The Legal Exchange 9-9-17

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Sunday, September 10th
00:54:13

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This is the legal exchange which John let's keep from the low for a look Cushing and Dolan and Susan powers of the Armstrong advisory group. Each week Todd and Susan we'll discuss many topics including estate planning how to avoid probate and protecting your money from a nursing home. If you need assistance in any of these areas for have a question about another issue that may affect your future. Call 8668485699. To make an appointment that's 8668485699. Operators are standing by now here are your host Don let's game and the season for hours. Welcome into the league in exchange for Todd Heap I'm seizing power the thing into the guys it would be Armstrong advisory group. And doing by Todd let's keep apart with a lot from Cushing and only with a masters in taxation. Tot welcome how are you never better and you I am Greek saying he would we have on here on the list of things you'd like to chat about today and we're gonna get to you very bluntly that we will not attack we will we will actually got good stuff one. We have to begin with this Jimoh case. And we talked about a lot it's all about. You know making your hundred days of Medicare last longer. And how long you're getting skilled care I don't talk about that because. The CMS senator for Medicaid and Medicare services launched a website to finally help people implement. But Jimoh decision can't believe it's been since 2014. Or so long time and it's just takes a long time so we'll talk about that. Second I have a new fair hearing decision win. Here in Massachusetts here here and we're taught you about that it actually doesn't do the trust. But nevertheless it kills the caretaker child exception which are some of those last minute planning techniques that we talked about so frequently. For people who are not able to get their planning done in advance here's an interesting challenge that they had on the caretaker Trout exception. But we showed how their challenge was misplaced. And we actually won the case anyway so will get into that. And then we have the end I want talk about a bankruptcy case and you think I'd be talking about bank ready. But bankruptcy case because it deals with the spendthrift provision. Very similar to what we talk about for our clients which is divorced proofing. Creditor protecting so it's a bankruptcy case interesting to see how this trust was drafted compared to how we should draft it. And I think it will help us get into the guide which is about back to the basics right so how are we going to. Begin our state plan and think about how you wanna draft your documents when you're beginning the process I think it'll be it'll be good and we haven't stopped we Cheri do have. Wow questions from listeners he and we have if you haven't had a chance to get it may be are busy at cook out last weekend that's for sure. They would Labor Day and I'll Todd has Brittany bring you guide for the month of September it's his back to the basic back to school guide if you well. In its complete guide to estate in asset protection cleaning there's so many benefits to having your state clean a plea in placing your feeling can avoid. But costly and time consuming process of propane. You can reduce or even eliminate your ST taxes this guy discusses why you will is really alone you don't want to rely just on a wealth folks. In it also explains the differences between revoke a bull in theory about global trust. And what qualifications you should be looking for when your starting the process in trying to find an estate planning attorney. You can call for your free copy of tides brand new back to the basic sky. 8668485699. At 8668485699. If you prefer you can always download a copy on our web site. Legal exchange two dot com just select the guides an article step in if you miss any of today's show or any of our past youth. You can find their podcasts on the website as well and listen at your convenience. So Susan let's dive into this Jimoh case let's start off by reminding everybody what it is it's please. So general stands for the fact that we're gonna change the rules governing. How long you can stay on Medicare. When you're getting skilled care. Okay let me tell you the old standard and it's pretty old now. The old standard was let's say you yet had a stroke and they're doing read it there move your arms are moving your legs and and that's skilled care. But once they determine that. Oh well you know. His arm isn't gonna go any higher than this day they used to call a plateau yet. And if you plaque towed at. At the skilled care at the skill level they would say that that the people would say that physical therapist would say. He's plateaued. There for work done with skilled care. He's now on what we call custodial care but he still has to stay in the nursing home can't call them. Well that's when minute Q would that paying me exactly Susan. Medicare would then say okay you're off to get one day notice by the way tomorrow start private pain so you went from not private paying to getting a bill for 141000 a month. And one day so and in reality remember Medicare. Is supposed to pay for up to a hundred days out to that would lead the old car that was the old part up to a hundred days and so maybe thirty days in the year therapy. They would say you Platt code written and now too bad for you. You're off Medicare and you lost sixty days of your potential hundred days of of Medicare. While they changed that Jim was a case that stands for that change of that is gone we don't use improvement any anymore. We use what they call you need to continue to provide the physical therapy to maintain. A function. That you got okay. Or to prevent decline of the function. That you've got. So no more plateauing it's maintaining. The