are so what it is now has so folks are all of all of you who are doing maximum effective June 10 you've got the password and username guys they already have that. I now there's going to be an additional code. That you have to put in and I I get the impression that when you use your password and username when they're gonna send you an email or text. With a cold. That goes with that and and you go get that and then put it yet you know what I see I actually logged into. I think it was one of my credit cards this week in the east dead. We have enhanced our online security. Do you wanna receive a special code by text or by email that's registered for this account. So I had a Texaco it meets that they and it just you just enter the code you received. It's just another layer security to make sure that someone else. Is not locking in to your Social Security to change things where they are and get olive here I mean they get. All of your your personal information. Yeah no I think that's a good read an hour and slayer yeah so another thing hang about you know security for yourself effective June 10 street and my dad. Oh and they added email because not everybody has a fall. That can tax they can text so. All right and that the folks that don't have email war that don't have phones it in acts like my mother for example. She would never happened on the link Social Security cap or any other accounts though Brett wouldn't impact she's just gonna call human being I guess. So what do we do now folks it's sort of a no more than anything else and what sort of set the table fight coin for this other case now. All of you who might have somebody in a nursing home or maybe going in and nursing home. You know how does that war while you're either private pay. Or you're on Medicaid. And if your private pain which by the way the rate is always significantly higher maybe 50% higher. Then. Medicaid rates right so 6000 verses twelve to 14151000. A month. And if you don't and if you are private paying and you died. There could be a bail and outstanding male or there might have been bills that were running up that you had gotten behind on YouTube or whatnot and so. The nursing home in this case. That's exactly what happened the husband was in the nursing home and he died. And there was a bill outstanding that was that he didn't pay you and the nursing home. Failed to pursue the claim against the state. Remember when you die in Massachusetts there's something called estate recovery. Many states have this is so they'll say. You know that that's pure on Medicaid I get the impression there was no Medicaid here so it's just a regular creditor of the state. The nursing I'll share so what they're supposed to do is file a claim. Like New York State. When you die in in by filing a whale you're giving notice to the to the world that you have one a year generally. To bring a claim and finally it's against the estate in IB any credit early if you had a credit card Baylor something like that that we are not just filing a well that we published in a local newspaper right for seven days. And it's got publication. As part of the probate process. That allows the creditors notice that you died and that they now need to file a claim against the state wouldn't. To get paid back for something that wasn't paid what you were alive right well this nursing home. Failed to meet the statute of limitations to file their claims. So they never got around ten to suing the estate to recover the money that was owed to them on the decedent died. And so when they did file they were told you're too late so that they pursued a spy how's the living spouse. For the money. And so I wanna tell you how that plays out. Tile will tell us how that plays out in the meantime do you know where folks go to get at a stately everything in your probate estate. Which you can avoid if you have a trust in place what type of trust is right for you. I can't say but Todd sky will certainly help you figure it out he covered eight of the most commonly utilized the state cleaning trusts its demystify in the world of estate planning. And this guy is free for you know you just need to call to request it at 866. 84856. Learning earning. That's 8668485699. It's Todd sky for the month of may deem this to find the world of the state preening. You can also get a copy online go to our website legal Eckstein showed dot com select the guides and articles tab if you miss any days or any of our passions. You can always download our podcasts and listen at your convenience. You're listening to toddler at the heart in with a lot firmer Cushing and Dolan. I'm Susan powers of financial advisor to the arms on advisory group we've got more to come here on the legal 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 illegally exchange in the securities America companies are not affiliated. 