The Legal Exchange 8-19-17

Weekend Shows
Sunday, August 20th
00:54:00

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

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 league in exchange that Todd Heap. I'm Susan hours and into the sides of Armstrong I think this and doing by Todd let the apartment with a lot from Cushing and talent. With a masters in taxation. Todd welcome how are you I'm never bettering you I am Greek bank you. So I've got. In very interesting situations in shelled today actually some stuff that. I find shocking but not shocking because of. Position our economies in the government that states and how they're looking for money it's not surprising to see this so a couple of things first. On the good news front the senate Democrats have introduced a Medicare buying. For people age 55 now that'll be helpful to a lot and I think that would be wonderful wanna explain that a little bit. There's this case out of Michigan we got to go to the talks about estate recovery. When they were able to recover. From the effective date to the implementation date. But not so much because that's exciting but because it really leads us to the opportunity. To discuss how mass health. Does estate recovery room and what it means to watch share if you're in a nursing home so I wanna expand on that for you. And then here's that again not surprising but still a little shocking. There's a code section 1115. A in the social security act which is the health and human services you know Medicare and Medicaid. That allows states to file for a waiver. And actually made there state. More restrictive than the Fed. For some pilot programs experimental programs that they think are likely gonna up promote the objective of the Medicaid act a tank. Very strange so I wanna explain what main. Has proposed regarding annuities Medicaid annuities and folks last minute planning. Under siege. Is what it seems like based on this for main passes and hasn't been approved but it is nonetheless I wanna talk about it. And then we'll head over to New Hampshire Supreme Court case dealing with a inheritance. And divorce. And whether or not the inheritance is subject to the divorce. Tank while we talked about divorce planning all the time yeah and then we also have a couple of questions from listeners for you as well. As well folks if you have not every crested Todd sky for the month of August. It's his talk money seventeen Medicaid up the inning to complete guide to understanding. Medicaid eligibility last minute planning tips to protect your spouse in your feeling. And someone entering a nursing home you can get your copy of this guy that Todd has written for you. By calling right now 866. 8485699. At 8668485699. Or download a copy and our web site. Legally exchange showed dot com. And I think it's it's a good idea Susan because it talks about all of the situations where we deal with last minute planning techniques. And it's interesting it'll tie in well with our discussion about this main waiver that they're trying to do that might impact some of these last minute techniques. Again it's just Maine I don't wanna say it's a whole country but. You know what if not then Maine. When you talk about cases all over the country and the city of why we can't what's happening in in Nebraska are mean or anywhere else. It kind of set the precedent for other states to file and see what's happening so you got to listen up for what's going on with these last minute cleaning tips and mean it does it does tiger hit it helps other states are always looking. See what they can do to help their budget look we've got to hear the governors all over our Medicaid budget he says he's trying to really attack that budget this term. And we're seeing and they still have those big changes that are pending good news is I haven't heard anything new with a proposed rate you mentioned yes so far so good those are not. I don't see anything on the radar right now villages that we are in August and yet it was the through February calf that's it so at least good on that front. Sony get back to this first thing we talked about the Democrat as a bunch of senator senate Democrats who have proposed a Medicare buy in. Four people at age 55. It's interesting for 55 to 64 because Medicare doesn't apply until you're 64. So there's that C 565. So there's this gap period right right. Well it would be for people between 55 and 64 is that 65 they would be able apply right so all those folks that they you know I think Alan every higher at 62 or they get laid off at sixty or whatever the situation. The next turns coming need to. Retire early can do that you make it by right and this this is an idea of success this actually brings you one step closer to single Payer health care. It really does that. I like the idea but right now it's it's still it's just a bill that's been introduced. You know and hopefully it will pass but. But right now it's just to me a wonderful way of allowing people to get coverage. Probably a reasonable rate probably a little bit more reasonable than doing it privately although I I can't imagine how that would fix the issues that are having now win. All the uses of Medicare in the drain on the system to begin at would be more money going and. More coming out now more user though we ask so little Willie NC you'll out reserve judgment for now hopefully people 55 to 64 aren't aren't experiencing as many medical problems as you'll rue in years haven't you ivory yet so. It might just be money coming in share and hopefully that's coming. Any event I liked and well you know I