function or the level of mobility. That should have provided or as long as skilled care is needed to do that. Okay well that's way better share now unlikely to get closer to my hundred days of Medicare. Okay well the next question the definition it is really. Well. What skilled care. Skilled care is whenever a specialized. Knowledge or specialized judgment. Is needed and skills of a qualified. Therapist are needed. Ford performance of the safe and effective maintenance program now and that's what they call so if you still need the skilled care then you get it. I think what they're getting at is if look every day really what we're down to is getting holy lift to get you in and out of the bed and you go to the chair and you sit in the chair and then you know from there you go back you know. That that's not skilled care. That's that's just custodial care but if you needed a physical therapist Simmons train to provide any kind of special knowledge and it's needed or specialized skill it's needed you know. You still get this skilled care. And that means that hey at least for a hundred days Medicare is gonna pay me in my physical therapy my skill. Care should. Should continue and so I think that's great news you know for people why am I telling you this because EMS the center for Medicare and Medicaid Services. Which is that governmental. Entity that. Deals with these rules and finally launched a website. So you go to CMS dot or. And probably typing Jamal is because at that there's so much on there typing Jimoh in the search section and I think you're gonna find. This information okay great. And and so CMS dot org again to find the information about the ups and I got up CMS dot com I'm sorry yeah CMS dot gov. Is is the way you go. And then type in Jimoh and you get this now. Folks the reason this is important is because so many people will be getting their skilled care notice all of a sudden they'll stop and say you don't qualify anymore. Remember this and you know. Present case. To the therapist say look I know about the Jimoh case they should know that term they should know that word. And just challenged them a little bit if you feel like your loved one needs. More therapeutic more than you'd care bright we just wanna prevent him from further decline if nothing else you know an and I think. That's that's the critical part. Now remember Medicare. Is still different than Medicaid yes and people still confused too. Medicare in this case is gonna cover you for now looks like closer to this hundred day deal. Remember long term care has not Medicare and. So effect the end of the hundred days and they ultimately say you know there is no more skilled care and you're an hour on custodial care. You may be in the rehab senator. But the rehab centers just gonna move it down the hall that's really in nursing home. And then once you go on custodial care and Medicare ends. You are gonna get that deal. For 14151000. A month. In even if you need death you'll hear beyond the hundred days Medicare is not gonna put the bill then you how to do it yourself anyway that's a good point Medicare is not conflict and also as much as I spent some time explaining to this Jimoh case and explaining to. The benefits. Of the Jimoh case we can't lose sight of long term care planning. We can't lose sight of protecting these assets from the cost of long term care. In advance. Of going into the nursing home is still takes that five years. But then when you moved down the hall and you get that bill you can now shift your attention to saying okay. Now mind Medicaid planning is gonna take over wooten and what's in the trust is going to be protected from the cost of long term care and let's apply for Medicaid. And if you haven't and you planning in in means you need to stay too because we get back Todd is gonna talk to us. About a last minute planning situation. Where he got win away and airport here is Scottish weeks so. Listen for that folks if you do have some in the nursing home. They aren't likely things that can be done last minute to save those assets whether it's for healthy spouse or for your beneficiaries. He need to make sure he gets an expert advice folks in the meantime if you aren't thinking you know what I don't wanna deal with this last minute non sent. I wanna do my planning ambiance Todd has written a guide for you and it's called back to the basics its brand new for the month of September. In it's a complete guide to help you under scene and estate and asset protection cleaning. It discusses probate taxes we vote Kabul here evil global all the benefits and the qualifications she need to find in an attorney. Call right now for your free copy 866848. 56998668485699. Or download a copy on our web site. Legal exchange showed dot com just click on the guides an article avenue can also download our podcasts as well as it while you're out there. You're listening to Todd black ski a partner with a lot from of Cushing and Alan. I'm Susan hours a financial advisor with the arms on advisory group we're gonna take a quick break and we'll be right back he 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 pushing in on the Armstrong advisory group to legally exchange in 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'd 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 leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage yield this is an online product only and there is no minimum balance required so log on 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. 