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Wait 5993. Or visit them online at 800 DC solar dot com that's 800 DC solar dot com. You're tuned into the legal exchange we've done let's do you 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 legal exchange with Todd let ski. I'm Susan powers I think into resides in the Armstrong advisory group enjoying by Todd lets be a partner with the law firm of Cushing and go in with a masters in taxation. Until they show we have Todd new guide that he's written for the month of may. It's deep mystifying the world the mystique cleaning in its the complete guide to understanding the most commonly utilized ST cleaning trucks. It discusses the various factors you need to consider when trying to determine. What type of it's the clean is right for you in your family it talks about protecting your home in your money. It discusses funding your trust which is one of the most important steps in your estate planning process. It covers three vocal tracks Gary vocal well nominee realty trust's special needs trust. Life insurance trust inherit her trust those at the trash she is when you are concerned about potential future divorces and much more. This guide will also show you how these trusts operate on a day to day basis and they DTL all of the income. Gift and estate tax considerations for each traps. This guy is free for you it DDT out and it will help you make a decision. Concerning your state leaning. Copier free copy right now 8668485699. At 866848569. So Susan we set the table what that case right finale let's go back and say we've got this creditor the nursing home who who who is pursuing the surviving. Spouse in this who has. Private pay this wasn't Medicaid I have to believe him and that that the facts are clear enough when I'm reading the case but it it it. Peers there's no discussion of Medicaid Newton. And and I can tell you that's probably the case because. If it was Medicaid there would be nothing note right right that Medicaid pays every month so that there would be there would be nothing out right so in this case. There's this recovery that they're trying to get not from the state but from the nursing home itself there creditor and so they pursued her. And she five claims saying. No this is there's these are I don't wanna get in the details but there's certain things that are called necessary east and certain states have these necessary laws that say. You know you can't pursue for those 'cause they're necessary to something that she needs the money whenever. Didn't matter in this case they said. They've that they did not have the final. Against the best state first. It could file against her first student or not the estate at all in just go directly after the spouse. I wonder she'd sighing you know how you always advise people to not signing as being personally responsible when you check them into the nursing. Yeah that's a possibility didn't get that from the facts folks we always tell you you know you don't wanna be signing anything personally responsible and arguably it would be his debt. We're not her dad but I think when there when there are these necessary use. There's certain things you can't get away from and and they're saying that this is that a debt that you have to pay. So interesting enough what I do as I say look. We don't want it ever be in this situation but the point of doing our state planning in general folks and now. We're sort of getting into the died in a sense that you know what kind of trust is right for you well. For these folks and depending on your age you know the irrevocable trust may have come into play. And and if it didn't they had done their planning in advance. Then they're not going to be in this situation. Where they have to worry about paying back and nursing home because the goal is to protect the healthy spouse who first. That's always our goal and meeting we want them to have as much money as they can possibly have to live about the rest of their life comfort. Will if you have a 1006. Who's in the nursing home for a long time and you haven't and your planning. Bully I mean you Christine nursing home as high as 171000. Miles here in Massachusetts. And you will very quickly impoverished your spouse if. I don't do any kind of leaning in so the irrevocable Medicaid trust would have been the way to go for them because and the assets that would have been in there. Would've been protected from the cost of long term care. And the assets that are outside the trust that's nothing even though there there. I'm sure there was always assets outside the trust. We would do something that. Neal last minute those last minute techniques. Even if that's a pooled trust for somebody that's another. I type of trust that's discussed in our in our materials and you know to get that person on Medicaid. So that we don't have this problem so even in this case if if they didn't. You know to any advance planning. I guess the question that that I'm looking at this from the outside looking answering the question being pegged as. Why they reach out to somebody even with no planning done right. And try to get on Medicaid to save the assets last minute for the healthy spouse men if that was the case you don't have this. This recovery problem. So. In you know what folks if you're thinking about oh you're objective history here a state clean and in Washington not impoverish your spouse. Wanting to preserve those assets if you should go into nursing home if that's part of your objectives. Talk skied his section on page six about your evoke a bowl. Medicaid trust. Is probably a good section for you to become familiar where you can eat your free copy of Todd sky by calling 866848. 5699. That's 866848. 