Real Life Stories of The Legal Exchange 10-22-17

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Sunday, October 22nd
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These are the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's just from the love for a month Cushing and Tillman Susan and John have been helping people understand and react to legal issues that they're faced with every day and they're here to help you to. If you have a story to share contact us on our website legal exchange show does come up that's legal exchange showed does come. Now here are your posts Todd lets Steve and Susan powers. Welcome into the related stories from. I'm Susan how are the things besides that they Armstrong advisory group. And doing bite I'd like to eat a parking lot from Cushing and only. With a masters in taxation. Todd welcome how are you I'm very well and you I am great thank you what do you have for you week in review today we've got a couple things here one interesting a client came in and and basically a list of questions now. It came in says I'm not really sure here or does this make sense to me even plan lays these houses. And he's got you know some savings and he's wondering you know basically. 12 I need to plan in no. The difference between a revoke morning here local trusts in like laundry list of questions like okay slowed down Lockett through the meeting. But that's a great integrates very very common and that's really what people want to hear is is that they don't there are no. That's what we're trying to educate. Next an individual called me. After having you know read the article in sodium still confused. Questions about removing and replacing a trustee. Questions about you know. How does you know how does how is it written what do those laws governing. You know your trust in and it seems like you're saying you have control but it looks like you don't have control. I'm like that the article is pretty clear cell. We'll have to help explain you know basically how these trusts operate most attorneys think they're speaking in English when in fact they're not. We're gonna we're gonna spend some time there and try to it it clear that up. And then lastly but Klein comes in and and I think this is a good one too because it comes and he says no I went through the lawyer and I got an irrevocable trust I'll setup. I'm just about ready to sign at a signing meetings scheduled. But I've been listening to your show. About and you know just trust and how it works and. I'm not comfortable. That I was it as was explained to me well or that I understand it well or that. That really I can do all the things that you say should be able to do you can't look at it. And I explained to you exactly something slips I thought that was a really appropriate. Situation. And you know what folks maybe you have done your transplant need be bright sign it maybe you are getting ready to sign into the at this gentleman that did contacted Todd was. In you just don't know how I seen the check this document how to Plano it's written properly that it has all the language in it that it shouldn't have. That it does not have those troublesome paragraph that Todd has talked about so many times that they are not including your trust. We URL in luck because Todd sky did these written for the month of October. It's designing the perfect income only eerie evoke able trust. Indy goes into so many. If you're one of those who have been procrastinating. Maybe you or resolute mission in January was on the U my estate planning that you still haven't. Could you weren't sure how these trust operates Todd has also included page after page after page. In easy to understand question and answer format. A how these trust operate on a daily basis if you are interested in getting Todd sky designing the perfect eerie book about trust. Log onto our website at legally exchange choate dot com. The only way you can get this guy is online so log on right now to legally exchange showed dot com go to the guys in articles page and you can download your. Three died instantly. So Susan let's take a look at this first situation write the client comes in and and basically. I normally say hello and let's start talking and and he's got this list of questions. He's like usual things I've heard about one. Too late in need to plan. With them guide on how to begin share so I said you know it's a perfect question. I do I do I need this plan I said let's take a look at your assets and this is for everybody right do you need planning listen to this situation. You know I've got two houses home or vacation home same state which is helpful. And basically. Worth about half a million. Houses and about 300000 savings and 8000 dollars total assets. Forceful is that enough for planning. It's fair question who you know folks I think it is I don't think there's really any hesitation there. You know I I'm getting to a point where where I am I do have clients that come in and I think they have two little. And I'll tell you you know I don't know. And it justifies spending money. Today. For the size of the state you have. It's not an offensive thing it's just. Why waste the money if you can really don't eat them. So I think it's a very fair question but I think you know 800000 dollars I don't I would planned port. Aren't I can tell you that the cost of setting up one of these plans is not enough to. Attorney. From protecting 800000 dollars and apps and even half a million. Chart probably I would be fine and might just be someone's house by itself is so a lot of times that's all they put in his house yeah. Sami I think we're able to get beyond. That aspect. Of national case it will then the next question that's being bagged is. To I to a revoke trust or near Polk will trust. By the way this person was about 65. Folks if you're listening in you have assets somewhere. In this neighborhood or greater. You can say and you know your rage. Listen to the answer. I asked the question to the kind. Well that depends on the answer to this question. Do you wanna protect these assets from the cost of long term care. Not for me aside my eleven they turned me nice and Washington on what you idea and it went back. Folks I can't tell you whether you should do better and that has to come from your own dot in all capital that. I can tell you most of the time folks people don't. Hesitate. Or don't want you know I'm not go to an arsenal and if I do not want to take. Well then because you answered the question that way client the answer is we need an irrevocable trust not a re vocal trust. 