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. Hi this is apparent stroke with -- an important message for you and your family if you had a successful career and haven't yet taken the time to plan for your future now's the time to make that call Cushing and Dolan and senior partner Todd let's -- have been helping families like -- with their state plans for more than thirty years and he's got a brand new guide out this month called back to the basics it will help you learn about the bare necessities needed to create -- estate plan but will also educate you on important items like how to avoid probate and passing your assets along to your family called Cushing handle -- right now and 8668485699. And ask for your free guide today that's 8668485699. You can also download the guide right now by visiting them online at legal exchange showed dot com proper estate planning is critically important to a safe and relaxing retirement so don't delay get this free guide today protect your assets and enjoy your -- years 8668485699. Or download it right now at legal exchange showed dot com. You're tuned into the legal exchange we've done let's do and Susan powers if you're dealing with a loved one who may need nursing home care. Don't delay Coleman at 8668485699. Now and let us help guide you through the process while protecting your assets that's 8668485699. Welcome back into the legal exchange with Todd lucky. I'm Susan powers when he took sides with the Armstrong advisory group. And a chilling by Todd let's ski a partner with the law firm of Cushing and talent. With a masters in taxation. On today show we have tides bring new ideas written for the month of September. It's back to the basics in its complete guide to estate and asset protection cleaning. There are so many benefits to having your estate plan in place whether you're concerned with is having your family. Avoid the costly and time consuming process of approving eight. Maybe you wanna reduce or even eliminate your estate taxes. If you're not sure whether or not you should every vocal bowl or an eerie both global trust this guy outlined the differences. It will even show you how to value yours the how to start a process we wife find an attorney how to light look for when what are the what are the qualifications they need to have what's included. In my ST. You can get your free copy of tides bring you back to the basic sky 866. 8485699. That's 8668485699. If you prefer you can always download a copy on our web site legal Eckstein showed dot com. Just click on the guide and articles. So Susan let's talk about that case yes and we have excuse me that's a new wind always. And healing for pushing until it knew where unions very happy we could. We could. Help declines so this is one or where decline came in and explain to me. That they have this house. For salt and just give me the fact pattern. That sun came in and explained that mom is going into the nursing home okay. And this home that the parents had bought long ago right worth. Know about two million at the time. And. Said that they had put half the property in the son's name. Years ago. OK so he has have to prop is something we wouldn't normally do race but they put have to property in the son's name years ago. The other half is in mom's name that had already died. And mom is now going in the nursing home. Really that was their biggest asset. What can we do are we gonna lose the house so this is and no planning situation folks many of you could be listening and saying oh yeah. That's neat I did the same thing I put my child's name on the right and L or we've done no other planning and you know something could be happening how to we you know save house. Last minute. In this is their primary residence Wright is there anything we can do we don't wanna just write the check or if you try to apply on your own they will say. All sell the house in it this is the biggest asset is probably didn't have the check to rate. That's the problem. So turns out that I asked a little bit more and I said we'll this year your names on his on the house as well have you been living there. Ever since they put my name on that morning. Well have you been providing care for your mom. Oh yes you can and so we took the position that he. Satisfied the caretaker child exception of ten which is the first step in this analysis so what is the caretaker child exception. You have to be a child and a lot of greens child or grandchild on. A child. You have to in your parent is now going in the nursing home. You have to be living in the home. For true years it's okay prior to the date the parent goes in the nursing home in a crude. Well usually that's a good point how do you prove it usually tax return you file shows that address. Your driver's license has been changed at that address or records voting registration. Good pointers have been changed address. So you've taken some physical steps. To prove that this is your house he'll still have the apartment in the next round heels are not good to continue to have that. So we've taken care of that and we proved that throng of the caretaker child exception. The other prong is not only did you live there for two years but that you provided care. For two years to that parent what kind of care yes and that's a good point now especially after some cases that have come down. Care is not just care but nursing home level care. And what that means in English is unique to have been providing at least two. Of the six major daily living needs that you have OK excellent screens earning. Cookie go out like that that cooking bathing feeding. Toy letting transferring. You know those kinds of things. If you're doing at least 2 of those am the doctor gives you know. Confirming that you did that. Now you've satisfied the caretaker shot exception. And we did that in this case her pitino have folks maybe you're thinking here is self. I don't have to deal with this last minute planning stuff I wanna make sure I have many state and done properly. And inconvenience. Todd has written a guide just for you his guide for September of back to the basics considerate you were back to school guide. It's your complete guide to understanding the state an asset protection complaining. You get your copy of this free guide. By calling 866848. 