569. In if you prefer you can always download a copy on our web site legal exchange showed dot com and select the guides and articles task. So Todd if folks are concerned about. The long term care expenses coming up. When we talk about doing complaining ambiance that's five years and at the right that's true. So it's not I mean there are things you can do last minute they're not ideals I mean it Anthony is ideal brand with all of the changes that we are seeing proposed out of Washington we cut health care reform act which I don't think people realize. Impacts Medicaid. Yes it does it out on that front that I will ask parents yes that it really they're really Britain and the microscope on Medicaid is there any talk about. You know doing. Longer look back or you know XP and it state recover what what is the impact of someone. Doesn't do the airplane and in their colleague folks out there that are saying why bother the just gonna change everything anywhere now. Mean I think that's in if they are I I think that's you know very shortsighted for people I mean let's just look at the history that and I know right even in the past 25 years. Right. We've been join at Cushing and Goldman dornin for 35. Years since I've been out at 2223. Years. And it works has there been changes absolutely. You know we had the Deficit Reduction Act whether they we had the other Deficit Reduction Act was the biggest change where they increased from three years to five years for a waiting period. Trust prevailed when we have attempts at changing regulations trust prevailed in knowing he's OK they prevailed for the folks that did there complaining before they need that change and it during those yet that it was. They want grandfathered into that three year look back correct so that's a good point not only are you grandfathered in when that changes have occurred. Number one number two when I'm saying that trust prevailed I mean. Even after the changes that have been made along the way. The trust if you two year planning even post change still survived as a planning mechanism got so so. My point is if you you can't really think about all all of a sudden you know we all it would do this you you need to look at and say if I don't plan. I'm gonna fail for shore we will move you know write my plan is pretty darn good chance I'm gonna win. Right and people have been winning the history is such that it works so I think that's why you listen that's why we we try to keep people up to speed on how these things work. And I think one of the most startling changes that's been proposed in the health care bill is whidbey home equity limits so how it stands right now. If you have five minute and 50000 is sit in equity in your home for a married cut else. Not at grant yes like 580 or something yet go into current us single individual the same thing but in Massachusetts and other states we its adjusted for cost of living yes like 840. Now. Nick got after it started at a higher rate they used to allow states that Ted. Exempt. If you could pick a higher number than the federal number because they know some states have values of real estate much higher rate right so. Massachusetts. Opted for that. Well these are again the focusing on last minute planning techniques things that people can do to save a house their primary residence when there was no planning done. And this is a great way to do it where if your house was you know less than 840000. Dollars in equity. You couldn't protect it last minute by saying either or spouses living there are I intend to return home it is even if you're single find tend to return home. This new bill wants to take that and bring it down to five get rid of the states with higher ones bring it down to 58. Good luck New England on New England a lot of states California New York Islanders play states that have you know higher values. It will be harder last minute to protect the assets encouraging people. 22 of these trusts again because I do believe that they're gonna continue to be. A planning mechanism. Regardless of who the surrounding. Landscape lot changes. And you know what folks he'd need to get your thing then we thirtieth start you start by educating yourself. Hot guy did he's written for the month of me it's demystify in the world of estate planning. You may be listening thing you know what I'm not concerned at wind those long term care expense cleaning them protecting assets. But maybe you're concerned about avoiding probate reducing or eliminating your estate taxes. Keeping your assets in your bloodline that is all included in Todd sky beauty is written. You will call for your free copy right now. 8668485699. 8668485699. This sky includes eight of the most commonly utilized ST cleaning tracks. If you prefer you can always download a copy on our web site heats legal exchange showed dot com just select the guy that articles tab. You're listening to Todd let's eaten a lot from Cushing in Dolan. I'm Susan powers a financial advisor with the Armstrong advisory group we have your listener questions coming up next when we return in just a few minutes. To illegally exchange with Todd black ski. According to a recent study by the Investment Company Institute more Americans today are saving money for retirement through traditional IRAs and employer sponsored plans hi this is very Armstrong it's great to see that more of your saving for retirement and my message to you today is let me help you make sure you protected assigning a beneficiary to pasture assets on two after he died is an important part of elder life planning and my firm the Armstrong advisory group has a new guide out this month that can help you understand this process it may seem simple but there can be complications call now to get your free guide understanding traditional I air raid beneficiary designations the phone