'cause we know the re vocal trust will never provide that kind of protection but the you're vulnerable well. So they irrevocable now will be doing everything the revoke a bull could do plots. Protection from the nursing. OK so he start to get a flavor of one he needs to do it even on the size of his assets to we now know that type of trust. What would be another question in the beginning stages of this process. Well to anyone trust her to this is a married couple by the way I didn't mention that there Mary. Well again look to the size of the estate while in this case he happens to be in Massachusetts. And worth a million. Worth less than a million. Because you're worth less than a million that happens to be the state estate tax exemption for us. Now we know in Connecticut it's two million. We know in New Hampshire there's not and who who who could place the guy move north. Rhode island's one point five million Maine is tied to the federal exemption at five million for ninety. It took place at that as well writes a grizzled yet to called the. This kind of gives you a a feeling right of all of that's another thing if I'm a listener that I need to look at where I live. My age and now the size of my state. While this case it's under a million you're married with that trust planning that we would be doing for them. We know that we can double the million dollar exemption and shelter up to a two million dollars of assets for this client with. Trust planning. I really only need one trust not to. And that's helpful especially when it comes to the structure of the plant right you save about a thousand bucks. By having only doing one trust for a married couple. And not too. So now this person said well I feel good I'm I'm determined. To type a trust I need to determine how many I need and I determined that. I think I need to trust share in now we can go explain to this client how that trust that we've settled on works. And I think that's a wonderful. Question. That I think applies to almost everybody amnesty to you look at what's your set of facts. Right into that example. So Todd if they weren't concerned about nursing home protection would you still need to trust that it was over a million that they were doing evil global trust and know that's a great question if it's regal couple trust planning even if they're over a million. But under ten million. Which is the federal exemption and more of a moderate state. I think you can get away with one joint revote global trust for the moderate state being worth south of ten. I mean I might go south of not generate just give me a little cushion but still. That's a big number one if you don't need you need so. Great follow up question Ted people who are saying you know I don't need that nursing home planning maybe they needed got tons of long term care intern. Apps you know. This gentleman this couple they came in to see you I think we should send them your god you've written for October tied because this guy folks. It goes through dozens of questions and answer is it's a great format. Tenet really into those questions maybe even trying to figure out how these trusts operate on a dated date basis just to kind of give you. A little snippet of some of them you know it's it's who should consider using easier evil global trust and who's that don't aren't. Who can be the trustee in what how they interact win. The probate process and protecting assets long term care and can I still sell my house can still live my house to I still want to pay the bills from my house. All of those questions are answered and much more as well this guide. Will help you review your existing trust documents so you can see the language that should not be in the air as well as the language that must be in the air folks. If you're interested in getting Todd sky designing the perfect area vocal tracks log on our website it legally exchange showed dot com. The only way you can get the sky news online so log on right now to legal exchange showed dot com. Go to the guides and articles paging you can download your free died instantly. If you miss any of today's or any of our past shows you you'll also find our podcasts that this you can download that. And listen at your convenience. You are listening to toddler ski a partner with the law firm of Cushing in Dolan I'm Susan powers of financial advisor with the arms Dong advisory group. We're gonna take a quick break and we'll be right back on the real life stories of the legally exchange. Securities offered to securities America member finreg SIPC advisory services are with the securities America advisors think securities American misrepresented to do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group relayed stories of the legal exchange and securities America companies are not affiliated. It's been an incredible year for stocks for the Dow NASDAQ gained Essen PL reaching high water marks in spite of this tremendous success there remains concern about a market correction on Tuesday November 14 that burdens grill in Burlington. Ari Armstrong will host a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group. Will there be a correction if there is they'll help you prepare for it and you'll also hear from time bloods. 