5699. At 8668485699. Or visit our website. Legally exchange. Dot com and download a copy Sunni really hit on the head on that one because you know this is a last minute. Exception to the rules that were dealing with a wildcard it may not be near in the future look at to. Yeah I mean here's an exact example of there are challenging last minute planning techniques so. This idea of back to the basics and getting your education and learning about how did you planning in Iran had there because. You don't want to. Have to rely on these last minute techniques they're there especially if they don't exist in the future right you don't know they're there and they work but now. First time I can tell you that I've ever seen this argument I'm about to present to you but it's being challenged and not just leads me to believe that there's more com. So so what happens now we qualified for the caretaker Trout exception why do we care. We care because now you can transfer the house to the caretaker child and there is no five year waiting period. Because this is a separate regulation that says. There are certain permissible. Transfers. That do not trigger the five year waiting period. There's a separate statute rightist caretaker child as one of them. That's exactly right. So this is a separate little section that deals with permissible transfers now remember on dealing with. Multiple regulations. They're they're they're called 5201. To 52032. So there's 32 regulations and this is just one of them. In this regulation world. And so it says you can make this transfer there's no five year waiting period it's allowed we'd love. Says seems pretty straight forward what was there argument Iranians saying you denied now come back here fear here well remember when we talk about home being a non accountable asset. There's a section that says homes are non accountable. Provided however that the value of the home does not exceed 840000. Dollars. I remember that again and in some states it's 500 in change here it's 840000. If it exceeds 840000. Dollars the statute says. Then it's not deemed it non accountable anymore rain. But it's still a hole. They tried to argue. That it's no longer hold. Because. It's over the and therefore you can't transferred under the permissible trot ship transfer section. Can the Stockholm wedeman. That number one I argued that isn't what the statute sets the statute just says that it makes it non accountable if it exceeds that value. Remember her half of the house was about 950000. Dollars per half. Which is over the 840 rain but then I went through the regulations and I said. Every place in this number one the number 32 set of regulations. That they want a particular regulation of valuation section to apply they reference it. And. They referenced it in the home exception they reference it everywhere they want it to apply they reference back to the valuation exception that says. The house can't be worth more than 840 otherwise. It's not accountable not reference in the care taken child exception and in the caretaker timeout exception I said it is not referenced it's deliberately absent. From this section because they want to allow these permissible transfers to occur regardless. Of the value. Ray and they agreed. The state said you're right it's not referenced there if there's no valuation limitation on the transfer of a home you can go ahead and do it and they agreed that. Just because it's. Over 900 over 840000. Dollars it doesn't somehow magically not become a home. Which means that you can't transferred as a caretaker shout exception transferring at the home ray which is a limb it's limited to the home. But under the caretaker tout except you can't transfer hundred million dollars rate which you can transfer the home. And so it was it was a complete went across the board so you know yes it works caretaker child exception works. Folks get your ducks in a row last minute planning it's not the way you want to go it works. For now I'll put that out there because they are changing needs Medicaid laws all the time though. Get your planning done an advance fortieth start start like educating yourself. Talked sky back to the basics that the complete guide to list the an asset protection planning. Brand new for the month of September folks you can get your copy of this guide right now by calling 866. 8485699. That's 8668485699. They also encourage you to visit our web site legal Eckstein issue dot com you can click on the guides an article to have you can download your copy there. If you missed any of today's Iraq cash as you can download our podcasts and listening your convenience. And you can also click on the asked Todd tab and submit your question if you like ST give you a little bit of free legal advice on the air today. You're listening to Todd black ski. From the law firm of Cushing in Dolan I'm Susan Powell is financial advise would be Armstrong advisory group and we have your listener questions coming up next on the legal exchange with Todd let's keep. 