like to be devils then hopefully we'll get a cup of reserve my judgment. And outrun over two Michigan. There is that a court case there that deals with Medicaid estate recovery matters. And I think that's important. The whole issue in the case was whether or not they can recover between the effective date of their Medicaid estate recovery program in Michigan. Which was July 2010. Shocking to me of itself why it took so long. In the implementation date. Of July 2011 so they didn't have a steam recovery power apparently now. Or maybe this is a new program or something let me stop you for 12 time in just explained he what is the recovery is. And that's I think a great a great point so here. That is the reason I bring it up as to talk about that because here ultimately they allowed estate recovery from July 2010 forward. That's the answer. What is now what are we allowing. Where allowing this date to recover money. That was paid on behalf of an individual who was in a nursing home and was receiving Medicaid benefits and Massachusetts says that now. Massachusetts does it now has always done as far as ever since I've been practicing anyway. And so in this regard. If you'd have done no planning and again the guides about last minute techniques and a lot of them that are out there and what you can do. Well. We might have a house. Well you might appear to get on Medicaid because that your primary residence. And even if you're single. You know you you can get on Medicaid they won't take your house. But the put a lien on it. Which means. You can go from 141000 a month to 6000 a month paying the nursing home paying the nursing homes exactly that point. Less your social security and pension of two. Now you're down to 4000 a month benefits being paid out by the Medicaid programs is what the lean would be for however that near and exactly that clean it's sitting on the house. Would now be recapturing. The amount of money at 3004000. A month that your name talent when you're proudest of fifty grand a year and a that's how works it works that way with rental properties too so even last minute if you had that vacation home or that rental property. And you went into the nursing home and you didn't want to lose it well you could rent it. And then you would have rental income of let's say a thousand a month and Social Security of two that's three and year on Medicaid. And the cost to the nursing home has fallen to six. Minus the three that you're paying right. You'll have a lean running up on these. Rental properties or vacation homes. At a rate of 3000 dollars a month instead of 101214151000. A month you would keep it exactly right Susan to me. That's a win so the green is a good thing. But it explains to you how Estee recovery works right the lean to be a good thing but it's there to make sure mass health gets reimbursed. For what they spent out on your care. Really it's a win for everybody the family got to keep the house and the rental property yeah. I got half a million dollar home. And I have a lien a 50000 dollars at the end of the decisions lifetime. Commitment right. I guess I can buy outs and take a mortgage for fifty grand ma 500000 dollar home teacher at the web. So. The staff family wins the vacation home and saved in the state wins because they got reimbursed them so. Well estate recovery. Is scary. Can be okay. Of course the way to do it is avoid estate recovery ought again I want to know that they won't get it if you have assets and you put them in trusts in advance. Of entering in nursing home which we also. Preach a lot about. That you don't worry about estate recovery comes in Massachusetts they can only recover against assets in year old name not assets in the trust that your probing his. Able I wanna I wanna jump wing activists because you you mentioned knew these annuities were under attack so. We're gonna take a quick break folks and only get back to we're gonna revisit this discussion we're having right now. In the meantime if you have someone who is in the nursing home who may be going into the nursing home. In your concern because the meaning was never done they're likely things that can be done last minute. To save assets for help these spouse deceive assets for feeling. Whether it's liquid assets or real estate there are likely things that can be done call right now for your free copy of Todd 2070 Medicaid cupcake guide. 866848. 5699. At 866848. 5699. Or visit our website legal exchange showed dot com click on the guides and articles have and you can download your copy break quite. You're listening to Todd let's eat a lot from Cushing and Nolan. I'm Susan powers a financial advisor to the Armstrong advisory group but take a quick break but we've got more to come on the legally. Exchange with Todd black ski. Securities African 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. There are two types of municipal bonds and both can be an effective investment tool but if you're in the market for them take the time to learn the pros and cons hi this is very are strong and this month my firm the Armstrong advisory group is offering a free guide to help you understand the benefits and risks of investing in municipal bonds whether it's general obligation bonds or revenue bonds these investments can be highly effective specifically when it comes to tax on interest earned but they may also have risks that can have an effect on your financial strategy call my office today at 803934001. And request your free guide municipal bonds one of one -- educate yourself on the value of these investments that's 803934001. Or you can download the guide right now at financial exchange showed dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out -- bank is offering in -- savings account providing free online banking with a one point 15%. Annual percentage -- this is an online product only and there's no minimum balance required so -- to leader bank dot com and sign up today this rate may change without notice that don't delay logon to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new -- savings account that has a one point 15%. Annual percentage -- and no minimum balance and remember this product is only available online so logon to leader -- dot com right now -- -- bank dot -- -- -- a step ahead. 