803934001. That's 803934001. To join me Armstrong advisory group and the voice of Boston AM six AB WRKO on Tuesday November 14 at Bertans grilling Burlington. Burdens grill your life your style. Space is limited so call now 803934001. That's 803934001. Securities offered to securities America incorporated members and SA DC advisory services are for your securities America advisors incorporated Barry Armstrong were presented at 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'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 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 -- and no minimum balance and remember this product is only available online so logon to leader bank dot com right now -- leader bank dot com -- bank a step ahead. George tune into the real life stories of the legal exchange with Susan powers of the Armstrong advisory group and Todd let's keep. From the law firm of Cushing and buildings if you have a legal issue you like just to discuss on the show send us an email and we may read your story on the air contact us through our website at legal exchange showed does come up that's legal exchange show. Dot com. Welcome back into the real life stories of some good teams. I'm Susan Harrison financial ties to the Armstrong advisory group and a chilling by Todd lets see apart from the law firm of Cushing and telling. With a masters in taxation. Until they shall be of Todd sky but he is written for the month of October it is designing the purpose the perfect. Income only eerie about global trust in it will show you what should be in what should not being your trust and how are you supposed to know what that should be. Don't you didn't go to law school that fortunately preview cod but he our resident held a lot expert here in the studio did. And he's put together a guy did he kills all of the red flags you need to look for. In your trust documents. If you're interested in getting Todd sky designing the perfect eerie evoke Coble trust. Log onto our website at legally exchange showed dot com. The only way you can get this guy is on line so log on right now to illegally Justine showed dot com. Go to the guides and articles page in you can download your free died instantly. So Susan let's talk about. Second situation. In this case. The individual. Called called and in and basically emailed and called and then and Kaman. And said look. I've met with. An attorney. And our I've I've read your article excuse me and I'm confused. I think I need one of these irrevocable trust but. I'm not sure. And I understand all the new ones as 'cause it seems to say that on the one hand you can remove or replace trustee and I wanna know how the removal and replacement of a trustee or works and and you have power but you don't have power and you know. Just are really another laundry list of questions more about not getting started knows he wants to do it. Knows he wants to protect his assets from the nursing home. But it's confused. And says that you know my understanding is I I read things about your vocal trusting comes in and says. And most of what I read says you can't have. Control. Article seems to say you can't have control room right so wasn't that it was confused by my article it made me feel better again because I was so afraid that it was like oh my gosh how poorly that I draft this thing I thought it was pretty clear. And Andy said I'm confused by your article you're article seems crystal clear. But tells me about all the control that I can't keep I reached so many articles that tell me about. Irrevocable trusts and that I. Don't have control and their rigid and inflexible. And we hear that from Klein. Constantly. Constantly and I talked to this person it's I shouldn't that. Money. My advisor this on them and they say that I actually should be done tests and so. I said to me no I'm glad we we got to the bottom of this let's try to explain the confusion not only trip to this client but to you folks listening right because. Exactly use answers. They come in and right away there that are taken aback sometimes by the word miracle Kabul probably because they too have heard or read. About these irrevocable trust they announce key Bridget. Now the thing. That the easy explanation. Is. There's different kinds. Of irrevocable trust there's different kinds of irrevocable trusts for. Different purposes. And for people with different levels of network yes that's really the key so. Example one that most people here and I'm trying to explain the difference between irrevocable trust I know we talk about re culpable and you're vulnerable. Let's explain the differences within the irrevocable trust round. How about an irrevocable life insurance trust or an irrevocable gifting tribes and many people have heard of that share. Folks that trust is designed to take for example you have a million dollar life insurance policy you. Well that's a big asset. If you own it in your own name when you guys. What's it worth. 1000012 million bucks you now with one asset have reached in many states the state exemption limit. And you haven't talked about any other assets so now you're pushing New York. S state. In 28 taxable situation. Simply. Because of the insurance right. So what are we wanna do we wanna get out of the estate after all you're never gonna enjoy it you'll be debt when it's working million yup. So I don't wanna pay taxes on it. And it's already income tax free to the recipient. Because it's life insurance. So what I wanna do what I want to get it. Of my state I don't want my estate to have to pay state taxes. On that life insurance. So to get it outside the state I have to put it in and irrevocable life insurance trust or gifting trust. And that trust is going to be more inflexible. More rigid because the goal is to get it out of the right. And you know what folks that trust that we're talking about we're right looking at protecting assets from long term care expenses. Our income only Medicaid qualified Jiri remarkable track and Todd explains. How the types of trusts cooperate. In his guide Diddy is written for the month of October if you would like to receive a copy of this earth. You can download it on our web site legally exchange you dot com the only way you can get this guy is on line till log on right now to legally exchange showed dot com. Go to the guides and articles page and you can download your free guide instantly. So in that regard. Argue we've we've kind of explain it so that's outside the estate you can have your spouse be the trustee. But not you. So that's a difference right. And you can't have any interest in the trust so I'm a life insurance owner and I'm putting in an irrevocable life insurance trust. I can't be the trustee. And I can't have the right in conference period it's not mine at the life insurance and life insurance yeah I've given away. Just want to estate tax rate. Switch over now to a Medicaid irrevocable trusts like we're discussing in the guy who. You can. Put your act