number 803934001. That's 803934001. You can also download it right now from our website financial exchange show dot com. Insurance exists to protect your assets were friends of the insure a match agency can prepare personalized plan that gets you the best coverage at the best price call insure a match at 84499. Match let's paid for 499. Match. We'll also dig out all the discounts preferred customers like you can qualify for. Call insure a match to compare multiple rates in carriers and 844 and 99 match let's 8449. B nine match insure a match works with a leading carriers in the industry liquor bella Plymouth Rock in more. Well today 844 and 99 match or go online and ensure a match dot com. You're listening to the legal exchange and its 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 Todd lets PN's Susan powers. Welcome back Todd have a few questions from listeners for you first question comes from time in darkness Manning and Tom writes. My wife has always been against putting your trust together or doing any estate planning and now she's been diagnosed with cancer. Her prognosis using creek and I wanna make sure we get any legal documents done that we will need before she passes. We are worth around one and a half million including our home a 500000. Like insurance policies of 500000. And bank accounts of an additional 500000. What do you recommend we do. So it doesn't indicate anything about aging here which is okay but think about is that this is a great question because. It it really helps us understand how to begin in a state plan and you got to look at York surrounding facts to think of your state. So not only your age your health all of those are certainly issues but look at how they valued the stake for. Very nice that they you know say what are we work because that's gonna drive the type of plan so. In this case you know it it's it's that very unique situation there are some opportunities that you can't do. You know. Normally OK okay win when you have somebody who is. Not I don't know that says diagnosed with cancer let's assume it's later you know later on because it's not Corey herb diagnosis I was rant don't assume it's. You know stage three stage for you know not looking good and excuse me if that's the case. I would say and let's assume their old. What's so now they've lived their whole life and I think maybe she he's you know in their eighties okay right or or late seventies or eighties. Well then you have to think about nursing home planning and estate tax plan right now I'm noticing while I care about nursing home plan. Well I'd maybe I don't for some with stage four cancer because unfortunately as bad as that is to probably not going to owners and all right so. That being the case but I still have you know eighty year old living spouse who's going to be healthy steel chair well. If there's a way to protect assets from the nursing home in the event she goes in you might wanna do that. It's critical. Here folks. To do the planning before one's spouse dies because of the one point five million dollar total state so from for a state tax per state taxes so we wanna figure out a way to utilize. But first bounce to guys million dollar Massachusetts exemption thereby leaving less than a million available. For the six bout for the healthy spouse when healthy spouse dies okay. So with our trust we are going to be able to eliminate. There Massachusetts a state tax okay easy enough OK I get it. That's a trust Todd we've got eight different trusting you're not many to choose from what type of trust revoke able irrevocable. Well. You would think irrevocable because we wanna start a clock running for the nursing home purposes at least for the healthy spouse. Yeah but can we do better than that. Yes we can't we can do something called a testament Arie trust for the spouse who's died now what is that we don't we don't really talk about a testament don't get all these options that often your absolutely right. We would put as many assets as we can in the name of that dying spouse yes it will go through probate I get it. But just leave it at that spouse's name. And they will do a new will. It has inside that will a trust that's a testament or trucks and and the whale will pour everything right. Right and that trust and they died. And the reason we do that is will still shelter for state tax purposes just like any other trust so we could take half a million dollar home and half a million dollars in bank accounts there accidentally end okay and put those over there in that trust now I've got a million dollars sheltered for. Estate tax purposes. And because. You did it you didn't trust. Other EU funded trust other than bio will Wright's so by because we're funding it bio will yet we now don't have those special rule that says. The Medicaid trust rules. And the Medicaid. Look back rules don't apply. Also we can only. Like to be split protect island ass at the million dollars in assets for him healthy spot so for the healthy spouse so now we take these assets we shelter them. For estate tax purposes. And the moment that trust is funded when he passes. There's no five year waiting period for the healthy spouse so now these assets are not only available for the healthy spouse. They're protected from estate taxes. And protected from the nursing home immediately. Know five year waiting period. And this is a really really. I mean it's a bad situation to someone's passing but it it it provides opportunities that you would not know about if you don't seek out counsel Wendy's light defense. People yet and you know what folks it's silver lining certainly in the situation part time I applied you reaching out in this situation that your and given where you are now. You know what if something like this occurs folks where someone's been diagnosed with something that is terminal. You really need to seek good legal advice in the meantime folks if you're not in that situation. You need to have your plane in place because we don't always get their heads up that something's going to be happening. Call to request your free copy of Todd sky T mystifying the world of estate planning. Includes information on eight of the most commonly utilized estate cleaning trust. You get your free copy by calling 866. 