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. My kids were just beginning to clean up from hurricane Harvey we now have parking Herman bearing down on the Caribbean. In Florida. How these storms in acted americans' economic lives in the short term. The single most noticeable impact has to be increased gas prices start to shut down approximate fifth of total US refining capacity we saw the average US gasoline price jump from a low of 232 gallon although we have to 26080 Allen just a couple weeks. Now with Guillermo we're seeing some differ owners economy impacted depth orange juice futures have spiked significantly as partners at more than half your wrist oranges in nearly half of grape fruits. In addition missing stock prices of cruise line operators airlines get impacted cancer routes Reba customers and deal with these losses so long term the bisons sea areas of rebuilding costs in Houston in who knows for the Caribbean and Florida. How do you think that she you're right some estimates have put a rebuilding price tag. 180 billion dollars in Houston alone construction companies auto repellents repair and sales as well as. Some other specific industries could see significant benefits over the short term. The overall impact the economy won't difficult to measure will certainly have winners and losers though for some smaller businesses without much razors or insurance. To be really difficult and to rebuild and get back on line. But for larger more efficient businesses a disaster like this could end up being beneficial long term if some of those smaller players. Get knocked out of business because they are not efficient enough to be able to compete then you could seal less competitive environment in the long term. And she got really playing off for some of the bigger larger more efficient companies. Think tonight folks if you have any questions about the economy the markets or your portfolio please visit Armstrong advisory group dot com. You've been listening to Wall Street week in review with Michael Armstrong no back to the legal exchange with 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 here's Todd lets PN's Susan power. It's. Welcome back Todd had a few questions from listeners when you. First question comes from a lean minster average math and Helene writes. Is there a trust that allows me full control until I die but also lit the trusted act on my repay repeats when selling home. To decrease the tax and inheritance. For my children. There absolutely is from Mary in fact you should ask Elena in orbit it's great that you get these questions because these are common sense questions to us as we do well at times Susan but we need to remember. That it's not. For the people who don't to right and that's really exactly what's going on here. This is such great question because. This is exactly what our trust and this is the beauty. Of these Medicaid irrevocable trust right. That that thing that I'd like most about them is that they're drafted. As grand tour trusts for income tax purposes tank. Yes it's gonna protect you from the nursing homes yes it's got to avoid probate and provide bloodline planning to your family and all those things. But this is why exactly why you go to masters and taxation person who's. Who has that a well and number we talk about if a lawyer. And and that's exactly what you wanna. Go to 'cause during your life Elaine in this case. This trust is a living breathing entity. It meets earned income perhaps it might have bills that need to be paid it will have taxes might have to be. Well income that's earned in the taxes have to be pay ray what do we want to trust paying these taxes are incurring these expenses. Really we won the flow through. To the creator. Of the trust Elaine you in this case because a lot of people just use irregular England they get their pensions in order to support the expenses of their and that's OK too. So let's say let's go through this example for you really and you put your house. Your living there you might be paying all your losses and write out your own personal account that's OK likely we would have retained a life estate for you. Did you go right to pay all your bills. And you pay the bills from the trust shall the trust owns the property and if there's money sitting inside the trust you can certainly write checks to the roofer. You can write checks to the general contractor that you're doing and having work done on your house right. Absolutely Allah and those can all be those expenses can all be kept keep receipts. Then when you go to sell the house which I think is what she's talking about. You're gonna have your regular old capital gains analysis and she's just talking about this but you have your capital gains announces what I mean. You sell that house there's gonna be something called an amount realized. How much is the check. Coming to you for always sold it for 500000 dollars great that's going to be made payable to the trust's annual deposited in the trust bank account. Meanwhile you need to deduct your cost basis and selling expense yes. Well I bought it for a 100000 and over the years we've put in new roof and new kitchen. Etc. I put another 100000 dollars into the house now I've got a 200000. Dollar basis didn't. So now five minus two is 300000. I deducted my selling expenses added that was into the eight calculation. And I now have a 200000 dollar gain so quickly Elaine yes to that expenses but we need to take it one step further. Because now you're selling it and I care not so much about the selling expenses. As I do that capital gain yes he got 300000 dollar capital day. If you're single Elaine you still will qualify for your 250000. Dollar capital gains exclusion. Associated with the sale of your primary residence. I'll cut now have to pay tax on 50000. But if you're married you'll still qualify for your 500. Thousand dollar capital gains exclusion thereby eliminating. The entire built in gained. Perfect which is exactly the same position you would be in had you not put the house in the trust. These trusts are known as income tax neutral for that very purpose. So Elaine. This is to me one of the single greatest questions and greatest reasons to do these trusts as well you're lifting. You may need to finally trust tax return I get it. To report that game. But that trust will not pay any taxes it will flow of income. And the gain right to you and you put it on your personal income tax return which is exactly how you would've done it had you not had the trust. And you know what Elaine if you would like to learn a little bit more about how these trust operate. You can request Todd sky daddy is written for the month of September his brand new guy is back to the basics in it will give you a good solid understanding. Can state an asset protection planning you can request your free copy right now by calling 866. 