you can put your home in there you can put your vacation home in there. But you still wanna enjoy what's in there sure you don't give it away right so we draft it. So that it's included in Europe state meaning by enjoying retaining the ability to live in your house. To sell your house to buy another house to pay your bills. You know. Even if you put your your investment portfolio. In the trust. You're managing your portfolio. Controlling it you are collecting the in com your collecting the dividends. Eat your supplementing your income. Paying your taxes on that those dollars add interest that dividends. Just like Q war. Before you had the trust and all of that is so that that that sends the message that while I do have control. But with that control. Comes in collusion. Into your state for state tax purposes so unlike the irrevocable life insurance trust where this will now no longer be in my state. So for example if my state is worth 3000001. Million his life insurance. And I put the life insurance in the irrevocable trust now my estate is worth two million and I'm going to be able to shelter more for state tax rate. I'm right now not have the insurance question. Because I'm dealing with Medicaid planning my estate wills instead of being. 39 can I don't have insurance is only two million. I don't mind having that included because I'm allowed to show terror would opt to two million at least in Massachusetts more in Connecticut and our island. From and state taxes I don't want to given away right in fact I want it included in mind state so that I can get a step up in basis. And eliminate all the built in gain that might exist on my home or my vacation home or my investment portfolio. That's a big capital gains tax Wayne Hughes. So that's really the difference I think between and Medicaid trust. And and irrevocable life insurance trust yes control exists and so when he was confused by the two. That's why folks. Yeah and you know what did it does the Erie multiple word does sounds scary but we think and it died into in Spain you can control it asking for permission. I think it is people a little bit of breathing round I think I think particularly in this case the material were giving away won't really lay that out we will explain it as a good for him he wasn't confused by the article he was confused by the other articles that are written about other irrevocable trust I think that's important in this cold spell out all the different controls and language in paragraphs that you're allowed to have. And still get the nursing home protection while enjoying. What you have and best of both worlds folksy and you know what there's so many questions and answers that are included in this there are dozens of them. It shows you how these trusts operate on a day to day basis what you can do with your house which you can't you with your house who you know you can still live there. Still got a shovel gravel and pay the bills sorry whatever and magic won for that vote. But you can still salad it doesn't it's it doesn't trigger that five year look back to start over again. You get to keep your primary risen capital gains tax exclusion amount which is outline in this guide. You're not asking for your kids permission to do things you're still entitled. To all the income you can own investments in here you don't at the sell them to get them into the traps. So everything is DTL in this guide as to how these trust operate on a day to day basis. If you are interested in getting a copy of this guide log onto our website at legally exchange showed dot com the only way you can get this guy is online so log on right now. To legal exchange showed dot com go to the guides and articles paging you can download. Your free guide instantly. If you missing Ian today show or anywhere passion as you can always download a podcast listening your convenience. And you also funny asked Todd tab appears that you consider me your questions for Todd to answer on the air. You're listening to top left the apartment with a laugh from Cushing and Dolan. I'm Susan power in the financial advisor with Armstrong advisory group and we'll be back with your listener questions and their real life stories of the legally exchange. Are you financial advisor who lacks a formal succession plan you're not alone according to investment news 43%. To financial advisors are over the age of 55 and many have no contractual agreement to care for their clients once they retire hi this is very are strong and we might be interested in buying your practice you worked hard but now it's time to find a successor the arms drug advisory group is a regional firm and we are looking to grow our business through acquisition we will consider both our ace and transactional oriented firms with a solid stable of young advisors who put your client's needs first and provide them with -- service and attention to which -- become accustomed if you're interested in talking with us please call me at 803934001. That's 803934001. Or visit us online at Armstrong. Advisory group dot com securities offered to securities America incorporated members in SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. It's been an incredible year for stocks with the Dow NASDAQ and the S&P L reaching high water marks in spite of this tremendous success there remains concerned about a market correction on Tuesday November 14 and burdens grilling Burlington Barry Armstrong will host a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group. Will there be a correction if there is -- help you prepare for it to reserve your spot please call 803934001. That's 803934001. A draw in the Armstrong advisory group in the voice of Boston AM six AB WRKO on Tuesday November 14 at Bertans grilling Burlington burdens grow your life your style our food space is limited so call now 803934001. That's 803934001. Securities offered to securities America incorporated member finreg SA DC and advisory services are for two securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities America companies are unaffiliated. You're listening to the legal exchange and its time for. Ask. The segment where time will answer your questions about anything and everything that's included in the estate planning process. Once again