8485699. That's 8668485699. Our download a copy and our web site legal exchange showed dot com just click on the guy and articles. Todd our next question comes from Jerry in Windham New Hampshire and Jerry writes my wife godmother recently passed away. She always told white that she would be leaving her some money per hour with the executor is now being tightlipped as her state is my wife entitled to. Received a copy of her well. So what's the godmother. Who died who dial folk it folks it's important that we understand the relationship with him. In the legal world. There is no real relationship. Between godmother. And don't god daughter Clinton right there's no legal relationship it's like a child. Or grandchild right or uncle. No legal relationship so that's important because Jerry. Probably doesn't even have standing. Jerry's wife yet I'm sorry no Jerry yet yeah Jerry's wife doesn't even have standing. To bring an action because it's like I can't to your state Susan we're not related news right however. None of that matters. If we're talking just about whales. Because the whale folks which is one of the documents that we always do and people think is the most important document. Is. Really the only document that must be filed at the probate court. Period so it's public record that may public record right. It's public record you don't have a choice here so Gerri your wife can marched down to the probate court in the county in which. Did godmother died. And set like copy of the to pull out the probate docket number pull out the probate file and they'll give you everything it's not only will it have the will. It ultimately. Will have an inventory. Of all the assets that the godmother died owning in her own name. And Oprah with no designated beneficiary so I'll remember if it there's an Ira kicking around with a designated beneficiary you won't see that there. You know there was a joint bank account with some other family member and the godmother you'll see that there. But any assets that are in her own name and likely when people don't have any estate planning and other than a whale. They have assets in their own name ray and so you'll be able to see all the assets and get a copy that will ensue if you're beneficiary. Now if you're a beneficiary. In the will and you can't pursue. The estate's a hearing titled as you've been named. As a beneficiary and Duncan I know pursue your rights. Whatever they may be nice though if you don't want to have the world see. Everything you own an hi you've left ending. He would try list. And no probate I don't think about again what kind of trust in this case even a revoke Coble trust is fine didn't mean if the goal is simply to just avoid probing keep everything as simple as possible for you. Well you're living and Daniel RY and then you're on site and your family when you pass. Or revoke Coble trust will be just. And again don't forget revoke total trust do everything else is wildly avoid probate they reduce estate taxes they bloodline plan. So revoke a bull or irrevocable lord works fine to avoid probate and we do it via lots of big reason. Lots of benefits and you know I. And losing neighbors. Not Yemeni prisoners he but they will be apt right now little guy got. And now we've got an average adding a male come grade raid. Folks if you have a question you would like to ask Todd and I encourage you to visit our web site. Legal exchange showed dot com and click on the asked Todd have always happy to give we tides free legal advice. Maybe will be able to read your question on the air and hopefully his answer will stop you from being when it is next realize story. In the meantime I also encourage you to call your request a copy. His guided is written for the month of may it's dean mystifying the world of estate cleaning. In regardless of what you would like to a complex may be it's probate envoy in May be at the state tax reduction. Maybe you want to protect your kids' inheritance from future divorces you may not even know that at that thing you can do. That information is included in his guide his team mystifying tracks guide. Call for year free copy right now 86684. Feet by 699. At 866848. 5699. A well you're out there are legally changed your dot com asking how to question. You can also download a copy if you click on the guides and articles cap and don't forget our iPod podcasts are out there as well. You're listening to Todd let's eat from Cushing handle Hines who's in power as a financial advisor to the Armstrong advisory group. We're gonna take a quick break him will be right back in just a few minutes on the legally exchange with Todd black ski. Your financial strategy has to include a thoughtful insurance plan. Insurance exists to protect your assets our friends at the insure a match agency can prepare personalized plan that gets you the best coverage at the best price call insure a match at 84499. 