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 legally exchange with Todd not ski I'm Susan powers of financial advisor to the Armstrong advisory group. And a joined by Todd let's key partner with the law firm of Cushing and Allen with a masters in taxation. Until they show we have Todd sky beauty is written for the month of August. It's his 2017. Medicaid update guide in it's a complete guide it will show you what can be done. Last minute to see your assets for both married couples Ian single individual. It discusses various strategies available to save. The investment accounts the bank accounts your primary residence your rental property in even. Your vacation home. You call right now to receive your free copy at 8668485699. That's 866848. Five fix nine inning if you prefer you can always download a copy on our web site. Legal exchange showed dot com just click on the guides and articles to. In if you missed any of today's or any of our passion as she can always download a podcast and listen at your being. So Susan let's talk today about now about the it's this waiver. In Maine mural at the beginning of the show we talked about this I think it was shocking but I guess in retrospect all states not just Massachusetts or Maine. Are are focusing on. The Medicaid expense part of their budget yeah that's expensive and cut they wanna cut and they want to do what they can't cut it. And so Maine has. Captain this section 1115. A waiver. Application program under the social security act and the social security act as what governs medicate Medicaid law. And so in this case the Health and Human Services Department. Says that under this action they will allow states. To waive certain sections of the Medicaid act. Meaning they're actually can make it more restrictive than the Fed which they haven't been able to do in the past from my from what you told us before that's right in the end they can't. Still just too. This allows the waiver it. One. You can show the health and human services people that the project is an experimental type something new we're trying to. True that this experiment is likely to assist in promoting the objective of the act the Medicaid okay. And three to the extent to what extent and what period of time will the project last. Now in order to make the waiver. They still the states still has stepped. Not statement. Health and human services. It is still hasn't just gonna allow substantial revisions to the Medicaid statute allows state by state. Ted completely overturn this federal statute that they put in place that is meant to be fall rain Willy Nilly they're not doing. But remember when I think what they're focusing on is. Is this a way to deal with the public. Welfare recipient issues. And Medicaid I guess is overall designed for people who don't have money. Or people and what we do make them look like. They don't have money right. And so I think they're saying while in Maine and you wouldn't think this in Maine there was 1300000. People. Who what bought an annuity a Medicaid annuity. Within within two months of a spouse entering in nursing home for 400000. Dollars or more. Real that's a lot of people one point three million people OK okay and so what they're proposing in Maine is to say you know want. We want to win leave the prohibition. Of imposing penalty periods for the purchase of Medicaid qualifying annuities. Okay innings what does that brain. Fox today. Like the one point three million people in Maine that have done this they take the money in this case all used a 400000 dollar example. You take the 400000 dollars and you. Transferred from one spouse to another one which is perfectly legal it is not a disqualifying transfer you can do it today. And then that person buys a Medicaid annuity. And converts the 400000. Front and asked add to an income stream of news. And therefore that asset goes away. Making that individual look like they have less assets and qualify for Medicaid. So there's a limited amount of acids that help is that's happened not the amount of income. Right that's why it works and so they're proposing. Why don't we waive this prohibition. On the penalty may get a penalty in other words make it a disqualifying transfer. I'm also gonna tell you in just a minute. About how they wanna limit that term of any annuities if for going to be able to bite him you know what folks this information. On and these Medicaid qualified in new he's that's the last minute cleaning technique Todd is included it in his guide that he is written. For the month of August it's at 2017. Medicaid upbeat. In you can request your free copy of this guide which will explain to you call the various techniques that are available. To protect those assets last minute for a healthy spouse. Or a single individual. Call right now to receive your free copy and eat 66. 