here's Todd lets PN's Susan powers. Welcome back ton of questions from listeners for you first question comes from alene in Brockton Manson Helene writes. I create didn't Gary evoke Opel trust six years ago. At the time my son was receiving governmental benefits for disability. His inheritance was supposed to be held in trust for him so that he wouldn't risk his benefits. He is now back to work can no longer receiving benefits. Can I up peed my trust now or is it too late because I created more than five years ago. Now. It at the time so if it's seedlings trust so Elaine. If you're creating a trust. And you have set up. The trust language. For the benefit of your children who do and it and you now wanna change it later in this case it's because of a disability. I'd say so that it got better but maybe she probably set up you know like. You know you could've set up a special needs trust you couldn't just inherited him or whatever you did the right now you want him back and rate you can bring him back and same thing if it's not doesn't have to and so for all you folks listening it doesn't have to be limited to disabilities. You might have had a falling out when your child in years have gone by now that child's coming back into the fold will never know right. Never know how life defense. Change so. As life events change you can you can change the way your trust and leaves assets to that. To that failing them. And how about tied in. You had someone where you didn't have and that restrictive language if you will and now they continent tells me they've been able. Since you started your trust if you want to put that would add that in to say all right well now this year al-Qaeda or Billy. I need to make sure that it doesn't mess with his benefits that he's receiving yeah I think that's important to you you are allowed to then go back and and again this is through what we call it test and honoree limited power of appointment that's built into the trust. So that type of changes. You are limited to changing the beneficiaries. In a mile ports. Or how does it says. Equally your unequally to not class that you pixel understand there's a limit so. We didn't breach or or broach relieve the limit here Elaine because. We're saying that it's within the group of people that you would have listed children grandchildren and charities. Parks could be siblings nieces nephews whoever you pick an initial initially. So what you couldn't do it you couldn't add it cousin Vinny in to the list. If that's what you wanna do now what you can change amongst a group that you had so Elaine you're within the rights of that power. The next thing it allows you do is not only changed the amounts. Amongst that group but there's also apparent reference in there that says. Upon conditions or trusts. So you can appointed upon trust so that would mean you could put conditions. A round that tight the way that they're gonna get it so in your case if a child becomes disabled later. You can add. You know I'm gonna now still give it to that child in this same on the I don't. I'm not gonna pay it out of the job. I'm gonna put a condition around it saying. It's going to be held in trust for the benefit out wouldn't that child. Maybe just put sole benefit and allow. Child. Another child sibling. To be trustee of the trust when you're gone and and then they would govern the distribution to that special needs child who. Quite frankly usually siblings of a special needs child knows. The needs. Of that special needs child. Better than anyone who. And disinterested. Somebody else writes I'd be really inclined to do that putt so a couple limitations that are on he can just Willy Nilly changing if it's an irrevocable trust. But if you checked a limited power of appointment he should be able to stay within those parameters. Of the change in how about her concerns about timing where she created it six years ago and now it's past the idea and looked back here it's that she is and now that. You know that at them and the magic number that you can be changed before in not doing eating after and that's a great question people were maybe confused the two I can see how they could do that. On it no impact on the five year waiting period so let me explain. When you take an asset. That's not in the trust and contributed to the trust. That creates a new five year waiting period for that new light up. Not for what's parity and there's so she's right if you were adding things the rules of the trust that could of impact the five year waiting period. But only for the new light. She's not doing that she simply changing up beneficiaries. To an existing trust. That's not in any way going to impact the five year waiting period and a so she's good to go on. OK perfect towering alien hope that was helpful for you folks if you're unsure how these trust operate I seeking change your mind that you don't have to ask her permission. Hi Kim replace your trusty if you if you choose to do so. All of that information including how these trusts operate on a day to day basis he practical guide folks. Included in Todd Scott he's written for the month of knocked over her. If you're interested in getting tied sky. Designing the perfect you're able Coble trust. Log onto our website at legally exchange you dot com the only way you can get this guide is online so log on right now to legally exchange and dot com. Go to the guides and articles page and you can download your free guide instantly. Todd next question comes from Beth in Woburn mass. In Beth writes last year my eighty year old mother met with the attorney was advised to transfer her home to myself. My three siblings and my two nephews who belong to my brother who passed away actual anybody else that we're ready not long enough you're. This is her only asset but it's worth around a million dollars after listening to the show a few weeks ago this seems like it might have been a mistake. Can it be next for sure he did it. She it's done she did the last year the mother did it. Under the advice now turning I'm speechless. And I'm really. I'm at a point right and Honda says six people how to honest gather my thoughts. I guess I feel like I gotta take a walk around the building just to calm down. Before I IE. Answer the question. But I