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To 900 or email -- BO at leader bank dot com for more information member. FBI's you're listening to the legal exchange with Susan hours and time let's game. Understanding how to 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 into the league and it seems to be hind feet in our opinion took sides of the Armstrong advisory group. And judging by Todd black ski park in with the law firm of Cushing and talent. With a masters in taxation. On today show we have tot sky duties to Britain for the month of may it's demystify and the world and steepening. In its complete guide to understanding eat the most commonly utilized to state planning truss. This guide includes information on revoke Coble trust eerie vote Coble trust nominee really trust special needs tracks like insurance trusts. Inherited Strauss pooled trust cancel benefit trust that should be. The kitchen sink guide and I think we'll have to every means. You get your free copy of this deep yelled guided 866848. 5699. At 866848. 5699. You can also download a copy on our web site legal Eckstein showed dot com just select the guides and. Art folks were to talk about like the states now there weren't talked about it from Massachusetts. Appellate court case. So Natalie they get through the probate court system that went up to the superior court the appellate court case to get a final win on this situation. I'll say a win but it's the decision you guys can decide whether it's a winner. So what happens we talked about like a State's right like the states had done in two ways if you and you probably know the lord you've heard. You take your house. You give it to your children. And in the need you retain a property interest known as the right to live there. The rest your thinking keep you out your learning right and you're really the present legal title holder. Took that. Piece of property. The future interest is what you put in the hands of the children even though by putting the hands of the children it's a completed gift. Took the hits OK okay. Am not condone in this action just I'm not there. On condemning it yeah I think that's probably the I don't like putting advocates but it happens a lot a lot of people who go to a quick real estate lawyer something. This is the quick fix. Benefits but. You know it will in five years protect it from the cost of nursing care. Soul you know that's a benefit but there's negatives. Adding that children's name on that on that property well you're living so you know I don't love it. That's one way the other way. Is to transfer the property. Two irrevocable trust one of the trust in the guide. And take back the light the State's same idea so same idea you still of the lake state is still of the right to live there for the rest your life some thinking keep you out. But the remainder are in trounce the future in press is in need trust yes rather than millions of your kids at that risk option right on. And one of the real big benefits of having it in the trust and not in the hands of the children is you can still control it. Who better than if it's in the hands of the children and most importantly. You retain them right in that trust something known as a limited power of appointment I'm gonna get that because that's what this case is all out. In that trust meeting you retain the right over the trust even though it's irrevocable. To rethink. Who is the beneficiaries. Are seeking change your mind even though it's right rebuilt Cumberland scary and it sounds like it's finally it's a car. You can still change your mind so that if in this case you have three children. Like as the case here that I'm talking about it Massachusetts. And you have that key in that trust. You would have that ability to say well I want to my children how to get the house and not one and one of my don't want getting. You can change that Europe and ask anybody or anybody would. If you have good deed in the hands of the children. And you wanna try to do that. You generally. Cannot. Because the child you were instantly just inherent tendency yen on. Any old day right now they're not gonna give it up they already have their name on the deep. So what they did is in this case somebody came up with the idea of and I've seen it in the past I just I'm not a big fan. They said we're going to be the property to our three children. Retain a life estate and and that he'd retain that special power of appointment. That I mentioned we do in the irrevocable trust. Him away I mentioned how you can change the irrevocable trust beneficiary. Through a limited power of appointment which we put in the trust. They kept that power in the deed. And lo and behold the mother in this case. Exercised. That power during her life and cut out or cut the amount down 41 of the children. She didn't want the house to go equally anymore she wanted it to go more took two out of the three children okay and she did that. Because she retain the power then she died and lo and behold here comes the lawsuit. And let me tell you what happened there. You know what folks if you're thinking of doing your estate cleaning start educating yourself and hot guy did he's written for the month of may. Demystify in the world of estate