848. 5699. That's 8668485699. Or download a copy and our web site legal exchange showed dot com just click on the guides and articles tab. Taught our next question comes from Michelle and how are math than Michelle writes. My father recently passed away in he was a co signer on my mortgage and co owner on the what will need to happen now that he has passed away they need to notified the bank and willing need to refinance. Anymore so this is a great question because a lot of people probably don't even realize. What happens. When someone writes. Right regarding this on this case it's a little different than the run of the mill situation because it sounds like that daughter. Owns the home with the father yet and so me be a father is maybe the daughters actually buying a home. But needed help. Kelly. Date that that the husband that the father said all right I'll help you in the bank said yes the loan. Is in need your name daughter's so we'd let it use that money. And we kinda late use the money father as Europe co signer. On the loan movement. A co signer is not the same as the person who they really lent the money to okay lent them money to the daughter. That co signers saying in case he does she doesn't pay you're gonna pay you so you're on the hook you're you know you're on the hook. OK so that's that's the arrangement they have. I imagine the property at Michelle in this case it is owned jointly. So that in case your father died. The house will avoid probate and by operation of law will go to the surviving a joint owner that daughter Michelle. So you would have no probate and to show you now would become the 100%. Owner on the property. The question that's not really being asked here but sort of indirectly is being asked is. Does this trick or the dual one sale clause. In your mortgage okay. What that means in English is right if I owned property in my own name. And I died and I had a mortgage on it and now I'm transferring the property to my children. Yes that is going to trigger the dual one sale clause in my mortgage. Because now I transferred the property to my children. They are not on the know they let me the money not that kids and therefore they will now say that note is doing full. In the kids will have to go to the bank and negotiate. Saying look I now on the property. Will you refinance. This loan into a mind game in new loan so that I can you know take it over yup. Because it could trigger the do wants a plus. That is not what's gonna happen here OK because in this case vowed daughter is still the owner of the property. And on the no. The loan was lent her and amber and my example where I died in all transferred the property. I did not that the borrower now no longer owns the property in my example. That's what traders in this case one of the owners died but the owner that still is on the no. It didn't trigger the do wants a clause because there was no transfer by the up but borrow wore the borrower still owns the real estate. And still is on the hook for the mortgage so it should not trigger the duel on sale clause broke Hank. You know from a but cleanliness standpoint. I would suggest that you. Go to the bank may be in just acknowledge. It and that the co signer guy just. Note to beat fair and let them know but it should not trigger the due on sale clause. Because again you kept something you didn't you didn't give away the real the real estate you retain an interest in the property and you're the borrower to one sale clause. Intact car thanked. Yup folks if you have a question you would like to ask Todd. Visit our website legal exchange showed dot com and click on the ask Todd tan maybe it will be Walter Reed your question on the air and hopefully. His answer will stop you from being one of his next real life stories. While you were out there you can download a copy Todd guide for the month of September it's brand new folks. It's back to the basics in its complete guide to understanding the state an asset protection leaning. It we'll show you how you're feeling can avoid the costly and time consuming process of probity. How you can reduce or even eliminate your in state taxes. It discusses why you cannot rely on just a will commit to really a well. It explains the differences between revoke a bull in Erie though Kabul trapped in it will show you what qualifications. You should be looking for in in the state preening returning. Call to get your free copy of Todd spring and you guys right now. 8668485699. At 8668485699. In memory and he's download a copy on our web site legally exchange you dot conflict that guides and articles have. If you missed any of two days or any of our past shows you can also download our podcasts and listen at your convenience. You're listening to Todd black ski a partner with the law firm of Cushing and Alan I'm Susan powers a financial advisor with the arms on advisory group. But gonna take a quick break and we'll be back with more on the legally exchange with Todd Lipsky. This is very Armstrong from the financial exchange did you know that once you turn seven Indian half you are required to start taking withdrawals from your higher rate the problem is that many retirees don't know how much to take out of their -- irony or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50%. IRS penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution -- at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Securities offered to securities America incorporated members in SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America 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 leader 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 is 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 line so logon to leader -- dot com right now -- leader bank dot -- -- -- a step ahead. You're listening to the legal exchange with Susie powers and Todd let's game. Understand and help taxes can affect your state plan is critical to building a successful plan if you need help in this area told us right now and make an appointment. 