am okay Batman that that's how troubling things like this art to me. I'm and again I think it come obviously folks we don't like you if you haven't figured that out I I don't want what you did I hate it on let's let's. Walk through what the problems that were created here. That because of this advice. It's a million dollar home she's 88 I'm gonna ask the foolish question of. You think she bought this home a long time ago on the island hole where I'm gesture or at the. So let's just go on a limb here and say she probably paid you know she's 88 she's probably had a house fifty years. You know she probably got you know paid forty put some money into it you know even if she's got. 100000 dollars in the house wouldn't. There's an 900000. Dollar gained built into the property boom. Folks that's the difference between a million and the 100000 dollar cost basis. Which she now has given to her children nieces nephews or however on this list. They all have the basis. I can assure you that when mom dies most likely all these people are not gonna want that house and I'm gonna say 99% chance. It's gonna get sold rate. What's gonna happen. It's going to be a 900000 dollar gained that needs to be taxed. Let's just say for fun were at the 28 point 8% call it thirty you know for easy numbers. What's three times now. 300000. Dollars here. So 30%. Of 900000. Rays went through seven he Iran. So 270000. Dollars. Of tax is created over a quarter million. If we didn't give it away and by the latest five year waiting period for Medicaid eligibility sort hasn't really helped to protect it from the nursing home any quick car. Then putting it in trust would have yup. And you've exposed it to all these people's creditors. And it doesn't sound like you reserve the right to live there. So. If she just took it instead. Imported into an irrevocable trust the very trust that we're speaking about in this article is guide today. She still would have had the five year wait to protect it from the nursing home yeah. No difference. She still had the right to live there is very different and much has now. And. We sort of eliminated the doping capital gain when she dies saving 270000. Dollars because there would be a step up in basis to the family. When they inherited upon her death right so what. Yet back. It's that simple. I'd take indeed and I deed back and I'd be hesitant to say that I ever intended to give it away to begin with. So there's not going to be any gift taxed as we have a 5490000. Dollar exemption so I'm not so worried about that. I'm worried about saving 270000. Dollars in tax and still keeping. Everything else is still on her best interest living there paying the bills the comfort of knowing that it's still in her control. She better hope everyone's on over that plank that they all have to sign off on that aren't guys upset that's OK I can see getting carried away here. Folks if you have a question you would like to ask Todd. Visit our website at legally exchange showed dot com and click on the asked Todd tab. Maybe will be able to read your question on the air and hopefully. His answer we'll stop you from being one of his next realize story is. For you ask why you are out there I want you can download this guy because you can explained here month. How these trust operate in how it is in much better solution than just giving your stuff away this guide shows you. The important information that must be in your trust what absolutely must not being a trust. And how they operate on it dated the basis. Down and you download your copy on our website legal exchange show dot com it's the only way to get this guy folks. Legal exchange showed dot com and click on the guides and articles page and you can damage your pre guides instantly. You're listening to Todd let's key apart in with a lot from a Cushing in Dolan. I'm Susan powers of financial advisor with the arms on advisory group. And take a quick break you will be right back in just a few minutes on the relay stories of the legal exchange. It's been an incredible year for stocks with the Dow NASDAQ and S&P all reaching high water marks yet in spite of this tremendous success there remains concern about a market correction hi this is very Armstrong inviting you to join me on Tuesday November 14 at Bertans grill in Burlington for special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will there be a correction if there is all help you prepare forward to reserve your spot call 80393400. Once -- joins the Armstrong advisory group and the voice of Boston AM 680 WRKO. On Tuesday November 14 at Bertans grill in Burlington Bertans grill your life your style our food space is limited so call now 803934001. That's 803934001. Security czar for two 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 unaffiliated. Many of you who've listened to talk amongst you for years on the legal exchange radio program are probably at or near retirement age and if you're one of his core listeners you know he's an expert an elder law and estate planning if you been thinking about starting the estate planning process or just under way. You want your trust documents to be prepared properly so that your assets are protected from the nursing home. It takes five years to secure that protection and you need to make sure that you aren't wasting your time in your money on legal documents that don't work. This month Todd has written a brand new guide told designing the perfect income only irreverent Coble trust. They contained the specific language that must be included in your trust in order to protect your assets from probate. This guide is available exclusively. By visiting our website legal exchange showed dot com. That's right the only way to get this guide is online so head illegal exchange showed dot com click on the guides and articles tab and download your guide. That's legal exchange showed dot com. You're listening to the real life stories of the legal exchange we Susie powers and Todd let's keep. Susan until they've been helping people solve their legal problems for years and they can do what's presumed to. Be a part of the show by emailing us your story on our website at legal exchange showed Doug come on that's legal exchange show time job. Welcome back into the real life stories