cleaning. Is going to help you decide what type of trust is right for you. It reviews the various factors you need to consider it talks about protecting your home in your money. Talks about funding your trust in it shows you how each of these eight different trust operate. On a day to day basis you get your free copy of this guy by calling 8668485699. That's 8668485699. If you prefer you can always download a copy on our web site. Legal exchange showed dot com and select the guides in articles tap so third child shows up not been on the Dorsey and hey wait a minute. Wait a minute how come view a cut me in the amount and I'm allowed to get from this house and that's exactly like she filed the claim. And she said that you know you can't really do that. Through this approach are saying that. That type of arrangement you created that remainder interest and the retention of like the state coupled with the power of appointment they are. Repugnant. To one another and you can't do it. Turns out you can't. So says the appellate court. It's not up. In proper arrangement. You're allowed to do it what happened here was and they made it very clear. That she retained. A lightning interest she is the restaurant owner. Under that light for state. And she retained the right to change the beneficiaries. Are changed that. Percentage of ownership interest that was in the hands of the remainder men because they had something. Less than a full fee simple ownership would break theirs is more about. Yes they got it and it's vested but they still got to kind of wait for that light tenant to die right for them to become fully. Angle fee simple ownership in the property. And that's what the court concluded which I think has the right answer is yeah. I'm adding that is the way that should work in so they allowed the change. And they told that got her New York out. Now you're getting only what mom one that you get one and she made very clear by exercising this power of appointment that that's all she wanted you again. It worked Tug why would you need to actually. Have a life ST what why wouldn't you just tree it's very popular figure here are doing your eagle global trust meaning you concerned about protecting from the nursing sure. Why would you need a life estate highness feels like a middle name why wouldn't she just means for the home directly into. The trust without reserving yes okay so I think as a general. I don't mind so much keeping a liked to stayed out as long as the remainder interest of the trust's let's get that OK on the table first I will do that. When the life estate in when the remainder interest is not that children are all of lots of control creditor issues and issues that go with. Putting children's names on the deed. But even when I'm transferring the home to a one of these irrevocable trusts are due sort of asked that question because. There's there's really not a lot of reasons to keep like the states anymore as the laws have changed. So there are three times. If you live in one of these towns where you get a you know some kind of a neat real estate tax abatement OK so some time for veterans sometimes senior citizens veterans and older occupancy there appear in Boston. We will reserve a life estate that will preserve. That abatement and whether it's veterans' benefits expire. Or if you. Have a mortgage would keep a life estate and helps to retain the mortgage. He just went coast to families where you're living in the one or renting out the other floor. And you wanna be able to collect the rent directly. You don't wanna have to make the rent flow through the trust and back you. Not that that's complicated. It's easier when did you simply collect the rent director and as a life tenant one of the property rights that go where they. Is the right to collect the income pay the bills. And maintain the property OK so people shouldn't be sweat if they have one now aren't they don't it's good if you have it for those reasons but generally speaking I put the whole Austin because when I sell it I don't want even a little piece of the proceeds. At risk for the nursing home again I want it all to go in the trust to be used to buy another house. You know what folks if he'd been thinking about creating a state clean or maybe you already have a trusting you just need a refresher course of how you're trust works. Call it a copy of Todd sky beauty is written for the month of may it's demons to find the world of its peak cleaning it in complete guide. They will help you understand eat the most commonly utilized since the cleaning traffic. It reviews of factors to be considered it discusses protecting your home how to avoid probate how to reduce or even eliminate your state taxes. Funding your trust it shows how these trust operator and dated EP called right now for your free copy. 866848569. Learning. 8668485699. Or download a copy in our web site legal exchange showed dot com to select the guidance articles have. Click on the hands tied cavity of a question for Todd and download our podcasts out there as well. Todd let's keep from the lock from an Cushing in Dillon thank you so much always a pleasure thank you I'm Susan Harris a financial advisor to the Armstrong advisory group we thank you for listening and will be back again next week in the legal 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 to legally exchange in the securities America companies are not affiliated.
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