8485699. At 8668485699. If you prefer you can always download a copy on our web site. Legal exchange showed dot com just click on the ads and articles tab every member acumen penny at today's or anywhere past as you can always. Download a podcast and listen at your convenience. And you know Susan. I don't want to make everybody sound like annuities are going away this is a proposal for a waiver that's federal government. Still is going to put substantial. Federal review. Into this before they would grant or deny. This waiver do you think eight they would they would put like that timeframe gone and how long you'd have to wait like kind of like a look back when he bought that in Italy I don't know I haven't you can't miss. Complete that's not been less than in this in this situation yet they haven't proposed that. They are proposing that if you do by the new heat to limit the term to 80% of the life expectancy of the new attempt. Regardless of who the into which in this community spouse or an institutionalized house. So few it in before you could make it not longer than a life expectancy that institutionalized. Individual yet. And. That's good now they wanna shorten the term result what that means is the amount of the annuity payment will be increase so that it would've been over the course of ten years it would now be over the course of eight year yours so you get bigger payments which would then go to the nursing home war to help it it means that there's going to be less being paid out by the state so. That's true things they wanna do shorten the term. And really prohibit. The but the buying of the annuity would be treated as disqualifying transfer in itself right right now it's not. Now. Those are important. Last minute planning techniques we use them all the time here in Massachusetts right I know I'm talking about Maine. Massachusetts hasn't even. Thought about this as far as I know there's nothing on the radar gun it wants other states start doing anything they get approved. Then we need to be cautious. Hey what do you guys do and over there oh let's try that and I would think that if this were to happen in the use of these last minute and you ladies were to go away. You could certainly lean more towards the pool tracks correct if it were first single individual but would you use. How we use of pooled trust tied for our mayor a married couple could you do. We end up kind of could parroting the. It could but I'm not sure it's helpful in probably wouldn't it for a single person that would for shall there. But folks let me get back to the idea of whether or not this is. Going to pass. Remember one of the requirements. That this federal government's gonna look at is. Is this program this experimental waiver program that Maine wants to propose. Going to promote the objectives of the act. Well one of the objectives of the act is probably to make sure that only the needy get on. Well I guess this would promote. But another objective of the act especially with the new goodies. Is to make sure we don't impoverished. Helping spouse right they have spousal impoverishment. Rules as aren't they regulation so we need to make sure that. That the spouse. Is not bankrupt. Taking care of the sick spouse may invite reaching and in grabbing 405060700000. Dollars. Out of the pot. That they normally wouldn't be able to because they're only allowed to keep a 120001. As a healthy spouse. Would impoverish them. Rachel and letting them gravity and buying annuity that pays a healthy spouse and nice income stream. Keeps them from being impoverished and so I think you gonna have a huge uphill battle with the federal government. To get over this hurdle. Because it seems contradictory to me again yes but nevertheless. Lesson learned folks Intel and advanced planning thing and then you don't need to worry about these last minute planning techniques. You know what folks who may be you were someone who has done here Indians planning however are. There are assets that were put into fewer trust they could have been or maybe there's retirement assets that need to be protected. Last minute Todd guy it's his 2017 Medicaid update guide is your complete guide to understanding. Medicaid eligibility and last minute planning tips that are out there those strategies that can help you protect your liquid assets as well as your real estate. You can call right now to request your copy of Todd Medicaid guide and 8668485699. That's 8668485699. If you prefer you can always download a copy on your website legal exchange you know dot com just click on the guides in articles tab you can download your copy. Right away. You're listening to Todd lets you put a lot from a cushion in Dolan I'm season powers of hanging tillage buys into the Armstrong advisory group. And we have the year listener questions coming up next when we return 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. I international investing has been largely on rewarded over the last few years but we are sixteen summary covering recently. How is foreign markets stand compared to the US this year. Correct a common index that represents stocks in developed nations other than the US and Canada is up over 16% this year compared to the S&P 500. Returning eleven half percent. As you mentioned though it's important note the same international index is up only 3% per year of the last three years compared to yes and futures turned over 10% per year. So most US investors are more comfortable investing in domestic companies what is some of the risks involved when you invest outside the they're number legitimate concerns exchange rates political changes are instability. In