86684856. No night that's 8668485699. Welcome back into the leaking into. I'm season pass this thing into the thigh to the terms on advisory group and injuring by Todd black ski apart in with the law firm of Cushing and Allen with a masters in taxation. On today show we have tied to bring you that is written for the month of September. It is back to the basics in its complete guide to estate and asset protection cleaning. I really like this guy Todd because the way you bleed it out is almost as if it's a virtual indeed spent letters so as if they had calmed. In seen you for consultation in your sent a letter back saying. This is what I recommend it is how we value your stage this is what you need to look for an estate planning attorney. This is went on your basic documents do for you whether it's year. How an attorney health care proxy the living will pour over will all of that every vote global vs the Harry book well. It's really kind of brace yeah I broke a blueprint to in this state clean and it really tells you how to get started. It's a great educational piece in York. Back to school reading for you folks call right now to receive your free copy. At 8668485699. At 86684. 5699. If you prefer you can always download a copy on our web site legally exchange showed dot com. Just select the guides and articles tea. Sisters and let's let's talk and this is actually I think an interest in case it's a bankruptcy case you're probably wondering when I talk about that player to talk about. That here conduct. A. I would do that because it deals with this whole back to the basics and one of the many things you need to think about. When you're doing your estate planning when you're preparing your documents your state planning documents and that is. How are we going to leave our assets to our family. Night. The death part the after. You die part the trust doesn't need to end that trust can live on. And you can control. How your family gets these assets. From a protection Terry creditor divorce proofing standpoint controlling from beyond the green. Right if you want to. And so that's why I hate go to this bankruptcy case this is the ninth circuit. Bankruptcy case that basically says there was a trust draft that with a spendthrift provision in which means one. Says that that created a trust for sun. But the trust did provide. That the sun could have principal. Distributions from the trust. Up to a million dollars okay. That's not good language. If you want spendthrift creditor protection language right. So because that could happen the way this trust was designed. The bankruptcy trustee said well let's go get. There's a million. Filed for bankruptcy. Yeah I'd left that little part of a Saudi filed for bankruptcy. Some files are bankruptcy it's the dads trust created force on dad's deceased. And now the bankruptcy court has now. Let's go to let's compel. The distribution then that's what bankruptcies do well the supreme court of California. Took this and it and analyzed. In the analysis is as follows it's like a three pronged test as to. What extent the bankruptcy court could reach assets from this. Spendthrift trust. One the full amount of the trust distributions that are due and payable on the date on the date of bankruptcy certainly would be available. Okay well due and payable line read the terms of the trust figure out what that is true. They can not get any amount of the trust proceeds that are allocated to support in education. Those are compliment to carve that out Paris to Ari. And they can get 25%. Of expected. Future payments. As long as those are not enough to offset that point 5%. If any of them are art for neater supports so if for example the trusses. Sun can have 25000 dollars a year. Just all willing LE. Does it upset by education support so again if something's needed for education support that you take away from that 25% support be like living expenses like housing things like that problem. Okay it's vague criteria it's a guess there were not written by attorneys say that's the latest. Song like I'm reading this I'm saying OK well obviously if there's a provision that allows a distribution of a million dollars on thinking that that's not. Divorce proofing. Creditor protection bankruptcy language. In so that's the analysis the court went through in this case. And that's why it was available under this spendthrift clause. I wanna tell you how to do it I think a better way the right now that are anyway. Well I'll call the right way you know what folks. Do you want to know how to do this the right way. Call to request a copy of Todd sky it's back to the basics so great educational piece it we'll show you. By having your statement in place how you're in the can avoid probate how you can reduce or eliminate as the taxes. As steep taxes folks if you are able to reduce or eliminate them. All you're doing is a voluntary gift to the government if you haven't put a plane and plays that could actually take care that's for you. You can learn the difference between me vulnerable and Gary ball Kabul where it started in the process which can be the biggest hurdle for a lot of folks. What's included in your ST what how do you value your ST how do you figure out. Does my age impacted what about my objectives in my family dynamic. All of this included. In tied back to the basics guide call right now to request your free copy. 8668485699. At 8668485699. Or download a copy and our web site. Legal egg. Steen show dot com. So how are we doing you know this isn't so much that I'm I'm speaking to you folks about bankruptcies. I'm speaking to you more about drafting