of her. The exchange. I'm Susan Harris a financial advisor with the Armstrong advisory group and I'm joined by Todd black ski a partner with the law firm of Cushing and Alan. With a masters in taxation. On today's show we have Todd sky did he is written for the month of October it's designing the perfect income only hearing about global trust. In this guide will help you preview your existing trust to make sure. You don't have any language in near they can quite frankly make your trust useless if you don't have a trust already this guy will help educate you. On the language that must be including your trust. As well it includes a deep field operations guide dad is dozens of questions and answers. They will help you see how these trust operate on it dated the basis. If you're interested in getting Todd sky designing the perfect theory go global trust. Log onto our web site legally exchange you dot com the only way this guy is available is on line. So download it rate now legally exchange show dot com go to the guides and articles page and you can download your free died instantly. So Susan here's the last situation we've got. The situation where decline came in. Has. An irrevocable trusts that brings it it. Starts the meeting by saying here it is hands me the trust well says the I've got this your vocal trust and of course my initial reaction is why you here right now that. I don't want to recreate the wheel if you party got something that's done for use that works. And he said well here's why I'm here you're slopes. I've I have and have a meeting scheduled with the attorneys attractiveness. XQ. But I've been listening to the show. And you're talking about all the things that you can do. With the trust. And I have a very easy. Uncomfortable. Minutes feeling. About signing this to. I don't know that I've been explained. That trust the way. Maybe you can explain it number one but more importantly in a way that I feel. I can do all the things that you're saying you can do I don't think that's been conveyed to me. From the lawyer that I sat went in so that's weighing heavily on my ability to go sign this document without. You giving it a second opinion. So of course you know reading the trash can read the whole thing takes a long time so. I said well you know I guess I can understand that while when he you know take a look and see what we can see. And and you know it it it had been no access to income I mean access to income but and also had no access to principal. But you know had some language in it that I don't attend I mean. It had language in it where you have the right to remove and replace all the assets. Two. As long as you replace with something of equal value to make it a grand torturous it was trying to make it a grand toward trust. Which is important and I congratulated him on that mean it needs to be important that you have that in there so that it's tax and income tax level of your own. We not too long ago not only have a challenge this in the past there was a recent fair hearing where. They denied eligibility because they said. That they created this idea where well. Well if you can take out everything. And get it to yourself don't war. As long as you replace with something of equal value isn't that accessed the principal on isn't backing of the away that you can get what's inside the trust. And here's the example they came up with what I thought was creative. They said you can take the million dollar investment portfolio and give it to yourself. You're basically buying it right but back to promissory note you're buying that from the trust. If you're gonna pay it back over time. And so now that trusts it's a fight he could do with a house I'm gonna buy my house and pay you back over time. So what I put back I put back a promissory note of equal value to what I took a Beagle lion yet they don't value and we have no problem because what's coming and is the money it's not impacting whether it's paid out or not paid out it's not impacting the fact that it says. There's no access to principle. Not that is a problem. But what they're saying it is. You're now got the asset write and that's all we care about for Medicaid eligibility. It was creative. And we don't use that paragraph in this is exactly in our guide. We don't use that paragraph we use a paragraph called. The right at its at the power of appointment 67 before any of the code it says. That the dole nor retains the right to appoint the property to charities other than nursing homes or medical institutions that are charities. While that's a big difference and you still make it a grand tour trust without creating that problem you know like folk. There are twelve troublesome paragraphs and provisions that Todd is included. In his guy did he is written for the month of October and I'll tell you lack. Yeah need to get this guy if you have already done your trust cleaning because you need to make sure that none. Of these paragraphs. Are in your guy because there's case by the accent dial up but why they don't working you know one of fine out. When it's too late that your trust is not drafted properly. He's also included those. Clouds is that your trust absolutely. Must have he's on he's also included dozens. Of questions and answers about how these trusts operate on a DD DP fifth. If you are interested in getting Todd sky designing the perfect eerie though Coble trust log onto our website at legal exchange show dot com. The only way you can get this guy is online so log on right now. Two legal Eckstein show dot com go to the guides and articles page and you can download your free died instantly. So Susan what what else was and now again this is why we you have to spend time reading it right because. Even even mean I'm we're telling we're telling you know that the only people out there that have their documents to region find out what the problem is but even if you. Like myself are reading it I found right open they have the right to income oh good it's irrevocable oh good they prohibit the distribution principle the obvious. Paragraphs were in there it's these subtle. Paragraphs that. Unfortunately as a layperson you're not gonna pick now right but it's the subtle paragraphs or different so on the surface I was telling him