obtaining detailed and reliable information about companies in some markets can be. Really concerning factors when making foreign investments in addition the cost of foreign investing tends to be higher. Purchasing division stocks many firms charge higher rate or investing in mutual funds. The expenses tend to run. Quite a few cons but there must be some upside otherwise every only just invest in the US companies correct as we always say diversification as he vanguard did a study backing Torre fourteen on global equities research returns from 19702013. What they found was that the maximum diversification benefit meaning. Best return for at least risk occurred in a foreign stock allocation of 35%. Whether or not that's right you know that's up for debate. Folks if you have questions about the economy about the stock market or even a vote your portfolio. You can email Michael at Armstrong advisory dot com. You've been listening to Wall Street week in review with Michael Armstrong no. Back to the legal exchange with Tom Lipsky and Susan powers. You're listening to the legal exchange and 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 he is time lets PN's Susan powers. Welcome back tot and a few questions from listeners for you. First question comes from Ian in Wellesley mass and Ian Wright's. My widowed mother is being moved into an acute care facility for the next few months right don't anticipate she will be coming home from based on her feeling how. She created an eerie book global trust many years ago in the majority of our assets around 700000 were transferred into it. She has around a 100000 outside of her trust. Is there anything we should do at this point in terms of end of life planning she had the two year long term care policies I'm not concerned with actual nursing home expense. Well it sounds to me like as long as she's got the assets in the trust and there's a 100000 outside the trust. I'm just a little surprise right here's the facts that you know she's got a long term care insurance policies that she's not concerned about nursing home expenses. I don't sell this stuff Susan so I don't know I know enough to be dangerous. About it I like long term care insurance don't don't get me wrong but and I think you can provide a great benefit. But I have almost never seen one that pays out 141000. Dollars per month. Right but it firm based on the question here it sounds like it's acute care which is Medicare pays ports and with more hospital stays man. A nurse always not a nurse reality in in the she's in peeling house so they're looking for the next few months. All OK I feel like she's terminal based on this questions that the IOC and maybe that's what do we do with the hundred thousands or anything needs to be for and OK you can understand my point cleric and ours did you have you would not have a long term care policy. That would pay out 141000 dollars a month I don't think yeah. At the very hard do exist they're Cadillac cleaned out there but they're super excited and I don't themed area often and so I was going down the road that this would have been great for her to do the plane that it was done it was you know great and that's protected. I'm so yeah so if she's gonna pass I would say the stuff that's in the trust she's all set with yes. It's gonna will avoid probate it's gonna pass according to the terms of the trust should be relatively smooth when she passes for the family. Which again was her wish and her goal so she's accomplished that. The 100000 that she left outside the trust is also a normal amount to leave outside of the trust especially when you're doing an irrevocable trust planned share. Not to live on so. I would say just. You know and if I was you I would just check out account or accounts if there's more than one. And make sure there's a designated beneficiary. So we attached to it's like a checking or savings CD yeah yeah I would put a designated beneficiary on it. That way it will go to that person or persons. If they allow you to put more than one person on it. And it would go there. Automatically an outside of probity OK so probate is the one thing you one point. If I can you know why why go through the process of going to probate even for the 100000 dollars people say well it's only a few accounts. You still have to go through this scene hoops rain so. It's just. Extra legal fees and extra headache for the family that you just don't need so and that's my advice. Night did he go before it Todd that in fact one gentleman comes to mind and I met several years ago his wife could pass. Any he had a smile account in nice smile it was less than 20000 and think and he's taking Nowak. I'm just gonna walk away from that account because I don't open probate just for that that was the only thing within his wife's name. When she passed some heating blankets food hitting it looked away so he walked away from the account and you is it was a Smart count compared to his overall net worth but. That's just kinda goes to show probe it's not an enjoyable process. It's something that you really got to think about it again for the size of the county got to decide it am I gonna spend as much money in legal fees that I am getting the account that there. That's the objective not gonna do yet and that's why you might walk away so. But I do like the fact that you that are advanced planning if she had gone into the nursing on this would've been a great plan. Yes so if she over a million dollars top would you recommended any tepid gifting. It would really depend on the type of assets that she had an inch