your estate plan like you said Susan back to basics learning how to begin the process and what you should be thinking about. When you're doing it. One of the many things we think about is what happens when we die while. I can tell you Susan we've been talking to people you know a lot I would say certainly over the past 45 years has become a big deal. I'm in that is you know we we ask one question. You want these assets divorced proved in case your children get a divorce yes with a resounding answer really yes right. Absolutely you know we we love our in laws but not that much you just never know. And so you know what I think about spendthrift and divorced proof let's run through the three prong test. As it might apply to the way we were drafted it Cushing and all. We would set up the assets where there would be. Three buckets in your trust if you have three children just used to but it preached you know and into as many equal shares as we have children. Then there's language that says that money stays in the trust buckets. They can be trustees and manage and invest the money that's fine yeah. But the language would say and disinterested trust he needs to be appointed. And that disinterested trustee let's say it's me just because it needs to be an attorney your CPA. So for conversations take on the disinterested trustee. It's in there that you know that children are managing investing making decisions to bind sell real estate inside the trust you name it. But anytime one of the children let's say Sally says I want money from the trust for me or my kids. Would have been the grandkids. Unique ask the disinterested trustee taught check with. I get to decide yes or no in my sole discretion. And sole discretion allows us the protection. From divorces as follows when the divorce comes and they say we would like Catholics in your pocket Sally. Sally says check with top. His choice and Todd says today's not a good day for the distribution. Null. And it's protecting. So that's the simplest way we can explain it but look at the analysis of the court and the ninth circuit and and apply that. One they say. The full amount of trust distributions due and payable on the date of the bankruptcy or the date of the creditor and our example right. Well its sole discretion there's nothing available. Good. Can it be well isn't being allocated for Nader supporter education. It's just. Sold discretion. And nothing there and three wood about 25% of expected future payments. There is no expected future payment right its sole discretion. It's yes or it's no we decide. Okay folks this is a great way to leave your assets learn how to divorce proof your stuff. Actually want to do your entire state plan but this is a big part of it. Yes right you know like maybe you're not concerned about divorce maybe you're concerned a vote. Protecting kids from themselves. You can leave your assets however you want whenever works would be your family dynamic. Which is what it is you're trying to accomplish let's face it behind every statement. He is a feeling. You just need to figure out what you want to accomplished and then you let the experts make the recommendation of what kind of trust. We'll be the right thing to make that happen for you where the year concerned about eliminating the state taxes need you wanna avoid probate. Maybe you are concerned with the Boris proofing area with special needs child or grandchild they're concerned about. Find out how to start the process how to begin. How to find an attorney those qualifications that are important to look for when your working with an estate planning attorney. What those basic documents mean what you can accomplish by using a revoke able. Or an eerie vocal tracks call right now for this comprehensive guide Todd back to the basics guide. 8668485699. 8668485699. Go to our web site legal Eckstein showed dot com. Download your guides dialing your podcasting you can even submit your ass Todd questions. And hopefully will be able to answer them on the air for you. Todd black ski from the law firm Cushing and gallant thank you so much I'll always a pleasure thank you. I'm Susan Paris a financial advisor with the Armstrong advisory group we thank you for listening today and we will be back again next week. On the legally exchange with Todd black ski. Securities up. With the securities America ink member and that SIPC an advisory services offered through securities America advisors thank securities America in its representatives to not provide legal advice therefore it is important to consult with your legal advisor regarding your specific situation Cushing and Alan Armstrong advisory group to legally exchange and the securities America companies are not affiliated. If you're hard worker and have created a successful business I've got a message for you that can help that business thrive and grow hi this is very Armstrong on behalf of the US Virgin -- economic development authority the authorities' economic development commission offers a tax incentive program for companies located in the US Virgin Islands I'm talking about a competitive offshore tax benefit program that is sanctioned by the US government and allows your business to lower its corporate tax burden by 90%. 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This is very Armstrong from the financial exchange did you know that once you turn seven Indian half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their hiring a poor they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% higher -- penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guide at 803934001. That's 803934001. Or you can download it from our web -- financial exchange showed dot com. Securities offered to securities America incorporated members in SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are unaffiliated.
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