at least initially. The trust seems okay. To my delve into this a little deeper and then I delved in a little further. And I found that all those trustee powers that are listed in there. The lending that we talk about lending money was in there right and borrowing money was in there. And it did not have the paragraph and all those trust paragraphs to prohibit. The ability to lend. To that don't know war. Or the donor or spouse at the donor or the donor or spouse cannot borrow. From the trust well the trustee should be able to lend money make secured unsecured loans to other people other beneficiaries. Must have felt little sentence. That prohibits it from being done to the don't market again what does it say under the uniform trust code. If it says that you can lend money. And you don't qualify it then they're gonna assume that you can't lend it to that don't orbit today didn't say you couldn't it's that's islands. Silence idea not always the way to go so those were two. Problematic paragraphs in and of itself. For me. And and and I went on to explain to him how our trust works. And all that benefits and controls that you have in. And at the end of the day I couldn't. Not tell him that and I think at the end of the day he's not gonna. Not sign that trust nor nor do I think he showed again and unfortunately norte I think he should go back to that lawyer. As much as I tell people to stay with their lawyers if you've got a lawyer are reviewing it in good shape let them on the end it let them modify it let them. You know what's cheaper than using me. In this case I would be a little nervous because if it was done wrong to begin with right. I'm not actual war. That they know how to make it the right. He needs someone. Who is a specialist and elder law that this is what they do dean Indy a 100% of the time right. I think when you're picking a lawyer that's certainly one of the things you need to ask absolutely this is how often that's done in and how much time spent on it so. Again folks. Understand how they operate. Yes the controls are there we've seen it time and time again. You know what folks tied sky that he's written for the month of October you don't know what's supposed to be your trust what's not supposed to be in the. You go to law school but tot dead in he has DTL. All of those troublesome provisions. That absolutely must not be included in your trust he's also included an important language that your trust must have. Dozens of questions and answers of how these trusts operate. On AD DD basis questions about your trustees'. About your beneficiaries changing your mind selling your home collecting the content funding your trust the taxation of it. You name it this guy has it included in the operations portion. Of the guide if hearing to sitting getting Todd sky designing the perfect eerie Vogel trust. Log onto our website at legally change you dot com the only way you can get this trust is on line so log on right now. To legally exchange two dot com. Go to the guides in articles page and you can download your free guide instantly. You'll also find our podcast on our website as well you'll find the asked Todd tab where you can submit your questions. And hopefully save yourself from being one of Todd next real life stories. Todd let's keep from the lot from Cushing in Dolan thank you so much thank you Susan always a pleasure. I am Susan power is a financial advisor with the arms on advisory group we thank you for listening today and we will be back again next week. On the real life stories of the legally exchange. Securities offered through securities America member finreg SIPC advisory services are with the securities America advisors think securities America and its representatives do not provide legal advice therefore it's important to consult with your legal advisor regarding your specific situation she named all the Armstrong advisory group real life stories of the legal exchange and securities America companies are not affiliated. It's been an incredible year for stocks with the Dow NASDAQ and S&P all reaching high water marks yet in spite of this tremendous success there remains concern about a stock market correction this is very Armstrong inviting you to join me on Tuesday November 14 at -- grill in Burlington for a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will there be a correction if there is I'll help you prepare for and you'll also hear from -- what's -- about how a correction might affect your estate plan to reserve your spot please call 803934. Zeros -- ones who joined the Armstrong advisory group and the voice of Boston -- 680 WRKO on Tuesday November 14 at Bertans grill in Burlington -- grill your life your style our food space is limited so call now 803934001. That's 803934001. Securities a procedures are incorporated member and as a BC and advisors are just a particulars American advisors incorporated burials are represented on an advisory group the securities America companies are on affiliated. He spent the last thirty or forty years building your financial planning business he worked hard and your clients rely on your. What about when you retire. You have a team of dedicated professionals who will care for your clients in the same fashion as you do every Don about a succession plan for your clients our firm the Armstrong advisory group is a regional firm based in Massachusetts and we are looking to build our business through acquisition. We are affiliated with an award winning broker dealer RI AA and we have superior service capabilities we work with clients in all six New England states and of offices throughout the region making it easy and convenient to set up meetings if your interested please contact us through our website Armstrong advisory group dot com or call 803934001. Our advisors have over 100 years of combined experience in the financial services industry. Call us today at 803934001. Or visit us online at Armstrong advisory group dot com securities offered to securities America incorporated member and SIPC advisory service is offered for securities America advisors incorporated every arms are represented their arms are advisory group in the securities America companies are unaffiliated.
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