if Medicaid is still a concern of hers and where we aren't life race because remember not only via a five year waiting period you have to deal with when you make a gift. He also have to deal with carry over basis step up in a loss of a step up in bases. There could be capital gains transactions that far exceed the Massachusetts a state tax. Liability so you would need much more facts are I would need much more facts than that to make that call. But its potential but getting there could be things that need to begins have you got someone in you know insurer light situation. Absolutely pick up the phony get some good here's some advice from an attorney some last minute or gifting could be done. You know what folks that maybe you're in this situation where you're not looking and a last minute and of late inning situation that you're looking at last minute nursing home protection. Todd guide that he's written for the month of ideas it's his 2017. Mickey upbeat guy in its complete guide to understanding Medicaid eligibility. And last minute cleaning techniques that can be used to see if those assets call right now for your free copy. 86684. 569. Iron at 866848. 5699. Or visit our website really exchange should dot com click on the ads and articles have and you can download your copy. Right away. Todd next question comes from bath in the intestine and he insurance and Beth writes. My husband and I created. Ruins is mean eerie book about trust three years ago in transferred our home and around 500000 dollars in investments into the trust at that time good. We have around a 100000 in cash in the bank outside of the trust what can only use the funds in the trust for Q we pay for taxes. In homer in here we question a lot yeah we really doing and you know my thought is that. That why you know why what I wanna use. The 500000. Dollars in the trust. Tapeh. For daily utilities. Like you're saying here we probably it's as home real estate taxes utilities repairs. Why would I wanna use money that's in the trust that's already protected or on its way right to being protected from the cost of long term care. Instead of money that outside the trust that at risk for the cost of long term care in the future. The answer I went brain I would wanna use the money out and trust and we've got a list of fair hearings. Where we have one on this issue so you can go in and say and they'll say listen. If you're allowed to use money outside the trust to pay for expenses of property in the trust and it does not create a problem so I would do that. But I think on the flip side there are sometimes people who don't have a lot of cash outside the trust. Can you use it right. I would say yes you can use the money in the trust for the house it utilities etc. What I would suggest I'm gonna cautioning on this one. Let's differentiate for a minute. Utilities. Real estate taxes. You know basic yard care things like baton. Money outside the trust first and you're in new roof. You need to put an addition on. You need to fix the bathroom to capital improvement three capital improvements I would be used in the 500000 in the trust Hank. Because technically you don't own that house so you shouldn't be using big things. But the little things the utilities and the maintenance and that's like rent yet so that would be OK so that would be that if differentiate. Air act still OK so they follow your advice and they start spending down that 100000 dollars and now it's to an amount where it's really their emergency fund. Ten may use money in contrast sport things like utilities in real estate taxes things like I absolutely can't never been a problem in fact that's how I used to always tell Klein until we got these winds. I used to tell clients you know. You should use the money in the trust to pay for assets owned by the trust because you don't own rank don't. And that's been always the clear thing you don't own what's in that trust. The trustees don't either. The trust us to a lot of times people get all my house and. I don't painted the you know you hear your child's just the trustee of the trust which does not. The owner of the asset. And I think that's an important distinction fact we declined the other day that was concerned about that Susan. She said all looks it looks like I'm putting my house on this deed into my daughter's name. A signal let's read it closely. You're putting it into your daughter's name comma trustee of XYZ family trust and. Not your daughter's name not personally. Like old. Scanner read it slowly in yen and and look at all the words yeah and not just the name that you see there. Well that's an integral people have a lot of concern that they're going to be giving up control and having to ask. They're kids for permission and in you know we when I build now and all you listening most of you know it's not just the keys now. You know I've folks educate yourself and what should be done. Hot guy did is written for the month of August it's his 2017. Medicaid upbeat guy in its complete guide to understanding Medicaid eligibility. It includes information on all that the areas last minute cleaning strategies that are available. To save those of liquid assets whether it's the bank accounts the brokerage accounts those CDs. Or it's your real estate whether it is your primary residence rental property. Vacation property vary even things that can be done the last minute to save your retirement now that. You can get your free copy of toddler sky which by the way also as always includes information on the benefits of advanced planning. Call right now for your free copy. 8668485699. At 86684856. 99 visit our website legally exchange showed dot com you can download a copy there you can also on the house Todd cap. We'll stop you from being one of his next real life stories you're listening to Todd lucky apart in with the law from Cushing in Dolan. I'm Susan power as a financial advisor with the Armstrong advisory group. And we'll be back in just a few minutes on the legally exchange with Todd. Listening to the legal exchange with Susie powers and Todd lets you. I understand and have taxes can affect your estate plan 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 incidentally Larry King took he kind season Harrison a financial advisor with the arms and advisory group. I'm doing of course by Todd let's keep apart with the law firm of Christmas Island with a masters in taxation. On today's show we have Todd sky daddy is written for the month of August. It's his 2017. And Medicaid upkeep in this guide we'll show you what can be done. Last minute to see your assets for both married couples in a single individual. When someone is entering the nursing home. It discusses information on pooled trust in the benefits of this strategy. And it shows you how you can also see not only your primary residence but that rental property in even your vacation. Call right now to request your free copy of Todd Medicaid guide at 866848. 5699. At 866. He 485699. If you prefer you can always download a copy on our web site legal exchange showed dot com just click on the guide than. Articles. So Susan what Tikka I'll walk over to war up to a New Hampshire and not just New Hampshire but the supreme court of New Hampshire. Excuse me high high level we don't mess around here on the legal exchange here. So in this case. It was an inheritance. That we had to deal. So. This couple. Was getting a divorce. And they had gone through the divorce process. And reached a final decree. So what that means is you're really done. You've decided the amount of assets that exists. You valued everything and most importantly you divided everything. In a ways that you agreed to know Hank and A issued the decree. Who. However. It was pending appeal. I don't know if there's a time period after the decree where you can you know appeal it or rethink get. So was pending appeal. But it was issue. Done. During the pending appeal process. The husband. Received an inheritance because the husband's parents died. Here comes the money share hence the name for the appeal known all know that's my point though they died after yet okay. That's my point that decree was done. The divorce was done. There's this appeal process and during the appeal process. Is when the death cart. After the divorce. So the question. That the question became course she Krause said well I want half. Of that inheritance yen. And that court said no. This will not be marital. Property. This will not be subject to the divorce why because the divorce decree had been issued. Once it's issued you can't add more assets to wit. Even though you might tinker with the distribution of the assets that all already included in. In other words it's like it closed at the door shore on what can go in the divorce decree pocket. Yes we can't add more yeah. So needless to say that husband now was thrilled that this inheritance from their parent hurt his parent. I would not be again by the now ex daughter in law. Folks wanna Italians. I tell you this because not because I'm worried about you getting divorced. I'm worried about. Your kids getting a divorce yes. And you know what there are a lot of people we meet wind did say I am really concerned about is our someone's going through one now or one was divorced already in I don't want them. See what happens down the room and we lose half their assets their inheritance. Tell my eighth seemed to be ex daughter signed. It and so. I'm talking to about this couple but and there at the children. I'm now talking to all you listeners. As the parents began who has the children. And you could die remember this just happened to work out timing lines. I think what you need to know is an end when we come back I wanna talk about. Howell. To divorce proof your state plan as the parent. Because you don't know when your kids can get the divorce rate and what matter rate no matter when you die whether they're married now or divorced later. You don't care when that happens as long as you've divorced proof of your assets that this would never happen then. An issue and you know what folks Todd is written a guide for the month of guests. It's his 2017 Medicaid upped the inning to complete guide to understanding. How to protect your assets. Last minute. For married couples as well as single individuals when someone goes into the nursing home he's also included information on advance planning in this guy. Call to get your free copy right now 8668485699. That's 86684. Heat 5699. He prefer you can always download a condom a copy on our web site. Legal Eckstein show dot com just click on the guides and articles ten. So Susan let's let's not talk about really what reading between the lines right what what what. Planning tipped two week take away from this New Hampshire case. Folks listeners parents out there. When you're doing your state plan whether it's or revoke will trust or an irrevocable trust. Your estate plan is gonna have. The same language in it. Upon the death of both of you where your assets go in and one retrieval cruel their vote this is the section of that trust them focusing on. Let's say he used say I want it to go equally to my two children wouldn't. You'll simply put equally to the kids if flipping. Stop and think what is the next sentence you want that trusts say. Do you want it to say equally to my kids to hate kit and goal away. And that trust folds up and goes away then. Or do we want to hold it back in trust for awhile. Maybe for their whole life to protracted and control it. For their benefit. For their life. Let's explain the pros and cons. If you say divided equally amongst my children and give it to them. Like was the case in this New Hampshire. Case that we're reading. Then once those assets come out of that trust into the hands of not children. And then they get a divorce. In. Those assets would be accountable as mayor at all property. And you would have to give half on a good day. Who does the Morse sing. Spouse so think about angled into bottom line who has been waiting for someone pass the ways he will it happen before she'd filed divorce it's exactly what we're looking into and that's what could have happened here had the timing been just a little different. Putting it into a trust where we say OK I don't like the next sentence saying give it out. I wanna hold it in place now here's what you do you could still have your two children serving as trustee of the trust. Fine. They got their buckets or could be a million dollars in each pocket. For each can't. They're managing it they're investing it they're doing everything they would do with it as if they had it in their hand for themselves for themselves. Then you appoint a disinterested trustee to make only one decision with. The disinterested trustee must be an accountant or lawyer or trust company. Stay away from the trust. But you we want a person more likely than. That account let's say it was me for example that lawyer. Gets to make one decision. When Billy wants a distribution out of Billy's bucket for Billy. Or for Billy's kids and your grandchildren. You ask me. I thought I say yes or no. And I get to stayed in my sole discretion okay. Why is that important unlikely I'm ever gonna I don't have to sack I never benefit by saying no. And you can even well. Billion Sally asks kids to remove me. Any time. And replace. What another accountant or lawyer wonderful. When the divorce comes and they say we want half for what's in your bucket Billy Ray Billy says check with Todd. I'm pretty sure tides gonna say today's not a good day for that distribution yeah. There in lies the protection from the divorce. Right or from any creditor. And then finally upon Billy's death the assets will pass and trust the estate tax free. For the grandkids. What a wonderful plan no downside to that plan folks. You know what folks you can't do that plan at the last minute if you die unexpectedly unique daddy playing them in abeyance. We understand the benefits of that but we also understand that life gets in the ways sometimes you may find yourself for your spouse. In this situation. Where someone's going into the nursing home may be Garrity in the nursing home in your writing those joining checks. There are things that likely can be done the last minute to see those assets for a healthy spouse per married couple. Or for the family of a single individual call right now to receive your free copy of tides 2017 Medicaid upbeat. 866. 5699. 8668485699. Visit our website legally exchange showed dot com download your copy the analysts into our podcast. In Sydney your questions for Todd where I am happy. To give a week Todd it's free legal advice to you. Todd let's keep from the lot firmer Cushing and Allan thank you so much thank you Susan always a pleasure ion season powers of tiny Cilic eyes it would be Armstrong advisory group. We thank you for listening to our shoot today and we will be back again next week. With more on the legally exchange with Todd black ski. Securities opera through securities America ink member and that SIPC an advisory services offered through securities America advisors think securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation Cushing and on the Armstrong advisory group illegally exchange and the securities America companies are not affiliated. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out -- bank is offering in -- savings account providing free online banking with a one point 15%. Annual percentage -- this is an online product only and there's no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay log -- to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new -- savings account that has a one point 15%. Annual percentage -- and no minimum balance and remember this product is only available on -- so logon to leader -- dot com right now -- leader bank dot com -- -- a step ahead. There are two types of municipal bonds and both can be an effective investment tool but if you're in the market for them take the time to learn the pros and cons hi this is very are strong and this month my firm the Armstrong advisory group is offering a free guide to help you understand the benefits and risks of investing in municipal bonds whether it's general obligation bonds or revenue bonds these investments can be highly effective specifically when it comes to tax on interest earned but they may also have risks that can have an effect on your financial strategy call my office today at 803934001. And request your free guide municipal bonds one of one -- educate yourself on the value of these investments that's 803934001. Or you can download the guide right now at financial exchange showed dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are on the show.
READ MOREREAD LESS